And compounding the problem is that the fall in GDP in Greece has been worse than forecast even before austerity measures were introduced. The Greek economy has shrunk by 15% since the crisis began. Two-year borrowing costs for Greece are now over 40%, which he notes are “pawnbroker levels.”

The next installment of Greece’s first bailout package is due to be released as at the end of September. Some members of the International Monetary Fund are already expressing deep misgivings about further assistance to Greece, in the light of the seeming inability of the country to meet its end of the bargain.

Now here’s the problem with all this: A disorderly unwind of the Greek debt problem cannot be ruled out, and right behind it are Ireland and Portugal, and pressure is growing on France and Germany, not to mention the United States and Japan.

In this race to the bottom, who is left to bail everyone else out?