Posted on 02/08/2015 10:08:39 AM PST by tcrlaf
The former head of the US central bank, Alan Greenspan, has predicted that Greece will have to leave the eurozone.
He told the BBC he could not see who would be willing to put up more loans to bolster Greece's struggling economy.
Greece wants to re-negotiate its bailout, but Mr Greenspan said "I don't think it will be resolved without Greece leaving the eurozone".
Earlier, UK Chancellor George Osborne said a Greek exit would cause "deep ructions" for Britain.
Mr Greenspan, chairman of the Federal Reserve from 1987 to 2006, said: "I believe (Greece) will eventually leave. I don't think it helps them or the rest of the eurozone - it is just a matter of time before everyone recognises that parting is the best strategy.
Jump media playerMedia player helpOut of media player. Press enter to return or tab to continue.There is "no advantage" in lending to Greece according to Alan Greenspan
"The problem is that there there is no way that I can conceive of the euro of continuing, unless and until all of the members of eurozone become politically integrated - actually even just fiscally integrated won't do it."
(Excerpt) Read more at bbc.com ...
If Greece Exit's, which Tsipras's comments just now make seem very likely, it's the end for the Euro.
Will a collapse of the Euro likely mean the collapse of the EU, as well?
Hard to say. The whole world is balanced on a debt mountain that has to collapse eventually.
But knowing the end result isn’t nearly as important as knowing when it’s gonna happen.
Like zerohedge was saying.
1. Greek govt will print billions of “new drachmae” right before exit.
2. Greek govt will exit and set value of New Drachma to 1-1 on the EU.
3. Greek govt will repay debt by dumping new currency on EU
And the value of the dollar after this happens?
“And the value of the dollar after this happens?”
Skyrockets, as a flight to safety, making our own exports unaffordable to the rest of the world.
And outsourcing more jobs very rewarding.
Countries like Greece, Italy, Spain, etc. may decide to drop out of the EU one-by-one. I would imagine that if the EU stands firm, that the euro will go up sharply after each deadbeat nation leaves, and then start drifting back toward earth as investors realize nothing has really changed.
Well, how many of us on FR have only been saying this for the past 6 years?
Every now and then Greenspan’s crystal ball actually works.
Like “irrational exuberance”. Boy, was that a humdinger.
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