Thursday, June 4, 2015

Yulia Shamporova — Greece Should Exit Eurozone, Recover National Currency to Pay Debt

In order to pay its debt to international creditors, Greece should exit the eurozone instead of criticizing the European Union (EU), the European Central Bank (ECB) and the International Monetary Fund (IMF), Bernard Monot, a European Parliament member from France, told Sputnik on Tuesday.

“We prefer in the economic sense … that Greece exit eurozone, recover its national currency, the drachma, and reimburse its debt with national currency with Greece Central Bank,” Monot, chief economist for the right-wing National Front party, said.
This move would be a more logical response to the economic crisis in Greece, than criticizing the EU and the ECB, Monot added.
“[Greek Prime Minister] Alexis Tsipras criticizes the European Union and the European Central Bank and at the same time asks them for help — you can’t kill two birds with one stone. It is important to choose either one point or another,” the French lawmaker said....
Sputnik
Greece Should Exit Eurozone, Recover National Currency to Pay Debt
Yulia Shamporova

Greece Should Leave Eurozone If Bailout Terms Fail – Official
Greece must leave the eurozone if it fails to meet payments to its international creditors, European Parliament Vice President Alexander Graf Lambsdorff said Tuesday.

3 comments:

Roger Erickson said...

?? Why not exit and default?

NeilW said...

Reimbursing in the national currency is exactly the sort of action that will cause a run on the new currency.

When you create a new currency you want it to be in short supply with a high demand! You don't want to give a load of the stuff to people who immediately want to sell it for Euros.

Greece is in the perfect position. Lots of Greeks have moved their money abroad - in Euros. So now you do a sovereign default, put into administration those entities that are then bankrupt in Euros - mostly the banks. Kick them back up in Drachma and off you go.

Then you start taxing in Drachma, which people won't have because they moved their Euros abroad! The result is Euros chasing Drachmas and a surprisingly strong currency.

Sheet home the losses in Euros to the morons that caused the problem in the first place - pour encourager des autres.

Half the problem with all these situations is people running central bank who only have one play book. It's like have an aircraft pilot who can only handle a stall by pulling the stick back.

Tom Hickey said...

Half the problem with all these situations is people running central bank who only have one play book. It's like have an aircraft pilot who can only handle a stall by pulling the stick back.

According to Carroll Quigley, that would be the neoliberal playbook they are reading from:

"The powers of financial capitalism had (a) far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations. Each central bank... sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world."
    
Carroll Quigley (1910-1977) | Professor of History at Georgetown University, member of the Council on Foreign Relations (CFR), mentor to Bill Clinton, in Tragedy and Hope, 1966., ch. 20

Carroll Quigley, Tragedy and Hope: A History of the World in Our Time (PDF)
Volumes 1-8
New York: The Macmillan Company, 1966
Chapter 7, page 324