What does the “no vote” mean for Greece, Europe and the rest of the world?
Matt O’Brien from The Washington Post says what follows a “no-vote” could be a dangerous chapter for Greece and Europe but not so for the rest of the world. O’Brien says an eventual exit would mean “the new drachma would plummet, inflation would soar into the double digits, imports such as food and oil might need to be rationed, companies that borrowed in euros might go bankrupt, and the government would have to balance its budget overnight. In other words, things would get a good deal worse than they already are.” There will also be some fall out in Europe… “they'd lose real money here, as in the hundreds of billions. Second, there'd be some contagion. Borrowing costs would creep up for Italy, Spain and Portugal. Third, all this uncertainty should make the euro fall further, boosting their exports in the process.” However, the exit could also “embolden anti-austerity parties in the rest of the continent” if Greece does well after leaving the EU. Full article here on the 7 things you need to know about the “no vote” (VIEW LINK)