Video So one currency Euro was a bad idea ??

[Telstra]

Yes or No ?,
i'm dumb so you can explain now ...

 

[kallipolis]

This article simply sets out the details of the crisis facing the Mediterranean countries of the European Monetary Zone, particulary Greece.

http://www.newyorker.com/news/john-cassidy/greeces-debt-burden-the-truth-finally-emerges

I quote:

Just when you thought that the Greece saga had run out of plot twists, another one emerged on Thursday—and it was an important one. A few days before a referendum that will probably decide the fate of Greece’s Syriza government, one of the country’s creditors, the International Monetary Fund, came out and acknowledged that the stricken country is unlikely to recover until a good portion of its huge debt load is wiped out.

Echoing the argument that Yanis Varoufakis, Greece’s controversial finance minister, has been making for months, the I.M.F. published an internal analysis that described Greece’s debt dynamics as “unsustainable.” At a minimum, the analysis said, the maturity dates of Greece’s loans, which total more than three hundred billion euros, “will need to be extended significantly.”

This crisis is all about sovereign indebtedness also being faced by Italy, Spain, and Portugal....personal indebtedness in Greece is near enough the lowest in the European Union.

Hopefully a deal will be concluded this week that will include a further haircut on Greek debt, and terms that will enable the Greek Government to continue servicing its debts to the European Central Bank, and the International Monetary Fund.

 

[kallipolis]

Backing down on Greece's debt is the safest, most rational option, by John Quiggin:

http://www.theguardian.com/commenti...eeces-debt-is-the-safest-most-rational-option

I quote:

"The safe option for the European institutions is to back down, write off lots of debt and lose a lot of face.

The risky option is to foreclose and force Greece out of the eurozone, leading to a repudiation of debt."

And his Australian perspective - which seems to be that of the whole world, save the EuroZone chiefs.

"European austerity has been a complete failure and raises the threat of a new global financial crisis.

The sooner this delusion is abandoned, the sooner it will be possible to address the real source of the problem: the unsound and unsustainable growth of the financial sector."

 

[Telstra]

I was watching
"What Happens If A Country Goes Bankrupt? "

And concluded that Greek should declares itself bankrupt and start a fresh (zero debt, not owing anyone a cent anymore) Is this possible ??

 

[kallipolis]

I was watching
"What Happens If A Country Goes Bankrupt? "

And concluded that Greek should declares itself bankrupt and start a fresh (zero debt, not owing anyone a cent anymore) Is this possible ??

Local polling indicates that over 70 pct. of Greeks prefer to remain within the Euro Zone, and the European Union.

The debate is not about default....rather, terms that will enable the Greek Government to repay its debts.

Argentina is an example of a country that went bankrupt but remains embroiled in dealing with its old debts.

The Greek crisis is important for the Euro Zone countries, and the wider European Union for were Greece to leave the Euro Zone, and revert to the Drachma...it could encourage Italy, Spain, and Portugal to follow...not a scenario that encourages solidarity, possibly imperiling the future of the Euro Zone...and one should take note that Greece represents just 2 pct of the European Union's GDP....with much blame to share around when considering the reckless lending of the private banks, and of course here in Greece, incompetent politicians.

 

[coltonhaynes]

People are blowing the Euro's cons out of proportion in face of the current crisis, but I personally really enjoy not having to change money when travelling to the next nearest country.

Also, the other governments tend to forget about all the possibilities that have opened through it. It gives us Europeans more assertiveness in the world.

 

[kallipolis]

Thomas Piketty discusses his ideas for debt forgiveness:

https://medium.com/@gavinschalliol/thomas-piketty-germany-has-never-repaid-7b5e7add6fff

I quote:

After the war ended in 1945, Germany’s debt amounted to over 200% of its GDP. Ten years later, little of that remained: public debt was less than 20% of GDP. Around the same time, France managed a similarly artful turnaround. We never would have managed this unbelievably fast reduction in debt through the fiscal discipline that we today recommend to Greece. Instead, both of our states employed the second method with the three components that I mentioned, including debt relief. Think about the London Debt Agreement of 1953, where 60% of German foreign debt was cancelled and its internal debts were restructured.

 

[T-Rexx]

The video is correct.

In the United States, we just accept that the poor states are going to suck up cash from the rich states. They will do this chronically and to an extraordinary degree. In our case, these poor states happen also to be the most racist, homophobic, poorly-educated, culturally-deprived, and disease-infested parts of our union (problems which are NOT shared in the European example).

