By Andrew Butter The recent events in Greece are reminiscent of when Soros “busted” the Bank of England. That crisis was caused by an artificial peg of the Pound to the Euro which restricted the ability of UK to print money to inflate away their debts. The current crisis is caused by the inability Greece (and Ireland, and Portugal, and Spain, and perhaps Italy), to print and inflate away their sovereign debt, since it is denominated in Euros. A Rolling Loan Carries No Loss Now the ECB is exposed to Greek (and other) paper, which, if it were valued properly would mean that right…
***This is a preview. Please go to http://www.econmatters.com, or mobile reader http://bit.ly/dianchu-mobile for full content. ****
