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The EU/ECB is terrified we may agitate for this when the new government is elected in the next year.Quote:
Originally Posted by Furunculus
The EU will eventually be forced kicking and screaming into an Iceland scenario for the PIIGS eventually the gordan gecko types will demand it.
yes, i'm not sure i see an alternative.Quote:
Originally Posted by gaelic cowboy
either the PIIGS go or germany goes, otherwise the former will be forever saddled with debts they cannot afford, and can never pay off.
but if the PIGS go, their debts will be linked to the Euro, so they couldn't just inflate themselves out of it.Quote:
Originally Posted by Furunculus
Unless they really pissed off the market and converted the debts to the new currency at the ratio they left at...Quote:
Originally Posted by Beskar
~:smoking:
it would certainly be the uglier solution, because the remainder would be mighty peeved if they felt that leavers were just going to rejoin a few years later once their debts had been devalued away.
given that there is no legal mechanism to leave the only nation that can leave with the consent of others would be germany, because its 'new' currency would in fact appreciate.
Quote:
Originally Posted by Beskar
The eurozone as a whole can easily assume the entire debt of the PIIGS but it's not politically unacceptable to Germany, so we bailout countries and hope they can be reordered while there debt stays intact. This is sold as bringing prudence to whoever needs the medicine but really it cannot work so the entire thing is a massive bluff to safegaurd the "Euro".
The big danger now is the entire Euro currency might implode because no one is able or willing to act in defence of it.
They wont leave because a new D-mark would ruin the German economy which is based on exports.Quote:
Originally Posted by Furunculus
There are two solutions either devalue all the debt or print some euro and inflate it away.
The ECB is willing to do neither which means they place the entire Euro at risk now for what is effectively a couple of percent of Eurozone GDP.