I read George Soros’s The Age of Fallibility a year before the debt meltdown at the end of 2007. In it, he simply and quite obviously explains the West’s present economic growth is completely debt financed and he predicted the bubble would burst within two years. It was naturally unsustainable.
In this article Soros talks about the inevitability of Greece leaving the euro. I blogged about this about 5 months ago and guess what, nothing has changed and we are now reaching the end game. The rescue package for Greece has two intentions; Firstly losing Greece might encourage a run on other states. The horse has bolted there. Secondly we are essentially trying to secure the debts of our own banks, the risks taken by German, French and British banks. As Greece is leaving, we should save that money and use it to secure the risks taken by our own banks. Sadly still, the profits of the banks are privatised while the debts are socialised. So much for the boasts of our financial prowess.