1,222 karma · joined March 10, 2007
"Tom's Hardware Italy editor killed in terrorist act claimed by organization created, funded and armed by the US and some of its puppet states."
I think it's more accurate too.
<3 <3 <3
(Holy f* s*)
[1] :´(
As for high stakes... well, the stakes for someone coming into the finance ministry of Greece in this Europe are huge no matter how you look at it.
In this case Varoufakis is saying pretty much the same he used to years before he had any political responsibility.
I was (i) considering the cascading effect of a Greek exit from the Euro, and (ii) thinking in relative terms: I'm not arguing that Germany will be worse off, but perhaps it has more to lose at this point.
Re: the cascading effect:
http://yanisvaroufakis.eu/2011/08/04/why-italy-why-spain-and...
I'm aware that this article describes the dynamics of countries going to the receiving side of EFSF, not of countries leaving the Euro altogether, but I think the perverse dynamics described apply to the latter too.
Relying heavily on exports, as Germany does, may mean you have more to lose in a crisis like this. Consider what happens after a few more European countries stop generating demand for German goods, at the same time that demand from the US is weak too. Demand from the rest of EU and from the US was a big part of what made Germany 'a country like Germany'.
https://www.destatis.de/EN/FactsFigures/NationalEconomyEnvir...
Yes, imports would be unaffordable for Greece with the new currency and that will generate a lot of pain (not that devoting a big share of the national budget to servicing debt is helping a lot), but that will also force the country to correct that imbalance, making what's left of local industry more competitive. That pain would be a price to pay for adapting to a more self-reliant setup, while the one currently being endured (mostly on ideological grounds, I claim) seems more pointless.
Re: tourism, having their own currency to devaluate might help with that.
Re: standard of living, it's not like Greece's current situation, and their prospects within the demands of the memorandum are rosy either.
Corruption and nepotism won't help, but they aren't helping within the Euro either. If anything, those problems are made worse in colonial economies, which the deficit countries in Europe have been, for good and ill, to a large extent.
All in all, a Greek exit from the eurozone is a big lose-big lose proposition for anyone. I don't think it matters a whole lot who stands to lose more. But to the extent that it matters, I think it must be considered in relative terms. Overall, Germany has a better deal in the Eurozone than Greece, and it has more to lose.
http://blog.mpettis.com/2015/02/syriza-and-the-french-indemn...
When said bubbles exploded, those "some Germans" were bailed out, in great part by money from "most Germans", whatever little could be squeezed from "most Greeks", and "most" people from all countries rich and poor. "Most Greeks" never saw any of that bailout money.
Alas, coming back to the Deutsche Mark will not bring back the good old times for "most Germans". Even if it did, it won't happen because "some Germans" are perfectly happy with the current situation and the power it gives them.
The US is an anomaly in that it has had the printing press for the world's reserve currency for more than forty years. Whether it'll be able to do so indefinitely is a different question.
Apropos this: