From Patrick Barron:
From today’s Open Europe new summary:
Former Greek PM warns of “vortex of self-destruction” if Greece leaves the euro
The FT reports that former Greek Prime Minister Lucas Papademos has warned that Greece would enter a “vortex of self-destruction” if it left the euro. Papademos suggested inflation could hit 50% while real national income could fall by a further 20%. Separately, Syriza leader Alexis Tsipras said yesterday that if he wins the next election he will not fire any civil servants, scrapping the current pledge to cut 150,000 public sector jobs by 2015, agreed under the bailout programme.
There is no better illustration of the destructiveness of the European common currency, as currently constructed, than these statements. One Greek politician predicts chaos in Greece if the euro subsidies stop, and the other states that he will do nothing to reform the Greek economy. These statements expose the destructive forces of what can only be described as a socialist currency–the euro.
