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Nor do I think they understand macroeconomics. They just can't fathom that yes, Greece has had massive structural problems for decades, but no, the Greek depression was mostly caused by the austerity programmes. This means that they are probably still misunderstanding the Greek position and the Greek willingness to leave the Eurozone, if the alternative to Grexit is continued or even intensified austerity.
They probably do not understand that Greece might recover reasonably quickly outside the Eurozone, which ironically would be a destabilizing factor in the depressed countries still using the euro after a Grexit.
And even if some of them understand this, backtracking would mean both confessing that the previous policies were mad, and would strengthen their domestic anti-austerity political opponents.
I also suspect that a lot of them don't understand that Grexit would mean a Greek default on her external creditors, which mostly are the other nations of the Eurozone. Some might consider this, but then dismiss it as they do not really care the most about recovering the funds lent to Greece anyway, or perversely consider the funds already lost in all but name due to the unsustainability of the Greek debt pile.
Even fewer probably understand how fragile the Eurozone might become if Greece is forced out, when the Hotel California logic ceases to hold sway over the minds of the market. The ECB might have to do a lot more QE than it has expected, and might relatively soon find itself holding quite a considerable fraction of emitted sovereign bonds of certain southern European countries.
Most of all I think these people do not understand that just extending the maturities of the current Greece bonds would resolve the current acute crisis in its entirety. Peak oil is not an energy crisis. It is a liquid fuel crisis.
Depressing, but correct.
Both great, imo. 'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty
- Jake Friends come and go. Enemies accumulate.
Your interpretation. Didn't look in any way perfect to me. rather confused.
So your reasonable mistake looked like a sky castle to me.
There are huge loss of face issues. The deathcar has overpowered the drivers, and now to admit would reveal not only how the very architecture of the Euro is flawed, but also that their venomous characterisation of the Greeks was a cover for their own cupidity. It has become institutionalised cruelty no less.
Yanis for ECB president... 'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty
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