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> Which is insanity that will never work. You will just end up in an endless cycle of the Grecian economy worsening, the Grecian debt rising, and more pleas for
by Xylakant 11y ago
> Which is insanity that will never work. You will just end up in an endless cycle of the Grecian economy worsening, the Grecian debt rising, and more pleas for debt relief, as has already been happening.
So what will work? Do a haircut and then hand them more money? Will that work? Because that's what they're asking for. A third bailout is what's being asked for.
- Amezarak 11y agoYes, major debt forgiveness and enough money to stimulate the economy would work, and in the long-term, a real fiscal union in the EU that automatically handles these kinds of issues. Monetary policy in the Eurozone that put inflation above the present 0.2% would be helpful. A Grexit would work and is probably the only realistic option, because the above two things are not going to happen. Some of these options would also be painful, but at least there would be an end in sight. There is no end in sight with the loan request -> austerity demands -> worsening economy -> loan request cycle. Almost anything Greece does will be better than continuing in the same self-destructive cycle.
- Xylakant 11y ago> enough money to stimulate the economy would work, That might indeed work. But who's supposed to foot the bill? Since greece does not have the money and greece is openly stating they can't even pay the current loans. And I don't see how debt-forgiveness is helping here. A default might help, but greece is running a marginal primary surplus at best, so even with a default they'd be stuck where they are - in a pretty shitty place. The only thing I could see that would help is a fiscal union, but a fiscal union would require all parties to give up some part of their control and seriously, I don't see that happening (though I wish it would)