Blanchard on Greece Post author By Philip Lane Post date March 20, 2012 Olivier Blanchard provides an assessment of the challenges facing Greece in this IMF blog post. Categories In Uncategorized 8 Comments on Blanchard on Greece ← Paul Mooney on higher education → Non-Financial Corporate Debt (updated) 8 replies on “Blanchard on Greece” The efforts of Germany & France to firewall or more accuretly burn down the PIigs is a form of protectionism. Any country defecting from the euro would immediately draw monetory resourses away from the core via tourists / exports etc and drive up the cost of capital for Germany’s remaining petro reexport industries. This is a crisis of the cores Industrial policey pursued vigorously since 1987. We dumb ducks have very little to do with it – we are merely the Fois Gras Ducks that I am afraid are on the main course as we lack the balls & Brains to fight this neo mercantilism that has destroyed the living standards of many decent but deceived German Proles also. FLOW OF FUNDS FROM LENDERS TO BENEFICIARIES Goverment Guarantee + Banks Sorry I will try that again FLOW OF FUNDS FROM LENDERS TO BENEFICIARIES Goverment Guarantee Greece More Banks + – – Banks Greek & EU Citizens(?) Car manufucturers Conduits Energy companies Energy exporters Contractors Crime Bosses How does it feel to be a Conduit rather then a person ? with thanks to Steve from Virginia Sorry no good at plagiarism The original http://www.economic-undertow.com/2012/02/13/debt-o-nomics-part-three FT Alphaville: http://ftalphaville.ft.com/ dissects the IMF report behind this spoofing and sees an EU fiscal transfer being required to keep the IMF whole. Fairly candid interview with Junker….seems the Germans and Dutch are the bad guys… http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_14647_18/03/2012_433448 Greece is a disaster. Re ” What about leaving the Eurozone? Euro exit followed by a sharp depreciation could achieve the relative wage and price decline that Greece needs, and achieve it faster. ” Not only that, but alongside reform it could unleash a wave of free enterprise as happened in China. Instead, any debt/growth is a function of the ECB debt extraction agency in the manner of a China under Mao but this time operating as a variant of socialism for the banks. Greece is nominally tied to an exchange rate it cannot afford. Add in austerity under the above and what you have is a walk down the road to default. Greece is paying the price of a eurozone in disarray that will come apart in due course. As in Ireland, the people are paying second fiddle to financial interests of the banking elite who’ve wrecked the country aided by ECB who knowingly lent to institutions, in a manner certain to fail. Goldman Sachs helped hide the schenanigans . Government arms contracts with France fed the mirage. “Banks belong to the people.” Has this man been living under a rock for the past four years? Dismal reading. Comments are closed.