The EU and Greece economy

[grannywils]

Two things:

1.Bless you BBen and

2.I admit up front to having only limited knowledge on this subject so will give only my limited opinion.

 

As far as I understand it the finacial structure, or underpinnings, if you will, in Greece are so antiquated that they have never caught up with modern day economics. The prior communist leanings of the governments were not terribly concerned with having to "keep the books". Now all of a sudden they find themselves virtually bankrupt and have no clue how to resolve the issue. It seems to me that the financial leaders were living in a fantasy world and have suddenly awoken to reality.

 

No, I do not think at this point anyway that it is being handled well by either Greece or the EU.

[Aurielius]

I think that the question whether the Greeks would actually do better by opting out of the Euro and devaluing the Drachma should be considered. The Greek exports would be cheaper, they would be free to chart their own economic course and not be held hostage to EU bankers. Just a thought to be thrown out and kicked around.

[grannywils]

Not a bad idea, in my opinion (we sometimes seem to be getting too close to a one world monetary system. Not a good idea in my opinion)

[SilverDNA]

@Aurelius

Here in my country (Ministry of Finance) have already made plans how a detailed controlled ordered insolvency of Greece could be carry out. And I think other countries have set there opinions to this matter too, so I think it is considered by the EU as an option.

Edited October 6, 2011 by SilverDNA

[Ghogiel]

the idea is sound.

 

I think there is pressure on Greece not to do that, but that pressure could change... Now with all the money it is getting from the EU and China I think it's more likely the pressure is that they have kind of obligated Greece to stay opted in. You know how these things work, economic blackmail could very well be on the cards. I suppose it comes down to what the big players actually want to happen at the end of the day, and perhaps not what is actually best for Greece.

[Aurielius]

If Greece opts out of the Euro it leaves open the possibility that Portugal and Ireland might consider doing the same, being that they are only slightly behind Greece in being a economic basket case.

So this begs the question, which countries in the European Union are the real beneficiaries of the Euro Monetary System? A question that is relevant to the other lessor members of the Union. My view is that, Germany and France are the primary beneficiaries of the system.

Now the UK's retention of Sterling seems far more economically prudent than priorly thought, not that I am sure that it will insulate them from a collapse of the Euro as a Pan European currency.

I believe that that Greece is just the part of the economic iceberg that is above sea level in the European Union.This is not just Greece in isolation from the rest of the members states, it is a possible political /economic fork in the road for Pan Europeanization.

 

Again.... it's just a collection of thoughts on the general issue.

Edited October 7, 2011 by Aurielius

[Balagor]

I am no professor in economy, but that matters not, I think, even the high educated wisemen I hear on TV everyday, are unsure what is going to happend.

But it is big. Greece, and you mentioned Portugal and Ireland @Aurielius. Italy has shown great imbalaces in their economy too, and will probably (if they have not allready) sell state bonds to China.

Some would argue well, isn´t this whole isue not just about China buying the whole world. No. Since a lot of debt to Chine is in Euro, an their wealth is depended on the Euro, they are not interested to see it´s fall. They will continue to give it first aid, as long as their economy allow it. Perhaps even keep Greece alive, to shut down all the noise around it.

[Nintii]

My younger brother is staying in Cyprus (and is a proper Cypriot citizen) and travels to mainland Greece often and according to him the Greek government is washed up, useless and doing nothing and waiting for handouts.

One of his main arguements for that Greece was flooded with foreigners limiting jobs for the locals.

If the EU (according to him), does not aid Greece, then they're finished.

Though Cyprus, because of their cultural ties with Greece is sitting fat and happy with all the Greeks who have put their money into Cypriot banks and bolstered their economy ...

[JimboUK]

Is Greece doing a good job in stepping up against it's financial crisis? No, they're still spending like money grows on trees, they've just ordered 400 tanks from the US at a cost of €1.3bn , not bad for a country with no money.

 

Is the EU doing a good job in stepping up agaisnt Greece finacial crisis? No, the E.U is the problem here and more E.U isn't the solution. The Euro was a political project rather than a financial one and was doomed from the start, the E.U itself has become a ball and chain attached to the ankles of European businesses hampering any prospect of growth.

 

 

I think that the question whether the Greeks would actually do better by opting out of the Euro and devaluing the Drachma should be considered. The Greek exports would be cheaper, they would be free to chart their own economic course and not be held hostage to EU bankers. Just a thought to be thrown out and kicked around.

 

This is exactly what will happen in the end, the big issue is will E.U leaders bankrupt the productive parts of Europe before giving in to the inevitable?

[Aurielius]

http://www.youtube.com/watch?v=jIu66kft9nM&feature=relmfu

 

If this is an example of how well the Greek population will accept the most recent EU demands for fiscal austerity in order to be bailed out then I don't think that Greece is a viable risk. I do not know the Union's bylaws but is there a mechanism for expulsion?

Edited October 20, 2011 by Aurielius