Greece is going down, Portugal is next, and then Germany pulls the plug.
UPDATE: Greece seeks immediate talks with IMF. The bailout begins, but there’s no saving this foundering ship.
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Reliable German Banks in Bolivia offer a 5% interest rate on dollar CD’s, and 10% on local currency. To Al Gore’s credit, Bolivian inflation used to run wild. But in 1992 Al took Jeffery Sachs from Harvard’s economics dept. down to Bolivia, where an American philosophy major from the Univ. of Chicago (turned oil man) had become president.
Professor Sachs extinguished inflation there ever since. Normally that rate spread would be based on fear of inflation in the local currency. But couldn’t it also mean the German’s are not really interested in dollar deposits.
The dollar is normally used for real estate transactions. Pre-construction real estate investments earn a steady 20% return in the rise of post-construction sale prices.
When I first showed up there in 1992 (not on Al’s team), the place was filled with narco-dollar new construction. But looking at the farming pictures I posted under today’s climate topic (thanks, CF for the daily setup), the growing wealth is actually trackable to food production at the edge of the rain forest and on the great grasslands of the pampas, where my grandfather herded cattle for the Scottish cattle barons on a 10-million acre ranch in the early 1920’s.
Are we still growing that here? It seems not so much on the east coast.
During the height of the financial crisis, bankers and politicians met in an emergency meeting to discuss how to rescue several failing institutions. Bankers from competing banks worked feverishly to come to a solution. Meanwhile the euro politicians sat on the the other side on the table with arms crossed not even talking. My friend warned me ” If the euro sees any real crisis…Its finished. Political exercise over.”
Is this the big one?
Maybe Germany should start printing Deutsche Marks again…
If Germany pulls the plug, won’t the euro (aka deutschemark) go up?
Not if Germany abandons the Euro.
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