Tuesday, 8 May 2012

Planning Group for Greece Economic Reconstruction

First Meeting
Saturday 12 May 12 Noon

Meet Outside New Academic Building
London School Economics
(opposite Lincoln's Inn Fields)

Why attend ?
Prepare for a Greek Exit Euro
Be Part Re-building Greek Economy


  1. Hi Toby,
    I won't be able to attend any meetings because I live in Spain but I would very much like you to air some of the suggestions I have made.

    Here is yet another attempt to summarise what I am trying to say:

    The Euro-Lite solution.

    Greece must show Europe the solution to its problem by issuing the Drachma in a way that plays fair with the Euro.

    Establish monetary sovereignty over Greece's internal affairs with the issue of the Drachma as a purely internal national currency and remain within the agreement to use the Euro as a shared and valued international currency.

    This is a realistic solution. Reality may yet force it as the only solution. If it is anticipated and properly prepared for then it is a minimally disruptive and potentially prosperous solution.

    Technical point: As an internal currency the Drachma does not have to be and should not be made legal tender. This is not necessary for a currency to circulate among its citizens, they will accept it out of patriotism and their own convenience. The Drachma as Legal tender would mean that it would be enforced as good for settling Euro debts. That would not be playing fair with the Euro and also would pervert the intend use of the Drachma to fund the internal economy – they would instead become a claim on our wealth held by others. Not giving a currency legal tender status confirms it as an internal currency because Its acceptance depends entirely on goodwill within the nation. This keeps it in legal harmony with the Euro and makes it very resilient to harmful speculation. It means that no claim of wealth in return for Drachmas can be enforced, if it stinks then goodwill may not be forthcoming – not a popular position for predatory speculators.

    1. Great to hear from you.

      I am currently working on a Theory to Rebute the Inflation arguement

      I think it is perfectly possible for a return to an alternative currency without Hyper-inflation as everyone is claiming in the mainstream.

      One thing I would like to see debated particularly as this has been on-going for 2 years is agreed claw backs of speculative money that fled Greece in the past 2 years.

      It is the collapse in Money supply and zero velocity of money via everyone pulling their money out of Greece in anticipation of a currency exit that is the real killer.

      Sorry to say but Spain is going the same way.

      My long term view is that the sooner you all exit the Euro and start taking over from China producing loads of goods for the rest of Europe your economy will recover.

      The longer it takes to restructure the more painful it becomes

      Great to hear from you and spread the word

    2. Toby, have you heard about Positive Money ? If you haven't, google it.

  2. Unfortunately Spain has just elected a right wing government, more by default than anything else. They are not exactly neo liberal aligned, having their roots more in Franco era nostalgia, but I cannot see them introducing a socially progressive national monetary system.

    For Spain I have another idea. If the government will not issue money to fund public services then set up a cooperative to do it. A wedding of the aspirations and energy of the 15M/Idignados movement with Spains strong cooperative tradition could produce:

    The First Emergency National Cooperative of Spain

    Purpose: To mobilise labour in service of the common wealth whenever and wherever government is unable to perform this function according to public aspiration.

    Funding: Labour and materials will be rewarded by issue of receipts of contribution. The public will be asked to respect this contribution and accept the receipts in exchange for the goods and services they have to offer and then use those receipts to purchase the goods and services they require. This autonomous funding system that encourages the use of its receipts for the trading of goods and services is designed spread the burden of contribution as widely as possible with the added benefit of enabling trade that might otherwise not be possible.

    1. Sorry to keep swapping Blog sites

      but set up following