The European Countries Break Down; Survival of the Western World

House Swallowed like Debt is Consuming Countries
House Swallowed like Debt is Consuming Countries | Source

House of Cards Unstable

Just how long could we think that the governments of the world could keep borrowing and becoming deeper in debt? The tsunami is coming into the overseas markets to consume the people, governments and institutions with one sweep. The question is, can the governments keep the whole world from tanking at the same time? Can any one government afford to bail out Greece, knowing that there are many more countries that are in as serious, if not worse conditions, as Greece. If Greece is bailed out, where is the money coming from to bail out the other countries that will need bailing out later ?

Countries and Governments Consumed by Debt and Corruption

How long has the world been expecting a massive and total collapse of the economic system, in whole or just some countries? The news reports have been telling of events and concerns for years, trying to alert the population and voicing alarm. The old song goes, "DEEPER IN DEBT, DEEPER IN DEBT; I OWE MY SOUL TO THE COMPANY STORE". The people, the countries and the institutions have sold their wealth, paychecks and anything that they own to the elite and controllers of the world.

Have the citizens played into the hands of those in control of the economic system or is this a freak act of bankruptcy? In the real world, people who can not make the payments lose their belongings and the material belongings go to auction, going to the highest bidder, usually pennies on the dollar. Are the vultures standing in the shadows or buzzing overhead, waiting for the portions of the wealth to be dished out?

Let us say that Greece has fallen behind in the payments and they are deep in dept. The money trail that would could be traced would be enormous and winding everywhere. If the people have had enough of the overpowering government control, maybe the results could be felt around the world, possibly collapsing the economic systems of the European Union, then maybe around the rest of the world, including the United States.

Rules are made to protect the innocent and the business people, but are also made to make people incredibly rich, through the work of the lower, working class. It seems that every time the big business or big government goes into debt and bankruptcy, the average citizen and working class is expected to bail out the evil, corrupted and notorious villains that made bad decisions, bad loans and bad investments.

In the United States, the Major Automobile Companies were bailed out by the American hard working, tax-paying, middle-class and low class citizens. WHY? Who said that dishonesty, greed, corruption and failure results in a handout? The only ones that are getting the handouts are those in charge, the elite status, those on the receiving end, otherwise called the CEO's. The people running those Automotive industries should be in prison, not be given a handout. They used corruption, greed, deceit and dishonest actions to achieve that money.

So why Greece? Are the massive debts caused by the average citizen or is the cause of the government turmoil caused by the institutions, big businesses and government involvement? The causes seem to be the same all over the world. The basic morals, integrity and honesty have vanished, which are causing major upheavals in the government, businesses, institutions, colleges and families. .


Effects of the European Monetary System

Most people think that the European Monetary system does not have any effect on the Western Countries, but the fact is, that any monetary problems reflects like a mirror to the remaining countries. Back in the Reagan administration, there were planners of the future world. Heidi and Alvin Toffler were two of these and they planned for up to the next 50 years the future of the United States. Part of their plans were to have the other countries take the manufacturing and industries of the United States and let the United States be the manager's of the world. There were problems with this mind-set from the start. Taking the wealth and hard fought for jobs from the United States citizens and just give the foreign countries took getting use to. Greed from the Elite Class that controlled the money figured that there would be lower operating expenses, taxes and overhead, making more profit for the owners. The corrupt foreign governments were also trying take the newly formed companies from the United States owners or trying to get their hands into the cash till.

So what if Europe goes under, how can it affect the United States and other countries? Everything is interconnected. The currencies are interlaced, each country trades with other countries and the United States has interests around the world.


The Western World

The effects of the breakdown of the European Countries could mean disaster for the Western World or could bring some major economic relief in the form of lower prices, lower gas prices at the pumps and more jobs locally.

But on the other hand, the Western World receives many imports and trade with the European Countries. Any monetary disruption with the European Countries could, in effect, devastate the Western economy, Any company that relies on the products of the overseas market to make or produce their product in the Western World might have to shut down or have massive work stoppages. Back in the early eighties, to be more efficient and productive, the corporate leadership decided to establish a new work procedure called, "Just In Time". With the JIT, the supplies, merchandise and raw material would be delivered just in time to be sold, assembled, sold or used. The warehouses that were in the stores and companies were quickly emptied of the overstock and the money used for overstocks was used to fund the businesses and pockets of the CEO's. Now, there are now no or little back-stocks or overstocks to use in case of any emergency, whether it is a monetary break up of the European Union, an EMP strike, storm or an electrical grid collapse.

