Tags: Greece | greece | europe | bailout | debt default

It's Time to Pull the Plug on Greece's Life Support

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Thursday, 02 Jul 2015 12:14 PM Current | Bio | Archive

The European Union just made a tough decision, deciding to stop bailing out Greece and to start letting them fend for themselves.

Greece owes 1.6 billion euros ($1.78 billion), and that payment was supposed to be due on Tuesday.

Banks and stock markets have partially reopened after being closed for a few days, the American markets have suffered because of it, and the fate of Greece rests on how these few days shake out.

It’s time for Greece and its citizens to finally stand on their own two feet, and leaving the EU would be one way to do it.

All of the “wizards of smart” being interviewed on the news about Greece say that leaving the EU would be detrimental or even fatal to the country’s economy, but that is just malarkey.

While Greece surely would suffer a bit immediately after leaving, the country would become much stronger overall. The Greek citizens cannot sustain themselves with a currency as strong as the one they currently have. They’re like a spoiled college kid who has mommy and daddy (the EU) pay for everything, but it’s time to finally kick them out into the real world.

The people saying that Greece should not leave the EU are simply pitching their own book. They have investments in that part of the world as well, and they don’t want to see their investments perform poorly.

For all of the times we’ve heard how “terrible” it would be for Greece to leave the EU, these “experts” have never once said what’s going to help the country. These are the same people that were telling us what Greece should do back in 2010, and everything that they have said has proven to be dead wrong.

Greece's current system obviously isn’t working, and yet nothing has been done to reform it.

What we’re actually witnessing here is a failure of socialism.

Greece is a much smaller country, and the Greek citizens haven’t been able to make socialism work for as long as many other socialist countries have been.

As Margaret Thatcher said, “the problem with socialism is you eventually run out of other people’s money.”

Greece cannot borrow any more, they’re not going to be able to attract more capital, and they’ve already cut pensions immensely. They want to stay in the EU, but don’t want to abide by the rules, and Greece is not a self-sufficient nation. By leaving the EU, the Greeks would ultimately become stronger, simply because they would have to be.

Leaving the EU and defaulting would not be the end of the world for Greece, and we’ve seen other countries experience similar hardships before.

Argentina and Russia are great examples of this, as both countries experienced massive financial crises in the past 15 years. They’re now both in different stages of turning things around. Greece on the other hand has no chance of things getting better if they don’t take action now.

The Greeks need to devalue their currency, as it’s currently too strong for their structure to handle.

Even if they do not leave the EU, the Greeks need to consider using their own currency. There’s no way that this country can work their way out of this debt based on their demographics, and there are other countries in the EU that do not use the euro.

In short, it’s time to take Greece off of life support. They can either prosper or fail at this point, but they need to stop taking others down with them.

While many think that leaving the EU may be a death sentence for them, it also may be their only chance to turn things around. However, we’ll never know until we pull the plug.

Chris Markowski has carried the titles of author, investment banker, equity analyst, and consumer advocate. He is the personality behind Watchdog on Wall Street and founder of Markowski Investments.

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ChrisMarkowski
While many think that Greece leaving the EU may be a death sentence, it also may be their only chance to turn things around. However, we’ll never know until we pull the plug.
greece, europe, bailout, debt default
652
2015-14-02
Thursday, 02 Jul 2015 12:14 PM
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