The European Banking Crisis: Next Phase

[I]t is clear that all modern governments are heading for the Great Default. All of them play games with their versions of Social Security and Medicare. The accounting systems of all modern nations are exercises in deception of the public. Everyone inside the top echelon of governments know this. This has been written about in the intelligentsia's media for years.

 

There is no political will to resist the voters, who want something for nothing. There is no willingness of voters to listen to the truth. The politician in any nation who trots out the figures and says, "There will be a default," loses at the next election.

The problem is universal. The deferral of dealing with it is well-developed. We are told in the United States that the system can be saved with just a few minor adjustments. Congress never makes these minor adjustments. Why not? Because they are not minor. They are politically suicidal. 

Politicians have dug a hole from which they cannot emerge without admitting their economic foolishness. They are unwilling to do this because their political careers would be over. Gary North explains.