Following several minutes of tortured logic, Varoufakis explains that devaluation is, drumroll, bad for a country that is on the verge of doing so and seems not quite clear with the concept of currency controls (he applauds Argentina for “sticking the finger to the IMF” and says Greece unlike Buenos Aires doesn’t have a Chinese export market ready: perhaps he should read up on the whole Dry Bulk shipper thing) yet completely ignoring the the very reason why a country devalues in the first place: to implement an external rebalancing – something it should have done years ago – the reason for which is that Greece will soon be if not already is, on the verge of outright social conflict as there is no further room for internal rebalancing, i.e., wages and welfare cuts. Just wait until the people realize their pensions are being used to repay the IMF… Continue reading
Global Geopolitics 