Politics

‘Real News From The Blaze:’ What Will Happen If Greece Leaves the Eurozone?

The situation in Greece could be heading from bad to worse, leaving the eurozone and the global economy on the edge of their seats. After electing a majority of far left followed by far right candidates in the first round of elections earlier this month, last-ditch efforts to form a governing coalition fell apart early this week leaving the country in uncertainty until new elections next month. When a party eventually takes a majority they will be able to make a decision on either accepting the terms of a EU bailout, or taking leave of the Eurozone. Some observers have come to the conclusion that Greece will inevitably leave and it will be better for everyone, others worry that a contagion will follow a Greek exit where then Portugal, Spain and Italy are next effectively dissolved from this one currency experiment tipping Europe into depression.

On “Real News” Wednesday Will Cain illustrated the domino effect that could play-out in Europe should Greek exit the Eurozone. Veronique de Rugy of George Mason University joined the panel to discuss whether the Eurozone would be able to hold on with the exit of struggling EU members.

Comments (43)

  • blackyb
    Posted on May 28, 2012 at 11:36pm

    Soros needs a dose of whatever it is Chavez has, or maybe he already partially has it.

    Report Post » blackyb  
  • snrar
    Posted on May 18, 2012 at 11:00am

    The out come WAS predicted long ago and for those who don’t buy it are just wasting your time trying to figure it out .

    Report Post »  
  • ed455
    Posted on May 17, 2012 at 4:45pm

    I think the pain that’s coming is unavoidable. Greece is just the first domino. Every nation will have to go through it to one extent or another. The only question is, what will the world look like when the dust settles. I suspect it will be something unrecognizable by us today.

    Report Post »  
  • flntlok1949
    Posted on May 17, 2012 at 3:58pm

    Gee, I hope Europe has an Abe Lincoln who is willing to go to war to stop the wayward Greeks from regaining their own identity and wresting their Nation from the control of a failing institution – and basically, just getting on with their lives as Greeks!

    Report Post »  
    • flntlok1949
      Posted on May 17, 2012 at 4:09pm

      I also hope Greece doesn’t turn to the US for aide – God help them if they do!

      Report Post »  
  • Ghandi was a Republican
    Posted on May 17, 2012 at 2:05pm

    Meantime Japan is recovering from their lost decade, while obama engineers the same damage Japan had done to itself by following the same path. Europe’s problems stem from he prolonged obama recession and not the other way around. Our credit downgrade, massive new debt, fail to pass a budget, crony Capitalism, favoritism and constant threat of even more economic jihad by obama is responsible for all ills in the World economy. We would have walked our of this in the Months following Jan 2008 when the Markets stabilized above 9800. Obama began his 1,000 repetition of “worst crisis ever – beyond imagination, shoved through idiotic policy, spending and manipulation to further crash the market in a political strategy to make any recovery look better than it was Marketwise. 20% devaluation of the dollar pouts the market at a 12000 level from January 2008. The only thing we have to show for it all is 100s of 1,000s of pages of new regulation and over $6.5 Trillion since the Democrats took control of Congress in 2006. (Not to mention Trillions in counterfeit printing and accounting).

    Report Post » Ghandi was a Republican  
  • glennrocks
    Posted on May 17, 2012 at 1:05pm

    Socialism fails again. Greece= Exhibit A. Freedom works every time.

    Report Post »  
  • rfycom
    Posted on May 17, 2012 at 11:56am

    I would say they could use Pam if frying. Pam is actually much healthier than greece.

    Report Post »  
  • suedstate
    Posted on May 17, 2012 at 11:11am

    I think the Euro was the first test in The New World Order, one world currency, it is falling apart and any country wanting to survive will run not walk away from the Euro and get back to their own country identity.
    They are learning the hard way when you rely on a collective(euro) IMF you are their slaves, and all power oveer you is held by the very wealthy ie: Bilderbergs, Rothchilds, etc.
    They all need to get out and fast, coming to America.

    Report Post »  
  • FL_Catholic
    Posted on May 17, 2012 at 10:38am

    I think the way to look at the Eurozone is the way you look at any big conglomerate corporation: they grew non-organically (by acquisition/annexation of any company, not by spinning-up new divisions from existing successful companies), and therefore they will simply spin-off or divest those divisions that are failing (much like AT&T spinning-off Lucent in the wake of Cisco, or AOL-Time-Warner unloading AOL). There will be short-term pain – especially for those companies/divisions that are excised – but the corporation as a whole ends up healthier.

