Cliff Wachtel submits: Like other emerging market nations, it has entered a vicious cycle in which market skepticism creates higher borrowing costs and actually pushes the country closer to the abyss, its demise becoming a self fulfilling prophecy.
AS WE have all read repeatedly since it became clear that Greeks would be voting again in June, Greece and the euro zone are engaged in a game of chicken. Greece's left-wing Syriza has been intimating that Greece has nothing to lose from exit and can therefore force the euro-zone core into accommodating its demands. Core euro-area leaders, by contrast, argue that they aren't about to give ground to Greece and that if Greek voters want to push themselves out of the single currency that is fine by them.
This morning, ECB president Mario Draghi Held Rates at 0.25%, while rejecting fears of deflation. ECB president Mario Draghi said: "We have to dispense with this idea of deflation. The question is - is there deflation? The answer is no."Eurozone inflation slowed to 0.7% in January from 0.8% in December.In addition to holding its benchmark rate at 0.25%, the ECB also left the rate it pays on bank deposits unchanged at zero.
BRUSSELS (AP) — European leaders united in anger as they attended a summit overshadowed by reports of widespread U.S. spying on its allies — allegations German Chancellor Angela Merkel said had shattered trust in the Obama administration and undermined the crucial trans-Atlantic relationship. The latest revelations that the U.S. National Security Agency swept up more than 70 million phone records in France and may have tapped Merkel's own cellphone brought denunciations Thursday from the French and German governments.
By Carlos X. Alexandre:cThe recent threat that Greece would be left out in the cold with respect to additional funds was an attempt to get the Greek government to change its mind on the referendum, as reported by Reuters.
Shortly after Dutch finance minister, said "We want no further delays" came news of further delays. The reason: Greek political parties all refuse to go along with more austerity measures.
Please consider Greece’s leaders oppose new austerity measures