The worms of Europe are turning

[FluffyMcDeath]

And I agree with Krugman that it's a good thing.

I think it's a sign up article but let me quote some bits:

It was actually kind of funny to see the apostles of orthodoxy trying to portray the cautious, mild-mannered François Hollande as a figure of menace. He is “rather dangerous,” declared The Economist, which observed that he “genuinely believes in the need to create a fairer society.” Quelle horreur!

One answer — an answer that makes more sense than almost anyone in Europe is willing to admit — would be to break up the euro, Europe’s common currency. Europe wouldn’t be in this fix if Greece still had its drachma, Spain its peseta, Ireland its punt, and so on, because Greece and Spain would have what they now lack: a quick way to restore cost-competitiveness and boost exports, namely devaluation.
As a counterpoint to Ireland’s sad story, consider the case of Iceland, which was ground zero for the financial crisis but was able to respond by devaluing its currency, the krona (and also had the courage to let its banks fail and default on their debts). Sure enough, Iceland is experiencing the recovery Ireland was supposed to have, but hasn’t.

 

[Glaucus]

Here's what you gotta understand Fluffy, Greeks don't want a devalued currency. They simply can't compete. It worked for Canada because Canada happens to be next to the US. Canada went into recession when the US and most other Western nations were doing fine and they pulled us out of the abyss. But Greece is next to a lot of countries with currencies far more devalued. Greece can never compete with Turkey. And on top of that, all of Europe is doing badly so instead of being pulled out, they'll be pulling everyone else in with them.

You can't be pointing to Iceland as some great example of your policies. Iceland has free energy that they can use for manufacturing - Greece can't do that. Iceland's economy is export driven, Greece is a net importer. Iceland has no standing army where as Greece spends more on the military per capita than any other EU nation. These are important factors that you seem to keep ignoring.

The real news people should be noting from the Greek elections is that the fascists took a sizable number of parliament seats. People are looking for someone to blame and no one is interested in taking any ownership here. When Greece does default it's gonna be disaster. No good will come from that.