    This is what will happen to the Eurozone: Greece (and maybe Italy, Portugal, and/or Spain) will be expelled from the Eurozone, but the resulting confederation will be stronger as a result of cutting out the cancers. There will be short-term pain for the remaining Eurozone (unless they were heavily invested in the PIGS: Portugal, Italy, Greece, and Spain).

    Meanwhile, the PIGS will have a huge uphill battle, fending for themselves on a competitive world stage – and they will very likely fail as nations (defaulting on all loans, declaring bankruptcy, experiencing hyperinflation, etc.). If they learn the lessons of Argentina, Brazil, and others who’ve failed in the past, they will bounce back in 20-30 years.

    I don’t see this as having a huge impact on the U.S. – after all, who here, in their right minds, invested heavily in the PIGS? We may have thrown some “junk bond” bones to them, but nothing significant.

    Report Post »  
  • Pro-Palin
    Posted on May 17, 2012 at 10:30am

    It is coming and it will be hard and fast and unthinkable things will happen. Not even crazy glue will be able to fix or hold it together. But Americans can get throught it.

    Report Post » Pro-Palin  
    • Nightstalker
      Posted on May 17, 2012 at 10:42am

      Rise of the fourth reich!
      All they need is the crisis, and a strong man will step in and “save” them.

      This time the bad guy will be the Jew and the english speaking peoples!

      Report Post » Nightstalker  
  • discus02
    Posted on May 17, 2012 at 8:31am

    The problem we have is that we have to few banks controlling to much money. They are a monopoly break them up! No one is to big to fail!

    Report Post »  
  • Beachbaby
    Posted on May 17, 2012 at 8:19am

    Greece needs to go back to their heritage and bring back their gods for the women of the world. It is the anti-christ who is bringing about a one world money and one world order. Flex those beautiful muscles Greece and show the world you are real men.

    Report Post »  
  • capitalismrocks
    Posted on May 17, 2012 at 8:16am

    Short term there will be pain and confusion, but honestly the Euro was a stupid and horrid mistake from the its onset, to have all those countries under one tied together currency was madness, they need to regain their independence and to be countries again and not one big “Euro” — there has never ever been a problem like this in the past because all those countries were never tied together in the past, they should all breakout of this and go back to their own currency and independence once again. England was always chastised for not joining the Euro, looks like standing their ground was the best thing that could ever have done, the Euro is failing and falling apart.

    Report Post » capitalismrocks  
    • lukerw
      Posted on May 17, 2012 at 8:32am

      I think that you will find that under the first Holy Roman Emperor, 800 ad, Charlemagne… Europe was One… and was later divided into Kingdoms. And… it would not be Sane for each State in America to have it’s own Currency… have Exchange Rates between the States… and each with a slightly different Economic System. Rather, the European Problem is Nations with too much Power, each attempting to be different, each with it’s own brand of Socialism, and each Nationalistic!

      Report Post » lukerw  
  • Ron Staiger
    Posted on May 17, 2012 at 6:50am

    Europe would be better off without any socialist state. Let Greece fend for itself instead of propping them up like the USSR did for Cuba and China does for N Korea. Let all the world, including the marxist bastards hiding in the Democrat party get a good look at what becomes of that ideal when placed into practice!

    Report Post »  
    • historyguy48
      Posted on May 17, 2012 at 7:11am

      Well, in the real world, they have fallen hook, line and sinker for the Marxist lie. They are heading into something the world has never seen before.
      Unfortunately, our irresponsible politicians have done even worse to America.
      The Chinese have a curse for this “May you live in interesting times”.
      I wonder if the Smithstonian has a working guillotine?

      Report Post » historyguy48  
  • toomuchgovt
    Posted on May 17, 2012 at 6:25am

    Don‘t worry the US will bail them out with money we don’t have. We will soon be joining the EU. Why did we fight the Revolutionary War? George Washington is rolling over.

    Report Post » toomuchgovt  
  • Individualism
    Posted on May 17, 2012 at 6:16am

    they get their sovereignty back, time for all to leave it.

    Report Post » Individualism  
  • welovetheUSA
    Posted on May 17, 2012 at 6:00am

    Real simple they will have to start over or be taken over………..no winners in entitlement hand outs…….

    Report Post » welovetheUSA  
  • ProbIemSoIver
    Posted on May 17, 2012 at 4:52am

    What will happen?

    Prosperity?

    Independence?

    Freedom?

    What a concept. The founding fathers would be proud of greece leaving the “Empire”.

