15 Feb 2017

Malloch claims Greece will Take on the US Dollar

Donald Trump’s choice for EU ambassador, Ted Malloch, says that Greece will abandon the Euro in favour of the US Dollar.

According to Ted Malloch, the financial crisis and “unsustainable” situation in Greece along with a desire to “freak out” Angela Merkel are some of the reasons that are driving Greek economists to consider the US Dollar as their new currency. This reads like fake news, but this is what instigator, Brexiteer and Trumpeteer, Malloch believes, or dreams about.

Speaking on the Greek channel, Skai TV’s “Istories” (stories) program late Tuesday, Malloch said:

I have traveled to Greece, met lots of Greek people, I have academic friends in Greece and they say that these austerity plans are really deeply hurting the Greek people and that the situation is simply unsustainable. So you might have to ask the question if what comes next could possibly be worse than what’s happening now.

He also added:

I know some Greek economists who have even gone to leading think tanks in the US to discuss this topic and the question of dollarization; such a topic of course freaks out the Germans because they really don’t want to hear such ideas. I think what Greece badly needs, if we were to think of it economically – I am really putting in the economy side – is supply side reforms. It needs debt restructuring, it really needs debt relief, and I know people in Europe don’t want to hear that. These new plans have probably happened under the IMF or the World Bank and they need to reduce the debt overhanging and that means frankly something that people in Germany and elsewhere have not been able to accept, it means a haircut to the lenders and to the banks in Germany and probably, at least in my perspective, a return to the drachma. So the problem then is who will manage that transition, and how, to avoid all the chaos and all the instability. Very, very, major question I think on the immediate horizon.

But Malloch’s statements should be taken with a pinch of salt. This is a man that has claimed that the euro will soon collapse and that he helped to bring down the Soviet Union. On BBC One’s This Week, Ted Malloch, after he was asked why he wanted to be US ambassador to the EU, replied:

I had in a previous career a diplomatic post where I helped bring down the Soviet Union. So maybe there’s another union that needs a little taming.

He also explained that President Trump shared his views about the need for a Grexit. Malloch said that, “President Trump himself about a year ago tweeted that the Greeks are wasting their time in the euro zone. So you have it directly from the person, you don’t need an intermediary.”