Monday, July 6, 2015

Countdown to the drachma, y'all

Having voted against accepting the EU's offer of a bailout in exchange for fiscal reforms, Greece has pretty much opted out of the Euro. The referendum Sunday made it clear that the country is unwilling to change the fiscal ways the got it into the mess it is in today, and so only an idiot would loan Greece even more money. Frankly, I thought only an idiot would loan Greece money in the years leading up to this, but we have finally reached the point, I think, where even the idiots of the European Union realize that there is no point in loaning Greece even more money.

Or have they?
Belgian Finance Minister Johan Van Overtveldt was somewhat softer in his reaction, saying a "no" result "complicates matters," but that the door was open to resume talks immediately.
"What we certainly don't want to do is to take decisions that will threaten the monetary union," he told Belgium's VRT. "Within that framework we can start talks again with the Greek government, literally, within hours."
Some folks in the EU value talks over results. Actually, most folks these days seem to value talks over results, else we would not be "negotiating" with Iran over how much we should give them in addition to letting them develop nuclear weapons so they can fulfill their promises of destroying Israel. But I digress.

Germany is the country funding these bailouts of Greece, for the most part, and I think they're tired of it. I think we can look forward to no more EU money for Greece, which will practically require Greece to leave the Euro and return to the drachma, possibly as early as this coming week. The question the becomes, does the euro survive? I think Germany has a strong incentive under these circumstances to return to the deutsche mark. I guess we'll see if countdown to the drachma also means countdown to the mark. I think both countdowns have started.

1 comment:

Anonymous said...

Germany returning to the Mark would be AWESOME! It would be the beginning of the end of the EU.
Alas, I doubt that the Europhiles in power would ever ditch the Euro.