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Page added on July 13, 2015
Kunstler: Greek Pudding
The proof of the pudding is in the eating, the old saw goes. This one, alas, is a mélange of several old shit sandwiches bound in a liaison of subterfuge and seasoned with political absurdities. Having been fooled in this bistro before, citizen-patrons leave the table resigned to yet another bout of food poisoning as the music of universal upchuck rings across the European Union from Helsinki to Lisbon
What is on display more brightly and clearly than ever, though, is the utter fakery of international banking. The players have lost faith in their own shenanigans. They simply go through the motions now awaiting the political fallout, which is to say the revolt of the people who can still do arithmetic. So, now Greece can supposedly expect another $90-equivalent in new loans on top of the $350-equivalent already racked up. That’s rich. The loan repayment schedule must look like a map of Middle Earth.
Most perplexing — especially for those on summer hiatus in which time seems to be suspended — is the fact that the rescue package will take weeks, perhaps months, to gin up while Greece is right now so utterly paralyzed in bankruptcy that no goods can move, no bills can be paid, and the economy cannot deliver the necessities of daily life. The old refrain, “your check is in the mail” may not be so reassuring to folks who haven’t eaten for three days. Personally, I would expect the gasoline bombs to be flying around Syntagma Square before the middle of the week.
Has anyone noticed the eerie paucity of news emanating from the other hard-luck nations of the EU, namely Spain, Portugal, Italy, and Ireland? The money hole that these deadbeats are in makes Greece look like a dimple in the sand. What, I wonder, is the message to them from the Greek negotiation melodrama? (Lend more money to real estate developers to build more houses and condos that will never be sold? That’ll work!) No, the entire EU debt fiasco harks back to the original meaning of “ring around the rosie” — a theme song of the Black Death. The eventual implosion of the European Union, and the banking system hugging its face vampire squid style, will be the financial equivalent of the Black Death. Kingdoms will fall and social systems will be turned upside down.
The agonizing wait for that outcome is obviously fraying the nerves of all concerned to the degree that all their exertions seem like little more than tragic and pointless exercises in futility — for instance, the terms arrived at in last weekend’s negotiations. Nobody has a shred of faith that they can or will be carried out. In effect, what they’ve done is put together a Potemkin framework allowing them to go just give up for a month or so and go on vacation.
That would, of course, set things up for a mighty financial convulsion in the autumn — history’s favorite season for ruin — when all the ministers and their factotums venture back to the dismal realities they left fermenting at the office. Of all the many things apt to happen, we can count at least on the current Greek government falling and a failure of Greece to make any gesture of repayment in their just-negotiated loan schedule. That would leave the “Troika” (the EU, the ECB, and the IMF) with zero credibility and initiate the epochal widespread repudiation of the entire EU loan structure — in short, the collapse of Europe.
That wouldn’t necessarily be the end of the world, but it would be the end of nearly seventy-year period of peace, prosperity, and stability. The sorting-out would be epic. The standard of living across Europe would sink to the level of the 1830s. The fundamentals of banking and currency would have to be rebuilt from ashes. More nations will break up into smaller units. Western intellectual life would suffer immense shock as all the certainties of the Enlightenment project seemed to go up in a vapor of insolvency and political upheaval. You have to even wonder whether Europe could defend itself against an onrushing Jihad.
But these are admittedly gloomy thoughts for a morning so early in summer. Myself, I’m going to shop for an outfit to wear to Diddy’s annual party in the Hamptons. Coonskin caps may be oddly coming back in style as people all over America try to emulate Donald Trump and the furry creature that lives on the top of his head. Something tells me that the ladies will not be buying many Hillary-style pantsuits. Wouldn’t it be cunning if Diddy’s caterer came up with something like miniature Greek Pudding bites? That would bring a real frisson to the doings, something to chat about besides the marketing genius of Kim Kardashian.
19 Comments on "Kunstler: Greek Pudding"
Plantagenet on Mon, 13th Jul 2015 10:50 am
Greece already voted “NO” to the EU’s terms for a new bailout.
If they don’t like this new bailout, then they should vote “NO” again and leave the EURO currency union.
joe on Mon, 13th Jul 2015 11:03 am
Has nobody thought of the depths these banksters will go through to get these first few bills past this week. If I was Greek, and apparently they are being cast as greedy non tax paying people, and my current job was member of parliament then I would be making a Christmas list of thing to exchange my vote for right now.
