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"Nein! Germany quashes hope of quick Greek debt accord"
Schaeuble said Greece will have to stick with the bailout program or "that's it." No bridge loan. I don't think Greece can go on like this. Neither can or will Europe keep propping them up. How can Merkle explain to German voters who retire at 66 that Greeks want to borrow money so they can retire at 55? And then not pay it back. And then blame Germany!
What idiots, it seems like the only thing the new party can produse are empty threats.
- Obama will never get the support from congress to give Greece money.
- China will only do it, if they feel it is in their interest. Which it isn't.
- Russia is big with the words, but they always act in self interest in the end. Russia lacks money to fund Greece. Because of the oil price drop, Russia GDP is only 4 times larger than Greece, and Russia has 15% inflation.
Greece really has no alternatives, hence Syriza has tried to change their demands. EU is not scared of kicking out Greece, but they prefer an austerity deal.
Germany would be foolish not to help Greece out if for no other reason then to avoid a Grexit. Germany cannot maintain its exports without a Euro that is held down in value by Southern Europe meanwhile Southern Europe cannot inflate their currencies like they used to to pay debt. Germany needs to realize that it has to subsidize Southern Europe or it will not be able to maintain the Euro.
What idiots, it seems like the only thing the new party can produse are empty threats.
- Obama will never get the support from congress to give Greece money.
- China will only do it, if they feel it is in their interest. Which it isn't.
- Russia is big with the words, but they always act in self interest in the end. Russia lacks money to fund Greece. Because of the oil price drop, Russia GDP is only 4 times larger than Greece, and Russia has 15% inflation.
Greece really has no alternatives, hence Syriza has tried to change their demands. EU is not scared of kicking out Greece, but they prefer an austerity deal.
^^^Nailed it.
Greeks leadership has zero leverage and so they are posturing and talking tough for populist, nationalistic consumption.
Then they are going to get taken to the woodshed.
But hey! Their prior governments sure brought "prosperity" to the country for a little while instead of actually addressing the countries problems.
Greece really has no alternatives, hence Syriza has tried to change their demands. EU is not scared of kicking out Greece, but they prefer an austerity deal.
This would be a disaster for the Euro and everyone knows it. Say they kick out Greece, the Euro will rise and the austerity screws will go up even worse on Italy, Ireland, Spain and Portugal as they pay off debt on a currency rising in value. What happens then when another anti austerity party wins an election for example, Podemos in Spain? Are you going to throw the Spanish out too? If so that ups the value and makes Irish, Portugese and Italian debt problems worse and if Italy cracks the Euro is for all intents and purposes dead as a European currency and the German export boom busts.
This would be a disaster for the Euro and everyone knows it. Say they kick out Greece, the Euro will rise and the austerity screws will go up even worse on Italy, Ireland, Spain and Portugal. What happens then when another anti austerity party wins an election for example, Podemos in Spain? Are you going to for the Spanish out to. If so that ups the value and makes Irish, Portugese and Italian debt problems worse and if Italy cracks the Euro is for all intents and purposes dead as a European currency.
That is wishful thinking from Syriza-supporters. Greece needs EU a lot more, than EU needs Greece. Remember that the situation is different from 2012. Greece is not getting kicked out because of austerity, they are getting kicked out because the leaders of Syriza are too hard to work with.
In the event of a default, Italy, Ireland and Portugal will not change course. Italy: They got a deficit that is lower than France, and is under the 3% rule. In addition their debt is mostly owned by Italians, so they cannot default. Ireland: They have a stable debt level, and unemployment has dropped to 10.5%. They are not going to screw up their recovery by making a big deal with EU. Portugal: They got slightly more reasons to ask for a debt relief, but currently that has not been the Portuguese way, and there are no large third parties. The performance of Portugal has been good, and I don't think they want to screw it up.
So that leaves Spain, but Podemos only has 25% of the vote in the opinion polls. There are no 50 seat bonus in Spain, and that means he will need to create a coalition with the social democrats. But if Greece crash and burn, then the socialist and people's party will form a grand coalition or Podemos need to promise they will not follow in the footstep of Syriza. That means there could be some tough negotiations, but Spain will not use default as a threat in the negotiations.
In 2012, Spain, Portugal and Ireland had many of the same problems as Greece. Now Greece is alone, and if they don't want to cooperate, then it is better to get rid of them,
I would have a laugh about the Greek P.M. bringing up things that happened in 1945. But the president of my country brings up things that happened in 1095. So I don't have much room.
This would be a disaster for the Euro and everyone knows it. Say they kick out Greece, the Euro will rise and the austerity screws will go up even worse on Italy, Ireland, Spain and Portugal as they pay off debt on a currency rising in value. What happens then when another anti austerity party wins an election for example, Podemos in Spain? Are you going to throw the Spanish out too? If so that ups the value and makes Irish, Portugese and Italian debt problems worse and if Italy cracks the Euro is for all intents and purposes dead as a European currency and the German export boom busts.
Make an example of Greece and the other countries leadership have something to point to when they have to tighten their belts.
Or you can keep kicking the can until it implodes.
Me personally, draw a line in the sand with Greece and let the chips fall where they may.
Make an example of Greece and the other countries leadership have something to point to when they have to tighten their belts.
Or you can keep kicking the can until it implodes.
Me personally, draw a line in the sand with Greece and let the chips fall where they may.
Convincing a country with 24% unemployment to do belt tightening is not simple.
Last edited by Egbert; 02-10-2015 at 05:01 PM..
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