The Greek Debt Crisis: A Sane and Sensible View

   It is extremely interesting to me that I now live in a society where we have no language to describe events in the real world.  More interestingly, we live in a society where an increasing number of individuals make little or no effort to understand real world events that will impact their lives.

   Let me illustrate this concept with a specific example.  The U.S. Congress passed legislation titled: The Dodd-Frank Wall Street Reform and Consumer Protection Act.  This act became part of the federal law of the U.S. when President Barak Obama signed it into law on July 21, 2010.  Unfortunately 100% of the members of the U.S. Congress who voted for and against this law DID NOT READ IT NOR DID THEY UNDERSTAND THE LEGISLATION.  Today high level members of the federal government argue over exactly what this legislation means. 

   I made an attempt to read and understand the Dodd-Frank Law.  I obtained a computer disk that contained the law word for word.  I estimate that if I had read for seven hours each day, I could have read the entire law in about three weeks.  I admit that I did not read the entire law.  What I did read was incomprehensible gobbledygook open to many different interpretations.

   Today, it has become common practice for Congress to pass legislation that is either incomprehensible or much too long.  The IRS code for 2011, is extremely clear, but it is 72,000 pages in length!

   Kafka could not make something up like this.  It gets even worse on the international level.  Greece continues to spend money that it does not have.  Presently the European Union members are wondering what to do about Greece.  If there is a bailout it is expected to cost about 120 BILLION EUROS which is equal to about 107 BILLION POUNDS STERLING.  The question about what to do is under discussion.  Just as the U.S. Congress has no idea what it is doing, the EU is in the same type of situation. 

    Sanityandsense.com offers a sane and sensible analysis of the Greek Debt Crisis.

1) IF THE EU BAILS OUT GREECE the European markets will have modest positive improvements in the SHORT TERM.  However, this action will encourage other EU members to ask for bailouts in the future and the LONG TERM CONSEQUENCES will most probably lead to a world depression.

2) IF THE EU DOES NOT BAIL OUT GREECE the European markets will suffer mildly  negative consequences in the SHORT TERM, but the LONG TERM economic stability of Europe will greatly improve. 

    I find it interesting that the media ONLY presents one side of the economic analysis.

                                                          R. Van Conoley

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