Hollande’s idea of a single unified government, one budget, one parliament to rule them all, is like something out of The Lord of the Rings.
You either take what we give you or nick off out of our European Union. That’s basically how Germany put it to Greece.
Greece stays in the euro. Just as we said they would. Europe and the European Union live for another day. Once more, the shrill mainstream gets it wrong.
Greece, for example, has been able to live beyond its means — on credit provided by Northern Europeans.
Despite everything that has happened in the world in recent months (mostly Greece and China), the damage to stocks has been marginal.
Today, the financial system is over-indebted. Governments are bankrupt, and many are on the brink of default.
My colleague, Jim Rickards, has been right about Greece for the past five years. The way I see it, he’ll continue to be right about Greece.
What I’ve said all along, going back to 2010, is that Greece isn’t leaving the euro. There will be no ‘Grexit’. Nobody’s going to get kicked out or quit.
Whatever happens to Greece will have ramifications to the country and potentially other European countries.
If Europe then turns around and calls Greece’s bluff, throwing them out of the Eurozone, it’s likely we’ll get a lot more turmoil and volatility in the months ahead.