Comments on: How to protect euro from Greek exit http://blogs.reuters.com/hugo-dixon/2012/05/14/how-to-protect-euro-from-greek-exit/ Mon, 18 Apr 2016 14:55:08 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: klodenberg http://blogs.reuters.com/hugo-dixon/2012/05/14/how-to-protect-euro-from-greek-exit/comment-page-1/#comment-302 Sun, 20 May 2012 15:33:10 +0000 http://blogs.reuters.com/hugo-dixon/?p=324#comment-302 Its funny how you concentrate on a plan b without first clarifying plan a and assessing its initial potential. When will substantial reporting address what promises where broken and by whom? In my point of view the goals of all these intertwined institutions and organizations you’re referring to was to implement policies towards common progress of member states and facilitate/overview their execution instead of being overwhelmed by the risks involved. Was their work concentrated on safeguarding weaker economies susceptible to the crisis or the showcasing of Eurozone’s sense of awareness. Instead, as stated on a comment, the risk is basically overplayed proven by the fact that it has actually been subject to the same pressures all along. Now we find that the problem remains and strangely that the components have undergone a crisis of identity and orientation. Those who perceive the problems of weaker economies to be the threat for the stronger ones are first and foremost in denial and displaying behaviors opposing the very essence of union.

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By: xebob http://blogs.reuters.com/hugo-dixon/2012/05/14/how-to-protect-euro-from-greek-exit/comment-page-1/#comment-301 Thu, 17 May 2012 17:57:46 +0000 http://blogs.reuters.com/hugo-dixon/?p=324#comment-301 Why couldn’t the Greeks at first peg a new drachma to the euro? At least initially that would help keep things calm as Greece exited the euro. Then they could gradually allow the new drachma to float against other currencies. Since the new drachma would most likely depreciate, that would make goods and services in Greece good bargains for foreigners which should then boost economic growth.

I do agree with daffa that Germany leaving the euro would be the best plan, though I don’t think Germany would agree to it.

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By: daffa http://blogs.reuters.com/hugo-dixon/2012/05/14/how-to-protect-euro-from-greek-exit/comment-page-1/#comment-300 Thu, 17 May 2012 04:59:35 +0000 http://blogs.reuters.com/hugo-dixon/?p=324#comment-300 TIME FOR GERMANY TO LEAVE EURO CURRENCY

The crisis in euro zone will affect all countries in the world. Euro cannot be wished to die quickly and fast. The proposal to exit Greece out of Euro is very dangerous. It is like asking a citizen of a country to leave the country for not paying credit card bills. Which new country will take him? If you allow this idea then lender can force one by one outside the zone. The position of Spain, Portugal, Italy, Ireland, even France is more in line with Greece. Except Germany all European countries need a depreciated euro to rebuild business and jobs.

So the solution is for Germany to leave Euro now and immediately. The outcome is best for all concerned including Germany, in fact to the world. The sequence is as below.

1. Germany leaves Euro and issues Mark. The mark will settle at say one mark at 2 Euros.
2. With euro depreciated only against mark the European nations can start exporting bringing back the jobs and business.
3. The WORLD cannot complain since euro is existing and trading. If the market forces devalue euro no one is answerable / need not answer. Germany which is against inflation is out now.
4. The Tax on German exports to Europe will bring revenue to LOCAL Governments.
5. China cannot / need not complain since China will be better placed to trade against Germany. Euro reserves exist as a currency.
6. Germany will become like china a large holder of exchange reserves MAY BE A TRILLION EUROS..
7. Germany can restrain Mark from international trade like China Yuan / Indian Rupee and do external trade only in euro / US$.
8. France will emerge as European leader, which France never achieved till date.
9. USA should be happy Germany cannot raise now uncontrollably , and CAN concentrate on China / India
10. China can be happy Euro reserves will last as a currency and can be utilized. With Germany on par with China in legal terms for Euro trade China can do what it did to US. Koreans Can move in with their factories.

SO TIME TO ASK GERMANY TO LEAVE EURO NOW HAS ARRIVED

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By: LoveJoyOne http://blogs.reuters.com/hugo-dixon/2012/05/14/how-to-protect-euro-from-greek-exit/comment-page-1/#comment-299 Wed, 16 May 2012 17:54:54 +0000 http://blogs.reuters.com/hugo-dixon/?p=324#comment-299 In the next one or two weeks, expect a run on Greek banks.

