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Probably even worse than YV. He may be more diplomatic, which means that he will 'extend and pretend' by mandate of Tsipras (ehich doe snot have a plan, doe snot want to fix/change things). You cannot reason with ordoliberals, the left should get that in their thick heads. There is no compromise, is total war over European minds right now.
They need a plan YESTERDAY to quit and survive the initial shock and they need it now. Or they will be forced to quit anyway and w/o a plan.
With banks closed and the financial system paralyzed, reality is more important than personalities (Tsakalotos versus Varoufakis).
In practice, in this moment Greece is not really in the eurozone anymore.
A euro bank deposit in Greece cannot circulate in the EU (capital controls being in place), or even be converted into cash - and is thus worth much less than a deposit of a similar nominal amount elsewhere in the eurozone.
If one were given a choice today between the two deposits, which exchange rate would we use for conversion?
A Greek euro = 20% or 10% of a euro outside Greece? Maybe less than that?
In other words, this "euro" deposit in Greece is now worth much less than any future "new drachma" will ever be ...
4 comments:
another member of the academe... I'll bite my tongue and lets see what happens with this one....
Probably even worse than YV. He may be more diplomatic, which means that he will 'extend and pretend' by mandate of Tsipras (ehich doe snot have a plan, doe snot want to fix/change things). You cannot reason with ordoliberals, the left should get that in their thick heads. There is no compromise, is total war over European minds right now.
They need a plan YESTERDAY to quit and survive the initial shock and they need it now. Or they will be forced to quit anyway and w/o a plan.
His appointment is a component of the slow motion regime change.
With banks closed and the financial system paralyzed, reality is more important than personalities (Tsakalotos versus Varoufakis).
In practice, in this moment Greece is not really in the eurozone anymore.
A euro bank deposit in Greece cannot circulate in the EU (capital controls being in place), or even be converted into cash - and is thus worth much less than a deposit of a similar nominal amount elsewhere in the eurozone.
If one were given a choice today between the two deposits, which exchange rate would we use for conversion?
A Greek euro = 20% or 10% of a euro outside Greece? Maybe less than that?
In other words, this "euro" deposit in Greece is now worth much less than any future "new drachma" will ever be ...
Just go drachma, dudes!
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