Euro Area

[Beskar]

Devaluation, as you must be aware, does not necessarily lead to hyperinflation. Stop creating monsters where there all that is required is good management.

When/If Greece leaves, the situation there will get worse, probably look at revolution levels (it is bad enough as it is). It will end up an international pariah in the political and economical circles. If we are going to look at the facts, Greece leaving the Eurozone will benefit the Eurozone members more than Greece remaining a member, a fact Greece is willing to exploit politically.

So it is a choice being propping up Greece or letting it fall. Structured Devaluation of the Euro would help aid the situation for Greece though and most of the other southern states at the expense of Germany, Netherlands and other states. It is these states which do not want that.

This is why the whole thing is a political quagmire. national self-interest is being put before the collective good of the whole. This is why the expression "In order to fix it, more EU is required" which you scoff at. But in order to fix the situation as in, to make it economically and politically stable for all current members, there needs to be more collective will than divided self-interest. No one is disagreeing with the notion that more EU will place more burden upon the stronger economies, this is exactly what it does as that is a solution to the problem.

But "Anti-EU" banter aside, I would like you to do me a favour which in turn will help the both of us communicate so we progress. Could you define where the "Problem" is in your mind and your proposed solutions to it.

So for example with devaluation, the Euro devaluing would aid Greece, but on the flipslide, it would be a "con" to Germany. Do you believe Germany should take the hit for the devaluation to aid Greece? Should Greece be forced out of the Euro and be allowed to descend anarchy as it prints money which will have no effect upon Euro-rate Loans so would be forced simply not pay anything at all, causing European economies, including Britain to take a "hit" and decimating the Greek political and economical reputation for the next 20 years minimum. Should all the sovereign debt be bought up by the ECB then repayment split between all the Eurozone members?

The Feel free to contribute your own speculations or solutions, I am interested to hear them!