A sound accounting principle for inventory evaluation depending on what you want to show in your Bottom Line. However, here I am not referring to inventory accounting but to the Euro. Greece was the last country to enter the Euro, I believe, and it appears it is going to be the first to leave it.
Rumours have now turned to assertions that Greece will be kicked out of the Euro AFTER the American Elections because Obama is desperate that it should not happen before as this would be detrimental to him. And the Europeans see eye to eye on this because they fear, we are told that Romney would be more “isolationist” than Obama. This says a lot about European analysis if that is all they fear.
Now, rumours have abounded, dates have been set, a general mood of will it, won’t it? When? etc. have been buzzing ever since The Frau ordered the lame Papandreou to call a referendum on whether Greece wants to stay in the Euro or not. So why should we be more alarmed, or encouraged (as the case may be) by this latest estimate of “after the American Elections”?
Well, not only is the writing on the wall, but also our equally lame PM Samaras has started shouting desperately that a Grexit would be disastrous for Europe! It is all he has to fall back on. Furthermore, since he is a proven pathological liar, it no doubt also means that the “Europeans” (whoever these may actually be… well, okay, Germany) have actually come down on the side of a Grexit NOT being disastrous for the Euro.
And there are good reasons for such a guesstimate. The ECB, in conjunction with the EMS (if it is approved by the German Constitutional Court) will start its plan for concerted buying of government bonds for the countries in trouble, that is Spain and Italy at this juncture. It is expected that this policy will be effective and that the so called spreads will be kept under control.
As to Greek debt, this has already been taken care of by now, with German banks (and French) having got rid of their Greek junk already so a Greek default will not create more than perhaps a ripple in the water for them.
Added to this, though detrimental for the American Elections, a Grexit would be positively beneficial for German Elections in that: Heil the Fuhrer! Look at her! She is strong! She gave those pesky, lying, grovelling, lazy Greeks just what they deserved! And if this does eventually prove to have been a disastrous step, or even just bad policy after all, the electorate won’t realise as much till long after they have cast their ballots. If then.
Remember Remember the fifth of November. Gunpowder, Treason and Plot!*
This will be more around, or after, the seventh November, and likely to be celebrated in much the same way thereafter. We shall see.
* Refers to Guy Fawkes and the failed Gun Powder Plot to blow up the Houses of Parliament in London in 1605.