Skip to main content

Greece and their debts

We have a number of patterns of behaviours of governments.   The expropriation recently by Argentina of a Spanish company's holding in YPF is one example of governments not following the law of contract.  If Greece votes to try to renegotiate their deal with the Eurozone I expect them  to have an unstructured bankruptcy.   The question, of course, is what happens after that.  I cannot see the Eurozone simply saying "don't worry we don't want repaying".

Clearly the Eurozone cannot accept a further renegotiation as if they do then everything starts to unravel. The Irish government's banking reorganisation involves a number of repudiations of contract.   Some of the effects on small holders of debt have been quite extreme - although they would argue that they fall within the debt contracts.

If Greece tries, for example, to set up a New Drachma and refuse to pay their debts to the Eurozone (in Euros) then I don't think they can remain in the EU as they will not be following EU law.

However, they will be in a much worse state than if they simply stick to the deal.

Labour have tried somehow to claim that the UK is not affected by this and the stagnation in the UK is somehow unique.  It is clear, however, that the whole of the Eurozone is in recession and even at the last quarter of 2011 seven Eurozone countries were in a double dip recession.  The good news for the European Economies, however, is that oil prices are going down being now about USD 110 for Brent USD 16 off the more recent peak.

People don't want austerity.  However, it is not within the power of governments to invent a lot more oil in the ground.  The oddest analysis is that of the Green party which recognises most the resource constraints whilst being one of the strongest voices against austerity.

However, it is entirely possible for people to elect a government which claims that 2+2=5.  We are now at the stage when Greece is likely to take this step.   The ECB, it appears, is now more willing to release controls on the M0 money supply (although they are doing this in part through the LTRO).

This is the big issue as the size of the national cake has a direct effect on the size of the portions available to different sectors of society.


Comments

Popular posts from this blog

Statement re false allegations from Esther Baker

Statement by John Hemming
I am pleased that the Police have now made it clear that there has been a concerted effort to promote false criminal allegations against me and that the allegations had no substance whatsoever.
I would like to thank Emily Cox, my children, Ayaz Iqbal (my Solicitor), my local lib dem team and many others who supported me through this dreadful experience. There are many worse things that happen to people, but this was a really bad experience.
It is bad enough to have false allegations made about yourself to the police, but to have a concerted campaign involving your political opponents and many others in public creates an environment in which it is reasonable to be concerned about ill founded vigilante attacks on your family and yourself. Luckily there was a more substantial lobby to the contrary as well, which included many people who were themselves real survivors of abuse, which has helped.
I am normally someone who helps other people fight injustice. …

R v SUSSEX JUSTICES ex p McCARTHY [1924] 1 KB 256

I have only just found this one which I think is accurately reported below (but if it is not please give me an accurate report).

KING’S BENCH DIVISION

R v SUSSEX JUSTICES ex p McCARTHY [1924] 1 KB 256

November 9 1923

Editor’s comments in bold.

Here, the magistrates’ clerk retired with the bench when they were considering a charge of dangerous driving. The clerk belonged to a firm of solicitors acting in civil proceedings for the other party to the accident. It was entirely irrelevant that there had been no evidence of actual influence brought to bear on the magistrates, and the conviction was duly quashed.

LORD HEWART CJ:
It is clear that the deputy clerk was a member of the firm of solicitors engaged in the conduct of proceedings for damages against the applicant in respect of the same collision as that which gave rise to the charge that the justices were considering. It is said, and, no doubt, truly, that when that gentleman retired in the usual way with the justices, taking with him the…

Service launched to reduce the pain of calling a call centre.

Click here to try the beta test call entre phoning service"John Hemming, who has created an internet Startup called Cirrostratus since he ceased being an MP, is launching a free online service to make life easier for people phoning call centres.   The service is provided by Cirrostratus, but the SIP backbone is provided by the multi-award winning business VoIP solution, Soho66." John said, "Many people find phoning call centres a real pain.  Our service is aiming to make things a lot easier.   One click on alink or the bookmarks list and our server will phone up the call centre and get through all the menus.  This is a lot faster than when people have to phone up and is less irritating." "Additionally the system uses WebRtc and the internet to make the call. This means that people don't find their normal phone system being blocked whilst they hang on the line waiting to speak to a human being." Marketing Manager from Soho66, David McManus, said: &q…