US Fiscal Cliff Talks Going Nowhere to be Followed by Market Collapse
By: Graham Summers
Dec 12, 2012
Ever since the EU Crisis began in earnest in January 2010, EU leaders have maintained the following strategy:
1) Engage in endless meetings/ discussions, none of which resolve anything.
2) Announce that the situation is resolved.
3) Wait for the world to realize nothing has been fixed.
The prime example is Greece. There have been no less than 30 “Greece is saved” press releases/ announcements, accompanied by market rallies only to discover that Greece is not saved and in fact is worsening by the week.
We’ve now had two formal Greece bailouts. We’re currently working on a third/ debt buyback program, the stated goal of which is to get Greece’s Debt to GDP ratio to 120% by 2020.
Again, the goal for the current proposal is to get Greece to the point at which it will still be totally broke in eight years. It’s amazing no one laughs out loud at EU meetings.
Actually they did… the below came from a recent Q&A session with Jean-Claude Juncker, current Prime Minister of Luxembourg.
Question: Is the goal still to get Greece’s debt to 120%?
Juncker: The fact is that the target of 120% will remain, but the target as far as the time frame is concerned has been postponed to 2022.
[Laughter in the room]
Juncker: That was not a joke!