Clip-clopping around Europe over the past few weeks, Yanis Varoufakis, Greece's dashing finance minister, has urged the euro zone to chart a new course. Endlessly forcing new loans upon indebted countries like Greece in the pretence that they will one day be repaid, he argued, was a strategy for depression and deflation.
Yanis Varoufakis said Greece won’t “extend and pretend” that it can pay its debts, vowing to quit as finance minister if voters don’t support him in Sunday’s referendum.
With banks shuttered and Greece’s economy hobbled by capital controls, Varoufakis said in a Bloomberg Television interview in Athens that he would “rather cut my arm off” than sign a deal that fails to restructure Greece’s debt. The 54-year-old economics professor said he “will not” continue in his post if Greece endorses austerity in the plebiscite.
Athens (AFP) - Greece votes Sunday in a snap general election that could bring the radical left Syriza party to power and pose the most severe challenge yet to austerity policies in struggling eurozone countries.
Perhaps the most curious aspect of this, third, Greece ""exit crisis, is just how completely unnoticed it has gone by the capital "markets", or rather non-Greek capital markets. Which, considering the changed dynamics of the negotiations, was to be expected.
I have read countless articles over the past few week stating a belief that Syriza party leader Alexis Tsipras is bluffing in his threat to stay in the euro but default in debts.
Is it remotely possible to default and stay in the eurozone?
Since this is a multi-part question, let's first address the question "is this a bluff?"
Once again the stock market is cheering something that is supposed to happen in the future, much like the monstrous month long EFSF bailout rally, with terms sill not set. Remarkably, three billion euros of EFSF bonds have been sold on unknown terms.