Friday, May 1, 2015

What Greece Faces if It Defaults

The New York Times is doing its share of drama regarding Greece’s economy by comparing their situation to the Argentine economic collapse of 2001:What Greece Faces if It Defaults.
It's an interesting read, and a lot of it is accurate, but what the article forgets to mention is that the greatest problem Argentina had and still has wasn’t trying to get rid of the IMF and refuse further foreign-imposed austerity, but doing so while having corrupt politicians and corporations that stole the profits and negated the benefits of many of these measures. This is exactly what every “Peronist” government has done in Argentina, from Juan Domingo Perón and Evita to Cristina Kirchner. Every country, from USA to Canada and United Kingdom, has regulations that benefit their own economy. At times it was more intense so as to allow local growth and development, later on being relaxed in some areas so as to allow it to compete with the rest of the world.
There’s nothing wrong with making the well-being of your own population the main priority, above the well-being of investors. That is, as long as it´s done in a responsible manner rather than looting the country yourself.
Fernando “FerFAL” Aguirre is the author of “The Modern Survival Manual: Surviving the Economic Collapse” and “Bugging Out and Relocating: When Staying is not an Option”.

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