Lord Keynes — Greece promises to Balance Budget: What the hell just happened?

Mike Norman Economics 2015-07-01

Any government that promises to remain within the EU can do nothing. The government has to credibly threaten to leave the EU, and maybe even take unilateral steps like suspending loan re-payments and implementing capital controls. The EU can clearly humiliate poor little Greece, but what happens when voters in Spain, Italy or even France act on their hatred of the austerity and their governments start to listen?

I would go further and say that there is no future in the EMU. Europe is not going to go forward to institute either a political union or even a fiscal union. The project is doomed and the faster than countries recognize this and bail, the less their populations will suffer and the threat of conflict in Europe will be reduced. The Continental Europeans need also to recognize that the US and UK are run by Wall Street and the City, and act accordingly. Social Democracy For The 21St Century: A Post Keynesian Perspective Greece promises to Balance Budget: What the hell just happened? Lord Keynes