Tinker Bell is Dead

“If you have seen the stage version of Peter Pan, you know the scene in which the audience is asked to clap if they want Tinker Bell to live. It’s time.

Tinker Bell has terminal cancer. The audience can clap all it likes. The audience will find that, after the show is over, their banks have a stack of IOUs on their books that cannot be collected in stable euros.

This is reality. This is not the fantasy of the bailouts.

It is the underlying reality of every Western nation. They have all written IOUs that cannot be repaid. The Eurozone’s politicians found out sooner because there are 18 nations that have made impossible promises, and idiot bankers who made loans to these politicians. They all expect the Germans to bail them out.

Think of Tinker Bell as Angela Merkel with wings. Not too appealing, is it? Not too believable, either.”

North discusses: Voters want a ‘Tinker Bell’ economy (no major cutbacks in government welfare spending, on pain of being voted out); bank runs (if Greece pulls out of the Eurozone and returns to the drachma, Greeks and/or other investors holding drachmas rather than euros will suffer substantial losses) and Germany (if Greece leaves the Eurozone, it will still not repay interest on its debt in euros. It will pay, if at all, in depreciated drachmas, causing the ECB to suffer a loss, and the German central bank’s share of this is 27%).

To read Gary North article: Tinker Bell is Dead

Tagged as: Angela Merkel, European Central Bank, Eurozone, German, Germany, Greece, Peter Pan, Tinker Bell