generic-user-1 said:
nanarchy said:
generic-user-1 said:
they dont need fresh money for running the government, they only need fresh money to repay loans.
so we are lending someone money this month so he can repay what we lended him last month, not good, but better than not lending him the money and lose the money.
the EU should have lended greece the money again, greece has the best goverment since ages to make reforms.
but the imf and merkel demanded idiotics reforms that wouldnt have worked anyway.
greece needs a lot harder laws against illegal tax evasion. best would be hard labour for people who evaded more than 1m/y, and they need to cut military spending. that would realy HELP, cutting pensions from 400 to 300 euros per month will not work, it just kills the economy because it kills the consume.
|
Merkel and Co are doing far more than they should already, the responsibility is on Greece to present something that the EU can agree to not for the EU to find something that the Greeks find acceptable. good government or bad government, the economy with current debt is beyond salvation a lot of pain is going to need to be felt at all levels in greece, loaning money to pay the loans only prolongs a bad situation, something drastic has to change in Greece and pouring more money into the situation is not the answer.
|
Merkel and co are making it worse because they want retared reforms that cant work. cutting pension for those who are happy if they can pay the waterbill will not help repaying debt, but thats what merkel and the IMF want.
and why should greece change after a default? they dont need new credits if they stop repaying the old credits.
|
After a default, the banking system will collapse, people with money in those banks will be unable to get the money, businesses and government will be unable to get credit except at exhorbitant interest rates, on top of that it would likely require an exit from the euro dollar and give huge inflation to the local currency making imported goods completely unaffordable. If you think the current situation is bad it will be like a summer picnic compared to the economic mess from a default.
