Borg Makes Grexit Prediction

Greece Will Probably Leave Euro Within Six Months, Borg Says – Bloomberg.

Swedish finance minister Anders Borg is predicting that Greece will exit the eurozone within six months. Borg has been predicting publicly some kind of default for Greece since July, so this is not surprising. He also does not believe that a Grexit would be a catastrophe because businesses and governments have had sufficient time to prepare for it.

We should discount Borg’s predictions for two reasons. First, it is hard to take a finance minister seriously who has a ponytail and an earring. Ideally, you want your finance head looking something like this:

not this:

Second, Sweden is not part of the eurozone. Just like the U.K. and Denmark, it has been isolated from much of the machinations of the cult of the euro during the crisis. He does not have any special insight but is merely making a prediction.

German elections will be held in the Fall. Merkel can neither be seen as coddling Greece with more aid nor as letting a Grexit occur potentially leading to catastrophe. Look for her to attempt to maintain the status quo until after elections.

 

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