The EU is saying take it or leave it but Greece would be far better off dumping the Euro and negotiating a pay down of their debt in new Drachmas. Creditors would be happy to get anything and putting their own money in circulation would guarantee a market for Greek products as buying stuff would be the only way creditors could get paid.
That being said this would not be without risk for the Greeks, the IMF would be likely to seek retribution after being snubbed. You need to understand that we are in the middle of WWIII and for the most part the modern despot seeking world domination doesn’t wear camouflage but a $3000 suit. Of course if you happen to be sitting on resources they want and they can’t make you bankrupt then you could get a visit from the guys who still use bullets.
So the Greeks can keep their country and pull themselves up by their bootstraps or they can give it away for vague promises of prosperity someday. There are many here that are ready to give our country away just the same way and I’ve been getting their comments on my blog. The right has an entire fantasy world laid out with its own history and system of economics. It’s poor people’s fault that they borrow so much money, the right can’t grasp the fact that the corporate overlords are running a company store right out of The Grapes of Wrath.
Under supply side economics like we’ve had the last 30 years the only way to sell enough goods is to loan money to the under paid workers or the goods simply pile up. Ben Bernanke says he can’t understand why the economy doesn’t recover. Well Ben, it’s not that complicated, consumer credit has been curbed as their equity is largely tapped out and wages are falling. You have to do one thing or the other, pay people enough so they can buy the Model T’s or you need to loan them money so they can shop at the company store.
Loaning money creates a nice big bubble but bubbles always burst, this works great for the rich though who make money on the way up and steal assets on the way down. Paying decent wages so that the productivity gains in an economy are distributed to the people who are productive gives you endless opportunity for growth and prosperity. The rich don’t do so well under a merit system as only the really creative ones do well, the trust fund babies not so much and have to get real jobs.
But an awful lot of Americans think they will be trust fund babies someday if they side with the rich. They don’t have any plan for this (maybe buying lottery tickets) but they are sure it will happen just the same. So they are okay with making other people poor and the poor can starve but this will make them better off (they‘ve read the talking points and can be heard on the radio if they can‘t read). Selling off public assets is fine with them as they think this will cut taxes. It won’t of course as the government will pay to rent them back for twice the cost and other public resources will simply be lost forever. But don’t worry, we can all be trust fund babies. www.prairie2.com