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If Greece submits to an austerity plan, it loses because its people will suffer as it is doing so at this present time. If Greece defaults on it's obligations,
by meric 12y ago
If Greece submits to an austerity plan, it loses because its people will suffer as it is doing so at this present time.
If Greece defaults on it's obligations, there will budget surpluses immediately to spend on services. In the short term they would suffer some financial difficulty from not being able to access world credit markets but in the long term the economy will recover much more quickly.
If Greece defaults, they can lose, or they can win.
The only danger would be an invading EU/NATO army coming to confiscate their assets.
The austerity plan works for the EU, of course.
- eru 12y ago> The only danger would be an invading EU/NATO army coming to confiscate their assets. I'm willing to bet on 50 to 1 odds that there will be no invasion. (Up to, say, 1000 USD exposure on my side.)
- TheOtherHobbes 12y agoThe usual play is to stage a convenient military coup to 'bring back order and security', with leaders who then loot the country. No invasion necessary. I have huge respect for Varoufakis, but I hope he realises he is dealing with very dangerous thugs in very expensive suits, and not reasonable people.