Greece could become the first developed nation to not pay its debts to the International Monetary Fund on time, as the country sinks deeper into a financial emergency that has forced it put a nationwide lockdown on money withdrawals.
At this point it is hard to see that handing more money to Greece does anything other than increasing the lenders loss. There will be suffering with the austerity moves suggested by the EU, but it seems to me that there will be more suffering with the moves suggested by the current Greek administration.
Perhaps the referendum should include a question on whether or not to keep Mr Tsipras in office.
My main interest in this is not about Greece, but rather about what happens when politicians promise too much and the bill comes due. These politicians are buying their friends with IOU's.
The lessons of socialism are in plain view and have been for decades. The 20th century is one giant cautionary tale against socialism, and Venezuela is already a 21st century affirmation.
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.
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.
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