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What does "sorting out finances" even mean in the context of a country that does not actually produce/export anything[1]? Will they somehow make money appear wi

What does "sorting out finances" even mean in the context of a country that does not actually produce/export anything[1]? Will they somehow make money appear without outside investments? [1] compared to UK, France, Germany

elektromekatron 11y ago
Irrespective of snark, it means sorting out finances. As a percentage of their GDP, Greece has a larger industrial sector than the UK, and they also have the world's largest merchant navy. Greece should have no problem in having a functioning economy, this current crisis is all structural, not fundamental. edited to add, I would also not be hasty to write off the Greeks, of all people, as unable to construct innovative economic and political solutions in a crisis. They have form.
- raesene9 11y ago
  That seems unlikely I'm afraid. Their banking sector is insolvent and without ECB support it will not revive without a return to the drachma and a devaluation. ECB support seems unlikely unless Greece is within an approved bailout programme and that in turns looks unlikely as it took 5 months of negoatiations to come close to the last agreement and that was only to complete an existing programme, not start a new one. The process of issuing a new currency takes, from what I've read, months, during which the Greek economy will be in limbo, which will do a large amount of damage. Sure in the long term they would get increased competitiveness from being a cheaper source of goods as the drachma devalues, but that'll be after an extremely painful banking event.
  - elektromekatron 11y ago
    I do wonder if we will get to see a Drachma blockchain.
mike_hearn 11y ago
They do produce and export things (note: tourism is a kind of export). Some of the news stories have anecdotes from manufacturers complaining they cannot import the raw materials they need. The problem is they import a lot more. Including things like food, fuel and electricity. Sorting out Greece's finances mean a very sharp and severe recession that makes what they went through so far look like a stroll through a grassy meadow. Eviction from the EU is not entirely unthinkable, especially if the collapse triggers a refugee crisis with a lot of internal migration.
- elektromekatron 11y ago
  I think you have it wrong, they are a major food producer for the EU.

elektromekatron 11y ago

Irrespective of snark, it means sorting out finances. As a percentage of their GDP, Greece has a larger industrial sector than the UK, and they also have the world's largest merchant navy. Greece should have no problem in having a functioning economy, this current crisis is all structural, not fundamental. edited to add, I would also not be hasty to write off the Greeks, of all people, as unable to construct innovative economic and political solutions in a crisis. They have form.

raesene9 11y ago
That seems unlikely I'm afraid. Their banking sector is insolvent and without ECB support it will not revive without a return to the drachma and a devaluation. ECB support seems unlikely unless Greece is within an approved bailout programme and that in turns looks unlikely as it took 5 months of negoatiations to come close to the last agreement and that was only to complete an existing programme, not start a new one. The process of issuing a new currency takes, from what I've read, months, during which the Greek economy will be in limbo, which will do a large amount of damage. Sure in the long term they would get increased competitiveness from being a cheaper source of goods as the drachma devalues, but that'll be after an extremely painful banking event.
- elektromekatron 11y ago
  I do wonder if we will get to see a Drachma blockchain.

mike_hearn 11y ago

They do produce and export things (note: tourism is a kind of export). Some of the news stories have anecdotes from manufacturers complaining they cannot import the raw materials they need. The problem is they import a lot more. Including things like food, fuel and electricity. Sorting out Greece's finances mean a very sharp and severe recession that makes what they went through so far look like a stroll through a grassy meadow. Eviction from the EU is not entirely unthinkable, especially if the collapse triggers a refugee crisis with a lot of internal migration.

elektromekatron 11y ago
I think you have it wrong, they are a major food producer for the EU.