According to a PEW survey in March only one in five registered voters trust the government to “do the right thing”. It isn’t just here but in the EU there is pressure to bail out the Greeks. But does anyone doubt that they will renege on the deal? Watch the riots. The government says one thing but the people and history tell a different story.
I read an article on the Huffington Post about 10 myths involving the financial system. It used the argument that governments were different than states or individuals since they could print money and therefore could never run out. The solution for Greece, presumably, would be to free itself from the Euro and revert back to it’s original currency. Problem solved.
But who in their right mind would buy the debt? How could the currency hold any value? Would you take your pay in drachmas? The only thing saving a meltdown in Greece is faith in the Euro represented by those stronger economies securing it. But who believes the Greeks will “do the right thing”? The German people understand that they are going to get burned and don’t like it.
Banks aren’t giving loans to people now because values have dropped and they don’t trust that they will be repaid. Why does anyone expect that the government is any more trustworthy than the citizens? Is it because they say so and can print money?
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