Comments on: Europe can’t force Greece into never-default land Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 By: CNDMX Mon, 06 Feb 2012 06:03:29 +0000 Reality 1 if Greece was to use its old dracma currency, it would have been devaluated by at least 30 % since theyr country is neard default and they would have ended with an international debt in euros.
reality 2, having a wage cut of 5 or even 10% is not that bad provided that international lender already lost 100 billions and that Greec will receive 130 billions euros more if they comply.

I guess EU is just being to nice with such a small country, The Eu might better use those 130 billions euros to help countries that are really willing to change.

By: scythe Fri, 03 Feb 2012 22:02:00 +0000 the intention is to remind greek politicians of their promise

but the end game is an orderly default

greece will return to candidate status to rejoin the eurozone sometime in the (far far distant) future

the imf and germany are making an offer IF greece sticks to its previous promise

but it will be the greek politicians who will renege and inevitably bring about an orderly default

the fiscal policy agreement of december 2011 is to ensure that there is only one defaulting country

personally, it is better to deprive the fakelaki political class of debt funding for at least two generations

after that there is hope of a younger greek generation more capable of fiscal management and honesty towards its fellow citizens

By: almally Fri, 03 Feb 2012 17:20:26 +0000 All sounds nice except for one thing. with the kind of leadership now running Greece, it will never get to that primary budget surplus. So no worries. Mendicancy forever.

By: breezinthru Fri, 03 Feb 2012 07:07:39 +0000 It has been difficult to get the Greek people to pay taxes when that money was used to meet their own needs and the needs of their fellow Greeks.

It will certainly be difficult to get them to hand over their first fruits to the Troika as their own needs increase.

By: Intriped Fri, 03 Feb 2012 02:01:10 +0000 Well, Merkel is in China asking for them to take on a larger role in the Euro crisis. Who knows, maybe they will invade Greece with unprecedented cheaper labor and goods from the labor, evict the Greek population and then she will be happy to see at least one nation is living on 3 cups of rice per day.