EU might need to take steps to isolate the Euro and force Greece out of the EU after the bailout plan that offered massive debt write offs and bailouts might fail due to a snap referendum by the Greek government that will probably force the rejection of the last minute deal.
I say at this point to just them default in a controlled manner, and build sandbags around the other peripheral Euro economies to keep them from going down. Of course this would be executed in a much smoother fashion if they weren’t on the Euro.
Is that even possible anymore. In order to make them default you'd have to stop any bailout dollars, restore their debt and just sit it out no matter how much they cry.
If Greece crashes it crashes hard, but I guess if you default the government should be able to declare a national emergency and be able to suspend enough rights to collapse the pensions and militarily enforce taxation
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My name is Ozymandias, King of Kings;
Wow if true. Link goes to a page talking about China not being impressed. Europe is in a whole world of hurt.
Margaret Thatcher - Socialism is great until the money runs out.
The problem is no longer just Greece but the whole Union. People have emptied the piggy bank, maxed the credit card and are now trying to empty their neighbors bank account.
I say at this point to just them default in a controlled manner, and build sandbags around the other peripheral Euro economies to keep them from going down. Of course this would be executed in a much smoother fashion if they weren’t on the Euro.
I am not an expert, but how do you "sandbag" around this?
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How did it get so bad in Greece, and by extension Portugal and Ireland? Wouldn't the Greek government and the EU finance Ministers pointed out a long time ago that the Greek were living beyond their means and this was unsustainable?
From the article, I can see how the Germans and Chinese feel the way they do
Wow if true. Link goes to a page talking about China not being impressed. Europe is in a whole world of hurt.
Margaret Thatcher - Socialism is great until the money runs out.
The problem is no longer just Greece but the whole Union. People have emptied the piggy bank, maxed the credit card and are now trying to empty their neighbors bank account.
Yeah, I note that the link in the blog doesn't explain the "pay their unemployed more than most of its workers". I've been trying to search the net to find any proof one way or the other to no avail.
I think capitalism had far more to do with how Greece got into this debt crisis than socialism. Yes, their government had a high debt load, but had reasonable interest rates to work with. Until the global financial collapse.
Wow if true. Link goes to a page talking about China not being impressed. Europe is in a whole world of hurt.
Margaret Thatcher - Socialism is great until the money runs out.
The problem is no longer just Greece but the whole Union. People have emptied the piggy bank, maxed the credit card and are now trying to empty their neighbors bank account.
^
Jin Liqun, chairman of the country’s vast sovereign wealth fund, China Investment Corporation, said people in the West needed to ‘work a bit harder’ if they wanted to escape the recession.
In a tough message to EU leaders Mr Jin said Westerners were cossetted by the welfare state.
He said the debt crisis crippling Europe could be solved in the long term only by slashing welfare payments and ending the restrictive labour laws which have made European workers increasingly uncompetitive on world markets.
Mr Jin told Channel Four News: ‘The root cause of trouble is the overburdened welfare system, built up since the Second World War in Europe – the sloth- inducing, indolence-inducing labour laws.
Well I’d say that you’d wouldn’t let them default on their entire debt load – maybe 40% – do it slowly in stages and do your best to service each tranche. The remaining 60% you could refinance, bailout shorter term notes and index long term ones to some Greek economic indicator into the future. Argentina in the early 2000’s is the perfect case, they basically went through economic hell for three years, but have been steadily recovering after since 2003 and now are a very strong economy. They took the bullet head on and went through a bitterly painful three year recession but came out the other side okay. Personally I think that’s much smarter than a slow death Greece is in for even if this bailout package goes through, but again the Euro makes things more complicated because Greece can’t devalue their currency like the Argentinians.
How did it get so bad in Greece, and by extension Portugal and Ireland? Wouldn't the Greek government and the EU finance Ministers pointed out a long time ago that the Greek were living beyond their means and this was unsustainable?
From the article, I can see how the Germans and Chinese feel the way they do
That is a good question. Some if not all of those nations were financially healthy before entering the EU.
Let the EU fail.....stop punishing people for generations of bad banking/government policy.
What to do about Greece
