Holidays in Greece to be really inexpensive -cheap!
So Greece has solved its problems
by yesterday’s vote. We wait to see, and there is a lot more to see. And are
they, the pundits’ right – which ones – either I suppose?
Will Greece withdraw from the Euro?
The experts say that is not a good idea! But are they right.
Now the problem Greece is suffering
is a lack of cash – why! Well it’s not selling enough to pay its bills – some
say they spend more internally that they can afford. But that’s another
discussion. At the moment they need cash, but not loans – loans only cost more
money as you repay one day with interest. That is of course if you repay!
So what do they sell? – HOLIDAYS –
we all like a cheap holiday, so the need is to make their holidays cheaper. But
to do that it seems they need to be paid less and that they don’t want to be
paid less - I mean who does. They could
sell other products, and I’m sure they will, but it is still the same problem.
So what is the answer?
We mustn’t let them default on the
loans they already have. Well I’m not sure about that – how do we stop that
happening if they have no money, and as they are now situated it looks like they
will be having even less for a long, long time. We might as well put those
loans on a back burner interest free and wait for the proverbial miracle; and
concentrate on the now!
So who
has the answer, let’s go back to 1967, to the days of Harold Wilson; who! You
might well ask. Well maybe I’m a bit older than most. He devalued the pound by 14%
and said;-
‘From now
on the pound abroad is worth 14% or so less in terms of other currencies. It
does not mean, of course, that the pound here in Britain in your pocket or
purse, or in your bank, has been devalued. What it does mean is that we shall
now be able to sell more goods abroad on a competitive basis." Well that’s
what he said and we believed him!
As to
Greece, so they can make their products and holidays cheaper if they devalue,
as the Dracma will be worth X per-cent less or so in terms of other currencies.
It will not mean of course in Greece that the Dracma in their pocket or in
their bank has been devalued; it seems they can resume their way of living!
What it does mean is that they will be able to sell more goods abroad on a
competitive basis. They start earning from their holiday industry, we can have cheaper holidays. And the people of
Greece have still the same money in their pockets!
What else
did Harold Wilson say? ‘The only alternative’ he said ‘was to borrow heavily
from governments abroad.’ And he didn’t want to do that! Which is what is being
suggested for Greece –and that wouldn’t be a good thing for various reasons.
The then (1967) Prime Minister of England Harold Wilson, defended his decision to
devalue the pound saying, ‘It will tackle the “root cause” of Britain’s
economic problems.’ Now as we all know we entered a time of prosperity for
Great Britain in the late sixties. I suppose the same thing could apply to
Greece. There is only one problem – members of the Euro are not allowed to
devalue. Time to leave the Euro I think – well for Greece anyway – the English
never joined – so let Greece be the same as us (Out of the Euro)
However
to all intents and purposes we devalued in 1992 – Black Wednesday they called
it – but that was a very dodgy time for businesses and property prices. But it
was described as Golden Wednesday by some as it was followed by a very strong
and good economy for the U.K. and the Conservatives were able to hand that over
to the Labour in 1997, Mind you Labour soon spent all the money and then flogged
off our gold cheap. Seems you just can’t win.
I still
think Greece would be better off to get out of the Euro, and Great Britain to
get out of the Common Market!