Greece is fast approaching the wall. How ironic that NPR and the BBC see fit to report the news as though this is something that is caused by Germany’s hard-nosed refusal to modify its demand for meaningful and credible fiscal reform. Interview with man-in-the-street who blames the Greek government and Germany, but mainly Germany. Ergo, its Germany. Sure, when I can’t pay my credit-card bill, that’s the credit-card company’s fault, right?
All the pundits I read suggest that Greece exiting the Euro-zone is a bad thing for everybody. I don't see it. Sure it’s bad for Greece and the Greeks - because it will mean a resort to unconstrained growth in domestic-currency-financed-government-spending, in other words, growth of government and a shrinking of the already shriveled private economy. And this will lead to inflation, the worst and most destructive of all taxes, which will lead sooner or later - probably not so later - to economic meltdown. By that time probably most of the Greek labor force will have emigrated.
But, it would be a good thing for the Euro-zone if it sent a clear message to the rest of the PIGS - the PIS - and maybe France too with its brand-new, rich, swanky, socialist president. A Euro-zone with one less deadbeat to support, and the rest in fear for their economic lives, why is that bad? The bond-holders take their knocks – what’s left to take. Some real belt-tightening occurs. Things would definitely get better after that. Of course, that’s a best-case scenario.
I don’t know the political details well enough to know what spurred Angela Merkel to hold fast, what vested interests, what real principles. Whatever it was, good for her!!