Greece votes no on referendum, Euro, probably EU membership, long-term stability as a nation-state…

Said referendum being, of course, whether they should pay the bills that their government has been racking up for some time. The Daily Telegraph explains the situation that would arise from a No vote:

…it’s game over for Greece’s membership of the single currency. The country’s banks don’t have enough money to last for much longer, and there is little reason why the European Central Bank would wish to extend them billions more if it is snubbed by voters. Either the banks would have to stay shut, which means that the country will run out of food and essentials as it becomes impossible to pay for imports, or depositors would have to be bailed in, wiping out a large chunk of their wealth but recapitalising financial institutions.

The only other alternative would be for the Greek state to introduce IOUs and then a new physical currency, while re-denominating all Greek bank accounts into drachmas. The national debt, which is owed in euros, would explicitly be repudiated, triggering a major crisis and inflicting vast losses on the European Central Bank, IMF and other creditors. The new drachmas would, of course, plummet in value, and it would be hard to avoid widespread chaos and hyperinflation if the government is forced to crank up the printing presses to pay for its bills.



Greece: the remarkably important looming financial crisis you’re not hearing about.

And when I say ‘looming,’ I mean: it’s almost a matter of looking at your watch.

I don’t suppose that the administration has any kind of plan regarding this?

Greece’s long-running standoff with its European creditors appeared headed on Saturday for an abrupt — and potentially cataclysmic — ending as the continent’s finance ministers rejected an emergency Greek request to help the cash-starved country meet a Tuesday deadline for paying back its debts.

The development, just hours after Greece’s prime minister stunned the continent with plans to hold a nationwide referendum on Europe’s latest proposals, makes it increasingly likely that Greece will default — and could soon crash out of the euro zone altogether.

…Because – and this is a bit of an issue, really – Greece is in fact a formal ally of the United States.  NATO, and all that.  It might not be in our country’s best interests to let Greece go take a swan dive out a penthouse window. (more…)

Written by in: Politics | Tags: ,

Euro dropping?

I’ll be honest. I only care about this because of the tourism factor: “Some investors now say the euro could fall to the point where it is on equal footing with the U.S. dollar for the first time since it climbed above the buck in late 2002.” Cheap euros mean a better time for me the next time I get to Europe.  Not that I know when I’m getting to Europe again; kids, you understand.

Alas*, the Brits kept the pound, which means that this will have zero effect on my usual foreign purchases (British roleplaying game materials).  Seriously, this blog post is all about what it means to me.  Europe could go into ludicrous speed hyper-inflation and I wouldn’t care unless I suddenly took up paper mache as a hobby and thus needed a good source of waste paper…

Via Drudge.

Moe Lane

*For given values of ‘alas,’ and those values are probably not shared by the British themselves.

Written by in: Not-politics | Tags:

Sarkozy’s out.

Close-run thing, but close only counts with horse shoes and hand grenades.

Socialist François Hollande was elected president of France on Sunday, defeating conservative incumbent Nicolas Sarkozy in a race that focused heavily on the country’s economic woes.

Sarkozy conceded defeat shortly after the polls closed, wishing Hollande “good luck” as the nation’s new leader.

He’s gonna need it.

Moe Lane

PS: Your guess is as good as mine as to what’s going to happen now.  Except that France – like most of the rest of Europe – is pretty much hosed, but then we knew that going in.


#rsrh England? France? Please don’t fight.

This is not actually a request.

During two hours of bitter exchanges during a meeting of all 27 EU leaders before a crisis summit of the eurozone’s 17 members on Wednesday, [French] President [Nicolas] Sarkozy fought hard to get [British Prime Minister David Cameron] barred from talks that would finalise a 100billion euros cash injection into banks.

”We’re sick of you criticising us and telling us what to do. You say you hate the euro, you didn’t want to join and now you want to interfere in our meetings,” the French leader told Mr Cameron, according to diplomats.

Seriously.  Now is not a good time.

Via Drudge.

Moe Lane

PS: What’s that?  I’m being condescending?  Well, guess what: 712 million a year to NATO buys me a little condescension, I think.  Besides, England and France should know better.

Site by Neil Stevens | Theme by TheBuckmaker.com