Democracy Gone Astray

Democracy, being a human construct, needs to be thought of as directionality rather than an object. As such, to understand it requires not so much a description of existing structures and/or other related phenomena but a declaration of intentionality.
This blog aims at creating labeled lists of published infringements of such intentionality, of points in time where democracy strays from its intended directionality. In addition to outright infringements, this blog also collects important contemporary information and/or discussions that impact our socio-political landscape.

All the posts here were published in the electronic media – main-stream as well as fringe, and maintain links to the original texts.

[NOTE: Due to changes I haven't caught on time in the blogging software, all of the 'Original Article' links were nullified between September 11, 2012 and December 11, 2012. My apologies.]

Wednesday, March 27, 2013

Paul Krugman: 'Cyprus Should Leave The Euro. Now.'

Paul Krugman says Cyprus needs the abandon the euro immediatel
y in order to save its economy.

"Cyprus should leave the euro. Now," the Nobel Prize-winning economist wrote in a blog post on Tuesday.

The New York Times columnist wrote that starting a new, cheaper currency would allow Cyprus' economy to recover more quickly. Meanwhile, he wrote, Cyprus' economy might shrink as much as 20 percent if it stays in the eurozone. That's because Cyprus' days as an offshore tax haven are likely over, and the eurozone plans to force the government to implement steep budget cuts, which would hurt the economy, Krugman wrote.

Krugman is not alone in arguing that Cyprus is about to suffer major economic damage. Hari Tsoukas, a professor at Warwick Business School, said in a statement Tuesday that Cyprus' unemployment rate "is likely to at least double" to up to 30 percent. And Peter Morici, a professor at the University of Maryland's business school, said in an op-ed in The Street Monday that Cyprus should leave the eurozone, arguing that Cyprus' economy currently is on the path toward collapse.

Cyprus reached a last-minute bailout agreement Monday that will impose losses on big deposits in Cyprus' two largest banks, shut down Cyprus' second-largest bank and bar people from moving funds out of the country.

It is unclear whether Cyprus will decide to ditch the collective currency. Nicholas Papadopoulos, head of Cyprus' parliament's finance committee, told Bloomberg TV Monday that leaving the eurozone is "a valid point that has to be explored." But Cyprus finance minister Michael Sarris told Bloomberg TV on Tuesday that "it would be catastrophic to even talk or entertain the idea."

Original Article
Source: huffingtonpost.com
Author: Bonnie Kavoussi

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