The Greek government and the Greek banks will go bankrupt.

Greece may not leave the Euro, in spite of this. I’m not sure what difference it would make which currency is used by a bankrupt state.

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By: Beethoven http://blogs.reuters.com/hugo-dixon/2012/05/14/how-to-protect-euro-from-greek-exit/comment-page-1/#comment-298 Wed, 16 May 2012 07:31:50 +0000 http://blogs.reuters.com/hugo-dixon/?p=324#comment-298 The far-left Greeks with their Mr. Tsirpas, who seems to be of an unstable mental condition, appear to become the winners of the coming elections. They are playing an extortion game like “You won’t dare to throw us out so we will do what we want, which certainly doesn’t include any austerity.”. As usual, the common man in Greece will be the main victim of this kind of immature posturing.

The eurozone then will pay a heavy price for its badly thought-through euro and for including failed states like Greece in its group.

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By: Beethoven http://blogs.reuters.com/hugo-dixon/2012/05/14/how-to-protect-euro-from-greek-exit/comment-page-1/#comment-297 Wed, 16 May 2012 07:31:40 +0000 http://blogs.reuters.com/hugo-dixon/?p=324#comment-297 The far-left Greeks with their Mr. Tsirpas, who seems to be of an unstable mental condition, appear to become the winners of the coming elections. They are playing an extortion game like “You won’t dare to throw us out so we will do what we want, which certainly doesn’t include any austerity.”. As usual, the common man in Greece will be the main victim of this kind of immature posturing.

The eurozone then will pay a heavy price for its badly thought-through euro and for including failed states like Greece in its group.

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By: mark_kaskin http://blogs.reuters.com/hugo-dixon/2012/05/14/how-to-protect-euro-from-greek-exit/comment-page-1/#comment-296 Wed, 16 May 2012 01:41:48 +0000 http://blogs.reuters.com/hugo-dixon/?p=324#comment-296 Greeks would be well advised to pull at least 90 percent of their accounts into cash (a mix of Euro and Dollars) and pay cash for their items, storing the remainder in a safe deposit box or good safe (burglars rarely search your attic behind a bunch of dusty furniture or under a pile of old clothes). I would not be surprised if on any given weekend (maybe this one!) the Greek banks mark the Euros they have with rubber stamps to temporarily mark them as “Greek Euros” in case they switch back to Drachma after the election. Get your clean, unmarked Euros and Dollars NOW.

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By: robb1 http://blogs.reuters.com/hugo-dixon/2012/05/14/how-to-protect-euro-from-greek-exit/comment-page-1/#comment-295 Tue, 15 May 2012 21:24:17 +0000 http://blogs.reuters.com/hugo-dixon/?p=324#comment-295 thank you for this and your previous article on the EURO.

Shorting the EURO worked perfectly since then… and will possibly last a bit longer.

Some, though, call for the EURO rising when Greece is out.

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By: Willvp http://blogs.reuters.com/hugo-dixon/2012/05/14/how-to-protect-euro-from-greek-exit/comment-page-1/#comment-294 Tue, 15 May 2012 12:59:20 +0000 http://blogs.reuters.com/hugo-dixon/?p=324#comment-294 @breezenthru:

easy answer: round tripping to the benefit (read: saving) the banks.

don’t be amazed next year when Greece is OUT and banks make big profits.

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By: Boomgloom http://blogs.reuters.com/hugo-dixon/2012/05/14/how-to-protect-euro-from-greek-exit/comment-page-1/#comment-293 Tue, 15 May 2012 12:58:06 +0000 http://blogs.reuters.com/hugo-dixon/?p=324#comment-293 What people do not realize and thus assume too easily doomsday scenarios is that there is a difference between the Grefault /Greek default/ and Grexit /Greece euro exit/.

Greece may default and stay in euro, becoming effectively cash economy. Government would pay people as much as it collects and people would pay with available cash. This would automatically balance the economy and would obviously inflicted big pain. But it would be much less pain than exit and ensuing rampant inflation and chaos plus blockade of currency flows over the borders. It would also made pressure to import back the euros and capital send from Greece abroad.

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