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How Rescuing Greece Could Destroy the World

Posted by WARREN MOSLER on February 12th, 2012

Got a nice mention here:

http://www.cnbc.com/id/46345302

15 Responses to “How Rescuing Greece Could Destroy the World”

  1. cig Says:

    Detail but article is out of date: ECB has already accepted a haircut of its holdings to cost. I wouldn’t be surprised it goes further later on (via some indirect route for treaty compliance).

    Reply

  2. Save America Says:

    When Warren Buffet was buying tons of silver a few years ago, what were you buying Warren Mosler? Lets show him, just give the PIIGS all a 50% discount and lets move past the whining. Give a gauranteed Job to each euro citizen at 8 euro per hour, give anyone over 60 at least 1000 euro more per month as a retiree pension, and on a per capita basis give each nation 1000 euro as well, lets get these economies rolling!

    Soon they too can have the growth that our balance sheets have had:

    http://www.zerohedge.com/news/guest-post-charting-federal-reserves-assets-1915-2012

    Reply

    Art Patten Reply:

    @Save America,

    Those graphs compare apples to oranges (hard vs soft currency regimes), CB balance sheets, fiscal deficits and gold and fx reserves serve very different functions under each. Not that the peanut gallery @ ZH cares. :)

    Also, the ECB doesn’t have any catching up to do: http://globaleconomicanalysis.blogspot.com/2012/01/chart-of-day-central-bank-balance-sheet.html

    Reply

    Art Patten Reply:

    As an aside, when someone writes (as the author at Gresham’s Law did in the third chart) that “Gold [was] debased from $20.67/ounce to $35/ounce” in 1934, it’s fair to assume they’re in over their head.

    http://greshams-law.com/wp-content/uploads/2012/02/Screen-shot-2012-02-12-at-21.22.12.png?5cc8a3

    Reply

    Save America Reply:

    @Art Patten, Charts from Mish? LOL! You do know he used to work as a sausage maker in the deli back at our old grocery store? ;) Look this guy says 1972-73 was a special case

    http://www.financialsense.com/financial-sense-newshour/guest-expert/2012/02/08/marin-katusa/the-slow-demise-of-the-petrodollar-is-bullish-for-gold

    The oil boyz allowed us to create a petro-dollar instead of the gold-dollar, but that is all coming to an end, and even the great MMT God warren mosler has conceded that gold, silver, oil, commods, might go up sharply, so let me ask you Art, when Warren Buffet was buying all those tons of silver a few years back for around 4 bucks an oz, what were you buying? ;) Buffet just said a lot of investors are going to be caught with thier pants down when the “currency risk” tide washes out.

    Reply

  3. Adam (ak) Says:

    The whole debate about Greece misses an important point. Perhaps they would be not bankrupt at all if they stopped wasting money on buying useless military gear.

    http://translate.google.com.au/translate?sl=de&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2Fwww.zeit.de%2F2012%2F02%2FRuestung-Griechenland

    Reply

    Monica Smith Reply:

    @Adam (ak), Buying military gear is a lot like churches putting gold leaf on the dome. Except the gold leaf looks pretty glinting in the sunshine and the military gear just rusts and rots, if they don’t use it.

    Reply

    roger erickson Reply:

    @Adam (ak),

    Where would France & Germany be if Greece wasn’t buying their military hardware? F&G may be bullying Greece in part because the Greeks hinted they might not want to buy as much weaponry.

    It’s sometimes difficult, even dangerous, to even hint at not extending contracts with pushers. Defense spending can resemble a protection racket, as even our own Congresspeople regularly discover.

    Reply

    Save America Reply:

    @roger erickson, @roger erickson, bullying Greece in part because the Greeks hinted they might not want to buy as much weaponry.

    Military keynesianism, you see, you are in a bowling alley, and warren has this big gun pointed at your head, and you need his business cards to exit the room so you can get away from all that shrill arguing over SCORE ;), why is this shocking, its the way its always been done, we promised the middle east dictators protection under the mightiest most technologically advanced war machine ever for that oil, those that tried to rock the boat like saddam got showed the business end of that gun warren held, now it is all unravelling.

    Reply

    WARREN MOSLER Reply:

    interesting there hasn’t been more discussion of this. seems an obvious place to cut to me

    Reply

  4. chewitup Says:

    Totally off topic, but thought some might like a few valentines for economists…

    http://fosslien.com/heart/

    Reply

  5. roger erickson Says:

    @WARREN MOSLER,

    Indeed. Haven’t seen Greece’s obligations as a NATO member discussed even once.
    e.g.,
    http://www.mod.gr/en/component/content/article/122-europe/673-eyrwpaiki-enwsi.html

    Reply

  6. Save America Says:

    The European Central Bank’s profits from Greek bonds could be used to help restructure Greece’s debt, Executive Board member Benoit Coeure said, spelling out how the ECB’s funds could play a role in Athens’ debt deal.

    http://www.reuters.com/article/2012/02/14/us-eurozone-greece-ecb-idUSTRE81D0EN20120214

    LOL! Sorry Greece, we aren’t gonna take a cut in our bonds to save you from burning! Zeroes in our spreadsheets take priority over you.

    Reply

  7. Gary Says:

    http://www.businessweek.com/news/2012-02-14/europe-better-prepared-should-greece-default-schaeuble-says.html

    it looks like the Germans are actually pushing Greece to default.
    So that would probably scare others enough to not ask for debt reductions, so as not to be associated with Greece

    Reply

    Gary Reply:

    or maybe it is just a public relations ploy to humiliate Greece in public enough so others would try to distance themselves as far as possible from any situation resembling that of Greece – and so not ask any debt reductions.

    Reply

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