Greek bank run threatens entire EU
May 16, 2012
Greeks have taken $1 Billion out of their banks in the past ten days. That is huge for such a small country. The article below says that the solution is to stop borrowing money and start issuing debt-free money.
The truth is that Greece could solve their current financial problems in four easy steps. They would have to be willing to stick it to the rest of Europe and to risk being blackballed by the international community, but it could be done.
The following is my prescription for Greece....
1) Default on all debts.
2) Leave the euro.
3) Issue drachmas that are debt-free and that do not come from a central bank. Instead, have the Greek government create them and spend them directly into circulation.
4) Enjoy a return to prosperity.
In such a scenario, the Greek national debt would no longer be a problem, the Greek government would never have to borrow any more money and austerity would no longer be needed.
Yes, inflation would be an issue with the new currency, but a bit of inflation would be a walk in the park compared to the horrible economic depression that Greece is experiencing right now.
And once the Greek economy was growing again, it would certainly be possible for them to make the transition to "hard money" if they wanted to.
It is imperative that we all understand that just because the global financial system works a certain way today does not mean that it must always work that way.
Dr. Stephen Jones