GS_Dirtboy said:
Argentina Finance Secretary Nielsen says that Germany, not Greece, should exit the Euro since they are the strongest player. This is to avoid the domino effects of crippled banks and trade in the event of a Greece departure.
There is a cogent and legitimate argument by a minority of economists which says that euroland could be better off without the over-performing German economy and that Germany has most to loose from any breakup of the Euro. The remaining ero-countries more or less have greater economic performance similarities than they have differences with the mighty German industrial machine.
Despite the somewhat badly named european structural fund the under performing economic "periphery" of Europe has taken most of the political flack and economic pain whilst the "core" has been doing rather nicely in a quiet way thankyou from the advantages of an open market with Greece and other peripheral parts of euroland suffering from lack of investment and comparative disadvantage (as well as the well known supply-side constraints we are constantly told about)
This is an effect of free market regional economics which can be seen almost everywhere e.g USA and arguably even China where laissez faire economics leading to regional disparities are more or less tolerated in a politically indivisible nation state
Were some reincarnation of the D-Mark to appear likely it would be quickly become so over valued as a result of hot international money movements that it would likely jeopardise continuing German growth. On the other hand a devaluing Euro retains competitiveness principally for Germany against the dollar and Chinese currency.
Don't think that Germany doesn't realise this! There are great efforts in Germany (and in the UK for that matter) to realign with the rapidly expanding economies outside Europe
Argentine Politicians giving "helpful" suggestions on how to run euro-land by those with suspect economic qualifications are likely to be regarded as irrelevant as "helpful" suggestions coming from Dodgy Dave Cameron are regarded with irritation within continental Europe
One day the USA will regret having shut out Keynes from the Bretton Woods conference after the 2ndWW which set up the IMF and rather than a global unit of exchange instead to secure US economic hegemony by trade based on the US dollar.
But that day hasn't come yet so at a global level the Euro is needed to balance out the US Dollar for the time being and depending on the new world economic superpower China ... so long live the Euro with both Greece and Germany on board
For Greece to stop movements of capital with the rest of the EU (and the world) would require withdrawing not only fromthe Euro but also the EU. More proof that by saying Greece should run as an autarky the person in the Argentinian government supposedly having responsibility for running the Argentinian economy really has at best half understood basic world trade economics
