Greek political elections being held this weekend may determine whether the country becomes the first member of the euro to leave the currency union. The worst-case scenario envisions governments defaulting on their debts, a run on European banks and a worldwide credit crunch reminiscent of the financial crisis in the fall of 2008. When (NOT IF) Greece drops the Euro and goes back to the Drachma, we are going to be in deep trouble too. Once Greece goes down that rabbit hole, Spain, Italy, and France are not far behind — and that will spell the end of the Euro as we know it. So, despite losing our second leading trading partner, the loss of consumer confidence, and the resulting civil unrest, our banks back home are in it deep with Euro-debt. U.S. banks are in deep with loans, credit default swaps and countless derivative schemes.
The scary thing is the Euro is still worth more than the U.S. dollar. This is a fact that no one in the media even mentions. Socialism does not work. Keynesian economics do not work. Barack Obama thinks that the U.S. economy needs more Federal spending and more public sector jobs. We know from experience the principles of limited government and free market economics that made America a beacon of freedom and prosperity for the world. We also have the advantage of seeing the Socialist Nanny States of Europe collapsing in an epic failure. We need to get Barack Obama and the Progressives out-of-the-way and let the American people carry our nation away from the contagion of the looming EU collapse. At least UK Independence Party Nigel Farage sees the European Union for what it really is…
