Monday, June 20, 2011

Greece, Oil, And Stuff In The Headlines for 06/20/11

This week is off to a really great start.  European ministers can't agree on how to structure the next iteration of wasted money for a bankrupt Greece.  At least they provided enough breathing room for a very important no-confidence vote to take place in the Greek parliament.  That will give Germany the pretext to say "told ya so" and refuse to back a bailout.  The Group of Seven wants to get in on the action if only to go on record with bold assertions that yes, we all really must do something about this whole dreadful Greek crisis thing.  The growing danger to the world economy of daisy-chained bank implosions from a Greek default hasn't gone unnoticed by the IMF.  Nothing gets by those wily IMF wizards, except of course a massive cyberattack on its databases from an adversary with deep resources. 

The IMF isn't the only acronymic organ of nascent global governance that's suddenly gone impotent.  The IEA is asking the world's oil producers to pretty-please raise their oil output so prices can come down and the developed world can start spending its way to prosperity again.  Nice try.  Better luck next millennium.  Russia isn't about to fall in line just to save the West from insolvency.  It's too busy consolidating its stock exchanges and preventing capital flight prior to elections to take requests right now. 

The IEA can start to relax with oil futures headed down anyway thanks to decelerating GDP growth in the developed world.  The free market takes care of these things without jawboning. 

The world is in for a new golden age provided it avoids financial implosion in Europe, stagflation in the U.S., and North vs. South resource wars.  Fun times ahead!  Life just keeps getting better for everyone.