Defending the Indefensible – Throw the Greeks to the Dogs!

A Greek tragedy in the Euro-zone.
A Greek tragedy in the Euro-zone.

Eurozone – The Greek tragedy in the Eurozone is coming to a head soon. We keep hearing that the Eurozone members and the IMF have a bail out package for the Greeks, but the Greeks are unwilling or unable to implement the changes to their economy that are required to correct the monumental problems of overspending and under taxation.

The Greeks are using the threat of departure from the Eurozone, either voluntary leaving or being ejected by the other Eurozone members, as a means to blackmail a bigger bailout out, with fewer harsh conditions from the other eurozone members. The other Eurozone members look like they are giving into blackmail.

But all is not done and dusted in the bailout stakes. The German participation in the deal is up before the German constitutional court, and is wildly unpopular with the German people. The Germans think why should we bail out people who are not, “cutting their coat to suit the cloth.” Who can blame them?

Everything we hear about the Greek economy is bad or from bad to worse. It appears that the Greek government had been making fraudulent declarations to the European Central Bank (ECB) with the help of the giant US investment bank Goldman Sachs. Goldman Sachs are under criminal investigation in the United States for selling fraudulent securities.

The Greeks are not the only people guilty of living far beyond their means. The United Kingdom and the United States are too. But the speculators see a quicker buck to made out of Greece’s misfortunes. When the time is worst for the UK and the USA the speculators will turn their bloodshot and bleary eyes to Pound and the Dollar, and give them their undivided attention.

Just when you thought that there could be no more worse bad news about the Greek economy, it turns out that the Greeks falsified their economic data before they joined the Eurozone in order to meet the entry conditions for the Euro.

Now here lies the solution which is best for the long term future of the Eurozone. Markets respect firm action, and will rip apart any thing which is based on weakness.

The Greeks should be thrown out of the Eurozone with immediate effect. The Justification being that they never qualified to join in the first place. Their application was based on fraud.

This sends two very important messages, one to the markets and the other to the remaining members of the Eurozone.

The first message is that the Eurozone has the stomach to do what is necessary to protect the Euro. The rules of membership of the euro will be respected.

The second is telling the members of the Eurozone to put their economic houses in order NOW. The rules of membership of the euro will be obeyed or else.

Yes this would be throwing the Greeks to the dogs, but sometimes making an example is needed to encourage others not to repeat their mistakes.

You cannot borrow your way out of debt. The longer you put off facing that debt the greater the cost of servicing that debt will be. You can not get away from these facts.

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Author: Dr Suusi Watson

Editor of the Bastard

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