Behind the headlines on how to conduct impossible Eurozone bank bailouts, is the reality of suffering and chaos from chain reactions of non-payments, in the blown-out system.
The situation in Greece is unlivable, with worse on the way, unless the monetarist death-system is shutdown. For example, Greece is dependent on imports for 40 percent of its food consumption (made so by the EU/WTO regime), but these imports, plus other related ones — packaging, processing chemicals, etc. — are all in chaos now, because of the general breakdown-spiral of unpaid wages, and in particular, the phasing out and termination of trade credit insurance, imposed by the dominant global companies Allianz/Euler Hermes, Atradius, and Coface. Supply lines of all kinds are disrupted. There is more and more primitive bartering for foodstuffs. Almost all medicines are imported. In June, long-overdue payment deadlines arrive for gas imports, essential for electricity.
On the surface level, even today's official Eurostat releases from Luxembourg are indicative of the Eurozone economic contractions. Retail sales in the Eurozone fell 1% in April from March; in Spain, the fall was 2.4%. Data for Greece and Italy were not even released.
This week's German Economic Ministry data showed a new down-ratchet in industrial goods orders, dropping 1.9% April to May. Consumer goods orders fell 5% month to month. Capital goods orders dropped 3.3%. Exports are down, and so on.
Across the Atlantic, 46 of the U.S. states are making whacking-big cuts in what's left of essential functions, because of the end of their fiscal year in three weeks. Illinois today is looking at eliminating medical aid to HIV infants and mothers. New Jersey officials reported today. Michigan lawmakers today, ahead of their September deadline, passed a pretense of a state budget, based on implementing de-education through deep cuts and similar abdication of government responsibilities.