Patience Snaps in Portugal: by Ambrose Evans-Pritchard
“Portugal cannot recover under the policies in place. The government is asphyxiating the Portuguese economy for no useful purpose. It is pain without gain.
While mass default within European Monetary Union is theoretically possible, the country would do better to leave monetary union and restore global competitiveness at a stroke. There is nothing to be gained from dragging out the agony. (…)
Professor Milton Friedman warned against the destructive effects of European Monetary Union from the beginning. He would be horrified by the collapse of the money supply across Southern Europe and Ireland. It was after all Friedman’s theories on the monetary causes of the Great Depression that made him famous.
His advice to Portugal would be immediate withdrawal from the Maquina Infernal of European Monetary Union, and the immediate retrieval of Portugal’s sovereign policy instruments. (…)