Greece Defaults. What now?

[generic-user-1]

whatever said:

generic-user-1 said:

o_O.Q said:

 

well i'll admit i can be wrong but from what i understand the way this whole thing works is that initially from the beginning money is loaned into the system with interest 

as a result from the beginning there isn't enough money in circulation to pay off what was loaned originally because of the interest and the problem grows larger and larger as more and more money is loaned into the system

 

as i said i can be wrong my field of study is sciences so i obviously won't definitively say i know this for sure and i'd say that perhaps the cracks appearing in the system recently show that there are indeed flaws

if all money is used to repay the debt, the rest of the loans will automaticly default because tere is nothing left to pay it off with, 

thats part of the system. 

You act as if this system was designed to handle the scenario where there are massive defaults.  I can assure you, that is not the case.

fiat money can handle massive defaults, no problem.  the problem we are facing now is that the people who would lose the money if someone big defaults have a strong lobby, and so the taxe payer has to pay for the default.