Today the man who first predicted Greek bank deposits would be stolen warned King World News that that the Greek tragedy will soon be coming to a bank near you. He also discussed the harsh realities of what is now unfolding in Greece and what the ramifications are for Europe.
James Turk: "What we are seeing today here in Europe regarding monetary policy and the euro is a farce, Eric. Unfortunately, there is nothing funny about the consequences….
Continue reading the James Turk interview below…
European politicians continue to throw caution to the wind and have now offered Greece another opportunity to be bailed out. I am reminded of a blunt broadside that Milton Friedman once fired against politicians: "One of the great mistakes is to judge policies and programs by their intentions rather than their results."
Rather than looking at the results of their past decisions, European politicians are foolhardily rushing in prepared to throw good money after bad, rather than face facts and the hard decisions that are needed.
The first two Greek bailouts were clear failures. Nothing has been fixed. So why would any reasonable person expect that a third bailout is going to be any different, particularly given that Greece's debt mountain has soared making its problems even worse?
The €110 billion Greek problem European politicians tried to solve in May 2010 is now a €320 billion problem. What's worse is where those debts now rest. The €110 billion was owed to banks that stupidly loaned the money to Greece. The banks and other private lenders were let off the hook in that first Greek first bailout and made taxpayers responsible for bad decisions by bankers.
The €320 billion is now owed to taxpayers, and not just those in Europe. European taxpayers are responsible for the money loaned to Greece by the EU and the ECB, but taxpayers of countries that belong to the IMF are responsible for the money it loaned to Greece.
ECB To Print Money For Another Take-It-Or Leave-It Deal
Now for the umpteenth time Europe has offered to Greece yet another deadline for a take-it-or-leave-it bailout proposal that would put even more debt on Greece's shoulders. This third bailout has been sweetened by making it even bigger than proposed just a couple of weeks ago. The current total is now reported to be €80 billion, of which €25 billion will be recorded as new shareholder capital put into Greek banks.
The rub is that this proposed bailout money is not really capital in the true sense of that word. It is not accumulated savings. Rather, it is €80 billion of new money printing. The EU, ECB and IMF combined do not have this much money in their bank account and ready to spend on bailing out Greece. They need the ECB to create out of thin air all of these euros the politicians want to lend to Greece.
This money printing will further damage the euro. And sadly, it won't help Greece either because, as the saying goes, it is just kicking the can down the road. The fundamental problem is that Greece's debt load is already overwhelming that country's ability to service its debts. Adding more debt is just making Greece's problem worse when the day of reckoning finally arrives. Yet, that is what their prime minister, Alexis Tsipras, has just done.
After months of taking a hard-line approach asking for debt relief to reduce Greece's debt mountain, Mr Tsipras totally caved in to EU demands. In fact, with this capitulation he is now agreeing to terms even harsher than what he had turned down before.
The Will Of The People Means Nothing These Days
What's more, the Greek referendum rejecting the previous European bailout proposal means nothing. Mr Tsipras apparently cares little for the 61% of the people who voted no in the referendum. It's just like the 80% of Americans who polls said were against US Treasury Secretary Paulson and his bazooka to bail out US banks in 2008. The will of the people means little these days.
The result of this, Eric, is that the Greek people remain in debtors' prison, with little hope for release from their confinement, let alone parole. It means that every Greek citizen is responsible for €31,000 of government debt, soon to be €38,000 if the new bailout is imposed, when average income in that country is only €22,000 per person.
Greek Tragedy Coming To A Bank Near You
But there is still another twist to this latest bailout proposal. It is just that — namely, a proposal. It first has to be agreed by the Greek Parliament by Wednesday evening. So as the Greek banks remain shuttered for the third week, keeping the Greek economy in a standstill, there are still more acts to come in this Greek tragedy.
And each act makes clear the reasons to own physical gold and physical silver. It is the best way to be prepared for a Greek tragedy coming to a bank near you." ***KWN has now released the extraordinary KWN audio interview with Egon von Greyerz where he discusses the incredible turmoil of the past two weeks, what to expect next, the coming financial destruction that is still in front of us, what investors can do to protect themselves and much more, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***KWN has also now released the incredibly powerful KWN audio interview with Nomi Prins, where she discusses why the Chinese stock market crash was just a preview of things to come, the coming financial destruction that is still in front of us, what investors can do to protect themselves and much more, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: Greece Capitulates, But What's Happening In China Will Reverberate Around The World CLICK HERE.
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The audio interviews with Egon von Greyerz, Nomi Prins, Gerald Celente, Andrew Maguire, Michael Pento, Dr. Paul Craig Roberts, Rick Rule, Bill Fleckenstein, Stephen Leeb, Eric Sprott, Robert Arnott, David Stockman, Chris Powell, John Mauldin, Dr. Philippa Malmgren, Marc Faber, Felix Zulauf and Rick Santelli are available now and you can listen to them by CLICKING HERE.