Dealing with Greeks Shunning Debts

The newly-elected parties in Greece say they’re not going to abide by the austerity measures “forced” on them by the European Central Bank (ECB) as part of their bailout a couple years back. No one likes being responsible.They took Europe’s money; now they’re quibbling about the terms.

ECB needs to hang tough or Portugal, Spain and others will bail, too.

The answer’s simple: you made an agreement. If you don’t abide by it, you’re in default. If you default, you lose your assets go bankrupt. Oh, and don’t expect any future help.

And then do it.

Yes, they may have to kick Greece out of the Euro zone eventually. Would that be a loss? This kind of economic collective depends on the strong economies to bail out the weak, who feel no obligation to change their childish behavior. Therefore, the ECB has to be ready to preempt, i. e., kick out the flagrant violators. Better to let Greece go bankrupt than all of Europe.

This is why England was wise to stay out of the Euro zone.

America, are you paying attention?

Advertisements