Great Big Fat Greek Expectations


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    DPC Country store, Venezuela 1905 From what I read in the press every day, as well as from private communication, a pretty wide divide seems to appear
    [See the full post at: Great Big Fat Greek Expectations]

    John Day

    The EU apparatchiks are already pretty pissed-off and fed up with the straightforward and unconventional style of Varoufakis, and Tsipras, too.
    Just doggedly getting right back in front of them and innocently asking the “impossible” again, maybe with a little Peter Falk “Colombo” style thrown in, will wear them down, or make them blurt something out that they want to keep hidden.
    Damn, Colombo was good.
    Go for it, guys!

    Formerly T-Bear

    Most do not consider the enormity of the accomplishment of changing currencies for daily needs. The Euro not only did that but was transnational in its scope as well as being fully accepted by the populations affected, some easily and immediately and others having slower rates of acceptance, none now would know how to return to their former currency without grave dislocations. Greece would be no different, the Euro is now part and parcel of being Greek, of being Eurozone European, very few would willingly change that now established fact. These things are compounded by the problem that economic change requires the parties to negotiate together to accomplish desired goals, one party, taking after U.S. Republicans, have lost any ability to negotiate (That’s you Angela M’s finance minister, a rather forgettable personage) or even acknowledge disagreement. Although modern expectations of politicians is whenever lips are moving to expect hollow promise or misrepresentations, moving lips are also required to negotiate, something the German contingent of the EMU has either forgotten or has yet to learn – but there is hope yet – maybe.

    John Day

    The real de a ocha, “Spanish Dollar” was the first global trade currency, and legal tender in the US until 1857 (just my “two bits”). It worked out pretty well for hundreds of years.
    Silver dollars could make a comeback. It’s my humble suggestion.
    Call them “Thaler’s” if you prefer.


    When the experts put their minds to how to best manage some country leaving the Euro, they came up with this: “Leaving the Euro: A Practical Guide”

    It makes it clear that the country CANNOT have a public discussion about leaving, because it will cause ” large capital outflows from the country as international investors and domestic residents withdrew their funds; associated falls in asset prices and increases in bond yields; runs on banks, perhaps causing a banking crisis; and negative effects on consumer and business confidence.”

    So the decision has to be made by a small number of people, and kept secret while preparations continue. Should leaks occur, capital controls would have to be instituted immediately, which is illegal under EU law, but would have to be done anyway.

    So I don’t think Syriza is bound to discuss anything publicly, now that it is clear that there is no compromise on Austerity to be had from the EuroGroup. The decision to leave may already have been taken, and we will only hear about it on close of business on the Friday before the Monday that it happens.

    That would explain the apparent backdown – all they needed was funding to cover the few weeks until the grexit happens, and the terms didn’t really matter except for saving face at home.

    Read the report, it’s really good and has had a lot of thought put into it.

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