Waves – Evidence of local councils borrowing independently of government http://www.communities.gov.uk/publications/corporate/statistics/laborrowinvest201011
You said only viable way is too issue common debt, I am giving an example where debt does not have to be common for it to work in a single currency system.
About expulsion, the only people talking about Greece being expelled from the Euro is Greek politicians and some EU politicians. Greece being “expelled” from the Euro is complete fiction. It is propaganda to make Greeks feel like children in the face of the “prestigious” & “powerful” European countries who know best. The purpose being to make Greeks feel dependent on the EU so they will bow to self destructive measures being imposed by desperate, insolvent international banks.
The only way Greece will stop using the Euro is if the Greek government decides to stop accepting taxes in Euros. End of story.
You say – “The problem with the common currency is that the countries that you mention cannot devaluate because of it…
This situation guarantees that the Greek pensioners and gradually the rest of the workers and pensioners of EZ (including Germany) are left with no savings at all.”
You are addressing two completely different issues as one and the same which is not correct.
Yes, I said the countries cannot devalue their currency which means pensioners savers etc ARE left with savings, the opposite of what you said. If the countries COULD devalue their currency like they used to be able to, then yes, they would end up with a lot less.
I don’t know how exactly you think pensioners and workers are left with no savings given this fact but let me hypothesise.
You see the Greek government attacking businesses, workers and pensioners and this is what you are referring to. If so, this again has nothing to do with the Euro and everything to do with the Greek government being completely incompetent when it comes to managing the taxes they collect. It is that simple. And I take great care to separate the Greek government from the Greek people.
About Yianis and the imbalances. He appears to be of the opinion that Greece is weak and that it needs charity from Germany in the form of money transfers to survive. I disagree completely. Greece is probably the strongest country in the Euro when it comes to natural resources, geographic location, the entrepreneurial spirit of it’s people, their education and the geography of the country itself.
Greece should be the strongest country in Europe per capita (including Germany) and not the one with the beggars cup. You only need a basic understanding of the Greek economy to realise the enormous efforts that the Greek government goes to to bury the potential of such an amazing country.
If Greeks had half the economic freedom of the UK it would be one of the leading forces in Europe if not the world.
I have said before, to get a country like Greece into the trouble it is in, can only happen deliberately, even an incompetent could make a success out of Greece, it has taken real genius to create today’s situation.
The solution for Greece? Voluntary taxation, the Greek government knows this which is why it is on an all out media propaganda exercise vilifying everyone for not paying taxes, even though they have NO proof. If they had proof they people would be taking people to court instead of slandering the Greek people via the Greek media (A media which is completely controlled by the unions, unions who have a vested interest in Greece being a dependent country so they maintain their power).
Again, the answer for Greece is a system of voluntary taxation, that is the only way to keep the government honest.