Posted on 07/06/2015 12:21:37 AM PDT by bob_denard
It’s true, as Paul Krugman says, that Greece and Puerto Rico are not in exactly the same position. PR is bust to some extent, yes, but it’s not in the middle of a catastrophe, as Greece is. However, there is also a similarity in their situations, one that’s extremely instructive. They’re both suffering from being in a monetary policy zone, a currency zone, that isn’t really suitable for their circumstances. One of the two is in a fiscal policy union as well as that monetary union, the other is not. And it’s long been agreed that if you’re to have monetary union then you really do need to have that fiscal union as well.
(Excerpt) Read more at forbes.com ...
Greek voters don’t want austerity and Germany is in no mood to subsidize its spendthrift habits.
Voters don’t mind much transfer payments if the recipient doesn’t resent them.
But when the recipient says “up yours” like Greece, the feeling is no matter how much you give them, it will never be enough.
The EU is caught between a rock and a hard place on Greek demands for austerity relief and German demands that Greece live within its means.
Cut PR loose and let it float down to Argentina!
Greece, Puerto Rico, we gotta get these two together.
i guess Puerto rico as neighboor will call US for $ millions help
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