OK. Let's revue. A couple of weeks ago, I predicted that the Europeans understood that a major portion of the Greek debt was going to have to be forgiven, that European banks would have to begin printing money if they wished to make the holders of Greek debt whole, and the Euro would hold at its floor of $1.10 or thereabouts given that such a result had already been figured into its value. It now appears that the Germans have convinced the Troika (the EU, European Central Bank, and International Monetary Fund) to hold firm and require that Greek debt be honored in full by Greece by itself, that the money to do so could be squeezed out of a Greek economy that would grow in spite of harsh austerity measures imposed by the EU, and as a result of that (and other factors) the Euro has popped up by about 3% against the US dollar. Was I wrong? No. My timing was just a bit off. The idea that the Greek economy can grow sufficiently to pay off its debt is simply ludicrous, whether it
MUSINGS OF AN EXPAT AMERICAN