To read the original version of this comment in the original context at Macrobusiness.com.au click this link. (link maybe locked – but there is a free trial available)
Yes – Mr Pananikos sounds like your typical technocratic euro-phile – throw everyone under the bus (except the banking and brussells crowd) to keep the technocratic dream alive.
If the Brussell sprouts are that keen on keeping the show on the road they need to accept that bad lending decisions have a price – which is not getting repaid.
Merkel should be telling German voters that their banks blew a large wad of German cash on risky Greek loans and the German govt is going to use more of their money to make sure the German banks do not go under when they write off the money.
The Greeks should take the advice of Dario Fo – “Can’t Pay Won’t Pay”
It is becoming clearer day by day that the Eurozone carrots – common currency, common markets etc came with some very large sticks that are being waved more and more vigorously.
At some point more citizens in more countries will reject the idea that they should guarantee the dud borrowing and lending decisions of their private banks and politicians.
As countries are forced to consider living outside club Euro alternative geoblocks will emerge.
Naturally of course, our useful idiot Mr Robb, is rushing around seeking to bind Australia to as many secret capital asset transfer facilitation deals (aka FTA) as possible so that any future government can be hit with the ‘sovereign risk’ stick if they believe that these so called trade deals should be consigned to the garbage bin.
Leave a Reply