Bailing out the German banks

March 8, 2015

For the first time in public an official from the IMF has admitted what most observes have known all along, that the various Greek bailouts were not for the Greeks at all. ”They gave money to save German and French banks, not Greece,” said Paolo Batista, one of the Executive Directors of International Monetary Fund […]

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Reasons not to be cheerful – some recent eurozone developments

March 5, 2015

Greece is on a knife edge The outcome of the recently negotiated, and only interim, deal between Greece and the Troika has been to suck liquidity and confidence out of the Greek economy. This is the exact opposite of what it needs. Unemployment rose to 26 percent in December, in its first monthly increase since […]

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Reasons to be cheerful

March 2, 2015

Most of what I have written so far has been about problems. Problems in the eurozone, problems in Greece and in Germany, and if I can get around to it I may write some stuff about the problems in the global economy. However I don’t want what I write to contribute to what might be […]

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Some facts and figures

February 20, 2015

While we wait to see how the game of poker between Germany and Greece plays out here is some data to think about. The Eurozone crisis has saved Germany a lot of money. Ever since the creation of the Eurozone, and especially since the outbreak of the crisis in 2007, the interest rates that the […]

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Germany’s Role in the Eurozone Crisis

February 18, 2015

At the press conference following the meeting with the Greek Finance Minister Yanis Varoufarkis on 5th February 2015 German Finance Minister Wolfgang Schäuble said: “We have to appreciate their efforts and their situation, and above all we have to appreciate the progress that has been achieved in Greece over recent years. At the same time, however, we […]

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Bonkers Greek military spending, low tax revenues and weak agricultural production

February 16, 2015

While looking at various information sources about Greece I came across some interesting data which I want to share, and which it is worth bearing in mind as we look at whatever new reform program Syriza eventually implements if they succeed in getting some sort of deal on debt. Remember that Yannis Varoufarkis said that […]

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Greek proposals to the Eurogroup

February 16, 2015

This what the Greeks appear to be offering at today’s meeting. Scrap 30% of the bailout programme in exchange for 10 new reforms agreed with the OECD (meaning 70% would be kept). Reduce Greece’s primary surplus target from 3% of GDP to 1.5% this year, and keep it around this level for the medium term […]

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What might a Greek debt deal look like?

February 6, 2015

  The current Greek debt situation is unsustainable. The idea that Greece is going to grow it’s bankrupt economy enough to find 320 billion Euro over the next thirty years or so, and start making repayments later this year is clearly absurd. Everybody, including the Germans, knows that a big chunk of the Greek debt […]

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European Central Bank threatens to blow its brains out – Varoufarkis decides to Keep Calm and Carry On

February 5, 2015

  The rather unsavoury and somewhat outrageous decision of the European Central Bank (ECB) that it will no longer accept Greek government debt as collateral starting next week came late last night after the markets had closed and shortly after the meeting between the Greek Finance Minister and the Mario Draghi the President of the […]

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Greek debt in perspective

February 4, 2015
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Understanding what Syriza wants

February 3, 2015

  The Greek government’s opening move was to risk default by refusing further bailouts and demanding an immediate deal on debt relief. This was almost certainly a negotiating and tactical manoeuvre. I don’t think the Syriza Government’s priority is to reduce the total debt burden right now (although it will try to do that later), […]

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Understanding Greek Debt

February 1, 2015

  By understanding the facts about the real Greek debt situation it is possible to understand the analysis, strategy and tactics of the new Syriza government and to also understand why almost all of the money in the Greek bailout has not actually been spent in Greece but has in reality gone into, and protected, […]

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What Yanis Varoufakis actually said: and it’s very interesting

January 31, 2015

The media have managed to completely misunderstood what Yanis Varoufakis actually said about the Troika, and in the process completley miss some far more important other things he also said. And it’s only the first week of the new government.

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Joschka Fischer: Angela Merkel must accept that her austerity policy is now in tatters

January 31, 2015

Excellent article in the Guardian this morning by Joschka Fische, German Foreign Minister and Vice Chancellor of Germany from 1998 to 2005.

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Alexis Tsipras “open letter” to German citizens”

January 30, 2015

Alexis Tsipras’ “open letter” to German citizens published on Jan.13 in Handelsblatt, a leading German language business newspaper. From its content it looks like Yanis Varoufakis had a hand in writing this.

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The Feckless and the Prudent: or why your surplus is the same size as my deficit

January 29, 2015

All too often in the debate about the crises in the Eurozone, and the roles of countries like Germany and Greece, the discussion collapses into speculative discussion of something called ’national character’ based on the idea that the pattern of economic activity in Europe, or elsewhere, is the result of the aggregate behaviour of millions […]

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Short memories in Berlin

January 27, 2015

Here is some fairly recent German financial history. It appears to have been mostly forgotten especially in Berlin. Germany became insolvent at least three times during the 20th century and ran up the largest debts of any nation during the 20th century in pursuit of its ambitions and was forgiven almost all of them. 

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Some things are inexplicable

January 27, 2015

From The Mash Offered the choice between another half-decade of soaring unemployment and plummeting household incomes or a bit of a change, the Greek electorate has stunned Europe by making the wrong decision.

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‘We are going to destroy the Greek oligarchy system’

January 27, 2015

In this video interview Yanis Varoufakis, the new Greek finance minister in the Syriza government, tells Paul Mason, Channel Four Economics Editor, that his party will ‘destroy the Greek oligarchy system’. He admits the prospect of power in Europe is “scary”.

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The day after the Syriza victory

January 26, 2015

I was delighted by the Syriza victory as it offers a chance for new thinking in Europe but we must be realistic about what is really required to fix Europe. Here are some thoughts on what is wrong and what is required to fix it.

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