Bank of Greece Warns of 'Uncontrollable Crisis'

Is this the scare tactic being used as cover by the radical left Greek government so that they can implement bankster demanded  higher taxes, and other measures, on the Greek people.

The Greek central bank is warning that the country could be plunged into an unprecedented slump unless a deal is agreed soon.

In a new report, the Bank of Greece warned that the country’s membership of the European Union, as well as the eurozone currency bloc, is now at stake.

It said:

Failure to reach an agreement would....mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country’s exit from the euro area and – most likely – from the European Union.

A manageable debt crisis, as the one that we are currently addressing with the help of our partners, would snowball into an uncontrollable crisis, with great risks for the banking system and financial stability. An exit from the euro would only compound the already adverse environment, as the ensuing acute exchange rate crisis would send inflation soaring.

And the impact on the Greek people would be desperately severe, the Bank added.

All this would imply deep recession, a dramatic decline in income levels, an exponential rise in unemployment and a collapse of all that the Greek economy has achieved over the years of its EU, and especially its euro area, membership.

From its position as a core member of Europe, Greece would see itself relegated to the rank of a poor country in the European South.

Actually, a default on Greek government debt would not have to lead to any of these things, if the country started shutting down its many interventions of the economy and allow  a prosperous free market to develop.

 -RW