Tuesday, 7 July 2015
GREECE: Let me be first to admit I'm totally lost when it comes to this whole crisis in Greece and why it could effect the whole European economy . To me, and I don't mean to insult any Greeks, I thought all Greece was responsible for was Nana Mouskouri , Demis Roussos and the alcoholic drink Ouzo... So in my ignorant thinking, who cares if I have to buy my next Nana Mouskouri record in Drachmas!
Maybe these words by Peter Oborne helped me and perhaps you understand the situation better: . He says; "In my view, however, there is a more optimistic scenario: that the country would start to recover after a period of chaos. The drachma would depreciate precipitously, making Greece far more competitive than countries still stuck in the eurozone. Tourism, for example, would boom because holidays in Greece would be so much cheaper.
Leaving the euro would certainly bring immense uncertainty to an already chaotic Greece. But at least with its own national bank, Greece could set its own interest rates and make its own spending decisions. No longer under the control of Brussels commissars and foreign bankers, the economy in time would have a fighting chance of flourishing once again.
Crucially, this was the experience of Argentina after its national currency, the peso, sensationally decoupled from the U.S. dollar in 2002.
The economy grew at an amazing annual rate of 9 per cent between 2003 and 2007.
It would, of course, be a total disaster for the European project if Greece, freed from the shackles of the euro, mirrored Argentina’s success. Rival European states stuck inside the stagnating eurozone would study the Greek economy at first with disbelief, then amazement and finally with envy. Then, one by one, they would follow the example of Greece and break away from the eurozone."
P.S: I forgot Zorba the Greek.