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I agree that more debt is disconcerting. But the alternative of going "cold turkey" would result in a humanitarian crisis. This is a country which imports most
by derriz 11y ago
I agree that more debt is disconcerting. But the alternative of going "cold turkey" would result in a humanitarian crisis. This is a country which imports most of its food, energy and medicine. The banks are bust and the government doesn't have the money to pay next month's public sector salaries.
- grey-area 11y agoTo actually exit the vicious downward spiral, they need significant debt forgiveness (yes more), as Germany received after WWII, as well as stuctural reform of course, but one without the other will disappoint both creditors and the Greek people. The funniest thing about this whole manufactured crisis is that the ECB is printing 1 trillion euros via QE at the moment to buy gov bonds and nationalised industry bonds, which completely dwarfs the sums for Greece and is essentially doing the same thing - buying government debt and making all EZ citizens slightly poorer in order to allow counter-cyclical investment. http://www.bloombergview.com/quicktake/europes-qe-quandary http://www.bloombergview.com/quicktake/europes-qe-quandary