London Group Advises Greece to give up the Euro

[Large Sarge]

http://business.timesonline.co.uk/tol/business/economics/article7140270.ece

May 30, 2010

Greece urged to give up euroRobert Watts
7 Comments
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THE Greek government has been advised by British economists to leave the euro and default on its €300 billion (£255 billion) debt to save its economy.

The Centre for Economics and Business Research (CEBR), a London-based consultancy, has warned Greek ministers they will be unable to escape their debt trap without devaluing their own currency to boost exports. The only way this can happen is if Greece returns to its own currency.

Greek politicians have played down the prospect of abandoning the euro, which could lead to the break-up of the single currency.

Speaking from Athens yesterday, Doug McWilliams, chief executive of the CEBR, said: “Leaving the euro would mean the new currency will fall by a minimum of 15%. But as the national debt is valued in euros, this would raise the debt from its current level of 120% of GDP to 140% overnight.

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“So part of the package of leaving the euro must be to convert the debt into the new domestic currency unilaterally.”

Greece’s departure from the euro would prove disastrous for German and French banks, to which it owes billions of euros.

McWilliams called the move “virtually inevitable” and said other members may follow.

“The only question is the timing,” he said. “The other issue is the extent of contagion. Spain would probably be forced to follow suit, and probably Portugal and Italy, though the Italian debt position is less serious.

“Could this be the last weekend of the single currency? Quite possibly, yes.”

[Horn]

That oughtta make the pound look better.


McWilliams called the move “virtually inevitable” and said other members may follow.

Yeah, like you McSphincter, why don't you and your shithole island take a flying leap into the channel? :o

[I am me, I am free]

Out with the (not so) old and in with the SDRs?

There is no 'plan b'.

http://www.youtube.com/watch?v=z93AADd2Dpo

[Horn]

A-team exactly, as in Moodys. :oo-->

Evil a master of guise, you wake up finding yourself walking hand in hand with down the isle.

http://www.youtube.com/watch?v=xeC_4yR4P04

[Trinity]

I agree with this advice. In fact throughout history stiffing a bondholder was common practice. If I were the boss of all bosses in my country stiffing bankers would be my 2nd favorite pass time.

[gunDriller]

I agree with this advice. In fact throughout history stiffing a bondholder was common practice. If I were the boss of all bosses in my country stiffing bankers would be my 2nd favorite pass time.


I agree with this advice, too. It's called Kol Nidre.

I lived in Greece in the early 1970's, before they had all this EU bullsh*t. it was a quite functional society, from Athens to the smallest villages that relied on growing olive trees.

Greece and Cyprus are directly north of Israel across the Mediterranean, so the US military presence there is in direct support of our "friends" the Israeli's.

I remember the fishermen flogging the octopuses they caught on the rocks to soften them up. Didn't really help, octopus is rubbery no matter what you do.

I also remember they had a wierd kind of pizza without tomato sauce that was pretty good. And of course Greek Souvlaki was very good, until you think of what it's made of. (animal parts that are not otherwise marketable)

In any case, if I was the Greek Prime Minister I would run an advertising campaign showing the Grecians what life was like in the '70's, to encourage people to return that more sustainable and tourist-friendly life-style. It's a beautiful travel destination so if they can offer primo vacation experiences for cheap, and continue sucking off the American tit in terms of hosting American military bases, I think Greece can survive conscious default of their debt.

They used to have some natural resources in the north of Greece, forestry industry, pine trees, etc. They couldn't have cut it all down ?

[Trinity]

Yes gunDriller and even we defaulted in 1933 and 1971 (devalued the dollar). And from 1945 all the way to 1980 long term interest rates rose (bond prices fell) 35 years! That my friend was a 35 year stiffing of U.S. treasury bond holders. At a time when many consider we were at our prime. Greece has got to get smart and do the same thing. Stiff them slowly.