Germany in the Crosshairs

05:20
France declared its support for the new Greek government yesterday.  France, a country with some of the most anti-competitive regulations, highest taxes and among the most flagrant violations of Eurozone fiscal rules and agreed labor law reforms, is telling Germany that Germany should step up to the plate and provide even more funding for Greece.  Fat chance.  

It is certainly true that Greece will eventually default.  It is also true that, in time, France will default as well.  Both of these countries will be joined by many others.  They will all eventually run out of "other people's money," as Margaret Thatcher once famously opined.  What happens to Germany will depend upon how much deeper Germany goes in underwriting the absurd fiscal policies of Greece, France, Italy and Spain.  Germany may well, already, be past the point of no return.  Even Germany, arguably once best "credit" in the world, is now approaching the credit-worthiness of its southern neighbors.

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