Holidays in Greece to be really inexpensive -cheap!

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!