Tuesday, May 04, 2010

τι να κάνουμε;

Which means, 'what can we do'? It is a stock phrase of resignation, usually delivered with a shrug or a wry smile. George Irvin thinks that the Greeks can do something though, something different.
In truth, Greece does have an alternative. Instead of submitting to the ferocious and pro-cyclical conditionality imposed by Germany and the IMF – cutting its budget deficit by 11% over three years in return for a €120bn (£104bn) loan – it could follow Argentina's example in 2001-02, and default on the bulk of its sovereign debt. This would mean abandoning the euro, introducing a "new drachma" and probably devaluing by 50% or more.
I think they should, I don't think they will.

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