March 28, 2011
As the world’s eyes remain riveted on disaster and recovery in Japan and political upheaval in the Mideast, Eurozone nations continue their struggle to salvage the euro. But as is true of all fiat currencies, the euro is living on borrowed time—and from the way things are going in Portugal, its demise may come sooner rather than later.
The latest flap comes from Portugal’s refusal to accept austerity measures needed to start digging its way out from under mountains of debt and entitlement obligations. Earlier this week Portugal’s Socialist Prime Minister Jose Socrates resigned after parliament rejected his proposed reforms, effectively shutting down the government.
Portugal is one of several Eurozone nations embroiled in financial crises brought on by decades of deficit spending and broadly generous entitlement payments to their citizens, as well as the European Union’s failure to hold them accountable for keeping their debt under control.
This article was posted: Monday, March 28, 2011 at 4:51 am