Tuesday, May 10, 2011

New Greek bailout just postpones inevitable 'restructuring'

As we have argued in Chapter 3 of BRAVE NEW WORLD ECONOMY, without a total restructuring of the euro in combination with the reform of the international monetary system, the on-going effort behind
the scenes by Brussels and the European Central Bank to throw billions more euros at Greece after the initial 110 billion euros failed to work just postpones the inevitable declaration of insolvency, otherwise known as 'restructuring.' Greece might well do better with its own currency and monetary policy to pull itself out of the deep hole it is in, but Brussels and the European Central Bank will not let it consider this option. Restructuring will come, but at a much higher price than if the situation was faced transparently today. 

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