It's that eventually, Germany is going to get tired ...................
A big component of the problem Greece was the collapse of tourist trade
because of the burst bubble and economic fool hardiness. Tourist trade
economies are very sensitive to the real economy. Greece, Italy, Spain
(the "PIGS"). As low as interest rates are servicing debt is as easy
as it gets short of not servicing it.
Currently the Whitehouse is telling us that the economy is booming
and going full steam ahead. I suspect that the problem in Greece
ando more is a reflection that the economic profile has not recovered.
Lots of folk working, but no spare cash to travel to Greece (PIGS) or no paid vacation
We can wave our hands and say that the longer this goes on the worse it
gets but there is more involved here than many are factoring into their
The PIGS (http://en.wikipedia.org/wiki/PIGS_%28economics%29) are the
brightly colored canaries in the system. But there are other less connected
nations and conflict areas quietly spilling into the Mediterranean trying to
find landfall and a future..
It is bigger than Greece and the uber rich 1/10 of 1% cannot bail this out
with a tax but they might invest. I might note that the needs of a tourist economy
are not the same as an industrial economy in terms of education and training.
Education and training has a plus 20 year lead time -- generational and changes
to the infrastructure are more complex and difficult than many grock.
One small bright light is Amazon paying local tax on local profit. But these
large apparently rich companies are not rich enough to be a magical tap to
turn and refill coffers of corrupt and ill managed countries.
#include "Goose, golden egg story" // here