[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: 
http://yanisvaroufakis.eu/2012/05/16/weisbrot-and-krugman-are-wrong-greece-cannot-pull-off-an-argentina/

--David.




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