This is a comment on "What will happen with the return to the drachma?"
I cannot believe that this person calls himself an economist. His writing proves that he has no idea about how the modern economy works. All the historical examples from times when Greece was not in a monetary union are totally irrelevant. So his vision of Greece is isolated from the rest of the world with all the various crooks who did not pay their debts to the Greek State getting away with. Why? Why should we allow the Lambrakis newspapers not to pay their debts? How about the alternate electricity service providers who moved 300 million euros to Switzerland last month, ripping off customers and Greece. In Mr. Kazakis world they should get away with it, and so on.
Also there is the problem of the transition to the new drachma. The banks will collapse as depositors anticipate the conversion of their deposits at an arbitrary rate. Mr. Kazakis does not mind -- it is part of his "revolution" -- or maybe he has not thought of it.
In Greece over 75% of the consumption is of imported goods. What exchange rate will the new drachma have with the euro? 2000? 3000? How poor will Greeks be under the drachma? 60% pooer than now? 80% poorer than now? This plan will get us back to the 50s.
We have had politicians who acted irresponsibly for decades. One constrain they had was that they could not print money. Now they will be able to print drachmas to give to themselves and their friends. Hyperinflation will follow.
So in summary, Mr. Kazakos proposal wlll lead to: (1) a run on the banks and their destruction; (2) Greeks becoming 60-80% poorer; (3) hyperinlfation.
This is a comment on "What
This is a comment on "What will happen with the return to the drachma?"
I cannot believe that this person calls himself an economist. His writing proves that he has no idea about how the modern economy works. All the historical examples from times when Greece was not in a monetary union are totally irrelevant. So his vision of Greece is isolated from the rest of the world with all the various crooks who did not pay their debts to the Greek State getting away with. Why? Why should we allow the Lambrakis newspapers not to pay their debts? How about the alternate electricity service providers who moved 300 million euros to Switzerland last month, ripping off customers and Greece. In Mr. Kazakis world they should get away with it, and so on.
Also there is the problem of the transition to the new drachma. The banks will collapse as depositors anticipate the conversion of their deposits at an arbitrary rate. Mr. Kazakis does not mind -- it is part of his "revolution" -- or maybe he has not thought of it.
In Greece over 75% of the consumption is of imported goods. What exchange rate will the new drachma have with the euro? 2000? 3000? How poor will Greeks be under the drachma? 60% pooer than now? 80% poorer than now? This plan will get us back to the 50s.
We have had politicians who acted irresponsibly for decades. One constrain they had was that they could not print money. Now they will be able to print drachmas to give to themselves and their friends. Hyperinflation will follow.
So in summary, Mr. Kazakos proposal wlll lead to: (1) a run on the banks and their destruction; (2) Greeks becoming 60-80% poorer; (3) hyperinlfation.
Congratulations!