While this is not an “official” EU government report, the fact that it is from one of the oldest French Banks should raise alarms.
Via the UK’s Daily Mail Online:
The European single currency is facing an ‘inevitable break-up’ a leading French bank claimed yesterday.
Strategists at Paris-based SociÃ©tÃ© GÃ©nÃ©rale said that any bailout of the stricken Greek economy would only provide ‘sticking plasters’ to cover the deep- seated flaws in the eurozone bloc.
In a note to investors, SocGen strategist Albert Edwards said: ‘My own view is that there is little “help” that can be offered by the other eurozone nations other than temporary, confidence-giving “sticking plasters” before the ultimate denouement: the break-up of the eurozone.’
He added: ‘Any “help” given to Greece merely delays the inevitable break-up of the eurozone.’
It’s looking more and more like Greece will be the first of many in a coordinated detonation of the entire European Union – and the Prime Minister of Greece knows it:
George Papandreou, Greek prime minister, said that, in the eurozoneâ€™s first big test, Greece had become â€œa laboratory animal in the battle between Europe and the marketsâ€.
In a televised address to his cabinet, he criticised EU members for sending â€œmixed messages about our countryâ€‰.â€‰.â€‰.â€‰that have created a psychology of looming collapse which could be self-fulfillingâ€.
Let’s be clear. The looming collapse of Greece has nothing to do with psychology. They overextended themselves, and now they can’t service their debt. The EU will not allow them to print money (like other central banks with reserve currency status can), and rightfully so because their government officials, like most around the world, are corrupt and will likely mismanage any bailout in the same way they mismanaged and fudged the numbers that created this problem in the first place. The chickens are coming home to roost.
On top of this, if the EU were to bail out Greece, then Portugal and Spain who are much worse off than Greece will come with hands outstretched for their share of bail out funds.
The EU is a socialist Utopian dream and now it is turning into a nightmare. While we believe the EU could survive in name for several years to come, a breakup sometime over the next decade is becoming more likely.