- Karl Denninger: World Engaged in Same Lie as Greece. Debt Going to Explode in our Faces!
by Greg Hunter’s USAWatchdog.com
Financial commentator and trader Karl Denninger says what is going on in the Greek debt crisis is really a global problem. Denninger explains, “All of these countries have engaged in the same lie. They have all engaged in the same fundamental fraud, which is you can spend more than you take in on a permanent basis. It is the same fraud that is going on here in the United States. We just haven’t gotten hammered with it –yet, but we will. This is a fraud. The people who did this need to go to prison. There is no way to undo that Gordian knot, other than to say we can’t pay it. We never could pay it. You were lied to, and by the way, the people who participated in the lending were active participants in a crime.”
It is now reported that the so-called Greek bailout really benefited big banks who allegedly received more than 90% of the bailout money. So, who was the bailout for? Denninger contends, “That’s the whole point. There was no real bailout. The people who got bailed out were the Goldmans of the world that participated in an active scam. . . . The former Greek government is equally culpable. Here’s the bottom line, those people got fired. That’s what an election is, right? If you want to start issuing indictments and start locking people up, I think that is a great idea. You know what? You start with Angela Merkel (Chancellor of Germany), thank you very little, and then you indict Draghi (President of the European Central Bank) and lock him up too. You also take all the bank CEOs who participated in this, and you put them all in prison. You take the bonds and you tear them up. The pain that will be spread all across Europe is going to be considerable. However, if don’t start punishing people who are doing these sorts of things, then what’s the deterrent?”
Denninger says the US is headed for the same fate as Greece. Denninger says, “Not only have they not cut anything, but they have been expanding the spending of government, the debt taken on, at twice the rate of economic output. This is going to explode in our face. If we as Americans do not put a stop to this, we are going to face what Greece is facing now.”