Some backgammon players had to interrupt their game: the European Union and the world in fear for their lives.

What next?  If they break a window in the only Starbucks in Athens  the Marines will have to take matters into their own hands.

Thanassis Katsios, alias Krull a la derecha
Thanassis Katsios, alias Krull a la derecha

Read how the world reacts to the tragedy that unfolds in Greece

☼  In America del Norte, o sea los yankis:

If Greece goes down, almost every Western government will be at risk.

And what must be the consequences of this? Regime change in Washington !!

U.S. Spend-a-thon Risks Slide Into Greek Tragedy
A Republican takeover of the House may be the only thing between the U.S. and the abyss. The world economy shuddered last week as a rating company downgrade of Greek debt set off fears of default.

Syracuse University economist Len Burman, the modest and sober budget expert who was a top official in President Bill Clinton’s Treasury Department, said: «I try not to get too depressed, because if I really thought it was going to play out the way this model works, I would just move to a cabin in Montana and stockpile gold and guns.»

Yes, my friends, the American economist build a model, -really an Excel Spreadsheet- then he shits himself at his own numbers as if he had eaten a Greek donner kebab made of dog’s meat.

☼  In Germania they consider sending the Wehrmacht nazi soldiers back into Greece, at least that’s the impression I get reading their articles:

European farce descends into Greek tragedy
by Wolfgang Münchau

I almost fell off my chair when I heard Angela Merkel say … the most far-reaching economic governance proposal I have heard coming out of Germany … that the EU might sometimes have to take charge of the fiscal policies of highly indebted members

triggered by the Greek crisis, which has brutally exposed the weaknesses of Europe stability and growth pact…

this disaster-in-the-making…

Last week alone, two-year bond spreads between Greece and Germany rose by 1.3 percentage points …

[ Bond spreads up 1,3% !  Is this the sound of tanks rolling that I hear, led by an army of German bookeepers? ]

If it ever came to a high-noon showdown between the Greeks and the EU … the risk of financial distress and contagion leads to an unconditional bail-out … The pact is about procedure, and Greece has not been following the procedure in good faith

Unglaublich! Those are fighting words and Herr Hitler invaded on a lot less than that:  Let the Panzers roll.

☼  In the UK the Daily Telegraph gets ready the Lancaster strategic bombers to set Europe on fire again, and who less than Don Ambrosio to play the part of Bomber Harris?

Greece defies Europe as EMU crisis turns deadly serious
by Ambrose Evans-Pritchard

Euroland’s revolt has begun. Greece has become the first country on the distressed fringes of Europe’s monetary union to defy Brussels and reject the Dark Age leech-cure of wage deflation.

Public debt is already 113pc of GDP. The Commission says it will reach 125pc by late 2010. It may top 140pc by 2012. If Greece were to impose the draconian pay cuts under way in Ireland (5pc for lower state workers, rising to 20pc for bosses), it would deepen depression and cause tax revenues to collapse further. It is already too late for such crude policies. Greece is past the tipping point of a compound debt spiral.

Don Ambrosio advises Greece to leave the euro and default on his debts, and puts as an example to follow that of Argentina

Argentine leaders in 2001, when they tried to cut wages in the mistaken belief that ditching the dollar-peg would prove calamitous. Buenos Aires erupted in riots. The police lost control, killing 27 people. President De la Rua was rescued from the Casa Rosada by an air force helicopter. The peg collapsed, setting in train the biggest sovereign default in history. Economists waited for the sky to fall. It refused to do so. Argentina achieved Chinese growth for half a decade: 8.8pc in 2003, 9pc in 2004, 9.2pc in 2005, 8.5pc in 2006, and 8.7pc in 2007.

[ Only if you believe the Argentinian statistics, that is ]

London bankers were soon lining up to lend money (our pension funds?) to the Argentine state – despite the 70pc haircut suffered by earlier creditors. In theory, Greece could do the same: restore its currency, devalue, pass a law switching internal euro debt into drachmas, and «restructure» foreign contracts.

Yes, you are reading right.  It is not Fidel Castro speaking, it is printed in the newspaper of the capitalist class of Britain and the well-known mouthpiece of the Secret Services of the United Kingdom: let every nation that’s ever been suckered into debt by Great Britain just default.  Good thinking. I’m sure that the Uruguayan Tupamaros Communists couldn’t agree more, Astori must owe a bob or two to the British banks.

either Germany tolerates inflation of 4pc or 5pc to prevent Club Med tipping into debt deflation; or it pays welfare transfers to the South (not loans) equal to East German subsidies after reunification.

Come to think of it, Don Ambrosio, I like both options for Spain.

Por Armando

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