Nuts. I don’t know how the bureaucratic nonsense in the Eurozone works, or if they need unanimity to agree to fork over another few billion Euros to the Greek vacuum cleaner, but if they need unanimity, they’re not gonna get it.
Wolfgang Schauble, the German Finance Minister, actually proposed a 5-year Grexit, where the country would be quarantined to see if it could survive without other people’s money flowing into it. Sort of like kicking your 18 year old (or 40 year old) out of the house to get his own job, and trying not to think about the possibility that he’ll starve to death on the streets.
The Germans are the main financiers of this crap, and it looks like they’re saying Nein.
Two things we can learn from what’s happened in the last week.
- Economics trumps democracy, every time. You cannot simply vote for more money if the people who own it do not want to give it to you.
- Economics trumps politics, every time. You cannot create wealth by restricting how people trade. Lefty ideologues are in an exercise of how much they believe their own bullshit. If more paper Euros will save them, why won’t paper Drachmas? Because paper Drachmas will only be able to claim economic goods and services within Greece. And there aren’t much of those. Whatever there is has been bought with Euros, which can claim goods throughout Europe, that were given to them in bailouts, and therefore represent the work of other Non Greeks. Drachmas would be fine if the citizens simply stopped living off welfare. After voting to pass fake austerity measures even bigger than the ones they rejected, they have failed to believe their own bullshit.
Real austerity would produce real wealth. Real austerity would be cutting government spending by 50%, and abolishing 90% of all regulations, and lowering taxes by 80%. This fake austerity is giving a 25 year old kid who lives at his parents’ teat $500 a month instead of $520. It doesn’t make him the least bit independent. It only pisses him off. Cut it down to $10 a month for a falafel or whatever, and he’ll either grow up and get a job, or die.
Do some real austerity, and you won’t need a Grexit. That’s not happening until the whole system collapses in a flaming debt heap.