Greece.- Drachma - of stay with Euro...?

Will Greece Pull The Pin..?

  • Stay with Euro...?

    Votes: 0 0.0%
  • Revert back to the Drachma..?

    Votes: 0 0.0%
  • Brussels will break even more rules to help Greece?

    Votes: 0 0.0%
  • Non of the above and who fecking cares anyway..?

    Votes: 0 0.0%

  • Total voters
    0
#2
A chronic violator of EU budget rules, Greece has only met an EU-mandated deficit ceiling of 3% of GDP once since adopting the euro in 2001. Those chronic deficits have once again stoked fears that Greece is the weak link in the euro zone and that its failure to meet fiscal rules is undermining the credibility of the 16-member currency bloc.
From the sound of it, they may jump or they may be shoved!

The relatively high Euro interest rate of 2% will not be doing the Greek economy any favours though, especially with France/Germany on the brink of recovery!
 
#5
heard_it_all_before said:
PassingBells said:
Every game of dominos starts with the first brick.
Very interesting perspective, especially as Ireland and Spain are also hot on the heels of the Greeks.

Very good point…

Greece and Spains pain are compounded by them being unable to inflate/devalue their way out of trouble as they have always done in the past.
 
#6
Oil_Slick said:
heard_it_all_before said:
PassingBells said:
Every game of dominos starts with the first brick.
Very interesting perspective, especially as Ireland and Spain are also hot on the heels of the Greeks.

Very good point…

Greece and Spains pain are compounded by them being unable to inflate/devalue their way out of trouble as they have always done in the past.
But they have also been able to issue debt at a cheaper rate than they would have been able to do without an implicit Euro guarantee.
 
#8
If the Labour party are re-elected I see Euroland split into two currencies.
France,Germany and the UK creating a new currency, while the other countries staying staying with the old Euro but a weaker rate.
 
#10
heard_it_all_before said:
PassingBells said:
Every game of dominos starts with the first brick.
Very interesting perspective, especially as Ireland and Spain are also hot on the heels of the Greeks.
Two points are worth noting:

1. The UK is not that far behind.... but we have an advantage in that we can devalue our currency which has already fallen by some 20-25% in the last year. Greece does not have that luxury as it is tied to the Euro.

2. Most of that Greek sovereign debt has been syndicated through such banks as, tada, RBS. You couldn't make it up!

Litotes
 
#11
fairycakes said:
If the Labour party are re-elected I see Euroland split into two currencies.
France,Germany and the UK creating a new currency, while the other countries staying staying with the old Euro but a weaker rate.
We could call it the Pound.
 
#12
Litotes said:
heard_it_all_before said:
PassingBells said:
Every game of dominos starts with the first brick.
Very interesting perspective, especially as Ireland and Spain are also hot on the heels of the Greeks.
Two points are worth noting:

1. The UK is not that far behind.... but we have an advantage in that we can devalue our currency which has already fallen by some 20-25% in the last year. Greece does not have that luxury as it is tied to the Euro.

2. Most of that Greek sovereign debt has been syndicated through such banks as, tada, RBS. You couldn't make it up!

Litotes
I dare say that here in the UK that we would soon get used to using the Drachma...... :D
 
#13
CQMS said:
fairycakes said:
If the Labour party are re-elected I see Euroland split into two currencies.
France,Germany and the UK creating a new currency, while the other countries staying staying with the old Euro but a weaker rate.
We could call it the Pound.
But only if the Tories get elected, Labour would happily call the new currency Deutschmark or franc :D
 
#15
CQMS said:
fairycakes said:
If the Labour party are re-elected I see Euroland split into two currencies.
France,Germany and the UK creating a new currency, while the other countries staying staying with the old Euro but a weaker rate.
We could call it the Pound.
There's a thought. :p
 
#16
" If the Labour party are re-elected I see Euroland split into two currencies.
France,Germany and the UK creating a new currency, while the other countries staying staying with the old Euro but a weaker rate."
fairycakes

One of us is on another planet.
The UK is not a strong currency. Now it's just a matter of time if we have to begging to have the Pound Sterling bailed out by IMF, either before or just after the coming election. Loss of our three star credit rating is just a matter of time.
Greece is a Euro Disgrace, they where 'Fiddled' into the Euro and along with the rest of the PIGS, will drag the Euro down.
The Pound is our Homegrown disgrace and one day we will have to bite the bullet.
Who ever wins the next election will eventually have to take drastic steps to cut spending.
Labour are in denial and Dave (who I have no faith in) is very careful on what he says.
john
 
#17
John Redwoods view.

All you need is growth, growth is all you need

Posted at 7:12 am

"There is one thing all political parties agree about. Faster economic growth – or indeed any growth at all – would help cut the deficit in the friendliest way. It would boost tax revenues, and it would cut spending on unemployment.

So the issue is, how do you get some growth from here? In the Labour corner, they said if they printed, spent and borrowed more during the recession we would be first out and would grow well in recovery. They were wrong. We are going to be last out, and our growth rate will be too slow for comfort. History shows us that if the state pre-empts too much, growth is slower and living standards are lower. Where were they when the communist countries fell further and further behind western living standards, thanks to state planning and a largely naitonalised economy? Where were they when our economy started to grow in 1981 once the government controlled spending, and again in 1992-3 when the deficit was tackled, or after the IMF cuts forced on a past Labour government?"

john
Painful, very painful.
 
#18
My sympathy is overflowing, having been in Greece when we bummed out of the exchange rate mechanism, thanks to Germany and France.

Waking up with a hangover to find that sterling is worth 20% less than it was when you went to bed, Europe needs a dose of reality.

YM
 
#19
jonwilly said:
" If the Labour party are re-elected I see Euroland split into two currencies.
France,Germany and the UK creating a new currency, while the other countries staying staying with the old Euro but a weaker rate."
fairycakes

One of us is on another planet.
The UK is not a strong currency. Now it's just a matter of time if we have to begging to have the Pound Sterling bailed out by IMF, either before or just after the coming election. Loss of our three star credit rating is just a matter of time.
Greece is a Euro Disgrace, they where 'Fiddled' into the Euro and along with the rest of the PIGS, will drag the Euro down.
The Pound is our Homegrown disgrace and one day we will have to bite the bullet.
Who ever wins the next election will eventually have to take drastic steps to cut spending.
Labour are in denial and Dave (who I have no faith in) is very careful on what he says.
john
I agree with your comments and also believe the IMF will turn off the tap to the UK borrowing. The new currency comment would be a political rather than monetary reasons, France, Germany and Gordon Brown finally getting the unity they have been seeking.
 
#20
Oil_Slick said:
heard_it_all_before said:
PassingBells said:
Every game of dominos starts with the first brick.
Very interesting perspective, especially as Ireland and Spain are also hot on the heels of the Greeks.

Very good point…

Greece and Spains pain are compounded by them being unable to inflate/devalue their way out of trouble as they have always done in the past.
Ah the "Argentine system"....they do it there quite regularly, it never work's....that's one of the reasons Spain/Portugal/Greece and ourselves wanted into the Euro, to have the stability not to yo yo around with interest rates or printing money....for example.

BTW no one can be made leave the Euro, you in it...that's it. A state leaving would be like New york leaving the dollar after their bankruptcy in the 70's (well very very near bankruptcy)....a non starter.

PS someone must have laid down the law to the Greek Government, they have annouced very large cutbacks Government wide, 10% from social security for instance....winter of protests a'comin...
 

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