Greece and the Deutschebond

Hopefully, Europe is NOT relying on yesterday’s conference call between Angela Merkel, Nicolas Sarkozy and Greek Prime Minister, George Papandreou.

Lets not beat around the bush. The Greek government lied in order to gain entry to the Eurozone. It did it with the connivance of Goldman Sachs who were paid $190 million for their trouble. CLICK HERE.

Euro auditors ought to be in Athens performing Due Diligence in order to make sure that the numbers stack-up and more importantly, that Athens really is making progress and reducing its budget deficit.

The days of “My word is my Bond” are over.

Greece is an economic Basket Case which will be a  drag on the Eurozone economy for ever. Historians will also know that Greece tends to make a habit of going bust and defaulting.

The destructive influence of Greece is now causing rifts within Europe and there is now a very real danger of the German government disintegrating.

Finally, empty pronouncements by senior European officials which are designed to manipulate Stock Market prices MUST stop.

The ONLY morsel of common sense was delivered yesterday by Guido Westerwelle, Germany’s Foreign Minister. He said: “….we  believe you can’t fight debt in Europe by making it easier to take up debt.”

We all know that economic GROWTH is the answer. That’s something that Greece will not be capable of for years – if ever.