The vulnerability and sensitivity of the global economy to negative developments was demonstrated once against with Monday’s crash in the international markets, in response to the estimations of the Chinese economy slowing down. Hundreds of billions literally disappeared as panic-stricken investors rushed to limit their losses. Analysts speak of a domino effect, after Chine entered the so-called “global currency war” that is going on these days.
The shock obviously did not leave the battered Greek stock market unscathed, which has been gasping for air in recent times due to our economy and political developments. The decline of the Chinese giants will undoubtedly have broad consequences all over the world, especially in problematic economies.
Fortunately Greece is not dependant or influenced decisively by the developments in the stock markets. The agreement with the Europeans, even if it is accompanied by a painful memorandum of understanding, offers the necessary security which the country needs right now.
One can imagine what would happen now, should we have had a rift with Europe and returned to a national currency. The country would be faced with a storm that could literally knock everything down without any protection or sufficient domestic resources.
The proponents of the drachma and rift with Europe, who so easily promises just few months of sacrifices and burden, are clearly living in an alternate reality. In today’s global context, all that is needed is little carelessness for the situation to get out of hand. Any economy that is trying to survive without allies and secured funding will have a hard time.
The Greek people, who will be called to decide in a few weeks who will govern, should bare in mind that those who continue to propose a departure from Europe and the euro are leading the country fully exposed into the clutches of the international speculators.
TO VIMA
