Monday, June 29, 2015
Greece's debt causes bank closings and stocks to fall around globe
Anyone who does not already see is lying to himself. Because of that lie, politicians are able to promise unicorns and pixie dust and get elected.
Stunned Greeks faced shuttered banks, long supermarket lines and overwhelming uncertainty on Monday as a breakdown in talks with international lenders plunged their country deep into crisis.
With Greece's bailout expiring on June 30 and an IMF payment falling due at the same time, Prime Minister Alexis Tsipras pleaded in vain by phone with European officials to extend the program until a referendum on July 5 on its future terms.
The frantic efforts to secure Greece's place within the euro zone followed a dramatic weekend. Tsipras's decision, early on Saturday, to put the aid package to a popular vote took the lenders by surprise and sent Greeks rushing to cash machines.
The core solution to Greece's problems is to create more wealth. This requires two things: a major revamping of its business laws and regulations in the direction of economic liberty (especially in labor freedom - where Greece ranks very low) and Greeks working more (including retiring later in life).
Living standards are tied to economic productivity. The latter will not be fixed by a socialist government, and until Greeks realize that and stop voting for leftists, they're going to continue waiting vainly for the impossible.
Posted by Dan Butcher