routsounmanman said:
Nope, he asks for a debt reform (excuse me if the wording is incorrect), postpone the payments, lower the interest rates. And even if he asked for a debt reduction, he is right; it is nearly impossible to ever pay back full because we lost 26% of our GDP, because of a failed program (and our politicians idiocy, I admit)! Can you even comprehend the destruction to our economy? Do you even care? Even the IMF backs it up. If Europe hadn't cut Germany's debt back in 1953, there'd be no "economic miracle", you'd still be in shambles. Wake up and face the truth. |
Ofcourse you lost much of your GDP. For many decades Greece has been spending more on goverment financed employment/pensions than they could afford through taxation income (and took out loans for that). Once these jobs were cut/pensions reduced less money was cycling in the local economy leading to businesses becoming unprofitable and closing.
But that system was entirely unsustainable in the eurozone from the beginning, especially in a country with a foreign trade balance deficit (money will just leave the local economy bit by bit + interest rates from loans -> more new/higher loans needed and even more interest that needs to be payed -> cycle is speeding up, debt going out of control), and it has to be dramatically restructured so that the private sector (which actually produced goods/ does international services) is the by far far largest employer so that people/companies can provide enough taxes for the government to stop taking out new loans.
Afaik Tsipras promised to go back to big (unsustainable) government employment in the 2014 elections - I wonder what will happen when (unconditional) loans are provided.
Personally I think reintroducing their own currency will help Greece much more, although the first 2-3 years after such a move could result in a dramatic collapse of the economy, but with their own currency Greece can devalue it as much as needed for the local goods/services to be competitive and become the basis for new growth and wealth - hopefully resulting in a quick recovery like other countries in a similar situation showed in the past decades. In that case creditors obviously will lose large amounts of their money, but I don't care about that, have it as donations, but pumping new money (without any restructuring conditions attached) into that failed system seems like a waste to me.
I am very grateful the international community granted Germany another chance after being responsible for 2 devastating and unforgivable world wars and I'm a big big benificiary of that decision, but I have no doubt our representatives of the time also showed that they know what went so very wrong and how to rebuild the country and make it a valuable partner of the international community.
