Remember the damage the IMF has caused South American, African and Asian countries over the past decades? Well for those that opted for defaulting on their debt, in most cases, GDP actually increased soon after.However in nearly all cases, any economic recovery was only achieved through raising the rate of exploitation, poverty and ecological disasters, mimicing the very policies that the IMF wanted to impose on them anyway with or without defaulting.
The issue is what type of economy and economic policies should be adopted following default. Obviously not the free market, supply side privatisation programmes, based on a low wage economy that many then pursued at the expense of their own people and the environment.
Replacing international bankers exploiting their economies with local spivs and speculators is not the answer either. Whilst the flight of capital continues and the price of gold rises, clearly the Greek workers need to address the issue of socialisation of resources and capital, with the taking back control of the means of production to protect jobs and services, default or no default.
“Some countries benefit from defaulting on their debt” according to today´s Daily Chart in the Economist see below and here - “
The German and French banks who´ll be on the receiving end of the so-called “haircut” will not be so happy about this, ( SHAME), nor the will be the US firms who have sold insurance on Greek government debt (CDS) to worried investors.
We are continually being warned of the cantagion effect that a Greek default might trigger in
Yes to supporting the default option but no to the cuts and bankrupt free market supply side policies of tax cuts, rising uemployment and worsening living standards to keep the rich rich. The answer is an eco-socialist world, not a world based on international capitalist exploitation and barbaric wars of destruction.