Thursday, May 17, 2012

A Shrewd Greek Lefty is Holding the Eurozone Hostage

Below is a fascinating interview by CNN's Christiane Amanpour with Alexis Tsipris, leader of Greece's Syriza party.

Tsipris gets it. If the eurozone lets Greece exit the EZ, Spain, Portugal and Italy are not far behind.

Tsipris doesn't want Greece to leave the EZ, he wants a "growth" plan from the EZ, not an austerity program. By growth program he means more money printing by the ECB with the money going to Greece.

Bottom line: Either the ECB prints, stoking price inflation in the EZ or the EZ breaks up.

Short-term the money printing is the likely "solution". But once the price inflation starts to heat up, the Germans are likely to balk and the eurozone breaks up. That way the EZ countries will each be able to inflate themselves into price inflationary madness at their own pace.

Important: Be sure to catch the tail end of Amanpour's report, where she briefly mentions potato farmers selling potatoes directly to the people versus through a grocery store. I suspect this is some way of getting around government regulations and taxes. In other words, the signs of a part of the oppressive Greek state  breaking down.

1 comment:

  1. Hey Bob,

    Ya'll keep talking about the EZ breaking up, but what does that mean? If Greece, Spain, Italy & Co. leave ditch the euro, does it mean the end of the euro? Or will Germany, Finland, etc be still using it?

    Is Greece & Co. leaving the euro a good sign for the currency or not? From one side, it looks like a rather bullish sign, however, I could also imagine a bank run type of event crashing the entire system (i.e. those who are left holding the bag get really screwed).