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I picture a visual picture of Newtons falling apple towards the ground with gravity as the rising debt in comparison with Greece ability to pay those debts. It
by acd 11y ago
I picture a visual picture of Newtons falling apple towards the ground with gravity as the rising debt in comparison with Greece ability to pay those debts. It is certain that the apple will fall to the ground its just a matter of time vs distance until it gets there analogy with the ability to pay of the debt. The Greece debt default are inevitable unless the Greece people suddenly behave like German productivity wise which is quite unlikely. The latest wording was that Greece needed the new loan to be able to pay off the old the old IMF loan payment which is coming up end of June. That to me sounds very much like something similar to a Charles Ponzi scheme, you need new participants in the scheme in this case a new loan to keep it rolling.
A programmer spelled it out on a blog entry, its the same currency the Euro, German productivity is rising with x percent per year versus the Greece are falling in comparison with Germany. Combine that with unwillingness to pay taxes in Greece and you have bad funding, non efficient government with high debt.
My suggestion, let the Greece people default on their debts, let the original bond holders take their investment losses on the investment. Give the Greece people back their local currency the Drachma it will then become a cheap country to have a vacation in and people will go there instead of other countries.
- ZeroGravitas 11y agoThe original lenders were in so deep they'd have crashed the French and German economies, and taken the rest of the EU with them, if not bailed out. But the politicians don't like talking about this as a northern European bank bailout, preferring to blame the Greeks. The Greeks have issues, just like a lot of homeowners got in too deep, but if your bank, or your banking sector can't deal with bankruptcies then its not really the bankrupts fault, They took the deal they were offered with interest on one side balanced against risk on the other.