Thursday, May 26, 2011

Bofinger: Greek Creditors Need to Take a 40% Haircut

 Greece needs creditors to take a haircut of 40 percent and swap the remainder of their debt for some form of jointly-issued euro zone bonds as part of an overall package encompassing other struggling states says Peter Bofinger, an economist and adviser to the German government who sits on a five-person advisory panel known as the "wisemen".


"One needs a comprehensive concept that decides just how much debt states like Greece, Ireland, Portugal, Spain and Italy can sustainably bear," said Bofinger.

Notice Bofinger's call for jointly-issued euro zone bonds, that won't happen without further Euro control of the PIIGS economies. Enter the globalists: The IMF and World Bank. The PIIGS are really better off just defaulting now and using the default as an opportunity to cut government control over the economy so that free markets and growth can then flourish.

Bofinger is an evil globalist in line with his James Bond sounding evil name.

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