Mario Draghi struggles with 'default' in EU Parliament hearing

[pierrelarouge]

Look at the hook nose and the dishonest eyes, you can try and pretend you are american or italian or whatever but theres a growing minority out here that can spot you criminals a mile away and know your agenda.

[pierrelarouge]

Another Jew at the top of the criminal zionist mafia.

[1969liberty]

the Euro is printed out of nothing ( not backed up with gold ) but it is lent

to the eu countries with interests.

The EZB already stared now buying countries who can't pay back the high

interests from the huge debts. All

money in circulation in the EU

is debt! This will driver all EU countries in the

slavery. The worth to the currency is given by the people not by the print shop therefore there is no reason that the EZB dies lent

us the money which should be given

to the countries without inter

[porcelinux]

kill the bankers

[zionisimkills]

Anyone or any country that deals with "Goldman Sachs"  loses, Period, Goldman only does deals where " Goldman Sachs wins, everybody else loses.

[nathanwilefrazier]

To the extent that conservatives are in control of the Greek political system, they will threaten to go off of the Euro. Germany will counter by offering to extend the duration of repayment on loans. Greek liberals will eventually force tax brackets to be compressed in Greece. German banks will make out like bandits. The (most probable) end.

[nathanwilefrazier]

So the world is still grappling with Ayn Rand's criticism of democracy: that a poor majority should not be allowed to expropriate from a wealthy minority via the ballot box... (To which Krugman would counter that German banks must bear the costs of their risk taking - i.e. "read the fine print" on the loans...)

[nathanwilefrazier]

Conversely, an extreme conservative outcome would be if e.g. the "upper classes" from Greece moved to Germany, became citizens, voted the German welfare system away, persuaded Greece to stay on The Euro, lent to the Greek lower classes beyond what they could repay, and ultimately forced them into debt (that could not be devalued...) servitude with no upper classes left to tax (!)

[nathanwilefrazier]

So over longer time scales, whether Greece & Spain create "the Euro II" or they compress tax brackets and stay on The Euro is ultimately a matter of political taste.

What will create a lot of tension is an (indirect) flow of real wealth from German upper classes to Greek lower classes via lower interest rates, debt forgiveness, or Euro devaluation.

[nathanwilefrazier]

In this case the pain of the restructuring would likely create a political backlash by the lower classes in Greece and force a compression of tax brackets and increase in welfare. Then such monetary austerity would become as politically viable in Greece as it is in Germany - because the tax-welfare structure of both countries would have also "converged" at that point.

[nathanwilefrazier]

In the former case, the Greek business cycle would be more pronounced and fewer "marginally productive" businesses would be spared.

[nathanwilefrazier]

Suppose German & Austrian productivity growth outpaces Greece's & Spain's indefinitely. Should the latter create their own currency union e.g. "The Euro II?"

On the same currency, German goods would flow into Greece as euros flowed out. The lack of scrip would cause prices to fall within Greece until Greek goods became competitive again.

On the Euro II, Greece could devalue and make their goods competitive more quickly.

[ShwangShwing]

Greece should have defaulted and the worst would have passed until now.

[EUXTV]

@wolfgang0070 wish that was true!

[pentium2028]

Get your act together Greece! The World does not want to see you in the headline everyday.

[arikat1]

@pentium2028 Don't be an idiot. If Greece was not in the headlines everyday how else could our EU friends lend us money (for their banks) with 15% of interest?

[conjoly]

woah! nasty accent in French

[KhmerD0g]

Greece will default. it is 100 percent done deal. it is a matter of time before they announce it

[rometotalwarftw]

I have fate in this man