Greece is in big financial trouble there is no denying that. But this crisis which is plaguing the Greek financial system is being made to appear as if it will topple the entire economic structure of the world if it is allowed to get any worse. It seems kind of hard to believe that an economy collapsing such as Greece's will be able to STRONGLY affect the rest of the world especially when you figure that the Greek economy is around 2% the size of the United States'.
Most of the governments in western society are operated by debt-based economies. These monetary structures are dependent on the banks creating money out of nothing (whereas money
used to be backed by a physical item such as gold) and loaning it out to other nations. Interest on the loans is how the more dominant countries keep power and maintain the status quo. But what happens when the interest on these loans keeps piling up and getting larger and larger? Well....the country then just borrows more money to pay off the interest and keep its head above water. Essentially, what countries such as Greece are doing is paying off the interest on the debt with more debt-laden money which will lead to MORE debt. It's an endless "get f**ked" circle.
Right now the question you are asking is "Why is a country that is so stricken with debt and on the verge of bankruptcy allowed to borrow more money?" The answer lies in the fact that banks such as the IMF and European Central Bank want the debt cycle to keep going indefinitely so that they can continue to make money and continue to keep power where they believe it should be. If a country is allowed to go bankrupt then the banks can no longer exploit the country any more and thus do not continue to increase profit.
Now all of a sudden we start seeing "austerity measures" being introduced not only in Greece but all over the world. Why would the international banks be trying to tell us that the economies around the globe are in jeopardy and there is a need to introduce certain measures? One world currency and a world government seem to be likely answers but only time will tell.
If the grand scheme of things leaned towards a world government and currency you may now be asking, "how?". If you have many once powerful nations slowly spiraling into bankruptcy and begging for help I'd be willing to bet that the international banks will be ready and waiting with a solution to the problem that they helped create. The HUGE problem with this is that in order for nations to adopt a solution such as a world currency or world government the times
must be very, very desperate - for all luxuries as you know it such as any form of social "assistance" (health care, education, etc) will be stripped away as the nation would not be able to afford it anymore. If the people feel that their situation could not get any worse ANY solution that promises to bring them out of their bank-induced hell would be accepted with open arms. This is what is scary - the fact that this is a very real possibility.
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