The Greek “Deal” shouldn’t be viewed as a deal. It has flaws, it is not a deal, and Greece should default instead of prolonging this agony. This so called deal is full of loose ends and is impossible to grasp. Nobody wants signing this no deal anyway, so one can but wonder, why can’t anybody just do the right thing, let Greece default, and stop throwing good money after bad money? Don’t be surprised to see this deal blown off sooner than later. Some insight from Spiegel today;
Greece is bankrupt and will need a 100 percent debt cut to get back on its feet. The bailout package about to be agreed by the euro finance ministers will help Greece’s creditors more than the country itself. EU leaders should channel the aid into rebuilding the economy rather than rewarding financial speculators for their high-risk deals.
It used to be better times in Greece. The latest proposals from Troika & Co, should be humiliating to the once Lord of the World, Greece. The country used to rule the World, and will now be supervised by Euro politicians, while the people are getting accustomed to living in austerity. What’s next, fire sales of cheap islands to the Chinese and Alexander the Great proclaimed to belong to Macedonia? Great reading below by Felix Salmon of Reuters;
Greece is now officially a ward of the international community. It has no real independence when it comes to fiscal policy any more, and if everything goes according to plan, it’s not going to have any independence for many, many years to come. Here, for instance, is a little of the official Eurogroup statement:
Greece news still dominating the screens. So many flashes, but still no clarification of how Greece is to be fixed. According to the latest, Troika is to be permanently based in Greece. As we suggested some weeks ago, Greece is soon a German colony. At least they can drop the heavy army budget then.
While the Greek people slowly realize Venizelos sold them out, it is time to move on and start reading of other economic issues. Some insight from Krugman via Playboy;
Willem Buiter talks to Viv Davies about Greece and the Eurozone. Buiter believes that Greece’s public debt should be written off, it’s banks recapitalised and that the country be provided with sufficient conditional support to grow its economy. They discuss the LTROs and the risks of loss of control over the aggregate size of the balance sheet and potential national central bank insolvencies. Buiter suggests that now is not the time for self-righteousness amongst European policymakers.
Interview link here.
While oil is taking new highs for the year, some thoughts by Taibbi on the “gentlemans code” developed in the US. Welcome to group think.
I’m not defending Ahmadinejad, I think he’s nuts and a monstrous dick and I definitely don’t think he should be allowed to have nuclear weapons, but to me this issue has little to do with Iran at all. What’s more troubling to me is that we’ve internalized this “gentleman’s code” to the point where its basic premises are no longer even debated.
But now the public openly embraces circular thinking like, “Any country that squawks when we threaten to bomb it is a threat that needs to be wiped out.” Maybe I’m mistaken, but I have to believe that there was a time when ideas like that sounded weird to the American ear. Now they seem to make sense to almost everyone here at home, and that to me is just as a scary as Ahmadinejad. (Full article here.)