May 23, 2012, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement on the possibility of Greece leaving the Eurozone:
"Running a deficit in excess of 9 percent of GDP, Greece is upside down and will only be able to return to sustainability if it exits the Eurozone. They never have followed the Eurozone's budget rules, and they never will. The political class there has always used the temporarily cheap financing the currency provided as a subsidy for its own excesses.
"The only other way to accommodate Greece and other nations' profligacy in Europe would be for the European Central Bank to monetize and refinance their debts for perpetuity, no matter how large they got. This would transfer wealth from Germany to southern Europe, and transfer inflation from south to north. It would be the end of fiscal sovereignty for all of Europe's powers, but particularly for the greater ones, which would be forced accommodate the waste of their neighbors.
"That likely will not happen. For Greece's own sake, switching back to the drachma and leaving the Euro is the only way out — even if it throws Europe into momentary turmoil. In the end there likely will be no escaping cutting spending, but at least it can be on Greece's own terms, in its own currency, and with the liberty of her people intact."
Greece sets June 17 for new elections, By ALG President Bill Wilson, May 23, 2012 at http://netrightdaily.com/2012/05/greece-sets-june-17-for-new-elections/
Americans for Limited Government is a non-partisan, nationwide network committed to advancing free market reforms, private property rights and core American liberties. For more information on ALG please call us at 703-383-0880 or visit our website at www.GetLiberty.org.