Posted 10 years ago on Dec. 12, 2011, 5:50 p.m. EST by nucleus
This content is user submitted and not an official statement
It would be Europe’s worst nightmare: after weeks of rumors, the Greek prime minister announces late on a Saturday night that the country will abandon the euro currency and return to the drachma.
Instead of business as usual on Monday morning, lines of angry Greeks form at the shuttered doors of the country’s banks, trying to get at their frozen deposits. The drachma’s value plummets more than 60 percent against the euro, and prices soar at the few shops willing to open.
Soon, the country’s international credit lines are cut after Greece, as part of the prime minister’s move, defaults on its debt.
As the country descends into chaos, the military seizes control of the government.
This is utter bullshit. What a Greek default would do is send the bankers into chaos when they found that they could no longer extort sovereign economies for profit.
Iceland defaulted, rewrote their constitution and elected a new government. But the NY Times won't print that, they’d rather spread fear of a military takeover if the economy collapses. Which is pretty funny when you think about it, because it is no secret that the military (financial-industrial complex) is already largely in control of the U.S. government.
Which is not to say that there would not be global repercussions from a Greek default. But the real repercussions would be a string of countries abandoning the Euro and their debt, retuning to sovereign economies from which global banks are excluded. This is what bankers are deathly afraid of, and why the Times is fear-mongering economic garbage.
What we should be talking about is the difference between a managed collapse, where governments take control of the fraudulent banking system, and a catastrophic global banking failure where banks demand more government (i.e. taxpayer) bailouts.
In a shining example of how it can be done, Iceland, for the second time in as many years, by popular vote refused to provide up to $5 billion to Britain and Netherlands banks. The just completed referendum once again rejected a $5 billion Icesave debt deal, pushed on Iceland by its European banking brethren.