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Thread: Greek opposition sets demands as EU/IMF verdict nears

  1. #21
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    Re: Greek opposition sets demands as EU/IMF verdict nears

    Quote Originally Posted by Red_Dave View Post
    What would be so bad about going back to the Drachma? It would make their exports competitive and keep the tourists coming (cause lets face it they have f**k all else going for then)
    Currency devaluations tend to be short term bandaids that countries use over and over again, leading to massive inflation and degrading the standard of living over time.

    If it is used correctly and buys the economy time to make structural reforms it could be benifitial. But in Greeces case it is not likely to achieve much without a technical defualt on its foreign debts
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    Re: Greek opposition sets demands as EU/IMF verdict nears

    Quote Originally Posted by Red_Dave View Post
    What would be so bad about going back to the Drachma? It would make their exports competitive and keep the tourists coming (cause lets face it they have f**k all else going for then)
    1. Their debts would still be in Euros and dollars. The burden would explode to say the least and drive them off the cliff. It would be impossible for Greece to get any funding for quite a while. The economy would tank totally with the social problems that follow such a problem. And the value of the new currency would make 1000 Italian lire sound like chomp change. Think Zimbabwe in many ways. "6 eggs mamn? that will be 7 million Drachma please. .. 30 seconds later.. 7.2 million now mamn since you are so slow. "

    2. It would not fix the structural problems that caused the problem in the first place.

    3. The cost of changing currency is quite considerable and it can not happen over night. It took a politically agreed Euro-zone approx 6 years to go over to the Euro. Money has to be printed, electronics has to be changed (cash registrars and so on) and a lot of administrative crap has to be change. The cost for companies would be considerable.... a cost that they cant get loans for..

    Now Greece might become "cheap" for the rest of Europe but they dont have much industry as it is, and if the country goes into social meltdown as expected, then who the hell would want to go there on holiday or buy a house there?

    No the only way Greece gets out of this, is by fixing their structural problems.. then sure go back to the Drachma if they want, but without the structural fixes, it is a very stupid idea.
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    Re: Greek opposition sets demands as EU/IMF verdict nears

    yesterday, before his state dinner for ms merkel:

    President Barack Obama on Tuesday urged European countries and bondholders to prevent a "disastrous" default by Greece and pledged U.S. support to help tackle the country's debt crisis.

    Obama, whose political prospects have suffered from persistently high unemployment and ballooning U.S. debt, has pinpointed the euro zone crisis as one foreign "headwind" hitting the U.S. economy.

    After a meeting with German Chancellor Angela Merkel, he stressed the importance of German "leadership" on the issue - a hint that he expects Berlin to help - while expressing sympathy for the political difficulties European Union countries face in helping a struggling member state.

    "I'm confident that Germany's leadership, along with other key actors in Europe, will help us arrive at a path for Greece to return to growth, for this debt to become more manageable," Obama said.

    "But it's going to require some patience and some time. And we have pledged to cooperate fully in working through these issues, both on a bilateral basis but also through international and financial institutions like the IMF."

    "America's economic growth depends on a sensible resolution of this issue," he said. "It would be disastrous for us to see an uncontrolled spiral and default in Europe because that could trigger a whole range of other events."

    But his main message was aimed at EU countries - and, by default, wealthy Germany - to step up to help Athens. "Other countries in the euro zone are going to have to provide them a backstop and support," he said.

    "And frankly, people who are holding Greek debt are going to have to make some decisions, working with the European countries in the euro zone, about how that debt is managed."
    CNBC: Obama Pledges Help For Greece
    Last edited by The Prof; 06-08-11 at 11:43 AM.

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    Re: Greek opposition sets demands as EU/IMF verdict nears

    today:

    Unemployment in debt-ridden Greece hit new record highs in March as government officials wrangled over tough new austerity measures required to tap the country's rescue funds.

