Greek Prime Minister George Papandreou has held his teleconference with German Chancellor Angela Merkel and French President Nicolas Sarkozy. We weren't expecting anything particularly dramatic, but what has emerged is going to be small consolation for investors. France and Germany came out and said that Greece's future lies in the eurozone. Greece, in turn, promised to stick to its budget program in an attempt to stop its debt crisis worsening. Aside from that, no concrete reassurances emerged. At a teleconference Greek prime minister George Papandreou told Merkel and Sarkozy his country was determined to meet all obligations agreed with international lenders in exchange for an EU/IMF bailout. Officials from the European Commission, European Central Bank and the International Monetary Fund returned to Athens to try to get the Greek rescue package back on track. All three leaders have a vested interest in playing for time over Greece despite the sense that time is running out. Please stop pretending, Greece in insolvent, it is bankrupt, see the parrot sketch from Monty Python for what the Greek economy is really like. Just to make sure that it is dead, an ex-economy then pushing it even further down with draconian austerity should do the trick.
If I don't believe it then you can be damn sure that the markets don't believe it, and all this sticking plaster means that the problem will be here tomorrow, and the day after that....just kicking the can down the road. All this "bail out" is just free money for them and yet another loss for the taxpayers, who are throwing good money after bad.
If I don't believe it then you can be damn sure that the markets don't believe it, and all this sticking plaster means that the problem will be here tomorrow, and the day after that....just kicking the can down the road. All this "bail out" is just free money for them and yet another loss for the taxpayers, who are throwing good money after bad.
5 comments:
Greece should be allowed to default.
Squandering millions more on it is a waste of time.
Initially speculators will move on to another country. And then another. But in the end they will realise that they are the ones who are losing out and that there is nowhere else to go.
The euro will survive.
And in the near future concrete plans will be drawn up to integrate europe still further with full economic union now a certainty.
Another assault on the Euro and nothing to do with saving either the USA's petrodollar or deflecting the heat away from America's own banking/fiscal crisis then?
Perhaps what would be even more 'interesting' is if China called in USA debt?
shimrod
15 September 2011
Yes, quite.
It's the foreigners you see, terribly prone to panic whenever they are discussed in an English-language anglo-centric newspaper.
It's obvious that if all these people in these makey-uppy countries in Continental Europe spoke proper English then everything would be fine.
Cue lots of talk about how awful the EUSSR is and how it should abolish itself forthwidth as some angry male internet blogger in Kent has HAD ENOUGH OF THE EVIL EU ARGGGHHHHH!
Yawn.
The crisis will be dealt with (though slowly and painfully) and the Euro won't collapse and neither will the EU. We will all be here tomorrow, and (to quote Keynes) we will all be dead in the long run.
15 September 2011
The Dutch prime minister, Mark Rutte, was the first eurozone head of government formally to propose recently new arrangements enabling fiscal recalcitrants to be expelled from the single currency.
No he didn't, he proposed a mechanism for states to voluntarily exit if they so wish to.
Please stop pretending, Greece in insolvent, it is bankrupt, see the parrot scetch from Monty python for what the Greek economy is really like. Just to make sure that it is dead, an ex-economy then pushing it even further down with draconian austerity should do the trick.
The government is certainly insolvent. The economy is experiencing a 5-7% contraction - but it is hardly dead.
Greek GDP per capita is still among the 30 highest in the world, more than twice as large as that of Eurozone members like Slovakia.
In addition, Greece's recession is nothing compared to what non-Eurozone members like Latvia experienced - 20% in 2009.
But then again why pay attention to the facts when you can just parrot the Eurosceptic drivel you are being fed by the British media..
I can see the EU collapsing but I can't see a war resulting. There are simply too many gutless idiots in Europe to have a war- these clowns will shoot themselves in both feet if they ever got a gun in their hands.
Post a Comment