Greece in the Euro

The Euro is too high.

We need a new Plaza SDR at one dollar equal to one euro to hundred yen to one renminbi. THe two best economic periods in recent history were after the Plaza Accord and under the IMF SDR. Currency instability (caused primarily by Chinese abuse of commodities, esp oil

- ie, that they are not regulated by market forces) is largely responsible for the current global economic crisis. If it wasn't for

9/11 and SARS the USA would have raised rates in 2004 and the current crisis would have been averted.

Frau Merkel is a heroic woman. But she should remember that the same Germans who object to helping Greece were once hostile to West Germany helping her own native newly reunited East Germany.

- = - Vasos Panagiotopoulos, Columbia'81+, Reagan, Mozart, Pindus, BioStrategist

---{Nothing herein constitutes advice. Everything fully disclaimed.}--- [Homeland Security means private firearms not lazy obstructive guards] [Urb sprawl confounds terror] [Phooey on GUI: Windows for subprime Bimbos]

From my experience traveling in Greece, it's about 40% too high. That is, 1.3 or 1.4 euro will buy in goods and services what one dollar will buy in the U.S. In terms of purchasing power, the two currencies should be at close to parity, but in reality it takes more than $1.30 to buy one euro.

Greece used to be a cheap destination for tourists and expatriates. Now, it's one of the most expensive destinations.

Regardless of austerity measures or downward pressure on wages, Greece will remain internationally uncompetitive until this exchange-rate imbalance is addressed. And it cannot be addressed as long as Greece stays in the eurozone.