[KMA]Avenger wrote:This is a side issue i know, but i had to respond to this...Legendary Apophis wrote:So what would a good idea be?Kick Greece out and tell them "now your problems are your own, kthxbye"?
Actually, the best thing Greece could do at this point in time is do what Iceland has done, prosecute the banksters and arrest them for fraud and high treason, tell the EU and the troika to take their bailout money and **Filtered** off, leave the EU and default. tell Germany to return some 200 tones of Gold which was stolen during WW2, tell the Yanks and other nations holding Greek gold to return it ASAP then bring back the Drachma, devalue (which they cannot do right now because of EU constraints, as you well know) and then back the Drachma with their Gold. the investment into Greek money would pour back into Greece within 6 months because their money would have value as the rest of the worlds financial markets, Govts and banking institutions carry on going down the toilet. Greece within a year would emerge as a European financial powerhouse as investors search for financial safe havens....
Yes Jim, the EU would do Greece a big time favour if they said to Greece "kthxbye".
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You're excessively optimistic there, and your argumentation includes too many "if" to work (without these "if" it would be a huge disaster).
Realistically talking (I mean without including too many "if" which wouldn't be likely to happen) require in your plan that Greece becomes a strong exporter and minimalist importer. That's one of the arguments I remind to people who sing "Let's leave the Euro and live by our own money it will be awesome". Funnily enough, Germany (the one who sacrified the best currency in whole Eurozone to join the Euro) would be, due to their big focus on exports, probably be the one who would suffer the least in the *longterm* from dropping from the Euro, that, of course, if the Mark would be successful in the longterm (Germany is the unique nation of high currency high exports, out-of-prices competitiveness etc...). However, they wouldn't do that, simply because of ideology based on their own XXth century-currency reasons: strong currency that is the Euro is a logical step after the strong Mark, risks to go back, even for a short amount of time, to a low currency is a risk they will not take, and that's why they are that strict with Greece and other countries in troubles Eurowise.
Italy is I think the only nation among the formerly cheap currencies of EU who would manage to suffer the least due to their sizeable exports (far from as big as Germany's, but much bigger than Greece and bigger than Spain). I know that's rather scholar to say exports are the key of survival throughout money value drop, but that's rather true, isn't it?
Rank Country Exports Date of
information
— European Union (minus internal trade) $1,952,000,000,000[1] 2010 est.
1 People's Republic of China $1,581,000,000,000 2010 est.
2 Germany $1,303,000,000,000 2010 est.
...
8 Italy $448,400,000,000 2010 est.
9 United Kingdom $410,300,000,000 2010 est.
...
16 Spain $253,000,000,000 2010 est.
...
65 Greece $21,140,000,000 2010 est.
...
http://en.wikipedia.org/wiki/List_of_co ... by_exports
