Quote:
Originally Posted by Jacks
If they lose the bailout money then what are the options?
Does Greece leave the EU, go back to the drachma and start printing money like no tomorrow?
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I would guess that if the bailout doesn't happen checks start bouncing and Greece goes up in Flames. Then they default on all of their debts and become a country that can't borrow money at all.
So yeah they would have to probably go back to their own currency, which would be similar to Germany pre WW2 where they printed so much money that their money was valueless both internationally and domestic.
All of their international obligation would collapse, which would cause a huge shudder through the international economy.
Greece can either go through controlled austerity now, or uncontrolled depression level austerity later that's beyond their control.
Because their government is their largest employer and they don't really have much in the way of an economy there The government would be forced to gut their civil service, Unemployment would hit incredibly high levels, I would be you would see a third of their workforce hit the streets. Because they would have no funding options, the pensions would collapse, and their social welfare system would collapse.
Would they become the European version of North Korea in terms of conditions? Possibly in terms of the poorness of the nation and the ensuing low per capita pay rate.
Personally if they do default, the EU should just send in troops to topple the government and seize valuable assets and install a government that will be a so called national salvation government.
If things do get bad, is a coup that far out of the question?