Skip to comments.How shock waves will hit US if Greece drops euro
Posted on 06/16/2012 2:22:35 PM PDT by Evil Slayer
NEW YORK (AP) -- The unthinkable suddenly looks possible.
Bankers, governments and investors are preparing for Greece to stop using the euro as its currency, a move that could spread turmoil throughout the global financial system.
(Excerpt) Read more at hosted.ap.org ...
most of the time reading it I found myself pondering how much Soros/zer0 might make from this crisis
“They think the path of a full-blown crisis would start in Greece, quickly move to the rest of Europe and then hit the U.S. Stocks and oil would plunge, the euro would sink against the U.S. dollar, and big banks would suffer losses on complex trades.”
The entire problem with Greece and the euro can be traced to Obama’s wild spending since he took office as president. He will be to one to blame for this mess.
The Greeks did it to themselves. They spent more than they had - and now their country’s broke. Democrats have done the same here... We’re not next, but we’re on the list.
Does a weak/dead Euro make the Dollar stronger?
Who's going to loan them money? Who will extend credit? They can't pay their debt now, add 7 interest points and the State won't have the money to fix roads - no less contribute to unemployment, pensions, etc... Greeks buy electricity and gas from other countries - they'll have to pay cash. A devalued cash...
I think that the Greeks have learned a harsh lesson in letting foreign political structures and banks control their currency. If a country can’t control its currency, can it really be considered a sovereign nation?
People in other nations of the world have been long accustomed to dealing with other currencies, exchange rates and economic difficulties. When theirs is headed into trouble, a surprising number will look for an offshore account denominated in another currency deemed “safe” at that time. Argentinians fled their peso for dollars during their crisis, Europeans have been going to Swiss Francs and dollars more recently.
It does strengthen the currency, usually a temporary effect as the crisis passes and the safe haven currency is exchanged for the native currency once again. You see it in times of instability, usually hand in hand with spikes in the price of precious metals, which rise for the same reason and often decline for the same reason.
Larry Kudlow ought to have a very interesting radio show tonight.
Let me fix that.
“They spent more than they had - and now their countrys broke. Both parties have done the same here... Were not next, but were on the list.”
Loaning money to governments was always a bad idea...that is just more obvious now.
The current meme is that government borrowing/spending is harmless...that you can have unending amounts without consequence.
Consider how the world changes when that meme is destroyed.
“The current meme is that government borrowing/spending is harmless...that you can have unending amounts without consequence.”
That is sustainable, at least for the short term, when a nation has the luxury of printing a fiat currency.
Greece and other EU nations cannot print currency and get in deep dodo immediately.
The only people dumber than the Greeks are the Germans and the bankers who loaned Greece all of that cash.
The Greeks print Euros today. The Japanese print Yen today. Printing wont save an economy.
“The Greeks print Euros today. The Japanese print Yen today.”
While the Japanese can print yen, the Greeks cannot independently print euros as that is controlled by the EU as a whole.
Providing cover for obama.
>> “Sometimes I wonder is this is exactly what the Soviets wanted” <<
You mean the Keynesian soviets of the west?
This chaos has been planned for 100 years; get used to it, it’ll get worse soon.
> “”The only people dumber than the Greeks are the Germans and the bankers who loaned Greece all of that cash.” <<
You can add BofA, Citi, JP Morgan, and Wells fargo to that list of dumbers.
>> “ If a country cant control its currency, can it really be considered a sovereign nation?” <<
We’re headed there when we join the global currency, and it is planned for next year.
“I think the KGB is probably amazed that the propaganda organs they set up in the West have been so spectacularly successful. Not only did they outlast the Soviet Union, they do seem to be accelerating the decline & fall of Western civilization. And this occurred in spite of the obvious failures of communist states and Marxist ideology.”
So true!!! It’s my understanding that they ceased funding their front groups in the West (i.e., the Democrats and sympathizers)...but rather than going away, these groups have gotten stronger and stronger after the fall of the Soviets.
There’s probably more than one KGB person scratching his head trying to figure out why they wasted so much money funding these clowns...when they were more than willing to do their dirty work for free.
Hasn’t Obama spent more than all the other Presidents - combined?