Greece must avoid replacing one myth with another - that returning to the drachma will be a panacea. If and when the drachma returns it will not be the notes and coins issued by the State free of debt which will be the problem, it will be the new drachma denominated debt issued by the privately controlled international banking system which will hobble Greece to its present masters, reads this BellaCaledonia article that is well worth reading.
What type of monetary framework should the Greeks adopt if they were to part ways with the Eurozone?
The "Grexit" might be just around the corner. Wall Street bets on 75% chance of Greek default. Greek prime minister escalated his defiance towards the country’s official creditors, with a pointed attack on the International Monetary Fund, saying the IMF bears “criminal responsibility”. Greeks are withdrawing cash from banks in fear of Grexit. And the Greece's central bank has warned for the first time that the country could be on a "painful course" towards default and exit from the eurozone.
This week has seen the UK’s major banks begin a concerted fight-back against regulation intended to make the banking system safer. And there’s some sign that politicians are minded to listen. Mark Garnier, a Conservative MP on the Commons Treasury Committee said, “We cannot keep using them as a whipping boy for political one-upmanship.”
Listen to Fran Boait, Executive Director of Positive Money, explaining the problems with digital money in the current money system, the consequences and alternatives in an interview on Share Radio
It is surprising that there is any debate about how banks work: surely it is crucial to an understanding of the drivers of both the financial system and the economy, reads The Financial Times, 8th June 2015.