Shamus Cooke: Why US Politicians Are Quiet about Europe's Meltdown
After the Greek elections struck fear into the hearts of the global banksters, the fallout remains uncertain. If the next Greek election produces an anti-austerity government, Greece will almost certainly make a speedy exit from the euro. If this happens, and it is looking increasingly inevitable, the consequences for the global economy are spectacularly gloomy. Yet US media and US politicians are largely silent on the issue, almost as if nothing were happening. What will happen when Greece leaves the Euro? Foreign banks hold over $90 billion in Greek debt in the public and in the private sectors. These enormous losses could very well bring down banks in Europe and abroad. Also, the struggling Euro countries such as Italy, Spain, Portugal and Ireland will see their borrowing costs skyrocket, since the wealthy will be more reluctant to waste anymore investment money on risky Euro countries, guaranteeing a further downward spiral of bailouts and bankruptcy. How likely is a Greek euro exit? The conservative Economist magazine reports: "If Greece rejects the second bail-out, or falls drastically behind in its program of debt payments and public sector cuts, its exit could become inevitable." This scenario appears likely, as Greek voters have tired of supporting politicians that continue to attack the majority of voters living standards through massive austerity policies, cuts to jobs, social programs, and the public sector in general. How would the US be affected by a European Union meltdown? The Bank for International Settlements claims that US banks have loaned $96.8 billion to the weakest European nations in the public and private sector, with an additional $275.8 billion to German and French banks, who would suffer directly if the weak nations drowned!