Tuesday 30 June 2015

Grexit

The panic over the Grexit is an over-reaction. [ Now would be a good time to borrow to buy shares] The Germans and others in Europe are using scare tactics to keep Greece from defaulting on loans, and the loans declining by half their value. It would not be the end of Europe or the Eurozone. Other countries are unlikely to follow. Italy is not Greece. The losers would be the secret, super-wealthy of Europe, whom we used to call the Gnomes of Zurich.
The UK is about vote on staying in Europe, and there is no serious suggestion of them quitting the Pound and joining the Euro (and nor should they, as fourth biggest economy and the leading money market they would dominate Europe). It is just wrong, as George Osborne, the chancellor of the UK said, that Greece voting to leave the Euro would also mean them leaving Europe.
Greece should be helped back into its own currency while staying within Europe. The boundary of the Eurozone must be more porous, so countries can enter and leave in they must to realign their currency after a period of devaluation. It is the “crisis of the day”, but it will blow over, like all crises, and some will benefit and some will lose. One might wonder to what extent the financial crisis is manipulated by those who might otherwise lose, to cover their losses; some people are far too rich to ever lose, because they hold all the purse strings.
European Union leaders have united to warn the Greek people that a ‘no’ vote in Sunday’s referendum would be ‘suicide’, leading to its exit…
thetimes.co.uk

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