On 2/4/15 8:15 PM, Charlie wrote: > The original Subject line is disingenuous; the article asserts that > leaving the Eurozone would be detrimental to Greece.
I was quoting from an article by Elmar Altvater in the Socialist Register 2012. His credentials are very strong. Here's someone else with pretty good credentials: Also 80% of Greeks want to stay in the euro. They know that leaving the Eurozone and the European Union would be no solution. Re-adoption and devaluation of the drachma would cause the value of Greece’s government debt, already at 160% of GDP, to soar, probably doubling or trebling. So any devaluation would have to be followed by a default. Also, devaluation would not save Greece’s exports of shipping charters – which are priced in dollars anyway – but default would cause great harm to Greek banks and Greek savers who own the greatest proportion of Greek government bonds. They would be wiped out by an outright default. Converting their assets and liabilities into drachmas, like the pesofication of deposits in 2000 in Argentina, might keep Greek savers and banks afloat for a while. But a huge devaluation would also drive up inflation, making Greek savings worthless. https://thenextrecession.wordpress.com/2012/06/05/the-euro-end-game/ _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
