domingo, julho 05, 2015

Economically insignificant country says NO

Resultado de imagem para greeceGreek voters have voted to resist ever more austerity and ever more bailouts,  to keep money flowing back to the creditors, in a snap referendum called and carried out in less than a week.
A triumph of democracy over the creditors, say some.

Actually, it's more of a triumph of  economics over financial journalism.
Curiously, a number of Nobel prize winning economists supported the NO vote, Krugman, Stiglitz, etc.
But the financial press, closely identified with the big creditor countries.  were consistently in support of the YES vote.

A victory for the students of international economics and finance, not to mention economic history and the reality of the unsustainable divergence in the Eurozone.  And the the other Eurozone countries, including Portugal, who participated in the bailouts one and two, should simply recognize they   served the function of the "greater fool", a time tested  last-in creditor role in credit workout negotiations.

Contrary to what many political commentators said, what is at stake is, in fact, the EURO.
The referendum will not save Greece from further austerity. They need to overcome decades-old structural problems and bad economic management.  The  Greek economy will get ever more fragile, but perhaps they will get more humanitarian aid, and especially help in putting the 50% of unemployed youth  to work.

If DIVERGENCE within the Eurozone continues to worsen, popular support for the Euro will  drop in other small countries as well, as they come to the realization they might be better outside the Eurozone than in.

Mariana Abrantes de Sousa
PPP Lusofonia 
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