The leader of Greece’s far Left party says the party will pull the country out of the Eurozone if it comes to power in late January. It is expected to come to power.
This will allow Greece to restore its national sovereignty over money. That will lead to more inflation. The Greek central bank will be responsive to the Greek government.
The government will thereby default on its euro-denominated loans. So will every private borrower. Greek debtors will then pay off their debts with depreciated money. This will stiff the banks of Western Europe, especially German banks. The dumber than dirt bankers who thought Greek debt was safe will find out just how dumb they were. This is good.
Greece will get away with it. Then politicians in Spain and Italy will take note. So will voters in both nations.
A German bureaucrat has sounded a note of defiance.
Vice-Chancellor and Economy Minister Sigmar Gabriel said on Monday that the government would expect a new Greek leadership to hold to the country’s promises on the economy.
Germany expects that “whatever the shape of the new government, it should stick to the agreements that have been reached with the EU”, Gabriel told the Hannoversche Allgemeine Zeitung.
Ha, ha, ha. And, I might add, ho, ho, ho.
But he added that despite reports this weekend on contingency plans for a “Grexit” (Greek exit from the Euro), “the goal of the whole government, the EU and the government in Athens itself is to keep Greece in the Eurozone.”
I love the grammar: “the goal is.” That “is” is good for three more weeks. Greece will probably have a new government on January 26. Then that “is” will turn into “was.”
Gabriel noted that the Eurozone was more stable and resilient now than it had been in 2012, the last time Greece stared the possibility of dropping out of the single currency in the face.
So what? Greece’s economy remains a disaster. It cannot ever pay off its loans in euros. Why not still the bankers? Why not pull out of the Eurozone?
Members of the conservative Christian Democratic Union (CDU) and Christian Social Union (CSU) urged the government to stick to its guns and offer no concessions to the favourites, radical left-wing party Syriza, should they win.
This will buy the ruling party in Greece three weeks. Then what?
The euro is the rigged currency of the New World Order. It was Jean Monnet’s brainchild 60 years ago. It is facing a breakdown. It is falling like a stone in relation to the dollar.
The grand experiment is about to have its first major test. If the Greek Left does what it has promised to win the election, the euro will begin to unravel next month.
Then comes Spain. Then comes Italy. “By “comes,” I mean “goes.”
The best-laid plans of mice and men. . . .