Wednesday, February 25, 2015

Greece will not be able to pay its debt

The EU should never have taken Greece as a member. When the first problem occurred a few years ago, they should have written off Greece right away. But no, the central bank and the ECB supported of-course by the Federal Reserve, they kicked the can down the street and lent them more and more money, with the result that Greece now owes the EU and banks in the EU in the tune of $250 to $300 billion. So here you have a little bit of a problem and in my view its inconceivable that Greece will be able to repay their debts, that should be very clear.

Now I'm more interested in what happens if Greece leaves the EU or is kicked out of the EU which I think is the right thing to do. The probability is 50-50. If Greece leaves the EU, what happens to the Euro, Will it strengthen or weaken... I believe it will strengthen. What the Euro needs is strong countries not weak countries. 

The biggest embarrassment to the bureaucrats in Brussels would be that if Greece leaves and does well economically. That would be the biggest surprise and really be annoying to the bureaucrats in Brussels who want to keep the EU at all costs.