Greek exit loses

This report from the Huffington Post puts a figure onto my analysis of a Greek exit from the Euro. It suggests Greeks would lose at least half their income.

Don’t be surprised if that happens whether or not they leave the Euro because what really counts is what is happening in the physical or real side of the economy.

One Response

  1. As an economist I see a large number of these noensical reports pumped out by banking interests who don’t want to lose even the last vestiges of their loans to the Greeks. They prefer to extract the last drop pf bllod from the poor Greeks.

    If Greece converted to the Drachma and devalued, the Greek income in nominal terms would not be affected at all. they would not notice it. In international terms, if the Drachma devalued by 505, yes their income would appear to fall. But that is irrelevant to the Greek population.

    I gather you are a Canadian citizen. The Canadian excahnge rate has been bouncing up and own over the past year like a yo-yo. Did you wake up one day and say “I am now poorer” and a few days later “I am now richer”. No. You did not notice it.

    What is shameful is the way the banks pump out this totally false information to panic people, and persuade them not to default. The bankers are amoral and immoral, and don’t care what suffering they cause to the Greek people as long as they can extract their last millions.

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