[Marxism] Catalonia the latest flashpoint in the Euro crisis
David P Á
david at miradoiro.com
Fri Sep 21 22:03:54 MDT 2012
On 21/09/2012 23:13, Marv Gandall wrote:
> It didn't have this effect in Argentina, which broke its peg to the
> dollar and defaulted on its external debt in 2001 after a long period
> of IMF-imposed austerity, so it can't be taken for granted that
> leaving the euro will be worse for the Greek masses than the misery
> they're currently experiencing.
I think there are reasons why the situations are not equivalent. Some of
it you've pointed at yourself: Argentinian exports and so on. Some of it
is that Greece doesn't have a euro peg, it has the euro. Creating a new
currency is a different sort of thing from unpegging.
Furthermore, if we postulate that the European monetary authorities
would be willing to agree to a saner debt restructuring under the threat
of a disorderly default and exit, why not under threat of a disorderly
default without exit? Greece can't be pushed out of the EZ by the
treaties, and the decision to default still belongs to it, so I see no
benefit in exiting, especially since one hears Greece is in primary
public surplus at this time.
I'm guided by this analysis, mostly:
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