Wednesday, October 19, 2011

Jamie Galbraith on the European crisis

Here is the link to Jamie's take on the European crisis. Mike Mandel and Dan McCrum two journalists, are also part of the talk. I'm increasingly surprised that there is a concern that the European Financial Stability Facility (EFSF), the bailout fund, is NOT large enough. As I said before, the Greek debt is not that large, and the European Central Bank (ECB) can buy just a fraction of Greek debt and solve all problems (by the way Jamie makes that point very clearly: that the ECB can print as many euros as they wish to). It's difficult to get this whole thing, as Jamie says Greece is being destroyed, and for what exactly? To make an example.

PS: That also explains the media's need to continue lying about Argentina's post-default performance. Not only Greece must be an example, Argentina cannot be a good example of a default country doing well. On that see Dean Baker's post.

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