    Report Post » ProbIemSoIver  
    • cayenne
      Posted on May 17, 2012 at 6:37am

      The Founding Fathers would have been proud of Greece if their exit was principled and virtuous. The FF wouldn’t be proud of anyone for being kicked out of a union after behaving irresponsibly. Check out Michael Lewis’ book, Boomerang, for a lovely story about the rate at which Greeks actually pay their taxes, then tell us about the FF being proud.

      Report Post »  
  • Diane TX
    Posted on May 17, 2012 at 2:38am

    Revised Newsweek covers.

    http://www.americanthinker.com/cartoons/2012/05/image_by_wolverine_of_iowntheworldcom_6.html

    http://www.americanthinker.com/cartoons/2012/05/image_by_richard_terrell_of_67.html

    Report Post »  
    • CatB
      Posted on May 17, 2012 at 3:37am

      The first one is dead on . .except his nose should be a bit HIGHER in the air … as per usual.

      Report Post »  
    • friedclouds
      Posted on May 18, 2012 at 12:22am

      Having served in the USN, I object to the “fouled anchor” in the third photo…..but I agree with the premise.

      Report Post »  
  • Snowleopard {gallery of cat folks}
    Posted on May 17, 2012 at 2:22am

    The EU, the Euro are finished; it is now only a matter of when and not if. The treasonous activities of Obama and friends in trading trillions in Euro for Dollars has us in imminent danger of falling soon after Europe goes under.

    Report Post » Snowleopard {gallery of cat folks}  
    • CatB
      Posted on May 17, 2012 at 3:36am

      @SNOW .. “treasonous” being the operative word here .. but can we find anyone with the stones and power to go after him and his regime?

      Report Post »  
    • lukerw
      Posted on May 17, 2012 at 4:08am

      He owns the Executive… and the Senate deligates their power to him!

      We are between… a Rock and a Crazy Place: FUBAR!

      Report Post » lukerw  
  • Diane TX
    Posted on May 17, 2012 at 2:15am

    These Countries were all sovereign nations, with their own currencies, on the European continent, before they all agreed to have one common monetary system and political UNION. It was like they were trying to copy the successful USA, but the USA formed a union almost 236 years ago, and THEN added additional States to the Union, AFTER the Union was already in place. It’s no surprise that European Union and Euro is not working out. Mainly because of Socialism and Communism is mixed in. The one successful member of Union, Germany, should get out now, because all the others are planning to have Germany pay for everything.

    Report Post »  
    • TheBurningTruth
      Posted on May 17, 2012 at 3:20am

      The EU is NOT a political union, it is solely an economic union. The whole EU and EZ were pushed by a small group of European elites that wanted to make something “bigger than the USA”. It was political envy that drove them to create an unsustainable union.

      This patchwork of countries have a commen currency, but are politically and culturally different. Each has their own fiscal policy, budgets and how social policy. The decide independently how their money is spent, nominally limited by EU guidelines. Every country has at some time violated the EU’s <3% deficit rule. It's just that the Greeks did it EVERY year and by HUGE amounts.

      The USA works precisely because all fiscal and monetary policy derives from one source (corrupt though it is). In fact, the EU is much more like the original Confedration of States before the Constitution.

      As Lincoln said, "A house divided cannot stand" and that's what we're seeing."

      Report Post » TheBurningTruth  
    • lukerw
      Posted on May 17, 2012 at 4:04am

      Europe does not have Sovereign Nations… under the EU/EEC,,, rather they are a Confederation of States under a Federal Government: the EU!

      Report Post » lukerw  
  • socialism.rocks
    Posted on May 17, 2012 at 2:09am

    he dont understand he really dont..

    jp morgon holds otcs in the trillions of euro-zone debt bank of america holds trillions of otcs..
    and goldman sachs- holds the most of them all
    otc derevitives – end of the dollar the fed is not big enough to stop those not to big to fail banks..

    oh by the way it was capitalists shorting the euro shorting them while putting insurance on it..knowing it was going to collapse….. but the crapitalists did not understand one thing
    inter-connection of the central banks after ww2
    they were working for a trillion dollar payout but a trillion dollars is worth-nothing when a currency turns to nothingness

    Report Post » socialism.rocks  
    • BalancedInteger
      Posted on May 17, 2012 at 2:33am

      shawn_von_socialist, is that you? LOL I hope so. I can only hope that just one person is this patently absurd!

      Report Post » BalancedInteger  
    • lukerw
      Posted on May 17, 2012 at 3:59am

      There is No Limit upon how many Dollars that the Federal Reserve can Print… nor can it be Audited… nor does it Report it’s Credits & Debits to Government! Why create a Frankenstein with an Off Switch?

