Monday, 29 June 2015

Why Would They Stay?

The Greeks have no money...no jobs...no hope.  Why would they vote to support continued austerity, and by so doing, to continue in the Eurozone monetary union?  If they leave, their tourist industry will still charge customers in Euros, and they will use Drachmas internally and, where possible, to settle outstanding debts. Otherwise, they will default and move on as best they can.  In return for leaving the Eurozone, they get a massive devaluation, which makes them extremely competitive and will help put people back to work.  They lose standard of living, but they are losing this anyway as a result of austerity.  The choice in the July 5th referendum appears to be between poverty with the Euro, over which they have no control, or poverty with the Drachma, with which they will be masters of their own destiny again.  They are a proud people.  There is a very good chance they are about to vote for the latter.  Then, when will similar referendums follow in Spain and Portugal?  When will Europe start to think about a realistic plan for the bankrupt countries in their midst?

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