Greeks Centralize All Currency

The Greek drama is starting to play out.  It’s getting to the last act.  All deposits in Greek banks must be transferred to the Greek Central Bank.  No one can afford to pay their bills.  Previously, the government raided the pension funds to pay creditors.

The Greek situation is more than just about dollars and cents.  It’s about geo-politics. Despite all the quantitative ease, all the government programs and all the rules and regulations written since the crash, the world financial system is in a precarious state.  If world finance collapses again we are in trouble not because of money.  We are in trouble because of the fragility of world politics which is why foreign policy matters.

My friends Yra Harris and Rick Santelli bring up many of the key points here.

As they say, all politics is local. Illinois is on the same fiscal path as Greece. The US government budget as it is currently drawn is unsustainable. 62% of all money goes to entitlements.

Both Illinois economy and the US economy are way more dynamic than Greece. But do government officials and the will of the people have the intestinal fortitude to do what is necessary?