Sunday, July 05, 2015

The United States Could "Buy" Greece (if Greeks Are Interested)

Here's a "crazy" idea, but it's so crazy it makes sense. The United States could "buy" Greece. It'd be the greatest deal in history for Greece and the greatest deal since the Alaska Purchase for the U.S.

Here's a broad outline of how that would work:

1. The President and Greek Prime Minister would hold a joint press conference announcing the offer, and a full "prospectus" would be published in both English and Greek for the people to consider.

2. Greece would hold a referendum to become a U.S. territory (and the U.S. would pass enabling legislation or, if necessary, a constitutional amendment) under the following terms.

3. The U.S. would offer to buy and bury all of Greece's public debt held by external governments and public institutions. The offer would be reasonable in the circumstances but represent a discount. The offer would be open for 60 days, take it or leave it.

4. Greece would convert to the U.S. dollar. The U.S. Federal Deposit Insurance Corporation would take over Greece's banks and insure all deposits up to FDIC limits. Euro-denominated accounts would be frozen as euro, insured within overall FDIC limits, and convertible when/if the depositor wishes, but no new euro could be added to those accounts.

5. As a U.S. territory Greece would enjoy immediate free trade to/from the U.S. European free trade would be up to Europe to decide.

6. Greeks would become U.S. citizens, though there would be a 5 year transition period with temporary policies that discourage people movement, probably via the tax code. European freedom of movement would be up to Europe to decide, though the U.S. would urge Europe to maintain residence rights for Greeks already in Europe and their immediate families.

7. Greece would have nonvoting representation in Congress and a Cabinet-level official in a new U.S. Department of Greek Recovery. Various transition policies would be set with strong protections for Greek language and culture, as examples. Tax policy would quickly converge, though the Greece would keep all U.S. federal tax revenues for at least 20 years.

8. The U.S. would be limited to opening one naval base and one land (joint Air Force and Army) base in Greece. Some current Greek military facilities would convert to territory/state National Guard facilities, and others would be closed.

9. After a period of 25 years but not more than 50 years, Greece would hold a statehood referendum, and the U.S. would be bound to honor the result. The vote would be between two irrevocable choices: statehood or independence. If no referendum is held within 50 years then Greece's U.S. territorial status would be automatically terminated, and Greece would become an independent nation again. In other words, permanent territorial status would not be an option. (Congress would also consider adopting the same 50 year transition clock for all other existing U.S. territories.)

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