Why? What would that accomplish? Greece doesn't need a softer currency. Greece desperately needs economic growth.
Yes, but if you look at greeces economy: To be economic-competitive they would have to lower wages (20-30%)... that would lead to civil war. They don't have much export, more import. If they could depreciate their own currency it would attract money and investments, help the export, help the tourismus-industry. If they will stay in Euro they will stay in dependence.
It's not that easy... they would need help in the first time, too. But there will be no economic growth in greece with Euro. They need a more flexible currency. The central bank devalues the Euro and says, the reason is deflation. The real reason is the banking system and to help the export-economy. But that is not enough for greece. Same for the most south-states.
The trouble with Greece, politically speaking, is not extremists (Syriza aren't extremists, just idiots). It is corruption.
I did not say extremists, I said "more extreme". And I don't think they are idiots. In my opinion they are very rational and they have the right to speak for the normal Greece-citizens who are suffering. And yes, corruption is a big problem, but it's a problem in the highest EU-circles as well. We live in a time where banks can do anything. They are keeping profit for private and demand that the EU-citizens pay their losses. The money other states send to greece... it was not to rescue Greece, it was to rescue creditor-banks. Germany (just for example) sends money of his citizens to greece and greece sends it back to german banks... I would name that dynamic raid. ;-)
Greece scores very badly on this, just like every other country in the Balkan area plus Italy. Unless Syriza manages to come down hard on curruption, there isn't a lot of hope.
The whole system is corrupt! Greece is just more obvious. Germany protects a corrupt Siemens-Manager who is accused, but Germany denies to deliver the man to greece (just one example!). Greece is more extreme than most of the other countries, but there is a lot of corruption on every stage.
The rest of the Union is doing alright and most members are doing their best to improve the situation. While it is natural for people to be sceptical of their government in the midst of a downpour, most Europeans (think 60%+) are still in favour of staying with the union. The percentage is even higher amoung the European youth, so there's hope for the future. The real disagreement is not about the union, but about policy.
Yes... it's about policy, but also about simple maths. It's impossible to pay back the liabilities. Even Germany pays nothing back, not even if the economy is doing very well.
Take a look:
http://www.aref.de/kalenderblatt/mehr/pics/staatsverschuldung_deutschland_entwicklung.pngIt nearly doubled the last ten years. And Germany is maybe the "healthiest" country in the EU. The second largest outgoings of the State budget are interest-load.
Actually, most Eurozone countries are doing okay with respect to debts. It's important to keep in mind that it's the relative percentages that count, not the nominal amount. Higher debt isn't a problem if your economy can shoulder it.
Yes... but debts are rising every year and accelerated and the interest is rising as well. The economy would have to grow every year and endless. Impossible. Such a system won't survive and never survived. There are just two scenarios: Massive Inflation or currency collapse (or both at same time).
The problem with Greece is that it can't. It imports nearly twice as much as it exports and their government spends a whopping 160% of GDP. The economic troubles of any other EU country pale in comparison. Yes; Italy, Ireland and Portugal are still spending too much, but not as crazy much as Greece.
Yes, right. But the main-problem is the lack of wealth-distribution!!! If 1% on this planet holds more then the whole rest, and thats a fact, it can't end well. Thats impossible. It's a worldwide problem, not just of the EU and indeed not just of greece. The USA has the same problems. China as well. The richest become richer, the normal become poorer and the poorest sleeping under bridges. For now there is just one antidote: More debts. And again: It's not just about the countries, it's mostly about the banking-system. The collapse of just one bigger bank can lead to a worldwide economic depression. I just say Lehman... ;-)
The central banks aren't 'pumping' the markets, by the way. They are transferring wealth from the people to themselves through financial markets. QE is just a very advanced way of taxation. The net effect is cheaper loans for the governments.
There is no contradiction. And yes, cheaper loans for governments but also for the banking system and stock markets. People are wondering why there is no inflation because all of the money... The inflation is in the stock-markets, because most of the money never reaches the real economy.
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