Contagion Is Here
Despite multiple bailouts – including rescue efforts funded with billions of U.S. tax dollars – the European economy is once again teetering on the brink of collapse.
“The 2012 uptrend that held for so long finally appears to have broken,” one Eurozone analyst notes. “The ugly prospect of bank runs appears to be spreading over Europe, rumours having hit Spanish banks yesterday to complement those heard about Greece earlier in the week. As with so many things, it doesn’t matter if it’s actually true, since markets have worried about this for so long that the merest hint of capital flight raises investors’ hackles. Bond yields are on the march, and shares in London are taking heavy losses once again.”
Meanwhile Spanish banks have been downgraded by Moody’s – and Fitch has slashed its debt rating for Greece (which may or may not be in secret negotiations to leave the Eurozone).
Speaking of meetings, the leaders of the world’s largest economies (a.k.a. the “G-8”) are meeting at Camp David this weekend with U.S. President Barack Obama – who has vowed to put forward “specific steps” aimed at containing the Eurozone crisis.
Who wants to guess what those steps are?
Here’s a hint … you’ll be paying for them.
With its own debt crisis looming, America cannot afford to continue bailing out Europe. And even if doing so was something our country could do, it’s clear that such an approach has been an abject failure.
“All that these efforts have produced is a continent that’s deeper in debt and a Eurozone economy that’s choking under the strain of that debt,” Americans for Limited Government (ALG) chairman Howard Rich wrote on this site back in January. “The insanity must stop. The European debt crisis should have been a warning to heed, not an invitation to squander even more tax money.”
Indeed … however our guess is that Obama and his fellow globalists aren’t about to heed that warning.