£600 bailouts for Spain and Italy
Jun 20, 2012
European leaders are poised to announce a £600 billion deal to bail out Spain and Italy, it emerged at the G20 summit on Tuesday night.
The Euroland nations have decided that they are all in this together, and that if one falls, they will all fall. The world's economies are all tied together like having one big insurance company. What happens when they all need bailouts? Socialism only works as long as someone makes enough money to bail out those who are broke.
Essentially, some European countries are now going to buy the worthless bonds from Spain and Italy in order to give those bonds "value," because no one else wants them. Will this solve the crisis? No, it only postpones the problem temporarily until the next crisis.
Let's not forget Portugal and Cyprus, who are both dead broke. And France is also on the list of countries that will soon need a bailout. And what about Argentina?
It appears that the policy is to make sure that if one country falls, they all fall together.