Greece is about to tip over. The stupid socialist idiots running the place still think they can keep using other people’s money without there being any consequences.
They are wrong and about to find out just how wrong they are.
Allister Heath explains just precisely how bad the situation is for Greece.
Tragically, Greece itself is now very close to the brink. It is set to default on its €1.6bn payment to the IMF on Tuesday and its referendum will determine whether or not it quits the euro, or if it is able to cling on for a while longer.
There are generally four steps to social and economic collapse. First, the middle class loses access to its money, either because the banks shut or go bust in a mass, uncontrolled manner. Second, food and supplies start to run out in supermarkets as foreign suppliers slash lines of credit or domestic companies are banned from sending cash abroad.
Third, the state starts printing money uncontrollably, and hyperinflation sets in. Fourth, the lights start to go out, with power cuts and a generalised failure of the infrastructure. This process has now started, and could easily spiral out of control.
Greece is very much at step one, though it could end up in stage two much more quickly than many realise. In the short term, the public will probably put up with the limits on how much cash they can withdraw.
One week isn’t that long; and the money is still theirs. But businesses, as well as individuals, are also being affected, and it is here that the constraints could bite most dramatically over the next few days. Read more »