Aris Messinis | AFP | Getty Images
CNBC | Feb 10, 2012
Pat: This article was written by John Carney, senior editor, at CNBC.com. Seems highly prophetic and a piece of common sense to me. Lots of rumblings and tweeting about “drachmas” today.
We shall see . . . in the very, very near future.
Why Greece Will Default, Leave the Euro Zone
I’m going to make a somewhat irrational prediction.
I think Greece is going to drop out of the euro.
This is an irrational prediction because there’s no real way of knowing that this will happen. But it is no more irrational than predicting that Greece will stay in the euro zone. We’re just conjecturing about something no one can actually know.
My conjecture is based on a simple fact: If I were Greek, I’d leave the euro zone. The debt burden is unsustainable and the austerity measures demanded by the “troika” will only make it more so. With unemployment already at 21 percent, further government spending cuts are likely only to drag the economy down even more.
More importantly, perhaps, it is simply intolerable for a free nation to allow itself to be pushed around by its creditors. The creditor nations may feel like they have the moral authority to shove around Greece, but they are wrong. They have neither the moral authority nor the actual, operational authority. Greece can hurt them as much as they can hurt Greece.
MORE HERE:
http://activistawake.com/2012/05/14/why-greece-will-default-leave-the-euro-zone/
