Please, just go away.
THE Greek government has been advised by British economists to leave the euro and default on its €300 billion (£255 billion) debt to save its economy.
The Centre for Economics and Business Research (CEBR), a London-based consultancy, has warned Greek ministers they will be unable to escape their debt trap without devaluing their own currency to boost exports.The only way this can happen is if Greece returns to its own currency.
Greek politicians have played down the prospect of abandoning the euro, which could lead to the break-up of the single currency.
Speaking from Athens yesterday, Doug McWilliams, chief executive of the CEBR, said: “Leaving the euro would mean the new currency will fall by a minimum of 15%. But as the national debt is valued in euros, this would raise the debt from its current level of 120% of GDP to 140% overnight.
Their debt level would skyrocket, lenders would stop lending to them, they’d have no money, and MAYBE then they’d be forced into some degree of fiscal responsibility! Maybe.
Lending more money to Greece to help them pay off their debts is like giving Jack Daniels to an alcoholic, hoping that this last drink will help stave off the shakes. Greece is an addict. Stop giving them money, and force them into some degree of fiscal responsibility!
Devaluing their currency and leaving the Euro means default. It means German and French banks are hugely at risk, and there’s a massive change of contagion.
But really, what other option do they have? Handing them more cash is obviously not going to do any good.
