If Greece Votes No

'No' in referendum could leave Greece bankrupt - Juncker

If Greeks were to reject the latest EU bailout package in a referendum, the country could end up facing bankruptcy, Jean-Claude Juncker, the chairman of the Eurogroup countries said on Tuesday.
Speaking on RTL Radio, Juncker said Greek Prime Minister George Papandreou had taken the decision to propose a referendum without consulting other European leaders, a move that piles "great nervousness and insecurity" on top of an already insecure situation for the euro zone economy.
"The Greek prime minister has taken this decision without talking it through with his European colleagues," Juncker said.
"It is something that brings a great nervousness, that adds great insecurity to already great insecurity and therefore we need to see calmly how we will deal with this."
Asked whether, if Greeks were to vote 'no' in the referendum, it would mean bankruptcy for Greece, Juncker responded:
"I cannot exclude that this would be the case, but it depends on how exactly the question is formulated and on what exactly the Greeks people will vote on."
My View:

Papandreou's latest move has brought the true nature of the European Union to light.  

As Junker rebukes him for taking a decision without consulting his European "colleagues" we see that a country gives up its sovereignty to be part of the Euro.

This is the true nature of the currency union.  It is the first and critical stage of a political and governmental union.  It is the creation of the "United States of Europe" with headquarters in Brussels with an increasingly powerful central government and gradually weakening state governments. 

It also shows the absurd nature of this currency union. 
How can diverse countries like Germany, Greece, Italy, and Ireland all have their own treasuries and fiscal policies and use a single currency?

It just does not work.

The more immediate issue is whether this action will affect Italian bonds and drive their yields up from already high levels.

Will the Greek domino fall, hit Italy and cause it to tip over?

Stay tuned.


  1. Semi-interesting tidbit, this "surprise" Greek referendum isn't a new development at all.

    Keep up the great work PW

    July 15, 2011
    Direct Democracy in Greece & the 2011 Referendum
    During a parliamentary debate on austerity measures in June, the Greek Prime Minister announced a national referendum on “major changes” to be held in the fall.

    Details as to the exact scope or timing have yet to be released. If held, it will be the first referendum since 1974, when in the aftermath of the military junta (1967-1974) the Greek people were called to decide between a constitutional democratic monarchy and a constitutional democracy, opting for the latter with close to 70% majority..."


    My my how history repeats. Got Gold and Silver...Why yes, yes I do.

  2. Excellent background information Bill. Thank you for sharing it.


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