“Veni, Vidi, Vici” Golden Dawn’s Hijacked Slogan
I hope you haven’t invested in Greece! What in the world is happening to Greece, beautiful and grand Greece? I know the people are suffering but voting in unreasonable totalitarians hardly seems wise. Now the drachma is making a comeback apparently.
Business Insider reports that 16% of the new parliament is comprised of communists (Syriza) and Nazis (Golden Dawn Party). One-sixth of the government, 48 seats out of 300, are now fringe people like the ones we saw throwing fire bombs at ancient buildings. The conservative New Democracy Party and the rival center-left PASOK Party have secured a one seat majority which might save the government in the end. It will be difficult if not impossible to unite this government however.
The new government is starting out by flipping the currency switch from the euro to the drachma in all likelihood. Banks have been preparing for this since the Greek debt crisis of 2009 though there are legal problems that they can’t prepare for even if Athens leaves the euro in an orderly fashion.
The EU doesn’t want Greece to leave the euro and most Greeks don’t want to leave but they voted in parties who are Communists and Nazis et al who are opposed to bailouts and austerity.
It is anybody’s guess as to what exchange rate banks can use because it will depend on the laws Athens draws up for trade of the currency. If they force an unreasonable exchange rate, it could mean enormous losses for foreign banks. Banks that have loans with Greece could be in a position of not being able to move capital because it will be illegal for them to repay debt in euros.
Companies might not be able to repay foreign creditors because all of a sudden their currency has become the drachma and it’s about to lose value quickly. Lenders will then have problems getting their money back.
Banks are checking their contracts and trying to hedge against default.
Greece’s national bank has its own printing press which will make the switch easy for Greece itself. Unfortunately for Greece they will have to become isolationists since no one will invest in them.
In case you haven’t heard the neo-Nazi leader’s acceptance speech, I have included it. He started out ordering reporters to rise for him. Can you say Sieg Heil?
After listening to this and hearing him rage against conservatives, does anyone really believe a united government is possible?
Look to Greece for your future America.