Greece needs a second election | Forex Factory

Greece needs a second election | Forex Factory

Greece needs a second election

From reuters.com

Most scenarios facing Greece are bleak. The country could default, introduce capital controls, forcibly convert savers’ deposits into bank capital, quit the euro and so forth. But there is still a chance things might not end too badly. All those who care about Greece, starting with its prime minister Alexis Tsipras, need to work hard on the least bad path forward. This will require Tsipras not only to eat his words, but also to call a new election. The timing is tough, given a series of payments Athens needs to make to both the International Monetary Fund and the European Central Bank in the next three months, but ... (full story)

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May 25, 2015 6:58am

Quoting DeeKey

Disliked

Maybe EU union needs election, if we will tolerate further gaming with Greece.

Ignored

HAHAHA!!!! They're not elected! No-one elected those parasite weasel looking vampire squids to govern anybody.

The EU needs total disbandment and compensation paid to the countries it has systematically destroyed by its failed polices and utter incompetence and pig headed arrogance. I've never seen so many European countries, not just Greece, in such dire straights without a war situation occurring.

Who will have the confidence to invest in a Europe run by these low grade bureaucrats who couldn't run a piss up in a brewery?

May 25, 2015 9:18am

Quoting Macdon

Disliked

Europe does not need GMO (the production is strictly limited there). Ukraine could very well become a test ground for GMO crops in Europe, something the rest of the European Union has been looking to prevent.

Ignored

Well you can tell us how GM crops taste because your eating them on a daily basis. As a matter of fact your government believes GM crops are THE future for western Australia.

How does your made in Australia GE canola taste ?

May 25, 2015 7:09pm

Quoting barkie

Disliked

Well you can tell us how GM crops taste because your eating them on a daily basis. As a matter of fact your government believes GM crops are THE future for western Australia.

How does your made in Australia GE canola taste ?

Ignored

I don't use canola. It's anathema. I buy non-GMO corn and other organic produce from organic grocers. I can tell you organic certainly tastes better in all instances.

Western Australia always wanted to secede from AU. Maybe they should and take their GMO crap with them? As for our govt., a USA report recently said it's the most imbecilic in the western world. Considering the enormous competition for such a glory in the western world, that's a great achievement by them, perhaps their greatest.

May 25, 2015 5:26pm

Quoting Collector

Disliked

However, I do tend to believe that the countries comprising Europe are better off in some form of union rather than as disparate nations with no formal recognition of what it will take to protect and enhance what is in their common interest.

People also tend to have short memories. Let's not forget that it wasn't so long ago that many of the countries of Europe were at war - including the Cold War.

Ignored

You are right. Some union. But a common currency is fare beyond that.
We can be friends, good nieghbors, have parties together, but to use the same credit card is not a bright idea.

May 26, 2015 6:44am

Quoting Collector

Disliked

The extent to which nations are then able and motivated to remain "friends, good neighbors and party together" is less clear.

Ignored

I give you an example:
Before the Europeans liked to go to Greece on vacation, and the Greeks liked the tourists.
Now as the individual countries finances became international that poisoned the relationship between the nations to the lowest level.

May 27, 2015 6:29am

Quoting Collector

Disliked

I would like to understand this better. On the face of it, it is hard to see how having a common currency would have this effect on its own.

Ignored

I gave you only one example. Let us stay with it, for you to see it better:
The USA and Mexico has is own currencies. Many Americans take vacations there. They don't care about Mexico's finances. Only investors, banks and governments do. If they print more pesos it simply gets devalued.
But if they had a common currency - NOT the US$ -, but one that can't be printed by either country's central banks. US corporations would invest there, institutions and the government would lend Billions, and the Mexicans started to hesitate to make payments right from the beginning. On the top of that they would accuse the Americans, that they tricked them, sold them useless overpriced craps for interest bearing credits etc... And they didn't even wanted this monetary union...
To make the long story short: Both countries media would be full of the that and the name calling, both nations attentions would turn against the other, and develop common hate.

The party would be over...

May 25, 2015 5:02pm

Quoting JeffZhou

Disliked

It ain't over till the fat lady sings.

Ignored

Who's the Fat Lady, bring her on

May 25, 2015 10:18am — Edited

Even before the the Greece elections and, subsequently, the latest round of negotiations began, there were signs that the IMF, ECB and the EU were going to soften austerity measures across their bailout portfolio.

In this context, I suspect there will be a deal at the last minute and, in the meantime, the status quo will prevail. By this I mean the tendency for negotiators to play at brinksmanship so that they can't so easily be blamed by their respective sides for not trying hard enough.

From my perspective as a complete outsider from the other side of the world, neither Greece nor the EU have covered themselves in glory. However, I do tend to believe that the countries comprising Europe are better off in some form of union rather than as disparate nations with no formal recognition of what it will take to protect and enhance what is in their common interest.

