The Greekcase of public spendingdeficitistotallydifferentfrom theIrish crisischaracterizedby debtofprivate banks,buttheunfortunatepolicyof the euro-zonehasthe same devastating effect.
OPEC lacks sufficient tools to manage oil, but Saudi Arabia could shift from the position of price taker to that of price maker. Saudi Arabia should sell its oil in the same way that Governments sell their bonds, by auction.
The real question is the extent of collateral damage that a Euroarea-member’s default – in the form of debt restructuring – would cause, in view of the interdependence between banks and “sovereigns” both within countries at risk and across the entire area.
Fadhil Chalaby , an Iraqui intellectual, for ten years at the helm of OPEC and friend of Zaki Yamani, the long standing Oil Minister of Saudi Arabia , tells the story of the debate and contradictions within the Orgnization.
