Yesterdays vote in favour of the european bailout keeps the lid on the bubbling financial fiasco that is the European Union at the moment. This wall papering over the problem may well buy a little time, however, nations such as Greece will find it impossible to repay loans of such magnitude. Defaults are coming so prepare yourself to best of your ability.
This is a short news release from gulfnews.com:
Lower house of parliament votes in favour of contributing 148b euros to indebted states
Berlin: German lawmakers approved their country's share of a $1 trillion (Dh3.67 trillion) euro-region bailout in a vote yesterday, allaying market concern that they would balk at approving a second emergency aid package in as many weeks.
The lower house of parliament voted 319 to 73 in favour of contributing as much as 148 billion euros (Dh675.28 billion) to indebted European states to backstop the euro; 195 lawmakers abstained. The upper house, or Bundesrat, also passed the measure, sending it on to President Horst Koehler for signature.
"Every other alternative is much worse and much more dangerous, so we have to do this," Finance Minister Wolfgang Schaeuble told the lower house, or Bundestag, in Berlin before the vote. "We're not doing this for others, we're doing it for ourselves and for future generations."
The vote came before European finance ministers were meeting for the fifth time in as many weeks as they struggle to forge a united front to the crisis.
These measures delay the inevitable, the music must be faced, the europeans are now only a few short steps behind the Americans in terms of which currency can devalue the fastest.
The alternative was to cut Greece free and issue a warning to the other mis-behaving governments about fiscal prudence, but the European politicians do not want this party to end for it rewards them in many ways and so they will do anything to keep up this pretense. They appear to have forgotten that the aristocracy of France turned a blind eye once and Madam Guillotine provided a swift, if unpalatable solution.
Hang on to your gold and silver.
Have a good one.
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