People also tend to have short memories. Let's not forget that it wasn't so long ago that many of the countries of Europe were at war - including the Cold War.

The making of Europe may be best considered as a 'work in progress'. None of the players have all the answers or are blameless for the problems that still exist.

A little humility would not go amiss.

May 25, 2015 10:51am — Edited

Politics in so-called democracies is also a work in progress. Powerful economic interests in the form of multinational and transnational corporations and conglomerates are constantly trying to subvert it to serve their own ends.

No country I know of can claim to have reached any absolute pinnacle of achievement with respect to political or economic development.

Eternal vigilance in our own back yards is the price and requirement of genuine individual liberty.

May 25, 2015 7:59pm — Edited

Quoting laszlo-1

Disliked

You are right. Some union. But a common currency is fare beyond that.
We can be friends, good nieghbors, have parties together, but to use the same credit card is not a bright idea.

Ignored

Yes, you may be right, but countries which would have naturally weaker and less stable economies and currencies may be perennially disadvantaged if they have to re-adopt their local currencies and compete with other nations in the region. In addition, while I am not any kind of expert, I suspect these nations would also fare less well when trading beyond Europe's borders.

The larger countries then also have no incentive to support (by trading, in the first instance), their relatively more vulnerable neighbours, so you might well end up with a two or three tiered regional economy.

The extent to which nations are then able and motivated to remain "friends, good neighbours and party together" is less clear.

Maybe the issue of whether a common currency is adopted does not have to be central to the whole concept of whether a viable Europe can exist as both an economic (and perhaps eventually political) entity.

Whatever happens, knee-jerk reactions based on mis-placed nationalism or a desire to formulate common policies in the face of regional problems (like the on-going refugee issue) should be avoided. IMO, the evolution of Europe should be thought of as an inter and multi-generational project. There is too much at stake and too much to lose if those involved act too hastily and/or selfishly.

May 26, 2015 12:50am

[quote=Macdon;8283004]I don't use canola. It's anathema. I buy non-GMO corn and other organic produce from organic grocers. I can tell you organic certainly tastes better in all instances.

"Anathema" has always sounded like a disease to me. How appropriate in the context of GMO's (lol)

May 27, 2015 4:28am

Quoting laszlo-1

Disliked

I give you an example:
Before the Europeans liked to go to Greece on vacation, and the Greeks liked the tourists.
Now as the individual countries finances became international that poisoned the relationship between the nations to the lowest level.

Ignored

I would like to understand this better. On the face of it, it is hard to see how having a common currency would have this effect on its own.

May 27, 2015 8:28pm

Hi Lazlo 1

Thanks for your reply and your time.

I'm not sure of my ground here, but the scenario you describe would be possible and more likely in a situation where (two grossly) unequal economies have a common currency and capital flows were free from the 'normal' disciplines applied to lending and investment. Of course, not only is this is possible, it is largely what led to the 2008 meltdown.

Assuming that investment and banking ground rules have been re-drawn sufficiently (or, at least, could be) to make such irresponsible behaviour illegal, and banks were required to adequately monitor and take real responsibility for the actions of their employees and creditors, financial transactions among parties from the countries involved are much more likely to have a beneficial impact on their respective populations.

The negative consequences would only prevail if irresponsibility and immorality
continued to exist as they have in the recent past.

I think the trick is to ensure that the idea of a common currency does not inexorably lead countries into economic and political straight-jackets that unduly compromise each nation's sovereignty. More important, IMO, is that any inter-national arrangements should have the ultimate effect of optimising individual liberty.

Even national sovereignty is secondary to, and should serve, individual liberty.

I guess I am an eternal optimist. I feel strongly that we need to have a clear sense of why any of this is important, and what we hope to achieve.

Cheers

May 25, 2015 9:42pm

Quoting laszlo-1

Disliked

You are right. Some union. But a common currency is fare beyond that.
We can be friends, good nieghbors, have parties together, but to use the same credit card is not a bright idea.

Ignored

The ideea of a single currency was that if Germany and France have the same currency they would never wage war again, same for other countries. While there are nukes now, a blitzkerig invasion is still posibile, the war risk is still there, the europeans are just stupid nationalists when it comes to peace.

The union you talk about is just paper and countries don't have friends, just interests.

May 25, 2015 6:49am

Maybe EU union needs election, if we will tolerate further gaming with Greece.

Trader#42FA

May 25, 2015 6:58am

for crying in a bucket, please not another election. all traders are sick and tired of Greece stories. we don't want any more Greek headlines, in the same way that Ukraine headlines eventually disappeared.

May 25, 2015 7:11am

This is exactly what all countries wants. But sorry, they are still our brothers.

May 25, 2015 7:46am

It's boring Monday that's why.. Otherwise..
Parasites are usually suckers from the external environment, means all of non EU citizens and skeptics, so Greeks are more our brothers than Australians.

May 25, 2015 10:57am

It ain't over till the fat lady sings.

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May 25, 2015 6:01am
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