It's hard for me to believe that the newly installed Greek government is now calling for Germany to make reparations of some $250 billion because of what the Nazis did 75 years ago to Greece. Such is the world we live in.
Make no mistake about it, Greece is the Achilles' heel of the euro and just this morning Alan Greenspan, former head of the U.S. Fed, came out and indicated that it was just a matter of time before Greece exits the euro. I couldn't agree more with him, Greece is just an accident waiting to happen.
Unlike the United States, which is one nation with one currency and laws, the euro has been cobbled together with a number of countries that have nothing in common with each other. They don't speak the language, they don't have the same customs and traditions, and they certainly don't share the same discipline for work.
When the euro was put together in the late 90s, it was a political solution, or so everyone thought, to solve the problem of the inequalities and valuations of different currencies. The big idea was a United Europe with one currency would create more business and therefore, export more products. What looked good on paper didn't exactly translate into the real world of commerce. It was only a matter of time before the fabric, and interest of different countries would begin to fray and tear apart. That is what we are witnessing today.
Bottom line - Greece does not want to pay back what it has borrowed.
I suspect that within the next two years Greece will drop out of the euro, and several other countries will face the same dilemma and will be forced by the populous to exit the euro.
In today's video, I'll be reviewing three strong sectors of the US economy and why they are poised to go higher still. I will also be covering the rise in oil and the recent drop in gold prices.
Every success with MarketClub,