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Re: Should I Stay or Should I Go... Hinde Capital
A good job in exposing that the issue in the EU isn't the absolute level of debt, it is the ability (or more specifically, the lack of ability) to print.
Contrasting German, French, Japanese, and South Korean level levels vs. the PIIGS is very useful for this.
A much poorer job of actually understanding major details of what's going on in the EU, however. Cameron's veto was no such thing - for one thing there wasn't even a proposed treaty. How do you exercise a veto when there isn't a call for a vote even?
Secondly the report does a poor job of distinguishing between external debt owed to other EU nations, specifically French and German banks - whether private or sovereign - and external debt to complete outsiders like the US or China. There is also debt owed to EU trade zone but not euro members.
Clearly these categories are quite different in terms of the PIIGS nations' ability to negotiate as well as possibly print away - the denominator matters.
The report lastly doesn't do a very good job of outlining why a PIIGS member would not want to exit the euro given the monetary straitjacket they are in. There is a reason why these nations wanted in to the euro zone, and austerity isn't it.
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