BINI SMAGHI SAYS EU MUST ACT TO SHOW GREEK PSI AN EXCEPTION
Posted by WARREN MOSLER on March 15th, 2012
‘Must’ is a good choice of words because if they fail the consequences are financially catastrophic.
*BINI SMAGHI: EU MUST RECOGNIZE PORTUGAL MAY NEED MORE AID
*BINI SMAGHI SAYS EU MUST ACT TO SHOW GREEK PSI AN EXCEPTION
*FORMER ECB OFFICIAL BINI SMAGHI COMMENTS IN FT OPINION ARTICLE
*BINI SMAGHI SAYS PORTUGAL MAY NEED EU100 BILLION *BINI SMAGHI SAYS IRELAND MAY NEED ADDITIONAL EU80 BILLION
March 15th, 2012 at 9:43 am
Shouldn’t they start with explaining WHY Greece was an exception?
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roger erickson Reply:
March 15th, 2012 at 11:45 am
@walter,
No! That would defeat the purpose of insisting that it is!
Delusion or harsh accountability are the only paths from here. Smaghi’s definitely got one foot in the deluding camp, and has to decide whether to jump fully in or pull out now.
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WARREN MOSLER Reply:
March 15th, 2012 at 11:00 pm
because they were allowed psi…
;)
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March 15th, 2012 at 12:27 pm
The cause of the problem for the south EU countries was too much cheap credit. The solution proposed by the establishment is to overwhelm the market with more cheap credit. That will work right? Not only did they just kick the can down the road, they also are trying hard to create the perfect bomb to explode the global financial system. The path we are on will end in tears …
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March 16th, 2012 at 10:19 am
A little Nigel Farange from earlier this week for your viewing pleasure…
http://www.youtube.com/watch?v=tivRCQqBFGA&feature=email
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March 16th, 2012 at 10:51 am
Meanwhile Stories like this help build political resentment toward banksters so that when it comes to imposing losses on bondholders, the public doesn’t see the default as raiding their savings but rather as hurting the banks…
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WARREN MOSLER Reply:
March 16th, 2012 at 4:00 pm
yes, a bond tax will be hard to resist, seems
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March 16th, 2012 at 11:23 am
*… EU MUST ACT TO SHOW GREEK PSI AN EXCEPTION”
How exactly are you supposed to prove a negative?
I guess I should not be surprised from the institution where currency sovereignty is invisible.
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March 16th, 2012 at 11:43 am
You can swap, trade, sell, buy or spin, but no matter what you do, you can’t take 2 quarts of milk out of a 1-quart bottle.
Greece is monetarily non-sovereign. They can’t create their money. All monetarily non-sovereign nations can survive long term, only if they have money coming in from outside their borders.
So long as Greece remains monetarily non-sovereign, and no one is willing to give (not lend) them money, they are permanently and irretrievably screwed. The EU is PSIing into the wind.
My heart goes out to the Greek people.
Rodger Malcolm Mitchell
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walter Reply:
March 16th, 2012 at 5:59 pm
@Rodger Malcolm Mitchell, Yes, all ez member states should be net exporters. The periphery to Germany and Germany more than offsets those imports from the periphery with exports to the rest of the world. This is a bit opposite though of how the figures are at present.
I hope we agree to prefer a Mosler MT900s above Mercedes, BMW or Audi! ;)
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March 16th, 2012 at 10:30 pm
Economist Dr. Alain Parguez at Italian MMT Summit 2012
http://mediaroots.org/alain-parquez-at-mmt-summit-2012.php
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March 19th, 2012 at 1:00 pm
The beginnings of currency revulsion in Greece?
http://www.guardian.co.uk/world/2012/mar/16/greece-on-breadline-cashless-currency
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Tom Hickey Reply:
March 19th, 2012 at 7:11 pm
@Colib,
Currency revulsion? no. Rather, no euro. In a deflationary environment in which currency is scarce, people resort to other means of exchange.
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