Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature currently requires accessing the site using the built-in Safari browser.
Currency can be pegged or it can float, but either way I won't pay more than one Euro for Greek good, hence exports stay identical. No free liberal lunch.
Currency can be pegged or it can float, but either way I won't pay more than one Euro for Greek good, hence exports stay identical. No free liberal lunch.
Devaluing the currency allows one euro to buy more greek labor than previously. How dont you get that? Greek labor becomes cheaper. One euro buys more.
Agreeing to devalue or agreeing to lower your prices accomplish the same thing. Both make you more competitive. Neither is a magic liberal bullet and both require the same decision.
Cbirch2 said:a return to the drachma brings a decrease in the standard of living necessary to make greeks more competitive. You could also get there through austerity and staying with the euro but thats going to cause much more social pain, much more riots.
Agreeing to devalue or agreeing to lower your prices accomplish the same thing. Both make you more competitive. Neither is a magic liberal bullet and both require the same decision.
Cbirch2 said:a return to the drachma brings a decrease in the standard of living necessary to make greeks more competitive. You could also get there through austerity and staying with the euro but thats going to cause much more social pain, much more riots.
So why the fuck are you arguing with me!? You accuse me of subscribing to some sort of liberal magic bullet philosophy when im saying the exact same thing as you!
Agreeing to devalue or agreeing to lower your prices accomplish the same thing. Both make you more competitive. Neither is a magic liberal bullet and both require the same decision.
Cbirch2 said:a return to the drachma brings a decrease in the standard of living necessary to make greeks more competitive. You could also get there through austerity and staying with the euro but thats going to cause much more social pain, much more riots.
So why the fuck are you arguing with me!? You accuse me of subscribing to some sort of liberal magic bullet philosophy when im saying the exact same thing as you!
oh come on, you've been on your high horse all day about how important it was for liberal government action to save the day by making the Greeks more competitive.
"Ultimately,” he added, “Greeks would face reductions in their standards of living upwards to 50 percent, perhaps more, to generate the exports necessary to pay off foreign creditors. If everything goes as planned, Athens will still be saddled with a debt that is 120 percent of their GDP a decade from now. Everything hardly ever goes exactly as planned, and 120 percent of GDP is an amount most economists believe is unworkable. Hence, the Greeks may bleed a lot for no real purpose than to sustain a failed experiment in a single currency, and the odds are steep against the plan succeeding.”"
Leave euro:
"The alternative, as Professor Morici proposed, is for Greece to be “given the option of staying in the EU but dropping the euro — essentially the status the UK enjoys.” He added, crucially, “By readopting the drachma, re-marking sovereign and private debt to the reinstituted national currency, and letting the value of the drachma fall to levels consistent with a trade surplus that permits Greece to service its debts, Greece’s economy would begin growing again, and many of Greece’s army of unemployed would be put back to work.”
There is a massive difference
Before the tea party created a army of zombie conservatives that say whatever fits the situation, i would never have expected a conservative to claim that a country giving up its sovereign currency would have no net effect.
re-marking sovereign and private debt to the reinstituted national currency, .
Sorry, no free lunches, "remarking" is just another way to say defaulting. It does not make them one bit richer or more competitive.
As I said competitive comes from a better mouse trap, not economic games.
wow. that post was just someone making up economics.The real reason is that southern europe was vastly different from northern europe at the creation of the euro. The single currency provided the illusion to investors that the entire area was fairly homogeneous, that was the point of its creation! Investors that normally would have invested in northern european countries now saw no difference between investing in southern european states. So capital going to northern countries decreases, while capital going to southern countries increases.
Neither the DEFICIT nor the NATIONAL DEBT caused the economic meltdown.
What is wrong with defaulting, Ed? It seems to have worked for Donald Trump.
What is wrong with defaulting, Ed? It seems to have worked for Donald Trump.
and that means it works??????????????? Generally speaking, if you default on $1 million you then pay $1 million in higher interest. There is no free lunch.
What is wrong with defaulting, Ed? It seems to have worked for Donald Trump.
and that means it works??????????????? Generally speaking, if you default on $1 million you then pay $1 million in higher interest. There is no free lunch.
It worked for Trump.
and that means it works??????????????? Generally speaking, if you default on $1 million you then pay $1 million in higher interest. There is no free lunch.
It worked for Trump.
yes and if you are slow that means, it works?
Neither the DEFICIT nor the NATIONAL DEBT caused the economic meltdown.
The point of the paper is actualy to prove the opposite: that this is just the countinuation of a long macroeconomic cycle.
Anyone that thinks the grek's debt problem is simply due to greek over spending needs to go read "This time is different". The point of the paper is actualy to prove the opposite: that this is just the countinuation of a long macroeconomic cycle. It examines economic trends back to about 1800
"Also consonant with the modern theory of crises is the striking correlation between freer capital mobility and the incidence of banking crises, as illustrated in Figure 3. Periods of high international capital mobility have repeatedly produced international banking crises, not only famously as they did in the 1990s, but historically."
Figure 3:
Basically greece and other periphery countries are the victim of increasing capital flowing into their country after the creation of the euro.
What? So failed Progressive economic theory is because of stuff that happened in the 1800's?
Not understanding...that would be your problem. He's head and shoulders above the discussion.
