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Sunday, June 17, 2012

BBC Breaking News: Greece expelled from Monetary Union!

According to the BBC, Greece was expelled from the Monetary Union because "its chronically weak economy meant successive Greek governments responded by ... violating the original agreement".

That was the bad news in 1908. In 1910, Greece was readmitted to the Latin Monetary Union.

In 1927, the Latin Monetary Untion came to a formal end.

Happy Election Day!


  1. Es lebe EURO!!!

  2. Hello sir,

    Can you please provide a link? Thanks.

    1. Link to what? (link to LMU is in post).

    2. Link for the BBC news regarding the Greece expulsion from the Monetary union?

      I googled it and could not see it anywhere.

    3. Below is the link to the Wikipedia article (which I also linked in the above post). It related to the Latin Monetary Union which I had come across by accident. I had not been aware of the fact that history really repeats iself so much: there had been a monetary union with Greece part of it before and, yes, Greece had been the problem child in that union, too. And my headline was simply the eye-catching way of drawing attention to my post...

  3. Timeo Danaos et dona ferentes. Some people don't do their homework. Too much focus on economy, little focus on classic education i guess...

    Next thing you know, Hector rises from the dead and shouts "Greeks cheated their way to Troy! They didn't win fair and square!"


  4. Imagine the title if the euro disintegrates... "Germany does it again. Arrives at the fountain and once more doesn't manage to drink water. From the Holy Roman Empire to this day, each time Germany seems to have made it and each time makes a fatal mistake and ruins all her plans"...

    Do you know some quite humourous stuff that Mr. Papandreou revealed now that he isn't PM anymore? When in 2009 he mentioned to Mrs. Merkel a haircut, Mrs Merkel replied "oh sure, i would also like to have my debt cut to half" and that the greek rescue plan had to be brutal enough so that nobody else would want to follow it (classic german thinking and worthy of a lutheran's pastor's daugther). If the euro goes belly up, these funny stories will be a wonderful addition to the narration of "rise and fall of the euro".

    In fact, the plan was brutal enough, that... it's a matter of time that Greeks won't be following it either... And so realistic, that not even 1 provvision of it was realised (be it inflation, growth, debt, deficit, exports). So we go to plan mk2, then to mk3, in the meantime the markets start realizing that this is a charade and start finding the other problematic economies and at the end, ironically, it will cost more to Mr. Merkel than if she was to act immediately in 2009 and do a decisice debt restructuring of the greek debt + bank recapitalization, leaving no space of doubt to speculators and fear to investors of sovereign debt.