“I wonder why you , and many other eurosceptic commentators”.

Just for the “avoidance of doubt” as they say. I AM NOT EUROSCEPTIC, if you look at my posts you will see I am advancing a whole series of arguments about how best to SAVE THE EUROZONE.

As for the rest, you’ll have to read the posts I have linked to to see the arguments I present, since the whole thing is much to complicated to explain in a few lines.

“The greater point is that Latvians themselves do not want to leave Europe or the prospect of the Euro.”

But who is suggesting this. I am arguing (along with the IMF) that they should be admitted urgently (along with Bulgaria and the rest of the Baltics) into the eurozone, but AFTER devaulation, so they don’t immediately have to face the sort of painful deflationary process Greece and Spain now face.

The burden of the “debt restructuring” issues which arise from the devaluation should be shared between the people who took out the loans, the banks, and the Euro System (via EU Bonds) in portions which will now need to be negotiated between the parties, that is what “restructuring” is all about.

“Same thing in Greece , my home country.
Nobody , absolutely nobody , not even the Stalinist Greek Communist Party ,wants to leave the Euro, but everybody , even the “conservative silent majority” is fed up with the local elites.”

Of course, we all agree. I am in favour of “everyone in” – see my Almunia Syllogism post. Really I have no idea what you are getting at here, unless this is a comment that has been accidentally posted in the wrong post on the wrong blog.

Whats the point of going bankrupt immediately ( because of the loans) rather than at least trying to get out of the hole slowly.

Of course living standards will have to fall dramatically and competitiveness will have to rise , but why go through the default of foreign debts ( that will be absolutely unserviceable after a deval).

The greater point is that Latvians themselves do not want to leave Europe or the prospect of the Euro.
They are fed up with the local elites and this the reason for the riots.

Same thing in Greece , my home country.
Nobody , absolutely nobody , not even the Stalinist Greek Communist Party ,wants to leave the Euro, but everybody , even the “conservative silent majority” is fed up with the local elites.