Make no mistake, the banksters believe they have this one in the bag, and only an (I’m laughing to myself now) honest politician would walk away from this. Syriza has been give 3 days to pack up and vacate Athens, they will vote, take their checks, and mosey on into the Sunset….
penury on Mon, 13th Jul 2015 11:13 am
Hey Plant, when was the last time the vote of the people meant anything? Elect a government which the people support and somehow a revolution occurs and a government friendly to the real PTB ends
up magically in charge. (see ukraine)
Plantagenet on Mon, 13th Jul 2015 11:20 am
Hey pen
Why would you imagine the hard-leftists and communists in Syriza running the Greek government care about the people? Their actions seem to show they care only about enriching themselves. They both lied to the Greek people when they promoted a “NO” vote, and lied to the EU when they said they’d never agree to new austerity. Now the Greeks are in deep trouble, and they’ve still got the same clowns in the government running their country.
penury on Mon, 13th Jul 2015 11:24 am
Hey Plant, enjoy reading your comments. Some of the best comedy on the web.
JuanP on Mon, 13th Jul 2015 12:01 pm
A little over the top. Greece’s economy is not particularly relevant or big. It has been collapsing for years and will continue to do so. No politician can do anything about it.
The Greeks need to leave the Euro, but they will not do that until they have absolutely no other choice left. Circumstances will have to force this event, it will not be voluntary.
The Euro Zone and the European Union need to change or they will fail. I never had any long term hopes for the EU or the Euro, always regarded them as things that would not last long.
Now the greeks may soon receive over $80 billion to try and delay the inevitable a couple of years more. This would put Greece’s debt around $400 billion. At least $50 billion of this will go to pay interest on existing loans and recapitalizing the Greek banks. I expected this to happen. Let’s extend and pretend by issuing yet more loans that will never be repaid. The alternatives could be dangerous to third parties. The Greeks are royally screwed any way.
Northwest Resident on Mon, 13th Jul 2015 12:49 pm
“The Greeks are royally screwed any way.”
So are we all in the long run. Greece is just the current poster child for living far beyond its means, but there aren’t many (if any) nations on earth that aren’t doing the exact same thing. The decisions that NEED to be made to scale down to a sustainable lifestyle cannot be made — the politicians don’t have the resolve and the populations can’t take the shock or the pain. There is only one way out of this global problem, and the road to that solution leads right over a cliff. Somewhere at the bottom of that steep long fall, the bruised and battered survivors will collect themselves and pull themselves up by their bootstraps to look grim reality square in the eye. Until then, it is all extend and pretend, pedal to the metal, right over the cliff.
apneaman on Mon, 13th Jul 2015 12:56 pm
“Greece’s economy is not particularly relevant or big.”
Domino Chain Reaction (short version)
https://www.youtube.com/watch?v=5JCm5FY-dEY
apneaman on Mon, 13th Jul 2015 1:08 pm
What a wonderful analogy for Greece and all the other debtor nations, big&small, that will all soon explode because of decades of ape greed stupidity.
Mystery of Siberia’s 200ft-deep craters solved: Enormous holes were formed by methane eruptions triggered by melting permafrost
http://www.dailymail.co.uk/sciencetech/article-3159067/Mystery-Siberia-s-200ft-deep-craters-solved-Enormous-holes-formed-methane-eruptions-triggered-melting-permafrost.html
Rodster on Mon, 13th Jul 2015 4:55 pm
“Mystery of Siberia’s 200ft-deep craters solved: Enormous holes were formed by methane eruptions triggered by melting permafrost”
Not good and it appears climate scientist were wrong all along. All their projections are happening far early than they could have imagined. So much for keeping temps at 2c above baseline.
Rodster on Mon, 13th Jul 2015 5:00 pm
Meant to say their projection models were wrong. Bad things regarding the climate are happening at a faster rate and are appearing much earlier than expected.
Plantagenet on Mon, 13th Jul 2015 5:23 pm
@Rodster
The climate scientists weren’t wrong. Every climate change prediction was a RANGE. It just turns out that climate change is proceeding at the top of the expected range.
CHEERS!
joe on Mon, 13th Jul 2015 5:40 pm
There’s a bigger picture here guys. The UK is going to vote on EU membership this year. If Europe is in existential turmoil then the UK would leave, then that would be the end. As long as this issue lasts and the closer they get to that vote day, then more likely becomes Brexit. See?
Greece had this in mind and tested the patience of Merkel, if she broke, the UK would have laughed, and that would be that. At least now the Europhiles in Westminster have a chance. She may even have kept her job, but I doubt she will want to stay on much longer after this.
Makati1 on Mon, 13th Jul 2015 9:54 pm
Isn’t reality fun? I skip most articles on the EU and Greece in particular as they are just more of the same. Ditto for claims in the oilgas world that this or that is now the accepted ‘facts’. All of them prove that the intelligent ape is not so intelligent after all. And wisdom appears to be just a word in the dictionary.