We could make a good case for getting rid of these losers. In fact, we once fought a war to keep them.

 

[nycguydowntown]

The video is correct.

In the United States, we just accept that the poor states are going to suck up cash from the rich states. They will do this chronically and to an extraordinary degree. In our case, these poor states happen also to be the most racist, homophobic, poorly-educated, culturally-deprived, and disease-infested parts of our union (problems which are NOT shared in the European example).

We could make a good case for getting rid of these losers. In fact, we once fought a war to keep them.

So true---and so much for that war---I don't know what is going on in Greece but the hypocrites and dead beats in the poor states over here are just the worst.

 

[T-Rexx]

So true---and so much for that war---I don't know what is going on in Greece but the hypocrites and dead beats in the poor states over here are just the worst.

Can you imagine if we had let the south secede?

We would have had a long border with a country in which slavery would have persisted well into the 20th century. That country would have been rife with poverty, illiteracy, homophobia, and injustice. Given our differences, we would surely have fought a number of wars with that country over the past 155 years.

What Merkel does not understand is that union is always better than separation, and always cheaper, however extraordinary the cost.

There is an old saying, "If I borrow $100,000 from my bank, and I cannot pay it back, I have a problem. If I borrow $100,000,000 from my bank and I cannot pay it back, the bank has a problem."

 

[Telstra]

Maybe rich countries have to understand,
if a country cannot pay back the debt, that debt should be freezed (that is Zero interest rate owed to them), otherwise the debt will keep going up and up forever ...

 

[Telstra]

According to the video,
to solve the Greek debt problem is to go back to the Greek local currency.

 

[star-warrior]

This crisis is all about sovereign indebtedness also being faced by Italy, Spain, and Portugal....personal indebtedness in Greece is near enough the lowest in the European Union.

Isn't that (highligted) because Greece wooed it's electorate by handing out money via various state giveouts and benefits (and I hear rather generous pension entitlements) whilst borrowing from the Eurozone before the 2008 crash?

Why does Greece have a 25% unemployment rate? Because the benefits were so good, which is why many unemployed are comfortable on benefits rather than seeking any job at all?

 

[ChickenGuy]

The trouble with the whole euro project is that it was always an ideological plan just as much as it ever was an economic one, hence why, despite a succession of Greek crises and bailouts for years now, they were always at pains to protect their precious federalist single currency.

However, that may now be at breaking point, as it seems the European powers-that-be are NOT willing to give any more ground, led by Germany, where the culture and financial ethos is as different to Greece's as the proverbial chalk and cheese.

Economically I have no strong opinion either way, but I do applaud Tsipras and Syriza for doing one thing they did, an act which is an anathema and taboo amongst EU bureaucrats, and which sent shudders and outrage amongst the corridors of powers in Brussels - he dared to defy them by holding (gasp!) a referendum.

Now it goes without saying that he broke the unwritten rule here.

He should know that it's EU policy that we ordinary common people have NO rights to dare challenge or question the great plan, the grand single federalist country that our EU leaders tell us we will have.

You can be rest assured Greece will be punished for its defiance. I mean don't they know who their masters are? What do they think they are? A country?

They have endangered the great beautiful enshrined multi-national federalist plan! How dare they!

The Greek people will hurt badly for this nationalist show of unity. They will suffer.

For the Lord our European Union tells us so.

 

[Telstra]

The trouble with the whole euro project is that it was always an ideological plan just as much as it ever was an economic one, hence why, despite a succession of Greek crises and bailouts for years now, they were always at pains to protect their precious federalist single currency.

However, that may now be at breaking point, as it seems the European powers-that-be are NOT willing to give any more ground, led by Germany, where the culture and financial ethos is as different to Greece's as the proverbial chalk and cheese.

Economically I have no strong opinion either way, but I do applaud Tsipras and Syriza for doing one thing they did, an act which is an anathema and taboo amongst EU bureaucrats, and which sent shudders and outrage amongst the corridors of powers in Brussels - he dared to defy them by holding (gasp!) a referendum.

Now it goes without saying that he broke the unwritten rule here.

He should know that it's EU policy that we ordinary common people have NO rights to dare challenge or question the great plan, the grand single federalist country that our EU leaders tell us we will have.

You can be rest assured Greece will be punished for its defiance. I mean don't they know who their masters are? What do they think they are? A country?

They have endangered the great beautiful enshrined multi-national federalist plan! How dare they!

The Greek people will hurt badly for this nationalist show of unity. They will suffer.

