which is more serious? a greece exit for EURO or staying put? what are your views?:44:
I think a Grexit is more serious:
What Are the Geostrategic Implications of a Grexit? | Foreign Policy
-This article mentions that the EU and NATO need unanimous consent in making decisions. With Greece out of the Eurozone, it could effectively disrupt operations at the EU & NATO.
Also if Greece re-introduces the Drachma, how long until it will be trade-able? I also wonder how they will get it to the proper level relative to other currencies. Will there be a period of high volatility?
The whole Greece situation is definitely something to keep an eye on, that’s for sure.
Greece cannot exit the Euro and shirk its debt obligations. If it does, very few countries in the world are going to recognize the Drachma as a valid currency. (Presumably none within Europe). This means that the Drachma will only be valid in Greece which means that Greece’s economy is not getting any better than it is now. Greece will be headed back to pre-industrial revolution era times if this happens. They won’t even be able to buy oil. They aren’t going to have a big influx of other currencies investing there too because they just shirked 100s of billions of dollars in obligations. So, long story short if there is a grexit, Greece becomes a third-world country. Europe loses a weak economic contributor, but it loses the leverage of having one more country using the EURO. (open to corrections on this, I gotta go can’t explain much more)