Sunday, May 16, 2010

After Obama Administration Bails Out Greece; California Here We Come

Obama has been pushing German Chancellor Angela Merkel to pony up to the bailout of Greece to the tune of nearly a trillion dollars from all "contributors." A trillion dollars for a country with a population less than that of Los Angeles County. In the words of Merkel, it "just buys time." What has happened to Greece is brewing throughout Europe, with the weak Eurozone economies of Spain and Portugal looming. Expect a hellish domino effect if that takes place.

So why is the world throwing good money no one actually has after bad? Is it because the world is spending like a drunken liberal and can't stop? Partly. Is it because of Obama's incessant pushing of European leaders? Partly. But why is he pushing so? Because a European bailout sets a precedent for bailouts here in America. Into TARP was included 112 billion dollars to bailout bankrupt states. There are 48 states that are nearing financial collapse (with California, New York and New Jersy heading the pack) totaling nearly 450 billion in total deficits.

The quickest way to bring about transformative change? Collapse the system. Again, the Cloward and Piven strategy rears it's ugly head (see the post here from August 25, 2009). It is the crisis of all crises and the Obama gang is not about to let this one go to waste.