a reply to: ScepticScot
But it is not an political economical German ideology, it is the only way for Greece to regain competitiveness and be able to stand on its own feet
again when the economy grows again and the deficit has turned into a budget surplus.
With that the trust from the markets is regained which means the interest comes down to sustainable levels and Greece is able to enter the capital
They were well on track last year but all that progress has been destroyed in the last 7 months.
It does not matter if Greece is in the eurozone or not, if they had left the eurozone in 2010 they still would not have been able to borrow unless
they had paid an unsustainable interest on their debt.
It would have wiped out all the savings of the Greek people through massive inflation of the drachma and imports would have been to expensive.
If they had left the eurozone the Greek would not have seen their pensions and salaries cut, but they would have been a lot poorer than they are
Today it is not very different, the main difference is that the debt is now held by the european taxpayers since 2012 when private investors took a
haircut of 108 billion and debt was restructured against 1.5 percent interest which Greece does not have to pay before 2020.
In my opinion the rest of europe has been more than generous to the Greeks by helping them to lower the debt to sustainable levels.
Is it then to much too ask of the greeks to do their part? in my opinion no.
The option that was put on the table last week for Greece to leave the eurozone was because if they remain in the eurozone writing off debt is not
possible, but it would be possible if they left for a period, and during which they can regain competitiveness according to their own ideas.
Obviously Tsipras did not want to leave, neither do the greeks and their government who voted yes overwhelmingly to stay within the eurozone and
accept the fact that they have to cut spending.
Now ask yourself, why, after all the pain the greek people went through between 2010 and 2014, after all the progress that was made, the deficit was
down, the economy growing again, Greece almost able to access the capital market again,.. why did Syriza destroyed all that? for what?
And why the sudden turn around when their economy lies in ruins and their banks insolvent?
Has this been done on purpose in an effort to destroy the eurozone?
It sure has destroyed Greece, while they had better times ahead last year, now they face at least 3 more years of austerity because of the damage done
in the past 7 months including capital controls.