    The jobless rate increased to 16.2 percent in March from 15.9 percent in February, the country's statistics agency said Wednesday. The total number of Greeks out of work was 811,340, up 40 percent from a year earlier, when the unemployment rate was 11.6 percent.

    March's is the highest level of joblessness recorded since the statistics agency began issuing figures in 2004. The government had projected an overall unemployment rate of 14.5 percent for this year in its 2011 budget.

    The situation is expected to get worse as the government imposes yet more austerity measures to meet targets set out in the agreement for Greece's euro110 billion ($161 billion) package of rescue loans.

    Strikes have affected virtually all sectors at some stage, with workers holding demonstrations or picketing ministry buildings.
    AP: Greek Joblessness at Record as Austerity Looms

    don't worry

    led by president barack the slasher hussein, the united states taxpayer is racing to the rescue
    Last edited by The Prof; 06-08-11 at 04:03 PM.

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    Re: Greek opposition sets demands as EU/IMF verdict nears

    well, here's a novel approach, a new greek export industry!

    yesterday: Debt-hit Greece sees profit in air pollution: report - Yahoo! News

    Greece could earn up to 170 million euros for its cash-strapped treasury from a trade of greenhouse-gas emission allowances on the Athens stock exchange, a report said Sunday.

    Eleftherotypia daily said a first-ever auction of one million emission allowances (EUAs) will be held on Wednesday, ironically as many Greek factories will be shut by a general strike against the government's economic policies.

    The Athens stock exchange, which is overseeing the sale alongside the Greek environment ministry, has said that 10 million EUAs will be traded this year.

    Eleftherotypia said emission rights fetch up to 17 euros (24 dollars) a tonne in other parts of Europe.

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    Re: Greek opposition sets demands as EU/IMF verdict nears

    Standard & Poor's downgraded Greece's credit rating by three notches Monday, making it the world's lowest after the agency said a likely debt restructuring would be considered a default.

    S&P cut Greece's long-term sovereign credit ratings to CCC, just four steps away from default, from B. The short-term rating was affirmed at C and all the ratings were removed from credit watch.

    The outlook on the long-term rating remains negative, however, in a sign that another downgrade is likely in the next 12 to 18 months.
    CNBC: Greece's Rating Slashed, World's Lowest

    the very plan constitutes default
    Last edited by The Prof; 06-13-11 at 07:06 PM.

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    Re: Greek opposition sets demands as EU/IMF verdict nears

    Greece had its credit rating cut three levels by Standard & Poor’s, which branded the nation with the world’s lowest debt grade and said a restructuring looks “increasingly likely.”

    The move to CCC from B reflects “our view that there is a significantly higher likelihood of one or more defaults,” S&P said in a statement today. “Risks for the implementation of Greece’s EU/IMF borrowing program are rising, given Greece’s increased financing needs and ongoing internal political disagreements surrounding the policy conditions required.”

    Credit-default swaps on Greece, Ireland and Portugal surged to records today on concern governments’ struggles to resolve the turmoil will threaten their ability to pay off their debts.

    The ratings agencies are now playing catch up with the market,” said Gianluca Salford, a fixed-income strategist at JP Morgan in London. “The market is pricing in a very high probability that there will be a credit event around Greece. The agencies are just catching up to the negativity that’s already priced in by the market, not the other way around.”

    “Our negative outlook indicates that a downgrade to ‘SD’ could occur if Greece undertakes one or more debt restructurings or maturity extensions on terms that constitute distressed debt exchanges as defined by our criteria,” S&P said. SD is a "selective default.'' A restructuring would likely “result in one or more defaults under our criteria.”
    Greece Gets Lowest Rating, S&P Sees Restructuring - Bloomberg

    she's comin down fast
    Last edited by The Prof; 06-13-11 at 07:08 PM.

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    Re: Greek opposition sets demands as EU/IMF verdict nears

    yesterday: Greek anti-austerity protesters clash with police, general strike - Yahoo! News

    would you advance these people another hundred bil?

    this guy would: Obama Pledges Help For Greek Crisis

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