The Countdown To The Break Up Of The Euro Has Officially Begun

[Mal]

The results of the elections in France and Greece have made it
abundantly clear that there is a tremendous backlash against the
austerity approach that Germany has been pushing.

All over Europe, prominent politicians and incumbent political parties
are being voted out. In fact, Nicolas Sarkozy has become the 11th
leader of a European nation to be defeated in an election since 2008.

We have seen governments fall in the Netherlands, the UK, Spain,
Ireland, Italy, Portugal and Greece. Whenever they get a chance, the
citizens of Europe are using the ballot box to send a message that
they do not like what is going on. It turns out that austerity is
extremely unpopular.

But if newly elected politicians all over Europe begin rejecting
austerity, this puts Germany in a very difficult position. Should
Germany be expected to indefinitely bail out all of the members of the
eurozone that choose to live way beyond their means?

If Germany pulled out of the euro tomorrow, the euro would absolutely
collapse, bond yields for the rest of the eurozone would skyrocket to
unprecedented heights, and without German bailout money troubled
nations such as Greece would be headed directly for default.

The rest of the eurozone is absolutely and completely dependent on
Germany at this point. But as we have seen, much of the rest of the
eurozone is sick and tired of taking orders from Germany and is
rejecting austerity.

A lot of politicians in Europe apparently believe that they should be
able to run up gigantic amounts of debt indefinitely and that the
Germans should be expected to always be there to bail them out
whenever they need it. Will the Germans be willing to tolerate such a
situation, or will they simply pick up their ball and go home at some
point?

(continued)

http://theeconomiccollapseblog.com/archives/the-countdown-to-the-break-up-of-the-euro-has-officially-begun

[LilConchitaSucksThePetah]

OBAMA can only hope a follow-on recession doesn't touch the U.S.
before the November election.