Centrist To Potami MP Harry Theoharis tweeted on Monday night that there’s a team from the General Accounting Office at the Greek government’s headquarters preparing a plan for the return of the drachma. His tweet echoes a series of conspiracy theories around since the outbreak of the Greek economic crisis. Truth or not, having a back-up plan for a return to the drachma in the government’s first aid kit would be sensible despite the government’s insistence that “no” is not “yes” to a Grexit and Finance Minister Yanis Varoufakis’ statements that Greece would take recourse to the European Court of Justice.
* Skyrocketing inflation
* Capital flight
* Higher interest rates leading to market suffocation
* Shortage of essential items as imports are cut
* Freeze in wage/pension payments until liquidity is restored
* GDP would shrink to even lower levels!
* Public debt would automatically explode – new rescue packages would be required taking Greece back to Square 1
* Diplomatic and financial isolation of Greece
What is old could become new again…