I think it is important to put Greece in perspective. Greece’s financial problems affect the larger world economy because Greece’s problems are the EU’s problems, in two senses.

First, the Euro-nations have their currency at stake. This highlights the problem of the European central bank, which controls the Euro but whose decisions are very much removed from the fiscal decisions of the independent nations, like Greece. Thus Greek legislators have made decisions over the years quite independent of any regard for the Euro.

This then leads us to the second big problem: The Euro nations are a subset of the EU, thus the EU political system is hampered in dealing with the Euro.

It’s very understandable why the Europeans got themselves into this situation - trying to avoid the problems that ran in WWI and WWII.

Yet once again we are reminded that the complex systems we create inevitably have their weaknesses challenged.

It’s also why all those who just two years ago were touting the end of the Dollar were very much mistaken, or at least too early in their prognoses.