By Dave Anderson:
The talk of Greek default and subsequent Euro exit suddenly went from crazy dirty fucking hippie talk to serious discussion of when instead of if and if instead of laughter.
The Greek president has called the four main parties, including the centre-right New Democracy and the Socialist Pasok, to try to form an emergency government to avoid new elections.
But Syriza said it would not attend because it could not back any coalition which supported austerity....
Elena Panaritis, an economist and MP for Pasok...Greece now having "conversations we should have had two and a half years ago," she said.
Go Fuck Yourself is a legitimate policy option and as the MP for PASOK notes, it is an option that should have been on the table thirty months ago:
Which politician wants to tell their constituents that they need to take a 30% to 50% reduction in their standard of living to pay-off a bunch of damn foreigners at near par and maintain allegiance to a monetary system that increases their pain? The current set may be willing to make that argument, but the next election will promote politicians who promise to take away some of the pain and screw the foreigners instead of their own people.
A single European currency without massive cross-border transfers and a central bank that is scared shiftless of the threat of transitory inflation has led to massive amounts of needless pain. The Greeks should have defaulted two years ago and walked away from the Euro when they still had some control over their long term internal assets instead of wasting two years of continued pain before walking away.
The Greeks, and the rest of the peripheral Euro-zone nations should consider that telling the Germans and the tight money Bundsbank that Go Fuck Yourself is a legitimate policy position and one that they are seriously considering embracing unless policy changes to both the ECB and the entire European economic integration project changes to allow for easier resets of relative prices between countries in the Euro-zone.