It’s Memorial Day in the U.S., but the other world markets
are busy today. Things are looking up
for Greece as voters are leaning towards the pro-bailout parties…meaning Greece
will have a good chance of staying in the Euro.
Should Greece stay part of the Euro currency? This is the question that has been hotly
debated across the blogosphere the past few weeks.
This one says YES, stay with the Euro
This one says NO, Greece shouldn’t have been part of the
Euro in the first place…
And this one says even if Greece DID exit the Euro, it
wouldn’t solve Europe’s problems, so there is essentially no point.
What do I think?
Well, you know how there are
marriages with prenups? That’s what this
is. The Euro Zone married Greece with a
prenup. It’s like Greece is stuck in a
marriage she doesn’t really WANT to be in anymore, but if she leaves, she’ll be
left with NOTHING. Except a worthless
currency and high inflation. I think
devastating consequences aside, if Greece could safely exit the Euro, and there
were reserves of Drachma ready (and the Drachma was actually worth something),
this wouldn’t even be an issue. Greece
would exit and the Euro Zone could focus its efforts on something else…like Spain.
Maybe Keynes’ Bancor idea needs to be revisited…
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