On Thursday, Germany rejected Greece’s proposal for a six-month extension to its Eurozone loan agreement. Germany said that the proposal was “not a substantial solution” because it didn’t obligate Athens to stick to the conditions of its international bailout. As the biggest creditor and EU paymaster, Germany has the clout to block a deal which would leave Greece without a financial lifeline and potentially put it towards an exit from the Eurozone. Erin weighs in.
Then, Edward sits down with Dr. Pippa Malmgren – founder of DRPM Group and author of “Signals: The Breakdown of the Social Contract and the rise of Geopolitics.” Dr. Malmgren gives us her take on the possibility of a Greek default and its potential effects. Pippa believes that the voting public in Greece and elsewhere in the periphery has become radicalized after years of economic hardship. She sees this as one big reason that Greece could eventually exit the Eurozone. Pippa also gives cogent analyses of shrinkflation, the downsizing of portion sizes in retail packaging to increase margins, as well as the UK trade data and what they mean for the upcoming UK elections.
After the break, Erin is joined by Steve Keen – head of the School of Economics, History, and Politics at Kingston University and author behind “Steve Keen’s Debtwatch.” Steve tells us that new Greece finance minister Yanis Varoufakis is not as radical as some make him out to be and gives us his take on the rest of the periphery. He believes that the situation in Greece is a textbook case of debt deflation and proves how destructive pro-cyclical cuts to government spending are for an economy. Dr. Keen goes further and suggests that the rest of the periphery is still not out of the woods. He believes even France is at risk economically.
And in The Big Deal, Erin and Edward Harrison continue the discussion on Greece and the turmoil surrounding the German Finance Minister’s rejection of Greece’s proposal to extend its loan agreements. Take a look!
Check us out on Facebook — and feel free to ask us questions:
Follow us @