Disaster capitalism, Greek style
Under the terms forced on Greece just now, by the ‘troika’, all small Greek businesses need to pay all their taxes for the entire year, in advance, before they’ve earned any money at all. But foreigners living there can send out any funds they like, tax free– according to noted economist Joseph Stiglitz in the NYT.
It goes without saying that under the terms granted by the troika, Greek unions need to be enfeebled and half the population must be reduced to pauperdom. The troika is the International Monetary Fund, the European Central Bank and the European Commission.
In my opinion Greece should have instead withdrawn from the Euro zone and begun printing their own money and defaulted in the same way that Germany did after World War One: at first state that one drachma equals one euro, but then keep printing more and more of them, so that they could pay off the billions of Euros in billions of drachmas. Where’s the catch? Again, follow the lead of the Germans, who made it so that it took a billion Deutschmarks to buy a loaf of bread. Greece wouldn’t have to go quite so far: just make a single spanakopita cost a million drachmas.
Such hyperinflation would of course wipe out the savings of the wealthy – but they are the ones who’ve been screwing the country for ages.
Let me also point out that part of the reason Greece is in deep financial crisis is that they spent the equivalent of $15 billion building stadiums for the Olympics in 2008 – stadiums that are now unused. Boston did the right thing in taking their name out of the competition for the next set of games.
Here is the link : http://mobile.nytimes.com/…/greece-the-sacrificial-lamb.htm…