Friday, January 6, 2012

The Euro is leaving Greece – and a new Great Depression has entered.

from Merijn Knibbe

Do Great Depression’ policies lead to ‘Great Depression’ results? Yes, they do. Look at the above chart showing the development of the money supply in Greece. The closest historical precedent is not really ‘Zimbabwe’, but, to the contrary, the Great Depression. There clearly is a ‘bank run’ going on, as stated by Paul de Grauwe. And no, this is not really a ‘Zimbabwe’ – it’s the opposite. Let’s face it, not the government but the country is broke, the present bickering about loans is utter nonsense. The Euro-system has, for whatever reasons, utterly failed. It led to a new Great Depression, in Greece. And yes, we have to look at the increases of the amount of money (read: debts and capital inflows) before 2006, too. But these are not the present problem. More information here

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