A Grexit, with a managed default and devaluation to kickstart recovery, is the only deal that should be on the tableThere must be Grexit this weekend. It is light at the end of the tunnel, the best possible outcome from Greece’s agony and, in truth, the only one. The admission of Greece into the eurozone in 2001, tying its economy to that of Germany (and its reckless bankers), was a disaster waiting to happen. The error was so great that even this tiny economy – just 1.3% of the EU’s – has contrived to traumatise Europe’s leadership for the past three months. The only catastrophe now would be no Grexit.Talk of Greek bankruptcy and its dropping the euro as “an abyss … a nightmare … chaos … unthinkable anarchy” is bankers’ drivel. It will be tough to handle – made vastly more so by being delayed, unplanned and enforced. But handled it must be. Greece is bankrupt. It cannot pay its debts, let alone any more forced on it by “bailout”. There must be a managed default and a restarting of the engine of recovery. That is the only “deal” that should be discussed this weekend. Continue reading...
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