“Grexit” is the term coined by Linda Yueh as shorthand for Greece leaving the euro zone. But a letter to the editor in a the May 26 Wall Street Journal proposes a different solution. If Germany left the euro, the remaining countries would be forced to get their fiscal houses in order. A Dexit (Deutschland) would remove any hope of being bailed out by Germany. I tip my hat to Mr. Paul Feldman of Spencerville, Maryland, for coming up with this (although I will claim credit for Dexit). Since the Wall Street Journal has once again mucked up the urls on their website, I am taking the liberty of posting Mr. Feldman’s letter in its entirety. Good creative thinking!
Germany, Not Greece, Should Abandon Euro
Germany, rather than Greece and the other debtor countries should drop out of the euro (“France, Germany Joust Over Euro Bonds,” World News, May 22). It would instantly become clear to the debtor/deficit countries that gaining control of their budgets is their only possible course of action.
So long as they hope that the Germans will “rescue” them, they will keep putting off the day of reckoning. With Germany out of the euro, rescue would no longer be an option.