Top German Economists Say Greece Is Lost

[girl gone mad]

Several top German economic institutes on Thursday warned that German growth is slowing as the country continues to be hampered by the ongoing euro-zone debt crisis. And Greece, they say, will be unable to "free itself from its debt burden" and will need another haircut.

Chancellor Angela Merkel had been hoping that her trip to Athens earlier this week would help demonstrate Germany's solidarity with Greece as it struggles to overcome its debt crisis. Just two days later, however, leading economic institutes in Germany have darkened the mood considerably. The institutes presented their autumn economic forecast on Thursday, and cast doubt on whether Greece would be able to remain part of the euro.

"We believe that Greece cannot be saved," said Joachim Scheide from the Kiel Institute for the World Economy, one of several top economic institutes tasked by the German government with examining the state of the country's economy twice a year.

Oliver Holtemöller, of the Halle Institute for Economic Research, was also pessimistic at the Thursday press conference called to present the evaluation. He said it is unlikely that Greece will ever be able to free itself from its debt burden -- and called for a new debt haircut for the country.

The idea is not likely to go over well. Any new restructuring of Greek debt would necessarily involve the country's international creditors rather than solely affecting private investors as last spring's €100 billion haircut did. On Thursday, German Finance Minister Wolfgang Schäuble rejected a debt-haircut proposal by the International Monetary Fund, saying it was not helpful. Euro-zone finance ministers also oppose the idea and the European Central Bank has said that forgiving the Greek debt it has on its books is out of the question.

http://www.spiegel.de/international/germany/top-german-economists-warn-greece-will-not-recover-a-860793.html

Rodger Mitchell responds:

O.K., that almost was the truth. The real truth would have been:

“Let’s face it. Giving up our Monetary Sovereignty was giving up our freedom. It’s dooming us to endless unpayable debt and economic misery for our citizens (except for the richest ones, of course).

“The euro was our ill-considered attempt at unity, which has resulted in our being united — in poverty.

“If Greece leaves the euro, and readopts its own sovereign currency, it will be able to pay all its debts, past, present and future, while investing money to grow its economy.

“Within a couple years, Greece can be (if it handles its Monetary Sovereignty correctly) one of the wealthiest nations on the continent, while the rest of us keep laboring under the yoke of monetary non-sovereignty.”

[xchrom]

1. GASP! Shock & Awe!

Ya know if the EU had bucked up & let Greece return to the drachma - said 'fuck you' to the financial houses - there would have been a lot less pain.

[Vincardog]

2. The lesson to be learned is that the Banksters will not allow you to get out from under their thumb

You can not escape debt by renegotiating a higher interest rate.
The Greeks should take back their Monetary Sovereignty, tell the Banksters to get their heads shaven, and get ow with rebuilding the Greek Economy.

[central scrutinizer]

3. Let's settle this