Greece to Leave the Euro Zone

[Frodo]

In all likelihood, anyways:

Euro zone readies for Greek default after Tsipras referendum call

ATHENS/BRUSSELS | BY RENEE MALTEZOU AND ROBIN EMMOTT
Markets | Sat Jun 27, 2015 3:19pm EDT

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[Ban my account ffs!]

[ag]

Unfortunately, this seems to be it.

[Boston Bread]

Unfortunately, this seems to be it.

If anything it's better than the alternative by now.
Greece is in a downward spiral into poverty regardless, at least let them stay an independent nation.

[ag]

Unfortunately, this seems to be it.

If anything it's better than the alternative by now.
Greece is in a downward spiral into poverty regardless, at least let them stay an independent nation.

But the way this is happening is going to lead to the worst (for Greece) of both worlds - and that is unfortunate.

[Mehmentum]

So any guess on how this will affect the global economy?  I'm hoping that the economic backlash can be contained...

[Ebsy]

Just another reverberation of the Global Financial Crisis that seems all but forgotten these days.

[Tender Branson]

UnFortunately, this seems to be it.

[World politics is up Schmitt creek]

Is this, in fact, a done deal at this point?

[ag]

Is this, in fact, a done deal at this point?

Well, Tsipras still has about 48 hours to go to Canossa.

[Blue3]

Haven't people been saying this every few months for the last 7 years or so?

[RogueBeaver]

Greek banks not opening tomorrow. Capital controls at midnight.

[Filuwaúrdjan]

Haven't people been saying this every few months for the last 7 years or so?

Yes, but this time it feels real.

[Mr. Morden]

Sorry, but can someone explain…if there is default, does that mean a literal "Grexit", both from the Eurozone and the EU itself the next day?  Or will some kind of legal fiction be created for an interim period, to smooth things over?  For example, with strict capital controls, could the Euros in Greek banks still be considered "Euros" in some fake legal sense, while TPTB figure out what to do, even though it's understood by all that that "Greek Euros" are treated differently from "real Euros"?

Or are we really going to see Greece formally leave the Eurozone (and the EU?) as early as this week? 

[Gustaf]

Sorry, but can someone explain…if there is default, does that mean a literal "Grexit", both from the Eurozone and the EU itself the next day?  Or will some kind of legal fiction be created for an interim period, to smooth things over?  For example, with strict capital controls, could the Euros in Greek banks still be considered "Euros" in some fake legal sense, while TPTB figure out what to do, even though it's understood by all that that "Greek Euros" are treated differently from "real Euros"?

Or are we really going to see Greece formally leave the Eurozone (and the EU?) as early as this week? 

With capital controls already in place they kind of are separate right now anyway. Assuming we don't delve into civil war or something ( ) I expect there will be some time of setting up the new currency.

[ingemann]

Sorry, but can someone explain…if there is default, does that mean a literal "Grexit", both from the Eurozone and the EU itself the next day?  Or will some kind of legal fiction be created for an interim period, to smooth things over?  For example, with strict capital controls, could the Euros in Greek banks still be considered "Euros" in some fake legal sense, while TPTB figure out what to do, even though it's understood by all that that "Greek Euros" are treated differently from "real Euros"?

Or are we really going to see Greece formally leave the Eurozone (and the EU?) as early as this week? 

Here's what we know according to a economist I asked about this.

The way Greece will leave the Euro are that ECB will stop transfer Euro to Greece. Now the Greek government will need to either use it own saving of Euro (which it doesn't have), borrow from the banks (whose surplus of Euro have been emptied), sell something (not very likely) or loan money from foreign sources (which won't loan money to Greece). This mean that the Greek government need to print IOU to its domestic creditors (pensionist public servant etc.). These IOU will be the new currency, and by printing them Greece have de facto left the Euro zone.

Everything else is speculations.

But I guess that Euro in Greek banks will become the new currency, the rest of EU can in theory throw Greece out, but I doubt they will do it, Greece are not going to leave EU voluntary. But we may see Greek membership in EU being frozen. Meaning that they lose their voting right in the council of ministers, border control to Greece being reestablished and free movement to the rest of EU being frozen too. At until a deal for Greece future membership in EU have been reached.

[○∙◄☻¥tπ[╪AV┼cVê└]

Sorry, but can someone explain…if there is default, does that mean a literal "Grexit", both from the Eurozone and the EU itself the next day?  Or will some kind of legal fiction be created for an interim period, to smooth things over?  For example, with strict capital controls, could the Euros in Greek banks still be considered "Euros" in some fake legal sense, while TPTB figure out what to do, even though it's understood by all that that "Greek Euros" are treated differently from "real Euros"?

Or are we really going to see Greece formally leave the Eurozone (and the EU?) as early as this week? 

Here's what we know according to a economist I asked about this.

