With the government restricting banking and capital, the Greek people voted yesterday against complying with their creditor’s demands. I’ve said this before and I have little to add: fuck Greece. If they want to leave the Euro, open the door for them. Call them a cab. Book them a flight. The only real concern is that they might drift into the Russian sphere of influence. But given that Russia’s economy is imploding, I don’t see that happening.
I was wondering if maybe the Greeks made the right decision but when I read that Krugman was in favor, I was reassured that it was a bad decision (among other things, Krugman describes the demands of Greece’s creditors as undemocratic. It’s apparently democratic for 2% of Europe’s population to demand free money from the other 98%). He doesn’t address Greece’s huge problems with tax compliance and massive pensions — the real causes of the current crisis. These problems will exist whether Greece is under the Euro, the Drachma, the Ruble or the Triganic Pu.