      Report Post » lukerw  
    • ProbIemSoIver
      Posted on May 17, 2012 at 4:49am

      Why do people complicate something so simple?

      Well actually, it is the Powers that be, that creates the confusion.

      It is so academic, it is unreal that people just don’t get it.

      We have a Debt-Based Currency controlled by a PRIVATE corporation !!!!!!

      Learn about the “contract” between the “government” and the Federal Reserve Private bank in 1913.

      Instead of a LOAN, which they knew we could not pay back, They made “arrangements”.

      One of those arrangements was the FRACTIONAL RESERVE SYSTEM ( Sounds like Federal reserve. hmm !!!???? )

      Another Arrangement was the INCOME TAX !!!!

      This is a MUST SEE film about our monetary system:
      http://www.youtube.com/watch?v=fEqkphVOkHc

      Report Post » ProbIemSoIver  
    • ProbIemSoIver
      Posted on May 17, 2012 at 5:18am

      @SocialismSucks

      The only way socialism would work, is if we split the world and all of it’s assets into 7 billion equal parts.

      You think the Powerful leaders that you follow, would be game?

      You think a 70,000 tax code is complicated? Try and maintain a fair balance of wealth and property of over 7 billion people.

      I believe in individualism and freedom. What I have EARNED, is mine !!!

      You blame Capitalism for the actions of crooks. You are seriously confused !

      A hard working, pleasant, restaurant server that works 40+ hours per week deserves the ability to pay thier bills, save a little and have some fun.

      A lazy, rude server that works 20 hours a week, deserves to struggle and live in squalor.

      Report Post » ProbIemSoIver  
    • lukerw
      Posted on May 17, 2012 at 6:56am

      @PROBIEM…
      The Video is of Diluded Experts! Money is a Concept and Not Real; 1 Money = 1 MoneyCredit to the Money Supply and 1 MoneyDebit to Debt… resulting in Zero Real Value. 1 Money exchanged for the purchase of Gold by a Government gives the Money VOLICITY, resulting in 1 Money in Circulation and 1 MoneyGold in the Vault (for Money Redemption) to give Value to the Currency… where Gold can be substituted by any NonDecaying Material, giving sense to Type & Values of Money (all still Zero Value, because of possible Redemption).
      FDR recognized the Zero Value of Money… and took America off the Gold Standard… substituting the Concept of “Full Faith & Credit” (another Zero Value). So, American Money is Not a National Debt System… rather Debt results from a Negative InBalance of Foreign Trade and Spending more than Tax Revenues. Hence, the Problem is Government Math… not Monetary nor Economics.

      Report Post » lukerw  
    • Fubared
      Posted on May 17, 2012 at 3:25pm

      Where has socialism worked? Rock head. Please walk the walk and swim on down to Fidel land.

      Report Post »  
  • howardroark1165
    Posted on May 17, 2012 at 1:35am

    Back when there was talk of the “Amero” – supposedly a combined currency of Canada, the US and Mexico (I don’t think it extended to Central or South America, but who knows, it was all speculation)….. it was good nothing came of any of that, otherwise we’d be in the same boat the Euro countries are in now. What’s worse – WE would be playing the role of Greece!

    I am sure the Britts are thrilled beyond words they didn’t hop on the Euro bandwagon.

    Report Post » howardroark1165  
    • lukerw
      Posted on May 17, 2012 at 2:00am

      That was part of Plot… to get rid of the US Dollar… as the World;s Reserve Currency. And, when a New Reserve Currency is selected… the US is Toast!

      Report Post » lukerw  
    • flntlok1949
      Posted on May 17, 2012 at 4:08pm

      Don’t make the mistake of believing the “amero” is dead – just like the metric system, it hasn’t been forgotten, just the adoption process has been slowed down! Keep electing non-Conservatives to power, who are ready, willing, and able to “get along” with leftist policies, and sooner or later the Amero well be back! A likely scenario for it‘s return is if America’s fake currency fails and it is proposed as a “bail out” to save our butts! Most of us will jump at the offer!

      Report Post »  
  • lukerw
    Posted on May 17, 2012 at 1:18am

    SOROS Advised Investors (the Wealthy)… to pull out the Euro in an orderly manner (Greece first and to Shelter their Wealth). Greece is Toast (they do not care about the People)… and the people are in Socialist Denial! The Dominoe has fallen… and the EU & US are in Shock and Denial.

    Report Post » lukerw  

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