Greek riots nay lead to Euro Exit!

reproman


Joined: 05/06/2008
Posts: 252

Message Posted:
12/12/2008 01:00

http://blogs.telegraph.co.uk/ambrose_evans-pritchard/blog/2008/12/10/greek_fighting_the_eurozones_weakest_link_starts_to_crack



http://www.housepricecrash.co.uk/newsblog/2008/12/blog-the-euro-bubble-20304.php



Some interesting reading, about how since joining the Euro it has more or less bankrupted the Greek economy.



It looks like the Euro currency may be falling apart...so why on earth would Turkey and therefore TRNC even consider joining it?



Repro.

reproman


Joined: 05/06/2008
Posts: 252

Message Posted:
12/12/2008 01:16

I know there is already a thread regarding the Greek Riots, but why is it that the Greeks have turned to violence quicker than any other nation currently experiencing this global credit crunch?



The UK has bee proper shafted in bailing out the banks with our tax money and you dont hear a peep out of us. And the USA are continuing to pump trillions into the economy.



I for one am glad the Turkish troops are still in TRNC...if this is the true colours of the Greeks.





Repro.

ilovecyprus


Joined: 08/05/2007
Posts: 2880

Message Posted:
12/12/2008 11:57

Very interesting post reproman.

Yes it is a serious situation. I too read the other day that Greece is really struggling with poverty and unemployment.

Aussie


Joined: 17/06/2007
Posts: 657

Message Posted:
12/12/2008 12:50

I don't think quitting the euro would provide much short term help for Greece.



If they left and went back to the Drachma or whatever it would then immediately be under enourmous pressure and likely to suffer a rapid devaluation. Savers would try to shift their savings out of Greek banks if deposits were to be forceably converted to the new currency causing a capital flight.



The devalution would drive up inflation particularly petrol and other import prices and interest rates and cause more civil disruption than present.



In the long run currency devalution would provide some help to exporters and tourism but at the cost in the short/medium term of further drops in living standards and inflation.



Getting out of the Euro in isolation would be a difficult exercise to manage.



I also don't think Greece could afford to leave the EU as it has benefited from EU money and support and would find it much harder alone





Aussie

Menace


Joined: 22/11/2008
Posts: 93

Message Posted:
12/12/2008 13:30

I think you have to take a broader view of the violence in Athens.There may be an element of unrest due to the problems Greece(and most other countries in the world) are going through at the moment but a lot of it is violence for its own sake.

Its important to remember that the area of Athens where the original shooting and the following violence took place are a well known trouble spot,dominated by anarchists.It has been well reported in the past that the police in this area tend to stay shut up in their stations most of the time because it is not safe for them to venture out.The area is in a permanent state of potential eruption.If you are going to have riots,then this is the place where they are going to happen.A lot of this is sheer bloody mindedness on a similar scale to the french student and union riots that take place on a regular basis.

As for leaving the Euro,I doubt it,when you remember the constant devaluations that the dracma suffered.