Greece could ditch the euro and choose to be tied to the US dollar on the same terms like the ones used by Puerto Rico. Senior Greek economists have inquired about the possibility to adopt the green US dollar. Athens would humiliate Brussels and cause Germany to ‘freak out’. Who claimed this?
Donald Trump’s pick for the position of US ambassador in the European Union and self-promotion addicted, Ted Malloch.
Malloch claimed that senior Greek economists have inquired about the possibility of adopting the US dollar if the country crashes out of the single currency.
“I know some Greek economists who have even gone to leading think tanks in the US to discuss this topic and the question of dollarization; such a topic of course freaks out the Germans because they really don’t want to hear such ideas,” Malloch told Skai TV in a lengthy interview.
He asserted that Athens is so desperate it is prepared to tie itself to the dollar on the same terms as the likes of Puerto Rico if it means being able to quit the eurozone.
He also said that German leaders including Angela Merkel were “freaked out” at the humiliating possibility of losing Greece to a rival currency, which would be a devastating blow to the EU project.
Tying Greece temporarily to the US dollar would be one way for the authorities in Athens to ensure that its currency does not completely tank if it leaves the eurozone, as would likely occur with a reissued drachma.
Malloch said it would be the best thing for the country’s people if it quits the eurozone, adding that the current situation is “simply unsustainable”.
On the ongoing debt crisis, he added: “Greece might have to sever ties and do Grexit and exit the euro. It needs debt restructuring, it really needs debt relief, and I know people in Europe don’t want to hear that.
“They need to reduce the debt overhanging and that means frankly something that people in Germany and elsewhere have not been able to accept, it means a haircut to the lenders and to the banks in Germany and probably, at least in my perspective, a return to the drachma.
“So the problem then is who will manage that transition, and how, to avoid all the chaos and all the instability.”
Asked whether there was some sort of authorization by the Trump administration on the position of “Greece’s dollarization” Malloch replied:
“Well, it’s not something that I have discussed at all with President Trump or the State Department or anyone at the Treasury, but I would remind your audience that no one less than President Trump himself about a year ago tweeted that the Greeks are wasting their time in the eurozone. So you have it directly from the person, you don’t need an intermediary. I personally think he was right.”
Ted Malloch admitted he had never met any Greek politicians and therefore he had never discussed this plan of his with anyone.
Much to my understanding, Ted Malloch did not sufficiently explain why should Greece adopt the US dollar and not issue its own currency.
But we cannot look for logical solutions in people who happened to be victims of a farce that exploded in their heads.
However, I assume, that Malloch’s absurd plan is based on something German Finance Minister Wolfgang Schaeuble said in July 2015, at the peak of the crisis between lenders and Greece.
In a rare moment of humor attack Schaueble offered US-Treasury Secretary Jack Lew swap burdens of Puerto Rico with those of Greece.
“I offered my friend Jack Lew these days that we could take Puerto Rico into the euro zone if the U.S. were willing to take Greece into the dollar union,” Schaeuble said at an event in Frankfurt Thursday. Lew, the U.S. Treasury secretary, “thought that was a joke,” Schaeuble said.
Last week Ted Malloch shocked Greeks when he said the country belongs outside the eurozone. Greek media -mistakenly – commented that Malloch’s statement were indicative for the intentions of the Trump administration.
Little did they know. That Malloch in fact produces his brain bubbles sitting alone on a cold plastic seat in a room covered with white tiles.
Is that the way the new US administration is doing politics? Probably…
Sir: The reason that Puerto Rico used is because is a colony of the USA.Bad example Maybe Ecuador And Panama used dollars are the main currency
The idea of choosing the dollar instead of drachmes is that it won’t sink in case of speculator betting it will …. I think .
In any case that will be better thane what we have now : a German euro .
I guess you missed the agony that Puerto Rico has been going through ever since it defaulted a year ago. Same treatment, different currency.