In times past, the Western World thought that a person and nation should be prepared for uncertainties and emergenices, but seems to be a point in history that nothing can happen that would slow down or stop the progress. The Western World, like the rest of the world, depends on each and every country for its support and continued growth and existence. Any disburbance can cause major problems in other parts of the world. The major factories, grocery stores and retail chains all rely on shipments and merchandise from other countries to keep thriving and to keep their businesses going. Also, the imports of food, as well as the exports of commodities to and fro keep the infrastructure in tack, so any monetary fluctuation of the value of money could mean major changes to the way that businesses buy and sell from other countries. The Standard and Poor rate the countries to being trusted, true and being able to pay back the money, but the S & P has down rated many of the countries, meaning that the country might not be able to pay back the loan or the possibility of going bankrupt may be possible in the future.

In other words, the monetary instability of the European Countries could cause havoc in the Western World because of the trade and merchandise. Another idea to consider, is that a revolution of the citizens of Greece could escalate to the other countries that are having the debt problems. If this happens over the weekend, the stocks of the world would already reflect the outcomes before the Western World like the United States would wake up. In fact, the stock market could wipe out the life savings and retirement of a portion of the citizens while they snooze and dream of retiring. Yes, the European Countries could really create a devastating effect on the Western World, including the United States !!!



BAIL-OUTS AND TAXES COMING !!!!

There is NO way that a bail-out of Greece, other country or company by any government that the people will not have to pay. Anytime the government gets involved, there is a major expense that will have to be paid. With Greece, for the time being, it is on the bail-out list, but there are a lot of citizens of Greece that will not fair so good. These are the business people, those that have properties and those who have made a nest-egg for retirement. These are those people who most likely did NOT vote for the change because they knowingly would lose what they have worked so hard their whole lives. These citizens have a lot to lose because of the government reform. With businesses struggling in Greece and around the world, taxes would be the one plan that should not be implemented, where growth should be encouraged and welcomed. Taxes would stifle the growth and would prevent the future taxation of a departed, bankrupted company.

There are to be 7 countries that are like Greece, that are having major difficulties with the finances and will be on the monetary system's list for bail-outs also. Greece, even though the vote went through as passed, there is a major part of the population that are opposed to the reform, taxation and reduction in spending. The bail-out and reform has not worked so far and the rebellion is on the horizon for those that will apparently lose their homes, businesses and life-long savings. Ever what happens to Greece will be on the chopping block of the other financial struggling countries.

This financial crises is like a house being consumed by Kudzu, a vine that grows by leaps and bounds, entangling and covering everything in its path. The financial crises has grown from citizen to company to countries and now it is threatening the whole world. By bailing out a company or government with more created money fertilizes the ever-growing debt and worthlessness, thereby creating a more despairing, desperate situation.


Do you think that the Greece bailout will work?

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Do you think that Europe has enough money to bail out Greece?

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Do you think that a Greece financial collapse would affect other countries around the world?

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Do you think that increased taxes on businesses and citizens would help the financal problems?

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Comments 6 comments

diogenes profile image

diogenes 4 years ago from UK and Mexico

It's only the mechanisations of the microbes. The virus colony, man, flourishes, its greed causes it to overrun its resources so it shrinks, dies. There's never been any hope for fairness, permanence. We're all pulses of energy from the matter bank. We come, live our few moments, we die: amoebas, man, worlds, stars: to protest the striving and greed just becomes bootless cries in an extrusion whose time has run its course. Like Greece, like Europe, like mankind.

Bob


LAURENS WRIGHT profile image

LAURENS WRIGHT 4 years ago Author

Thank you,diogenes, for your intelligent and inlightening comments. It just seems that the laws of nature would prevent the corruption, greed and massive takeover of wealth. If there is any hope of fairness, maybe the citizens will have to bring back the rules of dealing with corruption. As I look on it, a bailout will only bring about more grief, corruption and evilness, leading to more monetary problems. Again, thank you for your great comments.


CHRIS57 profile image

CHRIS57 4 years ago from Northern Germany

Please, are you sure that "created" money out of thin air is involved?

