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4-May-12 World View -- Growth of far left and far right threatens Greece's stability



Syrian troops massacre Aleppo University students in their sleep

** 4-May-12 World View -- Growth of far left and far right threatens Greece's stability
** http://www.generationaldynamics.com/cgi ... 04#e120504





Contents:
Parties on extreme left and right gain in Greece as elections approach
Greece's PASOK leader Evangelos Venizelos warns voters about euro bailout
Greece's New Democracy leader Antonis Samaras blasts immigrants
Syrian troops massacre Aleppo University students in their sleep


Keys:
Generational Dynamics, Greece, PASOK, New Democracy,
Golden Dawn, Antonis Samaras, Evangelos Venizelos,
Syria, Aleppo University, Bashar al-Assad

John, I think Greece would have problems defaulting and abandoning the Euro. It wouldn't be so bad domestically, but to conduct trade, they need a tradable currency. Oil and other fuel could disappear from the scene without credit.

In fact the whole world is playing games with currencies, instead of taking credit losses and closing banks. I believe that if they blow up these currencies, they will never get them back together without going back to a gold standard. The standard will be gold, not currency either, as there won't be any trust in paper or socialist leaning governments. None of these currencies would have ever floated without Breton Woods and the promise of gold payment in international trade. Debts took the place of gold as collateral, but it appears they don't intend to pay the debts, but print money. Toilet paper is worth more than debt money that is printed to pay off debts or devalue debts. Once no one wants another countries currency, it will be worthless and too rough to use for toilet paper.

mannfm11 wrote:John, I think Greece would have problems defaulting and abandoning the Euro. It wouldn't be so bad domestically, but to conduct trade, they need a tradable currency.

They could default on the debt or they could pass a law saying that "dracmas are legal tender for all debts public and private with X per Euro" and then pay off the debts with newly printed money. If their deficit is still huge I don't expect anyone will start buying their new bonds either way. So they will have to print money like crazy, either way, and most probably get hyperinflation.