Greece gears up for tough reforms

[routsounmanman]

Kasz216 said:

Dark_Lord_2008 said:
The Euro bankers are flexing their muscle by forcing Greek not to default on all of its debt. Part of the Greek debt has been written off as bad/default of debt and credit rating downgraded. Greece forced to take a second loan and implement6 more austerity measures that will further weaken the Greek economy, increase unemployment rates and shrink GDP. The Greek economic recovery is a long way off.

Greece should abandon the Euro and issuing its own national currency. The European nations were so much better off before the farcical Euro.

The only issue with that is, the Drachma would then GREATLY deflate vs the Euro.

Which, while it would increase exports, would end up making imports nearly impossible like somalia.

Additonally, since all their debt is in Dollars and Euros... and NOT Drahkma's, there debt would skyrocket.

When your a country, defaulting on your debt doesn't really get rid of it.

See Iceland.  Who's banks defaulted (not even the Icelandic government).

 

The only solution I can see would be to proclaim the debt as "odious" and scrap it. And the haircut is 2 years late; all of our debt is now in public hands, cannot be further cut, and still large...