I don´t think so. Europe as a whole is amazingly balanced when it comes to the overall accumulated current account. And that means nothing else but all debt (no matter if sovereign, corporate or household) is covered by real, earned money.

The money was earned by Northern Europe, it is money in the pension funds and life insurances of Northern European taxpayers. (I put a yes on your little voting game. Yes, there is enough money to bail out Greece)

The Eurozone certainly has one big internal problem: The huge productivity gaps between member economies. Could be solved easily by introducing a true fiscal and economic union and not just a monetary union.

What is happening in Europe en miniature is happening in the world en large. Only on a global scale, there is no excuse for productivity gaps between economies, because on a global scale there do exist adjusting mechanisms like free floating sovereign currencies to overcome trade offsets.


LAURENS WRIGHT profile image

LAURENS WRIGHT 4 years ago Author

CHRIS57 , Thank you so much for your insight and wonderful comments. With the Baby-boomer generation coming to terms with retirement, the medical expences multiplying and the cost of everything going up, how could the money be in the retirement and pension funds. My grandmother put in 100 dollars into the pension fund her whole life and with the first check, pulled out more than that amount that she put into the system. There will be 65% of the population retired at the same time sucking the pension funds dry or what is left after the stock markets took.

In 1973. the pay here was only 1.10 an hour, in 1983, the pay was 3.65 an hour and now the minimum pay here in the states is only $7.65 an hour. Those are the people putting into the pension and retirement systems. The money sacked away in the pension funds are "used" for other purposes and loaned out, time and time again. During the lifetime of these baby-boomers how much do you think that most have put into the system and how much do you think that these boomers and social welfare people will take out in a couple of years? The chain is starting to come apart, now.

Because there are IOU's in the pension funds, the banks and the retirement accounts is the reason that I stated that the money is being created out of thin air. It is in the funds and accounts, on paper and as e-money, but actually not.

You seem that you are well educated in the economy and financial affairs, so you know that the banks, insurance, companies and governments use the deposited money to invest, loan and spend in order to make more money and furthering their agenda so the actual money is not really there.

Does the banks in Europe have the money to cover all legal tender that has been deposited? Do the European banks loan out only on the money that they have on reserve? Do the people who retire from companies in Europe still get retirement pay? Do they get medical insurance or have medical help provided through the government? How many baby boomers are there in Europe and in the other countries that need help?

Does the pay and production of the work force reflect a percentage of what would be needed for the bailout of a bankrupt Greece and possible other countries. Are the citizens of Europe willing to reduce benefits and retirement to pay for the bailouts needed for those countries that can not control the spending ?

Again, thanks for the comments and valued input.


Brupie profile image

Brupie 4 years ago

You should read "The Great Depression of 1990" by Ravi Batra. Was there a depression in 1990? No, but there have been a few recessions, none of them quite like what was predicted. The problem is, like so many doomsday forecasts, it sold well. Cherry picking bad news and weaving it into a drumbeat of hysteria is easy.

Yes, unemployment is still high, wages stagnant, and the unrest in the Middle East hasn't ended, but compared to last year or the year before? Core inflation has been under control for over a decade, the U.S. is no longer in Iraq, and housing starts are up. China's economy has slowed considerably so I don't expect they'll be dictating terms on currency, especially since the yuan still isn't a readily convertible currency. The interdependence you see as a weakness also motivates nations to work together.

World collapse isn't imminent. Give up on the paranoia.


LAURENS WRIGHT profile image

LAURENS WRIGHT 4 years ago Author

Thank you, Brupie, for your very intelligent and well versed comments. I do agree that the countries will try to work together because each country is interweaved in every other country. My experience in the last ten or so years, is that no matter how much faith that I can put in mankind, the corrpution, greed and the love of money have overcome the rules of moral business, credit, banking, government and making logical decisions.

When talking to students, they asked me whether a million dollar bill that they were holding was real. I told them that it is as real as they think that it is. People in retail say the same thing saying that the merchandise is as valuable as people perceive that it is. The money of any country is as real and valuable as people think it is, no matter what the country says it is. At any time, this could change. It comes down only to the confidence of the people.

I have seen people looking through Rose Colored Glasses for some time, but people ought to weigh both the good and bad, be able to see what is coming, to try to change the future for the better and to help each and every neighbor. It is working together, sharing and helping is what is going to get us back on track.

Thank you again, Brupie, for taking time to comment.

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