Saturday, 18 February 2012

Greek roulette

Stay in the eurozone or default?  Default is a serious possibility, indeed probability, as it is reported that the German government is divided on the issue.

Should more money be thrown at Greece even though there is no guarantee the austerity measures will work?  It is almost a certainty that the austerity measures will fail at some stage and Greece will default.  Mrs Merkel is reported as insisting that Greece must not be permitted to default, no matter what the cost of austerity is to the Greek people and the anathema in which they hold Germany.  Like a roulette player gambling on her number coming up, more and more money is being spent, in the hope that default will be avoided.  Roulette players will tell you that to keep on ploughing stake money on a number in the expectation it will come up is not a good idea.  Funds run out before the desired event occurs.

The BBC article below sets out the social, economic and political problems in Greece.

In the event of Greece receiving its bailout funding next week it will be merely a palliative.  Greece should depart, default and devalue now.

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