With the announcement that Greece was going to get another bailout in November and that France and Germany were close to a permanent solution to Greece’s financial problems, stock markets around the world leaped for joy, gaining three percent inside the first 15 minutes on Monday morning.
Reality began to settle in, however, when it became apparent that details of the master plan to save the Eurozone were missing or, as the U.K. Telegraph expressed it, “full of rhetoric but devoid of detail.” And the additional bailout of Greece in the amount of $11 billion will barely be enough to keep that country afloat for another month. The “troika” of internationalists (the European Union, the International Monetary Fund, and the European Central Bank — the EU, the IMF, and the ECB) who have been pressuring Greece to increase its austerity measures in order to “qualify” for the money noted that Greece simply won’t be able to meet its 2011 objectives: Its targets are “no longer within reach” due to “slippages” in the Greek economy, but things ought to be just fine by 2012.
Observers of the Eurozone’s rolling crises have concluded that Greece is insolvent and that default on its nearly $500 billion of sovereign debt is just a matter of time. Inevitable parallels are being drawn to Argentina’s default in December of 2001 on most of its $132 billion sovereign debt, and the question being asked of Greece is, Why delay the inevitable? Why not just admit the reality, declare your solvency, and get on with life? Just like Argentina?
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