Article

2011-09-09 Europe

Specter Rises of Greece Being Kicked Out of Euro

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Posted by Fred 2011-09-09 00:00|| || Front Page|| [11126 views ] Top

#1 On Thursday Greece announced that its economy shrank 7.3 percent in the second quarter on a 12-month comparison, a greater fall than expected.

Man, that 'unexpectedly' thing sure gets around.

Mike

Posted by Mike Kozlowski 2011-09-09 05:51|| 2011-09-09 05:51|| Front Page Top

#2 So is it better or worse for the rest of us if the Euros push the Greeks out of the EU?

And just to be polite, would it be harder or easier that way on the individual Greek working man?

Please keep it simple, for us engineers!

Posted by Bobby 2011-09-09 07:15|| 2011-09-09 07:15|| Front Page Top

#3 "At the end of the day, it is up to Greece itself to decide whether it is ready to take the necessary measures to reduce its deficit and its too-high debt," added Schaeuble.

That tells me the Germans will keep them in. Because at the end of the day, it is up to Germany itself to decide whether it is ready to cut off the bailouts. Because, as the US is proving, a debtor will borrow as long as a creditor will lend in the hope they'll write it off.

Posted by Nimble Spemble 2011-09-09 07:21|| 2011-09-09 07:21|| Front Page Top

#4 The irony is that if it were pushed out, the biggest beneficiary would be Greece.

Imagine if Queen Elizabeth finally had enough of Prince Charles antics, stripped him of his title, and kicked him out on the street and told him to fend for himself. In say, Japan. Assuming the Japanese were repulsed by him.

He would have a rotten month, but then he would learn to dress himself, prepare his own meals, maybe make some scratch giving English lessons. After a year or two he would make some friends, and for the first time in his miserable life learn what it means to be a free man. Or he would steal a knife and cut his own throat.

Since Greece doesn't really have a knife option, unless they put some Pol Pot in charge, they would have no choice but to get their sierra together.

In brief, this begins with the axiom: "Those who work not shall not eat". The Drachma would be worthless until it had a reason to be worth something, so those who had a lot of Euros would still get by.

A lot of people would work solely for room and board. But in the short term, that is enough.

Recovery would not be based on other countries, but it would be faster the more isolated Greece was from them. Getting aid would be like giving a recovering junkie more smack.

Posted by Anonymoose 2011-09-09 11:02|| 2011-09-09 11:02|| Front Page Top

#5 Greece can't be pushed out legally. And it won't be.

If Greece leaves the Euro (which would have to happen by surprise on a weekend), Portugal would collapse immediately, probably also Italy, Spain and ireland because nobody with an IQ above room temperature would keep his money in a bvanl of said countries.

Thgat's why Greece will be kept in and "saved" until kingdom comes or Germany leaves.

Posted by European Conservative 2011-09-09 18:07|| 2011-09-09 18:07|| Front Page Top

#6 bank of course

Posted by European Conservative 2011-09-09 18:08|| 2011-09-09 18:08|| Front Page Top

#7 Pre-Euro the clubmed countries used to run chronic deficits and essentially inflated their debt away through a constantly depreciating currency.

The Euro stopped this.

If Greece gets kicked out they will redenominate their Euro debts in Drachma and go back to a constantly depreciating currency.

The issue is what will this do the banks holding the debt and will it force Spain and Portugal out.

Posted by phil_b 2011-09-09 19:05|| 2011-09-09 19:05|| Front Page Top

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