Kilkis wrote:....... I don't think an exit to the drachma is going to be a panacea for the man in the street. He/she is going to get screwed even more.
I don't know that anyone has suggested leaving the Euro for a new national currency will be a panacea. In my opinion, if Greece leaves (or is "constructively dismissed from"), the Euro I think things will get much harder immediately, for Greek nationals and foreign residents alike.
I can see no way that Greece can repay its debts whether or not it remains in the Eurozone but I think recovery will begin sooner outside the Eurozone rather than within it. Bailouts so far have worsened Greece's situation, not just the enforced austerity but the debt burden keeps increasing (and most debt repayments are helping to shore up foreign banks, mainly French and German.)
Great isn't it? Eurozone countries say, "Here's a pile of money but you must give some of it back immediately to pay some outstanding interest which we need to prop up our banks. Oh, by the way, did we mention you now owe €xxx++ and we'll be back soon for the interest on it?"
Continue like that and things will never
improve. Outside the Euro there's at least some
hope of recovery even if it takes 10, 15 years or more.
Greece would never be able to return to international money markets.
That, I think, is a tad pessimistic but even if you're right it's not likely to make much difference to life here.
P.S. I agree with you absolutely, Warwick, about the ill conceived Euro project. From the outset it's been a fiasco waiting to happen. I think the Europhiles expected their plan for a politically integrated Europe to have been achieved before the chickens came home to roost.