Permit me to issue and control the money of a nation and I care not who makes its laws.
Mayer Amschel Rothschild 1744-1812
Thanks everyone for holding the fort during my absence; as a matter of fact, I’ve been on the road this week and only arrived home a few hours ago.
I’ll post the article on the gold standard later this week; the quote above serves as a conversation starter for this thread and the next. Today, I’d like to focus the debate on the impending collapse of the economy in Greece, and as has been predicted by many, the domino effect it may have on Portugal, Italy, Ireland and Spain: the so-called “PIIGS” of Europe. Clearly, these countries have been living beyond their means, spending more than they earn—year in, year out. Eventually, the credit card limit is reached.
In the last thread, Meltemian posted this link to a blog suggesting that Greece may well be on the verge of dropping the Euro and returning to the drachma; initially offered at one-to-one parity, it will quickly plummet in value, giving the Greeks an escape route from their current woes; one of them, anyway.
And if Greece does break away, will the escudo, lira, punt and peseta replace the euro as well? And will it lead to a repudiation of the Treaty of Lisbon, and even the Maastricht Treaty? Given that (as I have read), 85% of Britain’s laws are now made in Brussels, on the basis of an international agreement to which British voters never assented, we here at LibertyGibbert should, on the face of it, be cheering these developments. But what are the wider ramifications?
I look forward, as always, to reading your views.