Kasz216 on 24 February 2012
| routsounmanman said: This latest "austerity" package will kill us. Our economy will contract a further ~6% AT THE VERY LEAST. We should just default and go back to the drachma. Greece would fill with tourists yet again (maybe even more so, with Spain, Portugal, Italy,etc in the Euro) |
~6% is EXTREMELY light compaired to how much your economy would contract with a default. A Default is looking at a 15% lowest, contraction, with huge contractions afterwords.
And yes... some countries who default do "burn for years".
It largely depends on the kind of default. Your fine if it's a nongovermental default like Iceland. It sucks, but is survivable when it's a government managed default where it looks like your trying.
A stubborn intentional default?
Your relying on foreign aid at that point.
Which one of these things is more humiliating to you and your country? Forced austerity, or living off the scraps of what France, Germany and the rest of the world sends you as international aid packages.
