Euro Area

[Kagemusha]

Okay now you are just pissing me off. Why don't you read instead of knee jerking.

Huh? Did i not address your points or did i?

[Centurion1]

Huh? Did i not address your points or did i?

All i did was further explain what Sarmatian was stating. Which is directly in agreement with you. All you are demonstrating is that you do not read other peoples posts.

[Kagemusha]

All i did was further explain what Sarmatian was stating. Which is directly in agreement with you. All you are demonstrating is that you do not read other peoples posts.

The problem is that i dont agree with Sarmatian. He thinks that Greece should not leave Euro, while i have been advocating kicking out all the Southern European countries who are not following EMU guidelines for a very long time. Here is what he said:

Leaving the eurozone is not the solution. Being in EMU is what keeps Greek economy together at the moment. I'm really fascinated with the idea of Greece leaving euro and defaulting. It's basically saying, hey, have your economy crush and burn, let your GDP drop three times, have growth after ten years and proclaim victory but don't tell anyone that you need another 30 years of that growth to reach 2010 level of GDP. Brilliant indeed. In the meantime, enjoy being kicked out from just about any international financial institution and good luck with lawsuits.

Meanwhile, in the north, Germans are still angry because they still have to cover that loss. Even more French understand them completely.

So i find it rather hard to think that we agree on the matter.

[Centurion1]

I'm really fascinated with the idea of Greece leaving euro and defaulting. It's basically saying, hey, have your economy crush and burn, let your GDP drop three times, have growth after ten years and proclaim victory but don't tell anyone that you need another 30 years of that growth to reach 2010 level of GDP. Brilliant indeed. In the meantime, enjoy being kicked out from just about any international financial institution and good luck with lawsuits.

especially the last line..... I am not sure what sarmatian is proposing to be honest.

[Tellos Athenaios]

He says it's very stupid for Greece to leave the Euro and take 30 years to recover from the resulting backlash, instead of grin and bear it now. He is therefore in disagreement with Kagemusha who feels the other way: Greece is being torn apart by the market forces, the internal disagreements and the obligations towards the EU agreed to in exchange for a wasted money. So he thinks it better for all parties involved to cut their losses, and go their own ways.

[Adrian II]

He says it's very stupid for Greece to leave the Euro and take 30 years to recover from the resulting backlash, instead of grin and bear it now.

Thirty years? Where on earth did you get that idea?

Like I said before in the thread, Greece could and probably should do as Argentina did. The Wiki provides a good summary of the way Buenos Aires mastered the 2001 default by restructuring its $132 billion of sovereign debt and devaluing the peso.

Eduardo Duhalde finally managed to stabilise the situation to a certain extent, and called for elections. On May 25, 2003 President Néstor Kirchner took charge. Kirchner kept Duhalde's Minister of Economy, Roberto Lavagna, in his post. Lavagna, a respected economist with centrist views, showed a considerable aptitude at managing the crisis, with the help of heterodox measures.

The economic outlook was completely different from that of the 1990s; the devalued peso made Argentine exports cheap and competitive abroad, while discouraging imports. In addition, the high price of soy in the international market produced an injection of massive amounts of foreign currency (with China becoming a major buyer of Argentina's soy products).

The government encouraged import substitution and accessible credit for businesses, staged an aggressive plan to improve tax collection, and set aside large amounts of money for social welfare, while controlling expenditure in other fields.[citation needed]

As a result of the administration's productive model and controlling measures (selling reserve dollars in the public market), the peso slowly revalued, reaching a 3-to-1 rate to the dollar. Agricultural exports grew and tourism returned.

AII

[Tellos Athenaios]

Thirty years? Where on earth did you get that idea?

When I explained what I think Sarmatian meant based on what Sarmation wrote, I suppose I got that 30 from here:

but don't tell anyone that you need another 30 years of that growth to reach 2010 level of GDP.

Though, as I was just informed in another thread, I am wrong on the Internet.