If Greece leaves the Eurozone (or the EU), it will set a precedent. It's like opening pandora's box.:.
Greece total depts is 300 billion....and keeps growing.
Who's gonna pay it...the european tax payer.
Money wise, the Euro was not a good deal.
The "Euro-Zone" as such could be viewed as a "virtuell country" which creates a bigger political "importance".
I guess the founders back in 2000 dreamed of a united europe.......if that ever comes true?(and is desirable?)
Let's do some sums:Greece, officially the Hellenic Republic and known since ancient times as Hellas, is a country in Southern Europe and Balkans. According to the 2011 census, Greece's population is around 11 million. Athens is the nation's capital and largest city.
Related statistics
GDP per capita $21,910.22 USD (2013)
Gross domestic product $241.7 billion USD (2013)
Life expectancy 80.63 years (2012)
Were Greece to revert to their Drachma, they would still have to convert the repayments into Euros - and you can bet your life that the exchange rate wouldn't be pretty...
(my bolds)
They wouldn't necessarily have to convert payments into euros. The more likely outcome remains, imo, that Greek debt defaults by converting into the new drachma. Once they're freed of the euro there's very little the ECB can do to corral Greece into making payments in euros.
(my bolds)
They wouldn't necessarily have to convert payments into euros. The more likely outcome remains, imo, that Greek debt defaults by converting into the new drachma. Once they're freed of the euro there's very little the ECB can do to corral Greece into making payments in euros.
I can't say I followed the formation of the EU, but I do have to ask - at the time, what was the incentive for countries to handover their ability to print money (i.e. control their own Central Bank/currency)?
I also left out the option of them simply defaulting. That has happened before with other debtors. But the consequences will be ugly for all involved.
That aside, I agree with our German Trader: The entire idea of a common currency without a common political unit has been an "Impossible Dream". Did Herr Kohl really believe the German economy could pull the rest of Europe out of their Siesta and Early Retirement? Did he believe France and Italy would help? ... Keep dreamn' :1zhelp:
I can't say I followed the formation of the EU, but I do have to ask - at the time, what was the incentive for countries to handover their ability to print money (i.e. control their own Central Bank/currency)?
Boiled down it was about monetary stability and the European Exchange Rate Mechanism's inability to produce it. Going back further, this only became an issue after Bretton Woods collapsed. Europe was integrating (and EU integration was the big thing in the 80s and 90s) and the ERM was not producing the stability required for deeper integration. When Europeans looked across the Atlantic they saw a massive trading bloc (the USA) that they thought they could emulate except with a single currency. Ironically, for smaller countries, like Greece, the single currency in theory should have worked brilliantly; smaller countries tend to have volatile currencies that affect the cost of goods in the domestic economy more and make price stability harder. That worked well.
There's whole books that have been written about the reasons for integration but the above paragraph is my ham fisted attempt at brevity.
B. They put the cart before the horse.
Here in australia, we are fleeing to the USD.Nice way to put it
I was just thinking of buying australen dollars .
Good idea?
Greece had national elections on Sunday. I wonder whether (and if so, how) the outcome will change the current agreements with the 'trojka'
Let's just hope the anti austerity party are a pack of liars like the rest of em and don't follow through with their pork barrel to oblivion.
Given they only got the majority using independents, hopefully they can blame that for not doing what they pretended they would.
DAX is up so markets voting so so, so far.
(my bolds)Following negative leads from the US and Europe, the Australian share market opened lower and is half a per cent down at noon. A slew of half year earnings reports are also setting the market mood as investors digest the potential showdown between Greece and the Eurozone.
Greek used car salesman prime minister starting to look very stupid.
No stagger left just a knitted brow.
Should go down in history as a buffoon who took a cheap shot to become the idiot prime minister for a moment.
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