Yes, yes, but what does Nigella think about it?
Lord Lawson of Blaby, who in addition to siring the Domestic Goddess was also once Chancellor of the Exchequer under Margaret Thatcher, says the Greco-German “game of chicken” will end with “some kind of Greek default” that everyone will pretend was not a default. And while this will look like a very bad thing, in fact it will be a good thing, because it will “probably” force the Greeks to quit the euro, which may lead everyone else to realize they should quit the euro, which he has maintained all along was a very bad idea.
Mr. Lawson added that he has long been an opponent of the single European currency and said the best solution for the currency area was an “orderly dissolution” of the euro, but that such an event wouldn’t happen quickly.
Lord Lawson, it may surprise you to know, also has a few opinions on how the EU got into this situation with the Greeks in the first place. It’s primarily about what a hopeless catastrophe the Greek economy was, is and always will be. But it’s also about the financial wizardry of a certain investment bank.
He contends that Greece never qualified to be part of the Eurozone and only got in by getting U.S. investment bank Goldman Sachs to “cook their [national] accounts,” to make it look as though the beleaguered country complied with the fiscal mandates of membership.
And while the Journal is listening, Lawson has some advice for Janet Yellen, based on the last time he deigned to mix with the plebs, presumably during his reelection campaign for the House of Commons in 1987.
He added that the target inflation rate used by the Federal Reserve was now obsolete. “When the idea of 2% first came in we’d been in an inflationary environment and we thought that the extra effort of getting it below 2% would be too difficult,” he said.
I think the man and woman in the street would be very happy with zero, he explained.
There Will Be ‘Some Kind of Greek Default,’ Former U.K. Finance Chief Says [WSJ Real Time Economics blog]