http://www.forexconspiracyreport.com/can-the-greeks-pay-their-debts-with-drachmas/ Can the Greeks Pay Their Debts with Drachmas? Nearly three years ago we posed the question, How Many Drachmas to the Dollar? This was at the previous height of the Greek debt crisis when one option for Greece was to leave the EU and print its own money. Things seem to have gone from bad to worse in Greece and the contagion of debt default worry seems ready to spread across Europe and elsewhere. It appears as through the Greek debt write off requirements were too strict. At least that is what Greek voters believe as they voted for widely different political parties and not so much for the folks that negotiated the debt relief deal that was supposed to protect against debt default. It turns out that Greece was not alone having this opinion. France elected a socialist who thinks that too much fiscal restraint will drive France and Europe into a recession and worsen its debt dilemma instead of improving it. At this point Forex traders may be thinking that the germane question really is how many Drachmas to a dollar. We might just as well have written this last week with the addendum that the Greeks have voted and elected a prime minister who is demanding that the debt burden be reduced as in letting Greece write down its debts. The question at the end of this story is, can the Greeks pay their debts with drachmas? No One Is Happy about This The international business section of The New York Times reports how the meeting over Greek debt ended badly. A meeting of Eurozone finance ministers on Greece’s debt crisis broke up in acrimony on Monday evening, further dimming hopes of a speedy resolution to problems that could result in the new Greek government soon running out of money. Just before the meeting ended, a Greek official dismissed the latest proposal by its European creditors as “unreasonable and unacceptable.” The proposal had called for Greece to abide by the current terms of its bailout program. Greek officials have been seeking to revise or scrap the current bailout plan to allow them more flexibility in their budgeting plans.

1. By www.ForexConspiracyReport.com

2. Nearly three years ago we
posed the question, How Many
Drachmas to the Dollar?

3. This was at the previous height
of the Greek debt crisis when
one option for Greece was to
leave the EU and print its own
money.

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5. Things seem to have gone from
bad to worse in Greece and the
contagion of debt default worry
seems ready to spread across
Europe and elsewhere.

6. It appears as through the Greek
debt write off requirements
were too strict.

7. At least that is what Greek
voters believe as they voted for
widely different political parties
and not so much for the folks
that negotiated the debt relief
deal that was supposed to
protect against debt default.

8. It turns out that Greece was not
alone having this opinion.

9. France elected a socialist who
thinks that too much fiscal
restraint will drive France and
Europe into a recession and
worsen its debt dilemma
instead of improving it.

10. At this point Forex traders may
be thinking that the germane
question really is how many
Drachmas to a dollar.

11. We might just as well have
written this last week with the
addendum that the Greeks have
voted and elected a prime
minister who is demanding that
the debt burden be reduced as
in letting Greece write down its
debts.

12. The question at the end of this
story is, can the Greeks pay
their debts with drachmas?

13. No One Is Happy about
This

14. The international business
section of The New York
Times reports how the meeting
over Greek debt ended badly.

15. A meeting of Eurozone finance
ministers on Greece’s debt
crisis broke up in acrimony on
Monday evening

16. Further dimming hopes of a
speedy resolution to problems
that could result in the new
Greek government soon
running out of money.

17. Just before the meeting ended,
a Greek official dismissed the
latest proposal by its European
creditors as “unreasonable and
unacceptable.”

18. The proposal had called for
Greece to abide by the current
terms of its bailout program.

19. Greek officials have been
seeking to revise or scrap the
current bailout plan to allow
them more flexibility in their
budgeting plans.

20. The insistence on holding
Greece to its prior
commitments showed the
Eurozone ministers were
“wasting their time,” wrote the
official, who under government
policy could not be identified
by name.

21. The day did not start out well.
Greek and German officials
traded public barbs, and
nervous investors sold off
Greek stocks and bonds.

22. The problem for the Eurozone
is that the Greek people elected
a person who basically said that
enough is enough and sent him
to the center of the EU to
negotiate a debt write off.

23. The problem for the Greeks is
that politicians, especially
German politicians do not want
to be voted out of office which
is what they think will happen if
they are seen as soft on the
lazy Greeks who owe them
money.

24. And if not deal is reached can
the Greeks pay their debts with
drachmas?

25. Paying Debts with
Drachmas

26. The Financial Post writes
about drachma diplomacy.

27. The issue is whether it will be
better for Greece outside of the
EU.

28. A Greek exit may start not with
boisterous rallies in Syntagma
Square, but quietly, in the dead
of an Athenian night.

29. If Greece’s ruling Syriza Party
and its partners were to make
that momentous decision,
Greek banks would
clandestinely get word the
country is abandoning the
Eurozone and switching back to
its own ancient currency.

30. From there, the coordinated
distribution of drachmas would
begin.

31. “They’d have all the bills
printed up,” said an expert.
“They’d be waiting in a bunch
of dump trucks.”

32. If Greece switches currency, any
euros left in Greek bank
accounts would be converted to
drachmas

33. Which would cost account
holders dearly, as analysts
estimate the drachma would
depreciate by 50% to 60% in a
matter of days.

34. Can the Greeks pay their debts
with drachmas?

35. They will be able to do this only
if their creditors are willing to
take a write off more
substantial than the one the
Greece is trying to negotiate.

36. If this happens the drachma
falls hugely in value and
foreigners swoop in to buy
Greek property and the
European Central Banks licks its
wounds.