There has been a lot of talk about Greece and the problems they faced in the past year or so. If you were Prime Minister or someone with a lot of power, what would you do to save them from further trouble? Not only Greece, what would you do for Europe?
How will it ‘pay back what it borrowed’ - is this even possible? In the UK the government raised taxes to try and cover their deficit. Do you think this is a good way? Or just unfair on the public?
I posted something about fuel prices going up and there was a video posted which said that the $ was depreciating. If the EUR is appreciating as a result, then can this help the European economy?
In the article, a kid won a prize for his suggestion. Do you think simpler ideas are the most effective? Do you think people who study certain subjects ‘overthink or ovecomplicate’ things?
Here’s the article: http://www.businessweek.com/articles/2012-04-12/h…
Who on earth would lend to Greece if they leave the Euro? I'd be willing, as a creditor, to take a chance that Germany and a few others will continue to bail out the irresponsible countries simply to preserve the Eurozone. On Greece itself? Not a chance. Just let them default. They already have "technically" defaulted. Just do it and get it over with. Yes I know it sets an awful precedent for Ireland, Portugal et al but at this point lets not fool ourselves and think that a massive trillion dollar refinancing package to delay this 3 years is going to do anything. I'm not a fan of letting them default but at this point I'm tired of all the yapping in the media about the Eurozone being a new problem. The whole place is a shit show with Greece being the first shoe to fall. No, simply leaving the Euro is not a viable solution at the moment for Greece. This kid better save his 100 Euro prize. He will need it. Also, why in the world would the Eurozone want them back once they paid off their debts?? They will have done it with a devalued currency anyway which Is why they would want the drachma back in the first place. I'd tell them to go screw themselves.
Greece can't be forced out of the eurzone; under current law they must elect to leave themselves
Leaving the eurozone and returning to the drachma solves the debt problem through devaluation; however the country would have next to no hard currency reserves and would find it impossible to borrow. Therefore Greece would be unable to purchase the food / energy it needs on the open market.
Staying in the eurozone (in its current form) puts other members (Germany) in the position of continuing bailouts or letting a member nation fall. Letting a member nation fall has undesirable contagion effects.
Possible solution: Greece agrees to leave the eurozone in exchange for swap lines from the ECB. Debt goes down through devaluation and ordinary greeks don't starve. Wildcard is still the contagion effects.
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