how's that old saying go? If you're first out the door, that's not called panicking.
Posted on 07/24/2015 8:50:40 PM PDT by Olog-hai
Through all the haggling and hair-pulling in the past months over more austerity, fewer creditors getting their money, and a dreaded “Grexit”—a scenario in which Greece would leave Europe’s currency union—at least four prominent economists in three major American publications have casually and quietly suggested there may be a third way: A German exit.
That is, Germany should exit the euro, and clear the way for countries in the south of Europe—notably, Greece, Italy, Spain, and probably Portugal—to reconcile their debt with a greatly depreciated currency and maybe finally get a handle on their economies.
The latest thinker to suggest this, Ashoka Mody of Princeton University in the US, wrote an opinion piece for Bloomberg on July 17, that succinctly lays out why a “Gerxit,” rather than a Grexit, would be a preferable option. […]
The countries not only have disparate outcomes, but hugely disparate economic backgrounds, say analysts. That is why, Mody argues, creating a monetary union among these states was never an economically sensible decision. “An ill-considered union was formed, and therefore pain will have to be incurred,” Mody said. …
(Excerpt) Read more at dw.com ...
No.
The whole European Union has run out of other people’s money.
It’s bankrupt and the first to leave may escape more intact.
How, exactly is Germany playing beggar-thy-neighbor? Especially against Greece? Germans maintain export surpluses with Greece by furnishing superior value for the money, not by export subsidies. There are no restrictions on German tourism to Greece, or other transactions with Greece. German prosperity enriches Greece economically, and infuriates their wounded national pride.
Lending money to Greeks who had no serious intention or plans to repay was foolish of the Germans, and short sighted by the Greeks, but more the fault of the Greeks, who wanted to be treated like adults, than the Germans who made the mistake of taking them even half seriously.
Credit cards and ATMs make the need for a common currency obsolete. Lots of times I’ve been in Canada, and when my supply of loonies is low, I just spend greenbacks for toothpaste and shaving cream, and accept the usurious exchange rate on small purchases. I can travel in Europe and put everything on my local bank’s Visa or MasterCard. Exchange rates on credit card transactions are quite competitive.
That’s exactly right; the European Union is the fulfillment of Hitler’s dream: Europe dominated by Germany. That is why Britain won’t change their currency; their future lies with the former colonies of the Commonwealth.
That’s exactly correct.
how's that old saying go? If you're first out the door, that's not called panicking.
Yes. I think half of the German GDP is being “contributed” to support the euro...
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