Merkel Says Euro-Zone Expulsion Should Be an Option

Quote from Ivanovich:

Yeah, that'll happen.
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Might be good if Greece were expelled. After all, they did run their deficit from <3% to >12%... there should be consequences.

If expelled and Greece went down the shitter, might be a wake-up call to the rest of the world running amok with deficit spending.
 
Nobody will leave the Euro.

Jeez, the Euro drops 10% from its all time high and the barbarians are already at the gates...

That damn George Soros.
 
Quote from Ivanovich:

The most feasible country to leave the EMU is not Greece. It's Germany.
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Ooh, wouldn't the Socialist whiners get their knickers in a bunch over THAT! The one with the money takes his ball and bat and goes home.
 
Quote from Debaser82:

Nobody will leave the Euro.

Jeez, the Euro drops 10% from its all time high and the barbarians are already at the gates...

That damn George Soros.
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Has nothing to do with Soros or the decline in the euro. It has to do with the underlying rot that is pervasive under the floorboards of the European union. Oh sure, we can all pretend it's not there, but what's going on with Greece will not stop at Greece. The bailout (and there WILL be one, to be sure) will not stop at Greece.

To avoid it all, Germany could leave. Of course, if they do, their #1 trading partner goes away because the currency advantage evaporates. But fiscal responsibility is maintained, and I think that is the more important of the two.
 
The US was the world's largest creditor and largest exporter nation just before the Great Depression.

How'd that competitive edge work for the US during the Great Depression?

It was worthless.

The issue today is one of trade imbalances and consumption patterns that were easily propped up by fiat money. As fiat money expanded, the imbalances were masked so long as the debt game continued. It's all correcting now, and everyone will suffer. Having a trade/account surplus like Germany or China is irrelevant when your markets were on a debt binge that has now ceased.

Deleveraging affects everyone.
 
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