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Sunday, May 30, 2010

The Campaign For Greece To Quit The Euro Gathers Pace



Recently issued Greek 2 Euro Special Edition coin celebrating 10 Years of the Euro. This will become a collector's item.

German tabloids have been campaigning for Greece to quit the Euro for two months now, and popular opinion in Germany is approaching 80% in favour of that happening. Today the campaign for Greece to quit the Euro came from another more 'educated' source in London, from the CEBR - the Centre For Economics and Business Reaearch.

The Greek currency would fall by a minimum of 15% as it leaves the Euro, it is estimated by the CEBR, and its debts would be increased overnight by that amount, from 120% of GDP to 140%. But, advises the CEBR, Greece should unilaterally default on these debts, converting them into local currency instantly, as she quits the Euro. That step would cost far less than the alternative of trying to keep Greece struggling along inside the Euro.

Greek exports could recover and the economy begin to work again. Locking Greece inside the Euro is costing billions to other Europeans and is a waste of time and effort.

With both the educated media of Think Tanks and the Tabloids now in full agreement about what should be done, it can only be a question of time before the penny finally drops for politicians. They've spent many Billions, promised Trillions but the facts of the case are that Greece's debts of £250 billion ($400 billion) will never be paid off, and that Greece has to default.

The sooner this happens, the less it will cost the world. That is the bit politicians don't get. Once a situation has gone past its point of no return, you cannot buy it back again with the political check (UK cheque) book. The cheapest solution in political and financial terms is QUIT and start again.

This must now be surely just weeks or days away.

Times On German Tabloids wanting Greece to quit the Euro. Greek and German democracy will surely triumph in the end.

EXTRACT FROM TIMES -

Four professors who opposed the German signing of the Maastricht treaty in 1998 have announced their intention to challenge the Government in the constitutional court.

They failed to get the Maastricht treaty thrown out 12 years ago but the court obliged the Government to ensure that european monetray union would guarantee a stable currency. A central element of the court ruling was that there should be no bailout for weak members of the eurozone.


92% of Germans want Greece to declare insolvency and leave the Euro, but like good Germans with their culture of consensus and obedience, they do as their Chancellor is commanding - so far.

3 comments:

Stuart Fairney said...

Yes indeed, this it what they wil do eventually, the de facto default by converting the euro bonds into the new drachma 1 to 1 then allowing a float. So a partial default rather like adminstration when creditors get around 75% of their money back or something. I do think it may take our idiot politicos a bit longer to realise and they won't jump, they will be pushed a la major with the ERM

tapestry said...

These events cannot be far away, Stuart.

tapestry said...

As it becomes clear that weak countries will default and quit, then the Euro will recover in value, taking pressure off the international financial system, and allowing stock markets to temporarily rally perhaps.

The next two to three years will see big changes methinks, as many similar massive follies such as the scale of state spending has to be unwound in mnay countries around the world. Unemployment will soar.