Euro: Chain Reaction

Here are the lyrics to Diana Ross's Chain Reaction;

You gotta plan your future
Is on the run
Shine a light for
The whole world over


Okay, so it is taken completely out of context, but we really do need to plan for the future (and the whole world over).


The majority of the governments in the, so called, western world are having to borrow extreme sums of money to finance their deficits. In addition, some are bankrupting their countries to bail out banking sectors. I have not seen anyone even try and explain what would be the downside of letting these banks go pop. Savers are guaranteed to £85k, in the UK, and any investors or bond holders would necessarily expect to lose money on some of their investments (interest being the reward for risk). Granted, there would be some paralysis of the economy whilst the initial problems were sorted, but government backing of savings would soon kick in and any run should be prevented.


Every person living in Spain, now owes another 15,000 Euro because of the Spanish bank bailout. There has go to be a better way. Iceland got to live again and wipe the slate, more or less, clean. 


In the UK, we are concerned about the level of government debt and amounts being lent to the banks, Ireland, Greece and possibly Spain. However, these amounts are significantly less than the hidden pension liabilities for civil servants and local government employees. 25% of local taxes pay local authority pensions already!


Something somewhere will snap. We are just waiting for the straw.