Jump to content
House Price Crash Forum
ralphmalph

Breaking News - Greece Threatens To Leave The Euro

Recommended Posts

Original: http://www.spiegel.de/wirtschaft/soziales/0,1518,761136,00.html

Translation: http://translate.google.com/translate?js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&sl=de&tl=en&u=http%3A%2F%2Fwww.spiegel.de%2Fwirtschaft%2Fsoziales%2F0%2C1518%2C761136%2C00.html

Who'd have thunk it? No doubt the Germans will all now sing this song and enjoy their hangover from 'Greek Wine':

Edited by Cinnamon

Share this post


Link to post
Share on other sites

A break up of the euro is inevitable; it was a barking mad idea from the start.

The meeting will also include a discussion of a restructuring of the country's debt, in the short, rather than long term.

Jean-Claude Juncker, president of the European council,...

Maybe they'll issue some Juncker bonds. :lol:

Edited by CrashConnoisseur

Share this post


Link to post
Share on other sites

Just posturing, won't happen.

I would not say that for certain as they are in a real mess. Austerity will not work for them.

Do not forget the Greeks have stuffed the ECB with their government debt so it is as good a time as any for them to default and leave the Euro. They need a cheap currency to attract tourists because at present the tourists are goint to Turkey, Bulgaria and Egypt becuase they are a fraction of the price.

Share this post


Link to post
Share on other sites

...just a thought, silly or not....but what is stopping the euro having different internal exchange rates? ;)

they could even call the euros different names like the lira euro and franc euro and drachma euro and mark euro, you could be on to something

Edited by georgia o'keeffe

Share this post


Link to post
Share on other sites

Much as I'd love to see this happen, I suspect this is no more than a friday afternoon FX rumour, spread in order to trigger stop losses in a thin market.

Perhaps someone at Deutsche Bank greased a friend who works at Der Spiegel on line?

Edited by Greener Pastures

Share this post


Link to post
Share on other sites

I would not say that for certain as they are in a real mess. Austerity will not work for them.

Do not forget the Greeks have stuffed the ECB with their government debt so it is as good a time as any for them to default and leave the Euro. They need a cheap currency to attract tourists because at present the tourists are goint to Turkey, Bulgaria and Egypt becuase they are a fraction of the price.

Amazing isn't it.. and it's all psychological.

They could just lower their prices 50%, but instead they scream for currency debasement which is exactly the same thing.

Like here with our houses.. we could just allow assets and wages to fall to stable levels, but instead we choose a weaker currency and price inflation.

Share this post


Link to post
Share on other sites

This is a very good idea in principal, getting the Greek economy back to growth should be the priority. Would you take a holiday in Greece if it was 75% cheaper than now? Major disadvantage however:

How do they plan to leave exactly? The new drachma would immediately become toilet paper, all their debt is denominated in € if they changed Greek law to force it in to new drachmas the contagion would be enormous. Who would be next, Portugal, Ireland, Spain? the run on these countries would start immediately. Massive financial collapse would follow.

They would need massive capital controls for a month or longer and support from Germany, France and I can't see it happening.

More likely, Greece threatens to leave and default so Germany decides to leave instead. The DM is reissued and the ECB is reformed, huge QE programs takes place the old € crashes, has the same effect as the new drachma without the financial collapse.

Share this post


Link to post
Share on other sites
Greece’s economic problems are massive, with protests against the government being held almost daily. Now Prime Minister George Papandreou apparently feels he has no other option: SPIEGEL ONLINE has obtained information from German government sources knowledgeable of the situation in Athens indicating that Papandreou’s government is considering abandoning the euro and reintroducing its own currency. Alarmed by the attempt, the European Commission has called together a crisis meeting in Luxembourg on Friday night. In addition to Greece’s possible exit from the currency union, a speedy restructuring of the country’s debt also features on the agenda.

http://ftalphaville.ft.com/blog/2011/05/06/562286/greek-out-culminates-in-talk-of-eurozone-exit/

Papa....might be trying to strengthen his hand over the restructuring. He's got to at least threaten the f*ckers.

Share this post


Link to post
Share on other sites

...just a thought, silly or not....but what is stopping the euro having different internal exchange rates? ;)

It would be a setback in the elites plan for world government.

I say , good for Greece.They need tighter border controls which they can certainly get by leaving the EUSSR.Leaving the UN would also be a good step.

Share this post


Link to post
Share on other sites

Avid europhiles could even keep some 'euro euros' under their beds, just in case the old ways come back.

perhaps they could call it the renteneuro, the Germans would like that and it would teach them for speaking a fcked version of Swiss

Share this post


Link to post
Share on other sites

The Euro was always going to end in disaster.

The only question was, how long would it last.

And to any Euro-philes that might be reading

The longer it lasts the worse the very predictable consequences will be when it fails.

IMHO.

Share this post


Link to post
Share on other sites

...just a thought, silly or not....but what is stopping the euro having different internal exchange rates? ;)

If they did that it wouldn't be the Euro.

Share this post


Link to post
Share on other sites

I wonder at what point the Germans will decide they've had enough?

The Germans are the biggest beneficiaries of the project (they deserve it, mind). Hence their panic that Greece (and possibly others) could exit and devalue straight away. A reinstated German Mark would rise too fast, too quickly, and so threaten their exports. Also, all those loans they've given out at nice interest rates suddenly become unpayable.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 277 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.