Posted on 05/29/2012 3:29:05 PM PDT by Oldeconomybuyer
(Reuters) - If Greece left the euro, living standards would plummet, incomes would be slashed by more than half, and inflation and unemployment would skyrocket, the National Bank of Greece warned on Tuesday.
In a report released ahead of an election on June 17 that may determine whether the country stays in the single currency, the country's biggest bank said the risk of Athens exiting the euro was no longer just a theoretical possibility, warning that the fallout from such a move would be dramatic.
"An exit from the euro would lead to a significant decline in the living standards of Greek citizens," the NBG wrote ahead of a vote which parties opposed to austerity measures that have kept Greece in the euro so far have a chance of winning.
The bank said per capita income would collapse by at least 55 percent, the new national currency would depreciate by 65 percent against the euro and a recession, now in its fifth year, would deepen by 22 percent.
Painting a dire picture of post-euro Greece, it added that unemployment would jump to 34 percent of the work force from around 22 percent now and that inflation would rise to 30 percent from its current level of 2 percent.
(Excerpt) Read more at reuters.com ...
Yeah, I was going to say, “Perfect storm for nobama types.”
England is also going wobbly on the Euro.
If they and Greece pull out, the Euro is probably dead.
[Another idea that looked good on paper bites the dust.]
England is not in the Eurozone — it still uses its Pound.
Government income recipients don’t see, yet, that we’re all in “Obamaland” in every US locale—what could become Romneybamaland. Have fun with the default process. Enjoy the slide. After bond investors take their big “haircuts” here, the debt/revenue-sucking sturgeon majority will, too.
Living standards improve through capital accumulation -- not capital destruction. Greece must stay in the Eurozone, cuts its budget and reduce taxes on capital and production
How much further into the abyss can you go than from being 35 and still living with the folks?
Greece will enact no meaningful budget cuts nor will they reduce their taxes. Theyve already defaulted, they’re just not calling it that. Owners of Greek bonds took a 70% “haircut”, that’s a default no matter what you call it.
Greece is finished. It’s all over but the rioting.
Let em exit.
Greece will be very poor again soon. A place where it has always belonged and always will be.
Spain may pull out before Greece.
That may be the Black Swan event. Everyone over there knows both, and probably Portugal and Italy will go to, but they're all expecting Greece to go first. What a kicker if Spain takes cuts at the head of the line.
Naaaa...most of the Greek economy is tourist money....when Drachma’s hit the street...the tourons will invade in droves...and the “greek” bankers will be spending lotsa time doing some ‘splainin to their countrymen...
The bank, at least to me, is trying to scare the voters. After all, the bank is concerned about their money. It is all about the greedy bank.
talk about short memories. Western Civilisation flows from Greece and Rome.
At the same time, Greece was the richest part of Europe right up until the 1700s, even after the Turkish conquest. It has been in constant debt since it's independence from Turkey in 1821.
The current lot, fed with EU money to a state of non-independence are different from their ancestors, so that "always belonged" is historically inaccurate.
The "always will be" is too much of a broad brush for what is unknown. Younger Greeks see the way their country is branded and are ashamed. Greeks 30+ are unfortunately stuck to the welfare teat and find it near difficult to leave
Oh puleeze. I am well aware of Greece ancient contributions. In fact, I had to study Greek in school. The point is that it has been a nation of whining cheaters for well over 2 centuries. Little can change it now.
Can you explain why you say for over two centuries? Why do you think 19th century Greeks or Greeks before WWII were whiners?
Whining? no....
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