Wednesday, June 13, 2012

The Drachma Is Better Than Barter

Link of the day:

Anyone who can is moving their money out of the country, either to banks in other euro-zone countries, such as Germany, or out of the euro to banks in Switzerland, the United Kingdom and U.S. (the franc, pound and dollar, respectively). 
Absent a truly dramatic event, Greece will exit the euro not by choice but by necessity. It will do so not because the drachma (its old currency) is superior to the euro, but because the drachma is superior to barter.

That was a great tidbit right there. It made me wonder just how and why Euros were going into Greece. There's lots of news about how Euros are leaving Greece - debt payments, bank runs, investments being moved out of the country - but it makes one wonder just how much is moving into Greece and what happens when outflow is substantially larger than inflow.

1 comment:

Richard Daglio said...

I need some advise on the possibility of investing in Forex Trading using the barter dollars that I have accumulated from my barter transactions. Is there anyone who has invested in a company like FNIB? Are they legit?