Greece, Austerity, Depression, Grexit or Fresh Start? (video)

Japonica Partners Founder and CEO Paul Kazarian discusses his company being one of the largest private bond holders in Greece and his thoughts on the latest proposal by the country to its creditors. He speaks with Jonathan Ferro on Bloomberg Television’s “On The Move.” Published on Jul 10, 2015

Counter from Paul Krugman:

Austerity and the Greek Depression - The New York Times: "... So now what? A few months ago I thought that stabilizing Greece at a small primary surplus might work, in the sense that it would allow a return to growth even if it didn’t do anything to make up lost ground. But the creditors are still demanding a rising primary surplus over time, and balking at top line debt relief that might at least offer a clear marker of progress. If those are the requirements for Greece to stay in the eurozone, Grexit is inevitable."


Follow @johnmpoole

Paul Krugman at the London School of Economics (video)

Whether you agree with him or not--definitely worth watching--

Paul Krugman at the London School of Economics - The Great Recession is more than four years old—and counting. Yet, "Nations rich in resources, talent, and knowledge—all the ingredients for prosperity and a decent standard of living for all—remain in a state of intense pain."
In his new book, End This Depression Now! which he will discuss in this event. Krugman shows how the failure of regulation to keep pace with an increasingly out-of-control financial system positioned the United States and the world as a whole, for the greatest financial crisis since the 1930s. Decrying the tepid response thus far, he lays out the steps that must be taken to free ourselves and turn around a world economy stagnating in deep recession. His is a powerful message: a strong recovery is only one step away, if our leaders find the intellectual clarity and political will to see it through. Paul Krugman, the recipient of the 2008 Nobel Prize in Economics, is a best-selling author, columnist and blogger for The New York Times. A professor of economics and international affairs at Princeton University, The Economist called him "the most celebrated economist of his generation."

podcast here

Tweet    Follow @johnmpoole

Greece faces death by a thousand cuts

More on Greece, and its unnecessary and now prolonged suffering:

Greece faces death by a thousand cuts unless it leaves the euro - Telegraph: "Repeated rounds of austerity are proving self defeating, which makes it virtually certain that Greece will eventually have to come back for more. What are Europe's paymasters to demand then? . . . What is more, experience in Argentina and other countries that have both devalued and defaulted suggest that the economic shock of exiting a fixed exchange rate is relatively short lived. Once competitiveness has been restored by devaluation and default, growth prospects improve dramatically. The short sharp shock of exit is very likely better than the death by a thousand cuts implied by continued membership. . . . Consider now what this grim choice of death by a thousand cuts involves. What Greece has in essence committed itself to is an internal devaluation lasting years, if not decades into the future. There is no discernible end to the austerity; year after year, it grinds remorselessly on. Even if everything goes according to plan, which seems deeply unlikely on the record so far, it takes until 2020 to reduce the national debt to 120pc of GDP, a level still far too high to be remotely sustainable. In addition to having to run big primary surpluses into the indefinite future, Greece also faces a massive hit to nominal wages and living standards . . . There is not a hope of Greece growing its way back to debt sustainability while still in the euro. As things stand, capital is leaving the country by whatever means available . . . ."

Tweet    Follow @johnmpoole