Random thoughts on the Greek crisis

Some random thoughts on the story so far:

  • As far as I can tell, whatever the failures of the Greek government are, the euro itself is at the root of this crisis. The notion of a single supranational currency among nations with no common economic policy is destined to end in tears, I'm afraid.

  • That being said, it looks to me like the best long-term hope for Greece is to reintroduce the drachma and tell the ECB to go to hell.

  • The price of that may be exit from the EU as well. If that's the case, they're probably better off swallowing that bitter pill now instead of later.

  • If the Germans are so damned set on the Greeks repaying everything, they're welcome to come to Washington so we can discuss resumption of German payments on their outstanding World War I and World War II debt, which runs into the billions, which we so generously forgave. Maybe they could apply it to the outstanding Greek debt. We won't ask them to repay the Marshall Plan aid--yet.

  • It does look a great deal like the powers-that-be are trying to force a regime change to something friendlier to the global banks. May they not get their wish. Ever.

  • Let's hope the Greek coalition holds together so that internal divisions can't be exploited by outsiders.

  • After making comments over the weekend that could be viewed as encouraging a No vote in the referendum, the IMF has now told Greece, "Sorry, no more money for you!" May they rot in a very warm place.

  • It would be interesting (in the sense of "May you live in interesting times") if the Greek government were to come to an understanding with their fellow nominally Orthodox brethren, the Russians, on some kind of economic assistance. Putin would love access to a warm-water port west of the Bosporus, and would also love the opportunity to give the West a black eye.

More thoughts to come as the situation develops.