The Greek solution is really very simple

Germany should leave the euro. Granted, this is not an idea that is particularly new, but it is becoming more obvious by the day that this would be the neater solution for everyone.

Don’t get me wrong. I quite like Germans. They have decent sausages and Oktoberfest is a riot. But it is utterly disgraceful that the ruling politicians have forced ordinary Greeks into this ugly mess with utter disdain that cuts right to the heart of Europe.

A six-year recession is a curse that shouldn’t befall any nation, and if this isn’t a depression… well, slap me with a pink salmon and call me Samuel.

It is quite clear, as various press articles have pointed out over the past weeks, that keeping Greece in the euro is of far more benefit to other euro members than it is for Greece. But sifting through all the untruths and half-lies is not easy, as much of Europe’s press still insist that a Greek exit would be disastrous.

For who? Certainly not the Greeks, who have already been squeezed so much because of the ludicrous path they have been forced down.

Should Greece quit the euro, what is the worst that could happen? Sure, they would be a lot of uncertainty and a few tumultuous years, but ultimately the country would start to very well. Competitiveness and growth would be restored, as the devalued drachma attracted foreign investors. And what of its debts? Well, it could just “do an Iceland” and default on them. Investors may be slightly unhappy with that and rating agencies would probably throw a strop. But, ultimately, markets don’t have very long memories – and investment in due course would return. After all, investors are clever people who know whose fault this mess really is. And you can’t fully blame the Greeks.

Look at Argentina, a very good modern-day precedent. When it left the dollar peg, there were many doomsayers that predicted the worst. Sure, the country wobbled initially, but after that shaky start its economy started booming again.

So, a Greek exit would be a saviour for Greece but a disaster for the euro-zone. A German exit could yet save the euro. A third way would be to nationalise the banks and tell them to stop crying about all the money that they might have thrown down the Greek sewer. They shouldn’t have ever lent to Greece in the first place.

But that ain’t ever going to happen.


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