LaRouche: As Obama Plunges U.S. into Crisis, Greek Crisis Breaks Out as Threat to Europe

January 30, 2010 (LPAC)—A leading story in Spiegel Online, datelined Davos, carries the alarming headline "Economists Warn of Domino Crash."

"Greece is on the verge of a crash," it begins, "and Europe fears for the Euro. Politicians and economists at the World Economic Forum in Davos are feverishly looking for a way out. Even then, the problem would not be solved by any means, for other European countries are also fighting gigantic budget gaps.

"The financial disaster in Greece is a heavy challenge — not only for the country itself, but also for the European Union. Should the EU rescue the ailing country? Or should Brussels just watch, as Athens possibly slides into a crash?..."

Spiegel says that Greece had to fill its 2009 budget holes with new loans totaling almost 13% GDP. Government debt is 300 billion Euro, 113% of GDP. Prime Minister Papandreou promises to cut the deficit to 2.7% with massive austerity, fulfilling the Maastricht criteria. But can he do it? "The question is always whether one can sell his voters such a thing," says former IMF economist Ken Rogoff.

"The situation in Greece is tense. In Davos, politicians, managers and economists remember only too well the violent demonstrations of raging youth in Athens last year. In the protests, a policeman shot a demonstrator."

Financial Times Deutschland says that Germany is under massive pressure to lead a bail-out of Greece, despite Maastricht's rule against bail-outs. But Chancellor Merkel is resisting.

Summing up, Lyndon LaRouche said that there is a crisis in Greece, and that the Greek crisis is breaking out as a threat in Europe at the same time as the drastic crisis precipitated by Obama's downfall here.