An appreciating markka would reduce the price of imports.
Posted on 10/12/2011 10:13:28 PM PDT by bruinbirdman
So strange that the pressure to leave the single currency will mount for some as the continuing, sticking-plaster approach to the crisis continues. But who?
Greece can't survive outside the eurozone and Germany, an obvious candidate, knows the economic devastation of its exit would be too much.
But if you were small enough and economically strong enough to stand alone, and therefore escape the escalating costs of saving the euro, then why not?
Step forward Finland. As Matthew Lynn argues in a paper for Strategy Economics, Finland enjoys a current account surplus of €3.3bn and its overseas assets exceed liabilities by €28bn. Its 2012 public sector deficit is forecast to be just 0.9pc of GDP with total debt just 50pc of GDP which itself is forecast to grow 1.8pc next year. It can stand alone.
An appreciating markka would reduce the price of imports.
By leaving the euro it could become richer too. An appreciating markka would reduce the price of imports and its overseas assets would rise in value. It would also avoid the escalating costs of one eurozone rescue after another.
We've already seen political opposition growing in Finland to the euro. The triple-A rated Finland has thrown its weight around already by demanding collateral before extending more loans to Greece and the True Finns party
(Excerpt) Read more at telegraph.co.uk ...
Finland. Just slightly less stupid than the rest of Europe...
It would not be the first time Finland held the line in a world gone mad.They very easily could have been sold down the river just like Poland but they stood their ground and made a damn fine accounting of themselves first against the russians and then against the germans.
Ping.
From Wikipedia we have ... about the United States ...
The public debt has increased by over $500 billion each year since fiscal year (FY) 2003, with increases of $1 trillion in FY2008, $1.9 trillion in FY2009, and $1.7 trillion in FY2010.[3] As of October 4, 2011, the gross debt was $14.86 trillion, of which $10.13 trillion was held by the public and $4.73 trillion was intragovernmental holdings.[4] The annual gross domestic product (GDP) to the end of June 2011 was $15.003 trillion (July 29, 2011 estimate),[5] with total public debt outstanding at a ratio of 99% of GDP, and debt held by the public at 68% of GDP.
The inarguable fact is that, courtesy of the incredibly badly drafted Maastricht agreement, as well as the plug-the-holes Lisbon treaty and that BS called the Nice treaty, **THERE IS NO "LAWFUL" WAY FOR A COUNTRY TO EXIT EU OR EMU VOLUNTARILY, AND THERE IS NO "LAWFUL" WAY FOR EU OR EMU TO KICK ANY NATION OUT. Period. Doesn't exist.
I capitalised all that because, as noted above, this is about legalities vs. practicalities. Will Greece stay in? Legally, they've no option, nor can Wonderland boot them out. And just what exactly makes you think/believe (if you do) that that will prevent either A) Greece from leaving or B) Greece from being kicked out bodily by -- well, let's cut to the chase -- France and Germany, in either order?
In the practical sense, Finland have already done about all they could...lawfully. They very sensibly have demanded hard collateral (think gold or a Greek island or two) for their participation in any future Greek bailouts. Trouble is, of course, that Germany and France are mightily annoyed that they didn't announce this sort of policy FIRST. Now they haven't, so national ego prevents their supporting the Finns' quite correct decision.
Not to mention, of course, that hard collateral is considered rather degage (or is that word supposed to be declasse?) in "modern" (pardon my bellylaugh) international banking circles these days. You know, at all those super-sophisticated institutions such as Societe General and Royal Bank of Scotland and Bering's (whoops, they're extinct, sorry to be out of date) and UBS and Credit Suisse (and of course all the American dead men walking, BofA, MorganStanley, and so forth).
I daresay Ladbroke's will quote you a line on which nation will, voluntarily or otherwise, leave the misbegotten Eurocurrency (or even just EU) first. In the longer run, it doesn't matter: if ANY nation leaves EU/EMU, some considerable number of others will follow in short order.
And legalities, as ever, be damned.
I wish thenm no ill will.
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