For the Lord our European Union tells us so.

umm i took the time to read all this.
Now what do you support? For the greek to go back to its local currency or not ??

 

[mightbe]

He didn't say. It was more a comment on the EU as a whole.

 

[JordanFrank]

There is an old saying, "If I borrow $100,000 from my bank, and I cannot pay it back, I have a problem. If I borrow $100,000,000 from my bank and I cannot pay it back, the bank has a problem."

From what i understand of this, the European Union (the bank) let Greece (the borrower) borrow uncontrollably and now demands repayment, all similiar to the housing and financial situation created in the US with banks approving loans upon loans for financially unqualified borrowers. So who is more guilty, the European banks for lending to an unqualified Greece or an unqualified Greece taking the money presented to it?

I vote 50/50 and they should split the (pain) difference...but of course i don't live in Greece (and can't imagine what it would be like for them) and have no personal stake in the outcome save for any ill ripple effects any of this may cause to the global markets as a whole....

 

[kallipolis]

The trouble with the whole euro project is that it was always an ideological plan just as much as it ever was an economic one, hence why, despite a succession of Greek crises and bailouts for years now, they were always at pains to protect their precious federalist single currency.

However, that may now be at breaking point, as it seems the European powers-that-be are NOT willing to give any more ground, led by Germany, where the culture and financial ethos is as different to Greece's as the proverbial chalk and cheese.

Economically I have no strong opinion either way, but I do applaud Tsipras and Syriza for doing one thing they did, an act which is an anathema and taboo amongst EU bureaucrats, and which sent shudders and outrage amongst the corridors of powers in Brussels - he dared to defy them by holding (gasp!) a referendum.

Now it goes without saying that he broke the unwritten rule here.

He should know that it's EU policy that we ordinary common people have NO rights to dare challenge or question the great plan, the grand single federalist country that our EU leaders tell us we will have.

You can be rest assured Greece will be punished for its defiance. I mean don't they know who their masters are? What do they think they are? A country?

They have endangered the great beautiful enshrined multi-national federalist plan! How dare they!

The Greek people will hurt badly for this nationalist show of unity. They will suffer.

For the Lord our European Union tells us so.

Well noted...but the fact remains that Greece is fast exhausting its supplies of Euros...and no matter how democratic our right to protest the counter productive austerity measures imposed by the EMZ countries upon Greece, there remains an absolute need to reach an agreement, very soon... with the Eurozone countries to enable emergency funding to flow into Greece.

It is noteworthy that reckless lending, and irresponsible governance here in Greece has created a crisis that cannot be solved by shrinking an economy by 25 pct over five years...and hoping that continuing with the austerity programme will enable Greece to pay back its loans.

 

[kallipolis]

Isn't that (highligted) because Greece wooed it's electorate by handing out money via various state giveouts and benefits (and I hear rather generous pension entitlements) whilst borrowing from the Eurozone before the 2008 crash?

Why does Greece have a 25% unemployment rate? Because the benefits were so good, which is why many unemployed are comfortable on benefits rather than seeking any job at all?

The pensions have been halved over the past five years, as have salary levels....with early retirements being phased out as part of the restructuring of the Greek economy...Greece has never embraced the credit card, preferring cash....

Unemployment benefits last 12 months (euros 400 per month for a single person, and euros 460 per month for a married person) then there is nothing available from the state...leading people to move in with grandparents to live off their pension...with the result that in many homes there are three generations, living off the pension of a grandparent...the unemployment rate among young people (17/.25 years) is 60 pct.

Austerity measures imposed by the EMZ countries has shrunk the Greek economy by 25 pct over the past few years, leading to increasing debt levels, and growing social problems making the debt owed to the ECB, and the IMF unsustainable...a fact recently confirmed by the IMF.

 

[kallipolis]

According to the video,
to solve the Greek debt problem is to go back to the Greek local currency.

That's an option which the extreme left wing of the current governing party believes will enable Greece to recover from its ongoing crises....whatever option Greece takes remaining with the Euro, or reverting to the Drachma there will be several years of very hard times before matters begin to improve...we should know within this week...for there are fresh talks taking place in Brussels this evening 7th July, when I trust our newly appointed finance minister (UK educated at St. Paul's school, London, and Oxford University) will offer a proposal acceptable to the EMZ.

My own reading of the crisis leads me to believe an agreement will be struck with the Euro Zone, this week enabling Greece to exit from the current crisis, by continuing to restructure our economy along the lines recommended by the Euro Zone countries.