I watched an interview with Ron Paul on Monday following the $1T Greek Bailout by the EU, IMF and Fed Reserve. He was asked did all these bailouts really matter? He said, correctly, that sure they did. The net impact of massive expansion of the money supply to bailout various failing governments, government institutions and ultimately private banks is highly inflationary. The fear of a default on sovereign debt is obviously the issue of the day, but the real question is what would that mean to most American, or Greeks for that matter?
The answer to that questions is a little troubling to say the least. If Greece, the USA, or any country just said they were insolvent and refuse to pay their debts what happens? Good question ....Since governments have been encouraged to seek out ever increasing debts, primarily funded by private banks like Goldman Sachs and JP Morgan, the main losers would be? The private banks.
If you read between the lines, the underlying cause of the Greek bailout is [protection of German, American and other Euro banks who would not only see their exposure to Greek debt collapse, but all sovereign debt. So once again, we are saving private banks, private investors from financial ruin with government money. The real question is when does it end?