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Greek Voters Stick It to the Eurozone Good and Hard

Written by Gary North on January 26, 2015

Greek voters have elected a Marxist political party. The party ran on this slogan: “Spend, spend, spend.” It is a popular slogan.

The party will start ramping up the welfare dole. It’s Keynesian welfarism forever! But where will it get the money? There are two ways: (1) default on the government’s debt to large European banks; (2) get the suckers who run the European Union, the IMF, and the European Central Bank to reduce the debt.

Basically, it;s this offer: “We default on our own authority, or else you authorize our default. Take it or leave it, [you dumb clucks].”

If Greece defaults, the Eurozone threatens to kick Greece out of the Eurozone. Then the entire Eurozone monetary charade is threatened. If Greece goes, this means that the euro is not forever. Of course it’s not forever. It’s doomed. But the bureaucrats love to play verbal games. They want their jobs forever, or at least until they retire. Then they want their huge pensions until they die.

Bureaucrats in Northern Europe are wetting their Depends. The BBC reports:

In Germany, Bundesbank President Jens Weidmann said he hoped “the new Greek government will not make promises it cannot keep and the country cannot afford”.

The election result is expected to be one of the main issues during Monday’s meeting of 19 eurozone finance ministers.

Belgium’s representative Johan Van Overtveld was quoted by VRT network as saying that Greece “must respect the rules of monetary union”, although he added that there was room for some – but not much – flexibility.

British Prime Minister David Cameron – whose country is not a member of the eurozone – said the result of the Greek election would “increase economic uncertainty across Europe”.

Meanwhile, the euro fell to $1.1098 against the dollar – the lowest level in more than 11 years.

Politicians in Club Med are waiting to see if Greece gets away with it, and at what cost. If Greece gets a settlement — a permanent rebate for threatening to default — politicians in Italy and Spain will be pressured by voters to follow suit. Then it will be France’s turn: an honorary member of Club Med.

The Eurozone is coming apart. I love it. Another Keynesian-bureaucratic house of cards is going to go down.

It is getting cheaper to buy European imports. It is getting cheaper to take a tour in Europe (but not Switzerland).

Let’s hear it for the 83-cent euro — what it was in 2000.

Continue Reading on www.bbc.com

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