Share on Google Plus Share on Twitter Share on Facebook 8 Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon 1 Tell A Friend 4 (13 Shares)  
Printer Friendly Page Save As Favorite View Favorites View Stats   8 comments

OpEdNews Op Eds

Greece and the Euro: Fifty Ways to Leave Your Lover

By (about the author)     Permalink       (Page 1 of 2 pages)
Related Topic(s): ; ; ; ; ; ; ; ; ; ; (more...) , Add Tags  (less...) Add to My Group(s)

Must Read 9   Well Said 7   Valuable 5  
View Ratings | Rate It

opednews.com Headlined to H2 6/7/12

Become a Fan
  (164 fans)

Escaping the Euro by http://www.minority-opinion.com/2012/04/is-there-no-escape-from-euro.html

The problem is all inside your head she said to me

The answer is easy if you take it logically

I'd like to help you in your struggle to be free

There must be fifty ways to leave your lover. 

--Lyrics by Paul Simon

The Euro appears to be a marriage of incompatible partners. A June 1 st article in the UK Telegraph titled " Why Europe's Love Affair with the European Project Is Ending " reported that two-thirds of 9,000 respondents thought that having the euro as their single currency was a mistake. 

For Greece, it was a tragic mismatch from the beginning; and like many a breakup, it is really about money.    Greece is a vivacious young woman chained to a tyrannical old man.  She yearns to be free to dance on her own; but breaking up is hard to do.  Defaulting on her debts will force her out of the Eurozone and back to issuing drachmas, and she could get brutally beaten by speculators on foreign exchange markets for her insolence.

Fortunately, there are alternatives to an ugly divorce.  The treaties binding the 17 member nations are just a set of rules, entered into by mutual agreement; and rules can be bent or broken, especially in crises.  The ECB (European Central Bank) broke a litany of rules to save the banks, and so did the Federal Reserve to save Wall Street in 2008.  Rules that can be bent for banks can be bent for people and nations--not just Greece, but all the other Eurozone countries threatening to file for divorce. 

Paul Simon says there are 50 ways, but here are five creative alternatives.  

1. The Open Marriage: Return to Drachma Without Abandoning the Euro 

James Skinner, former chairman of NEF (the New Economics Foundation in the UK), suggests that the Greek government could start issuing drachmas without abandoning the euro.  Drachmas could be reserved for domestic use--to pay the government's budget, hire workers, build infrastructure and expand social services.  He writes:

Greece is suffering from a lack of money because the only source, the single currency, has dried up. But there is no law that states that there has to be only one currency.

. . . By enabling the Government, monitored by the Central Bank, to spend newly created money directly into the economy, bypassing the banking sector, the burden of increasing national debt can be avoided. . . .

This programme for creating a new Greek Drachma, bypassing the private banking sector, could start tomorrow. Its immediate effect would be to get the unemployed back to work. All existing Euro transactions can continue as before, quite separately from the new currency. The two currencies can perfectly well co-exist and run alongside each other. . . . Foreign banks will continue to deal in Euros and other currencies as usual.

This solution was successfully used in Argentina when its currency collapsed in 2001. The government walked away from its debts and started issuing its own Argentine pesos. Three years after a record debt default on more than $100 billion, the country was well on the road to recovery.  Exports increased, the currency was stable, investors returned, unemployment diminished and the economy grew by 8 percent for 2 consecutive years.

2. Separate Bank Accounts: Fire Up the Printing Presses at the Greek Central Bank

In a March 19 article on Seeking Alpha, George Kesarios observed that the Greek central bank has the power to issue more than just drachmas.  The ECB is not an ordinary central bank:

Rather, it is a confederation of central banks. Each European national central bank can theoretically do the same types of market operations as the ECB and then some. The forefathers of the euro have left many monetary windows open, which, if used correctly, can solve the European debt crisis in a very short period without taxpayer funds.

He cited article 14.4 of the Protocol on the Statute of the European System of Central Banks, which provides:

Next Page  1  |  2

 

Ellen Brown is an attorney, founder of the Public Banking Institute, and author of twelve books including the best-selling WEB OF DEBT. In THE PUBLIC BANK SOLUTION, her latest book, she explores successful public banking models historically and (more...)
 

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

Go To Commenting
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Follow Me on Twitter

Contact Author Contact Editor View Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

It's the Derivatives, Stupid! Why Fannie, Freddie and AIG Had to Be Bailed Out

Mysterious Prison Buses in the Desert

LANDMARK DECISION PROMISES MASSIVE RELIEF FOR HOMEOWNERS AND TROUBLE FOR BANKS

Libya: All About Oil, or All About Central Banking?

Borrowing from Peter to Pay Paul: The Wall Street Ponzi Scheme Called Fractional Reserve Banking

"Oops, We Meant $7 TRILLION!" What Hank and Ben Are Up to and How They Plan to Pay for It All

Comments

The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
8 people are discussing this page, with 8 comments
To view all comments:
Expand Comments
(Or you can set your preferences to show all comments, always)

Of course, we don't hear about any of these in the... by Scott Baker on Thursday, Jun 7, 2012 at 1:44:54 PM
Great article. It shows that the solutions are the... by Ernie Messerschmidt on Thursday, Jun 7, 2012 at 2:07:12 PM
very helpful ellen! will share with others.... by christian gagnon on Thursday, Jun 7, 2012 at 3:40:00 PM
Exellent well documented article ____ See more of ... by jean labrek on Thursday, Jun 7, 2012 at 11:55:36 PM
In the case of many of the European countries, the... by Paul Repstock on Friday, Jun 8, 2012 at 8:57:11 PM
I agree -- good image, it's an abusive relationshi... by Ellen Brown on Saturday, Jun 9, 2012 at 10:09:38 AM
on a debtor nation has nothing to do with relievin... by John Sanchez Jr. on Saturday, Jun 9, 2012 at 8:34:50 AM
I love to hear Ellen speak: Seems if this article ... by James Tennier on Saturday, Jun 9, 2012 at 6:39:21 PM