Solutions are available, and they represent a collection of solutions discussed over the last few months succinctly. By no means are these easy. However, what triggers my thought, is the current implication by both Media and Finance, the two most powerful industries at the moment, that there is no way out. Which is not true.
Media, because fear sells, and finance which is greedy. Both are required to shake Greece out of its stupor, but now that Greece is awake, it is necessary to bring it back to balance. Talk about solutions, albeit difficult.
Some will argue, that if by putting in 10% of the deficit, it reduces so many problems, the China could have written a check. Well the issue is not the check, but the implications of it (in the 80’s there was a huge talk about Sugar mountains and Wine lakes in Europe, while there were people starving). What is happening is normal economics. Now if the Media and Financial markets would stop selling fear, we could get a move on. How else do you explain, that the ‘fear’ of Greek default of $440 billion has wiped out $2,4 Trillion dollars of value, almost five times as much in the Equity markets.
Economies have survived, far worse than this, Both Brazil, Argentina and proof of this, albeit their problems were slightly different. What remains true, is that Greece has an economy, both industrial and service based. The question is to ask, what can be done to ignite innovation?
October 1, 2011