Greece Downgraded Again

Of course when the rest of the world realizes that a country can't possible repay all the money it borrowed....the interest rate on all their future borrowing goes up.  This makes it much more expensive for a government to borrow.

Today Greece had their credit rating lowered again and the rate they are now forced to pay to borrow any more money is about 12.6%  This makes everything cost more....and the people don't like to be told that their lifestyles are going to have to change drastically....because all the social programs are in the process of being cut.

And of course this leads to unrest.

Yields on Greek 10-year bonds climbed sharply to 12.568 percent, up from 12.499 percent, while Portugal saw its yield increase from 7.818 percent to 7.881 percent.

Greek Prime Minister George Papandreou reacted angrily to the move.

"We have seen the ratings agencies go from the bubble of euphoria to the panic of risk," he said after a gathering of MEPs from the Socialists and Democrats group in the European Parliament who were meeting in the Greek capital.

Meanwhile, civil unrest in Greece appears to be returning along with the spring weather.

See it here; http://euobserver.com/9/32094

So the foreshadowing continues.

How much quicker would we sink if WE had to pay 12.6% on the $15 trillion that we already owe?