Originally posted by Flavian
Originally posted by Eurisko2012
reply to post by WalterRatlos
Greece is small potatoes.
France and Germany can afford to write it off as a loss.
Start Monday morning at --- zero ---. Default on everything. Sorry this situation is desperate.
We are out. Wait for the complaining, then say sorry we are out. Sue us!
Then start over with zero debt and a mountain of Drachmas.
Then choose your path wisely. Don't repeat the same mistakes.
The problem is though that it isn't Greece who decide how much that mountain of Drachmas is worth - it is the world markets.
For example, Greece could declare that a Drachma is worth 2 Euros. If the global markets do not agree, then Greece has to look at it again and re evaluate to maybe 2 Drachmas being worth 1 Euro, and so on.
Do you see the problem here? Even if Greece chooses this option, there is no easy way out of the debt. And believe me, that is exactly how the global markets would react to Greece defaulting and restoring the Drachma. The result would be the new currency being just as worthless short term as the Euro is currently in Greece, with costs of living soaring and a potential bout of hyper inflation.
I keep saying it (and it gives me NO pleasure), whatever happens now, the Greek people are going to suffer for quite a few years to come (potentially a couple of decades).
It's not a silver bullet solution but it is the best long term plan.
Whatever happens......just happens.
There will be a huge sigh of relief when they break away from the Euro.
You know a long time ago, Greece got along just fine WITHOUT the Euro. Remember???
edit on 16-12-2011 by Eurisko2012 because: (no reason given)