Either this signifies as the proverbial writing on the wall or part of the orchestrated propaganda campaign for Greece to exit the EU
From the RT.com
Traders around the world have been staring at their Bloomberg screens, hardly believing their eyes. The electronic information platform has been showing details for possible Greek Drachma trading.
The Bloomberg helpdesk described it as "an internal function which is set up to test."
The news comes in the wake of the heated discussions over the future of the euro zone and the membership of Greece. While many experts insist that Greece should leave the Euro and default, some suggest it should remain the union and introduce a parallel currency to the Euro to repay the country’s debt.
The Head of the European Investment Bank Werner Hoyer said on Tuesday that Greece will be able to remain a member of the union. “Greece will have the opportunity to solve the huge problems that it is facing. Continuing support from the EU will contribute to this, in case, of course, the very Greeks would want that,” Hoyer said.
And a survey at the weekend showed that Greeks prefer to stick to the Euro and not revert to the old drachma.
The Greek Drachma details have now been taken down from the Bloomberg service.
It has been impressed upon the mainstream that the solution to Greece debt problems will only be through “drachmaization” (euphemism for devaluation or inflationism).
When it comes to the prospects of outright defaults there has been a mental black hole. Outright default under the EU umbrella has hardly been discussed or ever considered an option. That’s because the mainstream fervently disdains a private sector (free market) solution. Supposedly nobody wants austerity (fiscal discipline), and alternatively everybody wants free lunch (spending other people's money).
But illusions melt when confronted with reality.
The clangor from repeated media blasts from these omniscient experts, who mostly hail from outside these crisis affected nations, has only been heightening the risks of such scenario and prompting for unintended consequences.
The local citizenry from these nations have been incited to withdraw money from their banking system, consequently send these elsewhere in the region or abroad for safekeeping from the risks of devaluations. The massive bank runs, thus, shows how ridiculous and out of touch with reality these proposals are.
Yet the addiction to inflationism has just so entrenched. Whether this clamor for the devaluation elixir will become a self-fulfilling prediction or not, remains to be seen.
Nevertheless inflation is a policy that WILL NOT and CANNOT last.
No comments:
Post a Comment