8 ms·

It's actually rather relevant geopolitical commentary. If Greece won't be getting money from the IMF they will after all need to find a new monetary partner. T

by mtrimpe 12y ago

It's actually rather relevant geopolitical commentary. If Greece won't be getting money from the IMF they will after all need to find a new monetary partner. There have been clear overtures in that direction already and key party officials already have long-standing relationships with one of Russia's most extreme and influential ideologues [1]. Not to mention that the article itself clearly mentions the visit to Putin on 8th of April; one day before the possible default. [1] http://www.rferl.org/content/greek-syriza-deep-ties-russian-eurasianist-dugin/26818523.html http://www.rferl.org/content/greek-syriza-deep-ties-russian-...

kansface 12y ago
Its really hard to imagine anyone giving Greece even more money after a default to the IMF.
- roymurdock 12y ago
  Agreed. First line of the article: "Greece is drawing up drastic plans to nationalise the country's banking system and introduce a parallel currency to pay bills" The solution is for Greece to either (1) cash out of euros into another nation's currency for the time being or (2) create their own currency and start stocking the Greek banks with it. Not sure what kind of purchasing power a new Greek currency would have outside of Greece though. I'd say the more likely option would be for them to default, sell their remaining Euros for USD (further undermining the price and credibility of the Euro). Not sure if this is possible and it would likely get really messy.
  - kansface 12y ago
    What would be the advantage of owing dollars over euros when they control neither and dollars are gaining value?
    - roymurdock 12y ago
      Their debt (in euros) would be depreciating relative to the dollars they hold which would be appreciating.
ptaipale 12y ago
> If Greece won't be getting money from the IMF they will after all need to find a new monetary partner. Why do they need a monetary partner? As opposed to reverting to what they had before euro, their own currency? I can see how Greece might try to threaten other Euro countries with "if you don't give us more money, we will give military bases to Russia and prevent EU from helping Ukraine", but that's not really a monetary partnership with Russia.

by mtrimpe 12y ago

kansface 12y ago

Its really hard to imagine anyone giving Greece even more money after a default to the IMF.

roymurdock 12y ago
Agreed. First line of the article: "Greece is drawing up drastic plans to nationalise the country's banking system and introduce a parallel currency to pay bills" The solution is for Greece to either (1) cash out of euros into another nation's currency for the time being or (2) create their own currency and start stocking the Greek banks with it. Not sure what kind of purchasing power a new Greek currency would have outside of Greece though. I'd say the more likely option would be for them to default, sell their remaining Euros for USD (further undermining the price and credibility of the Euro). Not sure if this is possible and it would likely get really messy.
- kansface 12y ago
  What would be the advantage of owing dollars over euros when they control neither and dollars are gaining value?
  - roymurdock 12y ago
    Their debt (in euros) would be depreciating relative to the dollars they hold which would be appreciating.

ptaipale 12y ago

> If Greece won't be getting money from the IMF they will after all need to find a new monetary partner. Why do they need a monetary partner? As opposed to reverting to what they had before euro, their own currency? I can see how Greece might try to threaten other Euro countries with "if you don't give us more money, we will give military bases to Russia and prevent EU from helping Ukraine", but that's not really a monetary partnership with Russia.