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How To Solve The Greek Debt Crisis Without Taxpayer Funds
This is a very interesting article. Two months later, has this idea been discussed? I don't know much about this stuff, I'm just trying to educate myself, so I'd appreciate some extra explanation on a couple of points (I think I, pretty much, understand the rest):
<At the end of the day, the problem is not about liquidity, but about equity and the fact that the European banking system is not a going concern.>
Why is equity essential? What will be, practically, the gain if central banks ARE able to provide equity.
Also, <But because there is no such thing as a free lunch, the one who will take the punch might be the value of the euro. But given the Japanese experience, where one can print and print and then print some more, without the value of the currency being marked down (duo to positive trade flows), the euro might not fall at all.>
Care to elaborate a little on this? What are these 'positive trade flows' and how could they prevent the euro from falling?
Also, is it true that in case of great inflation, the euro can go back to its 'normal' with a calculated drop of wages throughout the Eurozone? (I read this opinion the other day)
Thanks in advance and excuse my ignorance :) So, were you elected the first time? I guess you are candidate for the upcoming elections as well, so good luck!
May 28 05:00 PM
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