FREEDOM PROJECT: THE 'GREEK TRAGEDY' NOT SO TRAGIC AT ALL... Drachma scarecrows and the Myths of Greek Exit...

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Drachma scarecrows and the Myths of Greek Exit – When Pritchard sorts this out, the picture is not bleak at all.

By 
The Telegraph, UK
Last updated: May 21st, 2012

Greeks protesting: they have not surrendered their sovereignty

We keep hearing that Greece cannot impose exchange and capital controls – as Iceland did – to contain the damage from Drachma Day, restore stability, and prevent a devaluation overshoot.

We hear too that Greece would have to leave the EU if it is ejected from/withdraws from the euro.

Both assertions are wrong.

The European Commission published a study in its 2003 EU Economic Review examining the treaty basis for exchange controls in an emergency.

It concluded that states can indeed put up barriers under the Maastricht Treaty: “Among the actions that can be undertaken when a member state experiences serious balance of payments difficulties, Articles 119 and 120 EC provide for the possibility to reintroduce ‘quantitative protective measures’ against third countries.”

Full Article:

http://jhaines6.wordpress.com/2012/05/21/drachma-scarecrows-and-the-myths-of-greek-exit-when-pritchard-sorts-this-out-the-picture-is-not-bleak-at-all/

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