Greece secured further loans this week, but when they owe 160 percent of what they produce, how can they afford to pay it back?
Adam Creighton, an economist at the Centre for Independent Studies, says further loans are just delaying the inevitable — Greece should default now before the situation gets even worse. In today’s BTalk I ask him what that would mean? What happens when a country defaults on its debt?
The big question is, should Greece have ever joined the Eurozone? It really needs to devalue its currency to attract more investment, but it doesn’t have that flexibility whilst its linked to the Euro. Perhaps they should opt-out. Let’s hope they’ve got all those old Drachma’s stashed away somewhere.
The danger is, of course, if Greece was to leave, others might follow. Their crisis is not unique — gross debt for Ireland is 125 percent of GDP; in Portugal it’s 115 percent; there are a number of countries where it’s around the 100 percent mark.
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Goodbye Shinzo, Farewell Abenomics?
Will the end of SDhinzo Abe’s poitical career spell the end to Abenomics and a return to fiscal conservatism? And at what cost?
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Only currencies making moves ahead of US jobs numbers
A steady session ahead of non-farm payrolls, as you’d expect ahead of such an important jobs release today, says NAB’s Gavin Friend. What action there was has been in the FX markets asd the US dollar continues its fall since Jackson Hole.
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The Sol Trujillo report card
Sol Trujillo is leaving Telstra at the end of the tax year. So what is his legacy? On this week’s Twisted Wire we give the report card on his performance at Telstra and look at some of his recent overseas history as well.
