Friday, May 18, 2012

Greeks Mouth Off.

Alexis Tsipras, head of the Greek hard left coalition Syriza, and who may well become prime minister if his coalition does well in the next Greek election, said he sees little chance that Europe will cut off giving money to Greece, but if they do, Athens will stop making payments on its loans. And a financial collapse in Greece will drag down the rest of the Euro zone. 
   Is Alexis that stupid 'cause he's  Greek, or 'cause he's a lefty?
   The Europeans can stop giving free money to Greece anytime.  When the Greeks stop making payments to European lenders, the Europeans can just give the money they were gonna give the Greeks direct to the lenders.  If  the lenders, European investors and banks,  cry hard enough, the Germans will bail them out, just this once.  The Greeks already gave the lenders a 75% haircut last month, what's a second pass with the clippers mean after that?
   As soon as the Europeans stop paying, the Greeks are in real trouble.  They don't have enough tax revenue to pay all the pensioners and government workers and suppliers.  They will have to print IOU's, or drachma's to keep things going.  Any Greek with two braincells firing, ought to be dropping by his bank and drawing all his money out, in Euro's, while he still can.  Because pretty soon the government will tell the banks, you are going to drachmas.  Don't pay out any more Euros to anyone, give 'em these nice fresh crisp hot-off-the-press drachma's instead.  That's what we call a run on the banks, and the Greeks are only two inches away from having one. 
   Greece is a narrow gauge side show.  The rest of Europe can manage just fine without them.  A Greek default on their debts would be an annoyance but not a body blow. The Greeks would do well to understand that.  There is no provision in the Euro constitution, or common Christian charity that compels giving money to deadbeats.



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