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Nosemonkey's EUtopia

In search of a European identity

Is the Drachma doomed?

Interesting piece by an American investment and free trade advocate giving a handy bit of background to Greece’s money woes – just in case you weren’t pessimisitc enough already. Has some convincing, interesting points – worth reading in full:

“Modern Greek monetary history is one of default, inflation and destruction of wealth when the wealth preservation was entrusted to the government. Centuries of history support this statement…

“In the end, Greece has already lost. Europe has lost but can still cut further losses if it acts with congruence. We do not expect that to happen in any pro-active way. It is not in the nature of Europe’s political leaders to reach consensus pro-actively. They do so when forced by market events. We must think of European leaders as reactive, not proactive.”

As I say, well worth reading the whole thing.