Ann Pettifor, London based economist, explains why its citizens are better off with drachmas after a short and sharp economic contraction as opposed to years of austerity and social unrest.
The bankers and kleptocrats may not agree.
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Something I've noticed over the last 12 months or so is that there's a lot of anti-Euro commentary from certain sources, belonging to certain countries.
ReplyDeleteThose countries actually have massive debt problems of their own. I think they're happy to distract from their own issues by talking about this.
I'm talking about the US and the UK.
As far as I am concerned, nothing they say is worth listening to. If they start talking about their own problems, i'll listen, but as long as they're pointing the finger, I'll consider it propaganda.
Incidentally, there are significant logistical issues with Greece leaving the Euro. It's all gravy on paper of course.
A tale of success. 4 years of woe and now things on the improve
ReplyDeletehttp://www.telegraph.co.uk/finance/financialcrisis/9312181/Iceland-has-taken-its-medicine-and-is-off-the-critical-list.html
Isn't that better than a decade or two of austerity?
"But compared with Ireland, which has seen national debt soar from 11pc to 96pc of GDP after bailing out bank bondholders rather than cutting them loose, Iceland has been an amazing tale. It may have been so small as to be irrelevant to the global financial system, but the IMF has said there are lessons to be learned. Spain, whose banks pose a much greater risk than its public finances, is a case in point.
ReplyDeleteAs Julie Kozack, IMF mission chief for Iceland, said: "For a country whose entire financial system collapsed, Iceland is doing remarkably well.""
Iceland is a funny one I think - we rarely hear about them in the MSM, and I think because it doesn't suit the agenda.
ReplyDeleteI don't think the Euro itself is the problem though. Debt is a problem, for most westernised countries at the moment.
Personally I don't see the big deal with a default here and there. But a default within the euro is a problem for German and French banks it would seem. So they have to default to :)
It's all TBTF these days... I hope they come up with a permanent solution to it. Like the 'Glass–Steagall Act', except this time 'p e r m a n e n t' :)