4 ms·
>So, let me be frank: Greece's debt is currently unsustainable and will never be serviced, especially while Greece is being subjected to continuous fiscal water
by shit_parade 12y ago
>So, let me be frank: Greece's debt is currently unsustainable and will never be serviced, especially while Greece is being subjected to continuous fiscal waterboarding.
Despite the rhetoric this is the problem of not just Greece but many other developed governments, notably Japan. Central banks have been goosing the time value of money in an effort to spur 'growth' because if an entity can become richer faster than their debt will grow then it's a win-win situation.
- cromwellian 12y agoI don't think you can compare Japan and Greece. Japan can afford to service their debt (for the forseeable future). The problem with Japan is long term demographics, not an economy unable to service debt.
- quonn 12y agoJapan is doing just fine. Most economists accept that it will keep on like that for a long, long time. Since their debt is in yen, in the far future they can still reset their currency. Germany has done this twice in the 20th century and while it was certainly a disaster for people who has saved some money, the economy always recovered quickly. It's the same for everyone predicting doom for the US. Let's not forget that even a currency reform does not wipe out a country. It merely wipes out all wealth stored in banks. It's bad, but it's not worth keeping everyone worried for decades, when it might just happen once in a century.