This is Just a Warm Up For What’s Coming Our Way

Friday, June 3, 2011
By Paul Martin

by Phoenix Capital Research
ZeroHedge.com
06/03/2011

Despite the fact we were told repeatedly that the Greece situation was solved just 12 months ago, the country is once again at the forefront of the ongoing crisis in the Euro-zone.

Having already thrown billions at this problem last year, this time around European officials are actually considering REAL solutions, i.e. Greece leaving the Euro-zone. Of course, as soon as these rumors surfaced, several Greek officials (who never seem to be named) quickly responded to say the rumors are unfounded.

At this point it is clear that the Euro-zone will be restructured in the near future. Whether or not it will change with Greece alone leaving the EU, or if we see multiple players drop out, one thing is clear: the EU in its current form is finished.

How we get to this outcome remains to be seen. But the “Greece issue” serves as a perfect illustration of the central issues plaguing the world financial system today.

Consider that Greece’s entire GDP is less than $330 billion (about the same size as the state of Massachusetts). The country also has a debt to GDP levels of over 100% and deficit of around 12%.

In other words, it’s clear, plain as day that the country is broke. So why does Greece matter so much to the EU?

The Rest…HERE

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