[np] Euro crisis

[Ian Livingston]

"A spectre is haunting Europe...."

On Tue, Sep 27, 2011 at 9:55 AM, David Morris <fqmorris at gmail.com> wrote:
> http://www.guardian.co.uk/commentisfree/2011/sep/26/greece-default-debt-exit-eurozone?INTCMP=SRCH
>
> Greece needs to default on its debt and exit the eurozone
> [...]
> First, for the countries of the eurozone it has become apparent that
> there are only two clear options: political integration or breakup.
> Anything else is politically or economically unsustainable. Since
> there is no appetite for political integration, exit from the eurozone
> can be expected later anyway, when it could be even less advantageous
> for Greece.
>
> Second, there is little doubt among economists that the easiest
> mechanism for a country to gain competitiveness is to have its
> currency depreciate. Hence, Greece having its own currency is the
> easiest path to gaining international competitiveness. Cars and
> iPhones will become more expensive but food might actually become
> cheaper and employment will pick up within a few months after the
> introduction of the new drachma. By contrast, unemployment and
> deprivation with no end in sight are the predictable results of
> following the troika's policies.
>
> On Tue, Sep 27, 2011 at 5:58 AM, Kai Frederik Lorentzen
> <lorentzen at hotmail.de> wrote:
>>
>> Yesterday evening I saw Kenneth Rogoff on 'BBC Hardtalk' and he was saying pretty much the same as George Soros. Rogoff, too, said that the German public has to face that Germany will have to pay for it all. Greece, Portugal, Ireland. Maybe Italy and Spain. Even if some or all would have to leave the eurozone.
>>
>> http://www.nybooks.com/articles/archives/2011/oct/13/does-euro-have-future/
>>
>



-- 
"Less than any man have I  excuse for prejudice; and I feel for all
creeds the warm sympathy of one who has come to learn that even the
trust in reason is a precarious faith, and that we are all fragments
of darkness groping for the sun. I know no more about the ultimates
than the simplest urchin in the streets." -- Will Durant