Greece ‘in a corner’ as Europe blocks payment

As oft stated here, Greece will not leave the union and it’s all leading back to Berlin, the world’s next superpower, who runs the show on the continent. Worst case scenario: There could be a compromise entailing a two tier currency system that allows regional states to retain their economic sovereignty to some degree — or at least they would think.

Such an idea already has backing from Angela Merkel and if the crisis deepens — because it’s not going to magically go away — look for ideas like these to gain even more traction and possibly become reality. ‘Eurobonds‘ were also another scenario.

For further info on a plausible two tier currency system, please see the following posts:

The new Great Game: Europe looks within for roots of renewal

European Commission Plans for Greater Integration

France Is Heading For The Biggest Economic Train Wreck In Europe

Is Germany Already Signaling The Complete (Economic) Collapse Of The European Union?

 

Greece’s last-ditch attempt to get desperately-needed funds from its euro zone neighbors failed on Wednesday, but the country appears eternally optimistic that a list of reforms — as yet to materialize — will unlock vital aid.

Greece appealed for the European Financial Stability Facility (EFSF) to return 1.2 billion euros ($1.32 billion) it said it had overpaid when it transferred bonds intended for bank recapitalization back to the fund this month, Reuters reported Wednesday.

However, euro zone officials ruled that Greece was not legally entitled to the money, the news wire said. Continue reading

The new Great Game: Europe looks within for roots of renewal

Exactly what was predicted here long ago as a potential outcome is now stated in this article: The EU will eventually break up into a two tier hiearchy. Also mentioned was the Mediterranean nations being a source of gas and oil to fuel and rebuild Europe’s economy, which is why Greece and Cyprus have been subjugated into EU vassal states and likely will remain on board any future EU integration — they’re too strategically important to lose. The United States of Europe is indeed coming.

The term “the Great Game” referred to the strategic rivalry between the British and Russian empires in Central Asia. Today’s Great Game is the battle for economic survival in a world of low economic growth. In such a world economic nationalism reasserts itself, reducing free trade in goods and services and free movement of capital. Escalating sovereign debt and banking sector problems will favour European introspection.

Individual European economies are modest in size relative to the US. But as a single entity the European Union, including the 17-member eurozone, accounts for more than 25 per cent of global GDP, making it the world’s largest economic unit. Continue reading