Monday, May 4, 2015

Greece is example of government that wants to avoid telling the truth

I hope for the sake of Greeks that the drachma does not come back. It did not serve them well in the past but what it shows you is the degree to which politicians will avoid telling the truth. The Greek politicians don't want to level with Greek voters that they can't pay the pensions and they can't pay these inflated salaries and benefits that they promised, so they want to pay them in drachma. But the drachmas aren't going to buy much.

Greece would probably be better served to stick with the euro and to actually implement the reforms – real austerity on the part of the government. They need less government not just trying to get more taxes from the Greek workers. They just need fewer people living off those Greek taxpayers. They need less government in Greece. I would be all for Greece leaving the eurozone if they wanted to establish a free-market paradise, if they were going to become like a Hong Kong or a Singapore in Europe, if they were going to just say, 'Yeah, we want to be out of the eurozone so we can have sound monetary policy, limited government, low taxes.' But instead, they are promising even more socialism. They say, 'We need to leave the eurozone so we can have even more socialism than we have now.'

Peter Schiff is a smart investor and author of several best selling books. He correctly predicted the economic meltdown of 2008 - 2009