Now Portugal has come to the ECB and IMF with its hand out, claiming it needs help - this after denying the need for "outside assistance" for months.
Immediately Spain issued a statement that it had "absolutely ruled out" the need for a bailout.
Of course this is what Portugal said just a few weeks - and months - ago.
It was also what Ireland said, just before they folded and refused to force the bank bondholders to take haircuts. And who were those bondholders? To a large degree they were foreign banks - specifically, those in Germany and France.
What did the Irish get in exchange? Nothing, other than continued ability to spend more than they tax - for a little while. And what did they lose? Their sovereignty. The latest insult is the revelation that the ECB and EU have effectively imposed a property tax on real estate in Ireland as a "hidden condition" of their "assistance."
When one sovereign nation demands fealty of another, including payment, we usually call that event "an invasion", and with good cause. It in fact is an invasion, whether tanks roll across a border or not.
At its core the problem with all this nonsense is that nobody wants to talk about and resolve the actual issue: You cannot spend, on a continual basis, more than you make. Doing so always eventually causes a debt spiral as you start paying interest on interest, and eventually the laws of exponents take center stage and bankrupt you.
Why is the ECB and Euro Zone talking about "bailing out" these nations? Because private banks in those nations irresponsibly bought these bonds and will fail if they are forced to eat the haircuts that would result from a default.
That is, rather than allow those who did idiotic things to eat the consequences of their actions these governments, effectively captured, bribed and extorted by the banksters, instead are forcing the citizens to eat the loss that they should be forced to eat on their own.
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