4 ms·
One thing's for sure, without countries to bail them out, without banks to lend them more money - the greeks will have no other choice but to increase their tax
by dkopi 11y ago
One thing's for sure, without countries to bail them out, without banks to lend them more money - the greeks will have no other choice but to increase their tax income and decrease their spending.
Austerity as some might call it.
- atmosx 11y agoIf the ECB keeps the current regime for another 2 to 3 weeks, then Greece might be "forced" to go back to the Drachma and devalue. At that point you don't need to increase tax incomes but you might have a series of other problems (control devaluations, impose capital control for an undetermined period, etc.) - but in the long run, might be positive (According, to Krugman, Stiglitz, S. Keen, etc.)
- dkopi 11y agoInflating away debt is another form of increasing tax revenues. Also known as Seigniorage. It's just a more sophisticated way of collecting taxes, and it will harm the poorest greeks and middle class first.
- Mikeb85 11y agoTake away the debt payments, they're already running a surplus. No new loans = no reason to pay creditors. This is a worse outcome for Germany than Greece...