Happens In Greece The economic crisis from another point of view

NYT: ” If Greece drops the euro…”

"It would be Europe’s worst nightmare: after weeks of rumors, the Greek prime minister announces late on a Saturday night that the country will abandon the euro currency and return to the drachma."

According to the New York Times scenario,  the return to the drachma will trigger a series of unpleasant events such as the seizure of power by the military:

"As the country descends into chaos, the military seizes control of the government..."

"...lines of angry Greeks form at the shuttered doors of the country’s banks, trying to get at their frozen deposits. The drachma’s value plummets more than 60 percent against the euro, and prices soar at the few shops willing to open."

Of course, the writer notes that this dreadful sequence of events may never happen, but the danger for Greeκ and any other weak European economies should not be overlooked...

This danger led 26 of the 27 leaders of the Member States of the Eurozone, to agree last week in adopting a series of stricter measures to monitor the economies of the member states....

The article also emphasizes on the fact that during the last, Greeks have withdrawn almost 40 billion euros in deposits from their banking system, equal to about 17 percent of the nation’s gross domestic product. A total of 14 billion euros in deposits was withdrawn in September and October alone!

Read the full article here!

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