As Greece faces an economic catastrophe sucked dry by vampire banks, Germany’s Finance Minister Wolfgang Schauble has floated the plan of a temporary five-year Grexit if Athens does not committ to deeper structural reforms.
The Grexit will be supported by humanitarian aide, technical help and funds to help Greek industry grow, according to the German plan.
Certainly, an orderly introduction of the Drachma as sovereign money with high quality, forgery proof notes and strict inflation controls would help Greece produce and export again. It would help reverse de industrialization and create jobs.
But only if the switch is adequately planned and supported. For example, farmers in Greece will need financial help buying packaging from abroad until such time as a Greek factory is set up producing such material, something, which will, in turn, require investment in euros.
Technical assistance in replacing the monopoly CIA-controlled Singular Logic holds on the vote counting IT system would surely also be a good thing in delivering fairer election results.
A Grexit would also allow for the astronomical and growing national debt to written off, vital for Greece to recover.
A temporary five year exit under these terms could, indeed, help Greece recover from the punishing austerity resulting, ultimately, from the private creation of money.
In fact, it could be the Icelandic-style default and introduction of sovereign money, some Syriza MPs wanted before they were pushed aside by Prime Minister Alexis Tsipras.
The new bailout deal is going to send Greece deeper into the debt death spiral and increase the misery of Greeks, and the Europeans who have to pay the banker bailouts. It also leaves the interest of the Oligarchs and private bankers more or less untouched.
And sitting on the side lines watching while Greece undergoes a chaotic default and unplanned introduction of IOUs and a parallel currency risks hyperinflation, mass impoverishment, social upheaval and a (CIA-controlled) dictatorship is not an option for the European Union. Prosperity, peace and unity in Greece serve Europe well.
Sovereign money in the Eurozone serves Europe best.
At any rate, the need for humanitarian aide is becoming urgent. The European Union should stop stop talking about it, and start giving it immediately to those who can be trusted to deliver to the poor like the City of Athens and the Orthodox Church in Athens.
The Telegraph reports:
Yorgos Kaminis, the mayor of Athens, said the stand-off with creditors has brought the country to its knees. “Greece faces a national catastrophe. If there is no deal, we will be obliged to go back to the drachma immediately. Our country will be totally isolated. You can’t be a member of Europe if you are blackmailing the whole world,” he said.
Greek industry and the tourist sector are already preparing drastic steps to defend themselves if talks collapse and the government is forced to introduce IOUs and a parallel currency.