Greece has debt that it cannot repay. What should Greeks do? I believe that Greek have following options:
- Have more austerity measures; Continue to remain in Euro. More wealth will be looted from Greece. Greeks will become more impoverished. The debt can never be repaid; so Greeks will keep suffering, as long as they choose this option.
- Default on the debt; abandon Euro and adopt Drachma; let the Syriza (newly elected party) implement its socialist policies. Greece will see hyper-inflation. Greeks will suffer for a few years till they abandon socialist polices for capitalist ones. The pain in this option will likely be lesser than option 1.
- Default on the debt; continue to use Euro if so permitted by other European countries or else abandon Euro for Drachma; adopt capitalist polices. The elected party Syriza will not choose this option. This option offers minimal pain to Greeks; it ensures a long term prosperity for Greeks.
The option chosen by Greeks impacts other European nations also. If Greece abandons Euro, the savings in Euro of Greeks will likely be seized by Greece government. The Greeks will get Drachma, which will be worth less than Euro. If Greece abandons the Euro, the European union is broken. Many banks in Europe will be bankrupt. Europeans can save their wealth by moving their savings to physical gold and silver. Expect Gold and Silver to rise by more than 30% in Euro terms in the next 2 years.
