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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

Market Should Be Assured by Debt Deal: Greek Minister

Posted by WARREN MOSLER on March 12th, 2012

Yes, assured that taxing bond holders works to lower deficits. That is, their public debt is sustainable after the PSI bond tax.

If anything, seems to me this kind of talk serves to keep investors away from any euro zone member debt.

Market Should Be Assured by Debt Deal: Greek Minister

By Reported by Silvia Wadhwa, Written by Catherine Boyle

March 12 (CNBC) — Greece has been tossed on the turbulent sea of global markets for almost two years now – but the bond swap deal secured on Friday should reassure markets about the country’s future, Greek Finance Minister and possible future prime minister Evangelos Venizelos told CNBC.

“Now we have a sustainable debt for a sustainable country,” he said. “And now we can persuade the market because we have a new, very important and very concrete argument: the sustainability of the public debt after the PSI (the private sector investor deal).”

“We have a very clear political declaration and position from the part of our institutional partners. We have a very clear statement from the part of the Eurogroup, but also of the Euro Summit. We have the support of the so-called “Official Sector” until the return of Greece in the market,” he added.

3 Responses to “Market Should Be Assured by Debt Deal: Greek Minister”

  1. Andy Says:

    Why would anyone risk investing in euro zone bonds ?
    I mean you could imagine even the Germans giving their bondholders the bad news if they strayed beyond their silly ratios.
    The political risk is still enormous.

    Reply

  2. Matthew Arnold Says:

    Kind of reminds me of that Monty Python and the Holy Grail skit with the Black Knight… There’s a comparative analysis for UMKC…

    Reply

  3. Monica Smith Says:

    The notion that currency can be used to fine-tune trade and exchange dies hard. But then, so does the notion that propaganda rules the world.

    The dollar is sluggish:
    http://research.stlouisfed.org/fred2/series/MZMV?cid=32242

    and Stiglitz designates the labor market as a shambles

    http://www.ft.com/intl/cms/s/0/22e87a10-6c34-11e1-8c9d-00144feab49a.html#axzz1oxgsrRNK

    Reply

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