Tomorrow by the time many of us wake up, the Greek Parliament will have approved the budget with its mandated austerity cuts or they will have voted it down. If they vote it down, analysts, pundits, and market players seem universal in their opinion that something very bad and unknown, cataclysmic and systemic will happen to the global financial system. That almost certainly means that nothing so terrible as the predicted financial fall out will take place.
On the other hand if nothing terrible happens in the days following the no vote, there is a good chance that the Greek government will run out of money. And if that’s the case, then something terrible will happen to the Greek people. The Government will not be able to pay the thousands of state employees and pensioners.
In the long run, though, this may be the necessary medicine and the smart thing to do for the Greek people to do. Freed of the artificial monetary restraints of the EURO , they almost certainly will be evicted from the common currency. They can then print up all the drachma they want and undercut their northern neighbors wages. Maybe they’ll even sell and island or two to some German or Chinese magnates.