Beware of Greeks Bearing Rifts

The Euro, in my humble opinion, is destined to fail. The concept of a unified currency may bring thoughts of financial simplicity but, in reality, it’s a very complicated thing. It’s complicated because of greed, arrogance and power struggles. The Euro is destined to fail because all of the involved parties carry an invisible tatoo that reads, “Doesn’t Play Well With Others”.

The economy in Greece has been floundering for quite some time and the Euro hasn’t helped. This isn’t surprising since the Greek economy is heavily dependent upon tourism and a shaky global economy tends to tighten one’s vacation wallet. At this point, it looks as though Greece will be the first to teeter out of the Euro Zone. Economic watchers expect Greek Valuethat they are just the first domino to fall.

So what’s the impact? Well, for starters, you have a plethora of big businesses wondering how to pay their employees when they have no Euros. The New York Times is reporting that BofA is pondering the thought of driving trucks full of cash over the border so they can pay their employees. Ford, JP Morgan and a host of others have already started emergency preparations so they can ‘flip the switch’ back to the drachma or whatever currency might come about. In a nutshell, people are scrambling to keep business going and they can’t do it without a currency.

Small business probably won’t fair so well. While large corporations may be able to shuffle Euros back and forth across the European borders, Joe Bob’s Gyro Sandwich Shop won’t have such a luxury at its disposal. Joe Bob won’t be able to pay his employees. The employees with less money in their pockets will be buying less foods & goods than normal. The trickle effect begins.

Despite the grandiose efforts of Big Business, there will be a vacuum effect in Greece. The winds created by the falling economy will blow across Europe and the impact will be global. Greece hasn’t even pulled out of the Euro yet and think about how much money businesses have spent in preparation! It’s easily in the hundreds of millions. The cost of it all will not be burdened upon the shoulders of greeks entirely, it will affect us as well.

The real fear factor in all of this is the question, will Greece be just the first? If there’s more, and there likely will be, then the global impact becomes even harder. Throw a rock in a pond and you splash some people. Throw a boulder in the same pond and everybody is getting wet. If other countries follow Greece’s lead, a lot of people will get wet. Some will drown.

I am by no means an economics expert but common sense tells me that we should have never left the Gold Standard. Financial sinkholes like we’re seeing in Europe can more easily be dealt with when you’re not using a fiat currency. Even our dollar, once based on gold, is now a pyramid scheme (as is social security but I digress). People are realizing that more and more; we see a flocking towards gold purchases and even other unique currencies like BitCoin.

Nobody really knows for sure what the fall out will be from a Euro implosion in Greece. The happenings are likely to gloss the pages of history books for ages to come. If I could guess the infamous quotes of those books, I expect the proverb “Beware Of Greeks Bearing Rifts” to be in there somewhere. Time will tell.

2 Responses to Beware of Greeks Bearing Rifts

  1. jerry carman

    September 8, 2012 at 10:35 am

    Your right, the Euro is about to fail and the ripple effect will be felt in all of Europe. Try and tell that to the capitalist and anti aocialist on wall street.

  2. Jon Kokko

    September 8, 2012 at 3:40 pm

    Rumor has it they may get bailed out. I think we’ll know here in the next 30 days for sure. If they do get a bail out, I think it’ll stop the bleeding but the wound is sure to fester.

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