Relevant:
- Greece Braces for More Austerity Amid EU-IMF Quarrel About Debt
- Greece urged to give up euro
- Bailout Negotiators Get Go-ahead to Return to Greece; IMF Role Still In Question
- Tentative Deal on Greek Debt Crisis Is Reached, but Long Road Remains
- IMF pushes Europe for formal restructuring accord on Greek debt
2012-01-25 — bloomberg.com
``"The game is completely over," Hanke, professor of applied economics, said at the Bloomberg Sovereign Debt Crisis Conference in New York hosted by Bloomberg Link. "All the calculations are nonsense and have been since day one. Since the crisis began the money supply has been shrinking and the economy is going to implode, no matter what they do in the short run." Money supply is shrinking at an annual rate of about 16 percent in Greece, meaning there won't be growth needed to support debt payments, Hanke said. ''
This is quite sad because all Greece really needs to do is get back on the Drachma and then it can forcibly devalue/expand the money supply, make "cuts" to creditors, and provide a monetary cushion against austerity while it is restructuring its government and economy (the trade and tourism boost alone would provide a major cushion).
(Note that this is less about DEVALUATION than reversing OVERVALUATION... especially to what is essentially a FOREIGN CURRENCY -- the euro).
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