Bankers, governments and investors are preparing for Greece to stop using the euro as its currency, a move that could spread turmoil throughout the global financial system.
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ZOMBIE HISTORY – The Plague That Is Zombies
‘I hereby resolve to kill every vampire in America” writes the young Abraham Lincoln in the best-selling 2010 novel “Abraham Lincoln: Vampire Hunter.” Honest Abe doesn’t quite make good on his promise, and the grim results are all around us. Today, vampires spring from the shadows of our popular culture with deadening regularity, from the Anne Rice novels to the Twilight juggernaut to this year’s film adaptation about the ghoul-slaying Great Emancipator. Lately we’ve also endured a decadelong bout with the vampire’s undead cousin, the zombie, who has stalked films from “28 Days Later” to “Resident Evil” (the next sequel of which is due out this fall) and the popular TV show “The Walking Dead.”
Purists will hold forth on the differences between vampire and zombie, but the family resemblance is unmistakable. Both are human forms seized by an animal aggression, which manifests itself in an insatiable desire to feed on the flesh of innocents. (Blood, brains, whatever; it’s a matter of taste.) Moreover, that very act of biting, in most contemporary versions of both myths, transforms the victims into undead ghouls themselves.
Our vampires and zombies (as well as such poor relations as werewolves) all serve as carriers for vaguely similar saliva-borne infections. These mythical contagions are especially odd because they have so few analogues in the natural world. Indeed, there is really only one: the rabies virus.
A fatal infection of the brain, rabies is particularly devastating to the limbic system, one of the most primitive parts of the brain. Fear, anger and desire are hijacked by the virus, which meanwhile replicates prolifically in the salivary glands. The infected host, deprived of any sense of caution, is driven to furious attack and sometimes also racked with intense sexual urges. Today we know that most new diseases come from our contact with animal populations, but with rabies this transition is visible, visceral, horrible. A maddened creature bites a human, and some time later, the human is seized with the same animal madness.
Known and feared for all of human history—references to it survive from Sumerian times—rabies has served for nearly as long as a literary metaphor. For the Greeks, the medical term for rabies (lyssa) also described an extreme sort of murderous hate, an insensate, animal rage that seizes Hector in “The Iliad” and, in Euripides’ tragedy of Heracles, goads the hero to slay his own family. The Oxford English Dictionary documents how the word “rabid” found similar purchase in English during the 17th century, as a term of illness but also as a wrenching state of agitation: “rabid with anguish” (1621), “rabid Griefe” (1646).
The roots of the vampire myth stretch back nearly as far. Tales of vampire-like creatures, formerly dead humans who return to suck the blood of the living, date to at least the Greeks, before rumors of their profusion in Eastern Europe drifted westward to capture the popular imagination during the 1700s.
In its original imagining, though, the premodern vampire differed from today’s in one crucial respect: His condition wasn’t contagious. Vampires were the dead, returned to life; they could kill and did so with abandon. But their nocturnal depredations seldom served to create more of themselves.
All that changed in mid-19th century England—at the very moment when contagion was first becoming understood and when public alarm about rabies was at its historical apex. Despite the fact that Britons were far more likely to die from murder (let alone cholera) than from rabies, tales of fatal cases filled the newspapers during the 1830s. This, too, was when the lurid sexual dimension of rabies infection came to the fore, as medical reports began to stress the hypersexual behavior of some end-stage rabies patients. Dubious veterinary thinkers spread a theory that dogs could acquire rabies spontaneously as a result of forced celibacy.
Thus did rabies embody the two dark themes—fatal disease and carnal abandon—that underlay the burgeoning tradition of English horror tales. Britain’s first popular vampire story was published in 1819 by John Polidori, formerly Lord Byron’s personal physician. The sensation it caused was due largely to the fact that its vampire, a self-involved, aristocratic Lothario, distinctly resembled the author’s erstwhile employer.
But Polidori’s Byronic ghoul only seduced and killed. It took until 1845, with the appearance of James Malcolm Rymer’s serialized horror story “Varney the Vampire,” for the vampire’s bite to become a properly rabid act of infection. For the first time readers were invited to linger on the vampire’s teeth, which protrude “like those of some wild animal, hideously, glaringly white, and fang-like.” And at the long tale’s end, Varney’s final victim (a girl named Clara) is herself transformed into a vampire and has to be destroyed in her grave with a stake.
