Is there any politician in Europe anywhere, who would accept now that he was in favour of the creation of the EURO and the way it has been handled since !!! But politicians subscribed to the project which was adopted !!!.
However now that the EURO is facing a real crisis, namely the Greek inability to repay its external creditors, the Leaders of EU countries are clutching at straws to avoid the inevitability of Greece becoming a typical example of someone who has lost control of his finances. Who can or wants to save a Bankrupt ?
The hidden problem is that no one in the EU can be accused of not having done his job !!! The job was to monitor the level of overspending by Greece and the effect of this overspending on the ability of Greece to finance its balance of payments !!!
The latest proposals are that the Creditors of Greece, the companies which have receivable accounts, should bear a part of the cost of refinancing Greece !!!
This is a typical proposal by current politicians to put off the inevitable reality that Greece will become Bankrupt !!!
What should Greece do now ? Should it not readopt the former currency of the country, the drachma and then declare that all foreign currency debts must have a Drachma equivalence !!!
The next step would be to devalue the Drachma, which would have the same effect on foreign currency payables !!! The net result would be that EU politicians would get off the hook !!! They could plead that they were not responsible for such a solution !!!
Who would suffer ? Not the current Politicians !!! Only the Taxpayers because companies will, of course and quite rightly, write-off currency losses on debts in their accounts !!!
This Blog can only wait and see !!! Your comments on other solutions would be welcomed !!!
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