We don't often hear from James Kenneth Galbraith like we do with other economist. I read in the Boston Globe this morning that he has been in Europe as a informal consultant to the Finance Minister and Prime Minister of Greece.
This article is his inside look at what is going on and who to blame.
If the Greeks vote “yes,” on the other hand, the uncertainty is political. SYRIZA may split and its government may fall. What then? There is no credible alternative government in Greece. Moreover, it is hard to think that any government formed to accept the surrender and deepen the depression would last very long.
And it seems certain that after a “Yes,” a surrender, and a deeper depression, the official Opposition would no longer be the pro-European Left that is today's government in Greece. Europe will have destroyed that. The new Opposition, and someday the government, will be either a Left or a Right party opposed to the euro and to the Union. It could be Golden Dawn, the neo-Nazi party. The lesson of Greece also will not be lost on Oppositions elsewhere, including the rising far right in France.
The irony of the case is that the true hope—the only hope—for Europe lies in a “No” vote on Sunday, followed by renewed negotiations and a better deal. “Yes” is a vote for fear, against dignity and independence. Fear is powerful—but dignity and independence have a way of coming back.
My personal opinion is that the US needs to pledge their support for the Greek people. Their economy is not that large, about the size of the economy of the City of Boston, and can be fixed. We can do the same thing for Greece that we did for Argentina that put them back on their feet. This is much more preferred then letting the Golden Dawn rise into power.