The way Greece will leave the Euro are that ECB will stop transfer Euro to Greece. Now the Greek government will need to either use it own saving of Euro (which it doesn't have), borrow from the banks (whose surplus of Euro have been emptied), sell something (not very likely) or loan money from foreign sources (which won't loan money to Greece). This mean that the Greek government need to print IOU to its domestic creditors (pensionist public servant etc.). These IOU will be the new currency, and by printing them Greece have de facto left the Euro zone.

Everything else is speculations.

But I guess that Euro in Greek banks will become the new currency, the rest of EU can in theory throw Greece out, but I doubt they will do it, Greece are not going to leave EU voluntary. But we may see Greek membership in EU being frozen. Meaning that they lose their voting right in the council of ministers, border control to Greece being reestablished and free movement to the rest of EU being frozen too. At until a deal for Greece future membership in EU have been reached.

There will be a lot of pain for a little while. The obvious thing to do if they leave the euro is to have a bit of a loose money policy to jumpstart the economy. Paying domestic creditors is easy, just create some more currency. Obviously inflation will be high, but inflation tends to be correlated with economic growth.

[ingemann]

Sorry, but can someone explain…if there is default, does that mean a literal "Grexit", both from the Eurozone and the EU itself the next day?  Or will some kind of legal fiction be created for an interim period, to smooth things over?  For example, with strict capital controls, could the Euros in Greek banks still be considered "Euros" in some fake legal sense, while TPTB figure out what to do, even though it's understood by all that that "Greek Euros" are treated differently from "real Euros"?

Or are we really going to see Greece formally leave the Eurozone (and the EU?) as early as this week? 

Here's what we know according to a economist I asked about this.

The way Greece will leave the Euro are that ECB will stop transfer Euro to Greece. Now the Greek government will need to either use it own saving of Euro (which it doesn't have), borrow from the banks (whose surplus of Euro have been emptied), sell something (not very likely) or loan money from foreign sources (which won't loan money to Greece). This mean that the Greek government need to print IOU to its domestic creditors (pensionist public servant etc.). These IOU will be the new currency, and by printing them Greece have de facto left the Euro zone.

Everything else is speculations.

But I guess that Euro in Greek banks will become the new currency, the rest of EU can in theory throw Greece out, but I doubt they will do it, Greece are not going to leave EU voluntary. But we may see Greek membership in EU being frozen. Meaning that they lose their voting right in the council of ministers, border control to Greece being reestablished and free movement to the rest of EU being frozen too. At until a deal for Greece future membership in EU have been reached.

There will be a lot of pain for a little while. The obvious thing to do if they leave the euro is to have a bit of a loose money policy to jumpstart the economy. Paying domestic creditors is easy, just create some more currency. Obviously inflation will be high, but inflation tends to be correlated with economic growth.

Yes Argentina have shown the great success in declaring bankrupcy and letting their currency flow free. Greece will be neck deep (if they're lucky) in sh**t for a decade, I will be surprised if they reach the GDP they have right now in ten years.

[muon2]

Why does leaving the Eurozone have any connection with Greece in the EU? There are plenty of other EU nations not on the Euro.

[Mr. Morden]

Why does leaving the Eurozone have any connection with Greece in the EU? There are plenty of other EU nations not on the Euro.

Because, if I understand things correctly, the only legal mechanism for a Eurozone member to leave the Eurozone is to leave the EU altogether.

[t_host1]

 
 I’m wondering if this socially advanced political default is an entry point for the bitcoin type of trade having inroads’ for the people that work and tangible assets, assuming there still is electricity giving the communications ability.     

[Јas]

Why does leaving the Eurozone have any connection with Greece in the EU? There are plenty of other EU nations not on the Euro.

Because, if I understand things correctly, the only legal mechanism for a Eurozone member to leave the Eurozone is to leave the EU altogether.

Quite.

See here: Withdrawal and expulsion from the EU and EMU some reflections, Phoebus Athanassiou, ECB Legal Working Paper Series, No 10 / December 2009

[Swedish Rainbow Capitalist Cheese]

Why does leaving the Eurozone have any connection with Greece in the EU? There are plenty of other EU nations not on the Euro.

Because, if I understand things correctly, the only legal mechanism for a Eurozone member to leave the Eurozone is to leave the EU altogether.

There is no mechanism to leave the EU as a whole either, so it's a correct but rather moot point.

[ingemann]

Why does leaving the Eurozone have any connection with Greece in the EU? There are plenty of other EU nations not on the Euro.

Because, if I understand things correctly, the only legal mechanism for a Eurozone member to leave the Eurozone is to leave the EU altogether.

There is no mechanism to leave the EU as a whole either, so it's a correct but rather moot point.

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http://www.lisbon-treaty.org/wcm/the-lisbon-treaty/treaty-on-European-union-and-comments/title-6-final-provisions/137-article-50.html

[ag]

Why does leaving the Eurozone have any connection with Greece in the EU? There are plenty of other EU nations not on the Euro.

One word: migration. Greeks will be fleeing in droves. I am not sure Danes will be happy.