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By Raul de Sagastizabal
Global Research, August 8, 2011
http://www.globalresearch.ca/index.php?context=viewArticle&code=DE%2020110808&articleId=25932
Europe is on the verge of collapsing and the world is again in the quagmire, the reason being Europe, rather than just Greece, is the planet's soft belly, and the impact of Europe's eventual downfall would make itself felt throughout the world, even if Germany, or France, could somehow be spared.
The scale of impact is unpredictable, but potentially worse than that of the recent toxic assets crisis. The European bloc is the second largest economy, the first trade partner of China, the largest importer of Russian energy and the first buyer of high quality raw materials (it still holds the Hilton quota, the world's most expensive meat quota).
All over the world European debt holders and many states maintain their reserves in euros. China, for example, has one-fourth of its reserves in such currency and holds a large amount of Greek, Portuguese and Spanish debt bonds....
Without debt restructuring involving important debt amount reductions and extended maturities, Greece will not be able to meet her commitments, just like the rest of Europe's debt-overhung Europe's periphery economies - Ireland, Portugal, Spain, and Italy, and the effects would certainly contaminate the rest of Europe including the region's strongest economies.
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