If you do not see the collective amnesia in the world today, you are part of the crowd. History/news is now just another way to spin the ‘facts’ to suit the agenda of the moment.
Not too long ago, Russia was a ‘partner’ of the West, as long as the West controlled it through puppet leaders like Yeltsin. When Putin surfaced in the leadership role, that changed and Russia became boogeyman number one, along with those other nations that were still free/sovereign, like N.Korea, Iran and China.
If you watch old war videos produced by the West in the 60s and 70s, you will see a different view of who actually won WW2. A more accurate account of the Eastern Front and how Russia’s defeat of Germany there made winning the war possible for the West. Even so, the US claimed the winner’s crown after a small part towards the end of the actual war. Typical of empires in the making. (US casualties:~600,000. Russia’s casualties: ~20,000,000.)
Anyway, I am looking forward to this Fall and the next year. They should be very exciting/amusing.
Jimmy on Tue, 14th Jul 2015 12:05 am
Greece has an economic problem, or rather an ecological problem; no energy. They can vote left wing or right wing it doesn’t matter a hoot. They’re collapsing. Add them to the list of failed states. This EU dance is all about containing contagion. Just delaying the Greek collapse until they get their anti contagion policy in order. Next will be Italy, Portugal, France etc… As more and more states collapse their various populations will retreat into sentiments of ethic mythology and conflict will grow. The dominos are falling with the weakest and least resilient going first. Eventually they will all topple. Collapse is upon us.
Davy on Tue, 14th Jul 2015 6:10 am
Jimmy, the collapse issues for me are degree and duration. Don’t get too excited yet. The authorities have a handle on this for now. I have watched them muddle through for years now. Greece will be a big test of the EU agreed but immediate collapse? I don’t know. Europe has allot of strength left. Europe has no more serious problems then the rest of the major powers who are all in a differing state of limits and marginal returns of political and economic efforts.
We are hearing all kinds of doom and gloom but that is not the question for me it is when and how hard. This Greek thing could drag on another 5 years before serious consequences. It amazes me how long we have gone thus far with a laundry list of other happenings globally that would normally bring the global system to its knees from panic and uncertainty. Yet, nothing serious happens. The sheeples have not spooked yet.
Our problem as doomers here on PO is not acknowledging the power of momentum. The inertia of collapse could take several years more to do the damage we continually crow about here. The facts seem to be that this ship is going down and we see the evidence everywhere in every discipline. I see no real and substantial optimism anywhere only talk. So I get back to my central theme “timing”. I think we could see BAU momentum for another 10 years on the high side 5 or less on low side. I have been saying this in my doom rants for 10 years now. See how goofy that is!
How many of you will be here on PO in a year or two? I am starting to feel like an old timer because I have seen many friends and assholes lose interest or stamina to come on here daily and preach. I have considered cutting back or going off-line altogether but then I say “self you are going to be cut off soon enough in a few years down the road when the net and or the grid goes unstable. So I stick around and preach doom and prep.
I hope I am helping some of you with doom and prep. You corns I hope I am your devil’s advocate and you think about and be honest about some of my doom I am pissed at you corns because I want something to give me hope and all you all have is the same lame bullshit promises and fantasies. The asshole anti-Americans well I hope you all just fade away like you hope I fade away. I know the world pretty much hates American but hey your shit stinks too and until it doesn’t to hell with the excessive hatred. I would be a dream to see Mak disappear into the jungle. What a scumbag braggart.
Boat on Tue, 14th Jul 2015 6:17 am
Greece just need to learn the work ethic of S Koreans. Less time off.
Davy on Tue, 14th Jul 2015 6:26 am
Greeks have a wonderful life Boat. I spent time there and I was impressed. I did business there which I was not impressed with but the quality of life was great. Even after an economic collapse many will live well. It is a beautiful country with people that live long lives. Why do they live long lives well because they have a good life. Not so much in an economic sense but in a real life basic sense of food, culture, and climate. That is breaking down but they still have allot to be thankful for.
What is more important about Greece is that they may leap frog the rest of us in the developed world in collapse mitigation, adjustment, and preparation. They are collapsing now in place with the benefit of an outside would that is still functioning. Just wait until collapse hits the rest of us with no outside forces to help stabilize things. I have allot of hope for Greece and allot of worry about the rest of us.
Davy on Tue, 14th Jul 2015 10:23 am
Good source of news on the greek situation. It appears someone is being honest:
http://www.zerohedge.com/news/2015-07-14/imf-declares-war-germany-secret-report-lagarde-says-greece-will-need-massive-debt-re