Both these innovations carried over into the most important vampire tale of all, Bram Stoker’s “Dracula.” In Stoker’s hands, the vampire becomes a contagious, animalistic creature, and his condition is properly rabid. It is a lunge too far to claim (as one Spanish doctor has done in a published medical paper) that the vampire myth derived literally from rabies patients, misunderstood to be the walking dead. But it is clear that this central act of undead fiction—the bite, the infection, the transferred urge to bite again—has rabies knit into its DNA.
Over time, the vampire’s contagion infected his undead cousin, too. The original zombie myth, as it derived from Haitian lore, also involved the dead brought back to kill, but again without contagion—an absence that carried over to Hollywood’s earliest zombie flicks. In this and many other regards, the most influential zombie tale of the 20th century was nominally a vampire tale: Richard Matheson’s 1954 novel “I Am Legend,” whose marauding hordes of contagious “vampires,” victims of an apocalyptic infection, set the whole template for what we now think of as the standard zombie onslaught.
Since then, as Hollywood has felt the need to conjure ever more frightening cinematic menaces, the zombie has if anything grown increasingly rabid. The antagonists in Matheson’s novel can, at times, carry on an intelligent conversation with a normal human. By the 2007 film adaptation, starring Will Smith, the infected are howling, lunging, senselessly hateful animals inside a human form. Danny Boyle, the director of “28 Days Later,” has said outright that he modeled his zombie virus on rabies. But even if he hadn’t consciously done so, the name he gave that virus—”Rage”—already draws its power from the same centuries-old supply.
Westerners don’t have much cause to fear death from rabies these days. Thanks to the availability of vaccine, human fatalities in the U.S. have dropped to a handful per year; Britain got rid of the virus entirely in 1902, succeeding in just the sort of national eradication project that apparently stymied the vampire-slaying Abraham Lincoln. Yet the infected bite, the human turned animal aggressor, menaces us as often as ever on our flat screens and nightstands.
Rabies itself may be a distant concern, but the rabid idea, like Varney the vampire, still has teeth—and it still succeeds in spreading itself.
GLOBAL ECONOMIC COLLAPSE – STARTING WITH GREECE
How shock waves will reach the US if Greece drops the euro
Greeks will have to wrestle with a crucial dilemma when they go to the polls for the second time in as many months on June 17 to elect a new government.
Greeks will have to wrestle with a crucial dilemma when they go to the polls for the second time in as many months on June 17 to elect a new government.
A Greek election on Sunday will determine whether it happens. Syriza, a party opposed to the restrictions placed on Greece in exchange for a bailout from European neighbors, could do well.
If Syriza gains power and rejects the terms of the bailout, Greece could lose its lifeline, default on its debt and decide that it must print its own currency, the drachma, to stay afloat.
No one is sure how that would work because there is no mechanism in the European Union charter for a country leaving the euro. In the meantime, banks and investors have sketched out the ripple effects.
They think the path of a full-blown crisis would start in Greece, quickly move to the rest of Europe and then hit the U.S. Stocks and oil would plunge, the euro would sink against the U.S. dollar, and big banks would suffer losses on complex trades.
ACT I
What would Greece’s exit look like? In the worst case, it starts off messy.
The government resurrects the drachma, the currency Greece used before the euro, and says each drachma equals one euro. But currency markets would treat it differently. Banks’ foreign-exchange experts expect the drachma would plunge to half the value of the euro soon after its debut.
For Greeks, that would likely mean surging inflation — 35 percent in the first year, according to some estimates. The country is a net importer and would have to pay more for oil, medical equipment and anything else it imports.
Greece’s government and banks currently survive on international loans, and if it dropped the euro, the country would probably be locked out of lending markets, says Athanasios Vamvakidis, foreign-exchange strategist at Bank of America-Merrill Lynch in London. So the Greek central bank would need to print more drachmas to make up for what it could no longer borrow from abroad.
That’s one reason analysts say the switch to a drachma would lead the country to default on its government debt, possibly triggering losses for the European Central Bank and other international lenders.
Most assume foreign banks would have to write off loans to Greek businesses, too. Why would Greeks pay off foreign debts that effectively double when the drachma drops by half?
Say a small shop owner in Athens has a €50,000 business loan from a French bank. She also has €50,000 in savings in a Greek bank. The Greek government turns her savings into 50,000 drachma.
If the new currency fell by 50 percent to the euro as expected, her savings would suddenly be worth €25,000. But she would still owe €50,000 to the French bank.
European banks would take a direct blow. They’ve managed to shed much of their Greek debt but still held $65 billion, mainly in loans to Greek corporations, at the end of last year, according to an analysis by Nomura, a financial services company. French banks have the most to lose.