The Greek bailout – What happens down the track?
Fundamental economics says that there is only so much money to go round. If you keep sucking blood out of a patient, they die.
Lenders can only get so much from Greece – No matter how much you lend, no matter how high the total debt gets, if the money is not there to repay, it’s not going to happen.
The Greek population will only pay what they can. They will not go into servitude, living on water and a daily loaf of bread just to pay their Government’s debts. Would you?
The Government dug the hole and will wear the animosity like the Olympic crown, for centuries, but the population will just sidestep and carry on regardless.
The Greeks are renowned for their preference for cash under the mattress and a disdain for taxes. With the rise of the Millennials and Bitcoin, there are massive issues ahead for the Government. Cash alternatives that can move cross border in a millisecond and a younger generation keen to lead a globally nomadic life. The Genie is in the neck of the bottle and the cap is loose!
No matter how much debt they are in – they can and will, just walk away (See this piece for my views) leaving a red faced lender frothing at the mouth.
The freedom that will come for the Greek people when their Government goes bankrupt and they tell the Government to vacate the premises and the return to their historic lifestyle will be felt around the World.