For three years now we’ve been repeatedly told that the Greek situation was “fixed.” Those were lies. And those lies have resulted in a gross misallocation of capital both financial and political.
From a macro perspective, anti-austerity/ anti-Euro political parties have seen a chance to capitalize on popular dissent. Simultaneously, pro-Euro groups have been forced deeper and deeper into the deception that somehow the Euro is a good thing for all involved. Distrust in politics and in the Euro is now higher than ever in Europe.
The impact of this will be severe. Europe as a whole is socialist with the percentage of the population employed by the Government ranging from 30% in Germany (the most free-market) to 56% in France (the most socialist).
You’re talking about a joint economy of $16 trillion in which 30%-56% of the population is employed b the Government and the Government is shredding democracy and the legal system. The cultural reactions will have financial repercussions for years to come.
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