Good news - real fall in inflation!

[BlasterBates]

Lessons from Argentina

...and what's the downside ?

Several thousand newly homeless and jobless Argentines found work as cartoneros, or cardboard collectors. The 2003 estimation of 30,000 to 40,000 people scavenged the streets for cardboard to eke out a living by selling it to recycling plants. This method accounts for only one of many ways of coping in a country that at the time suffered from an unemployment rate soaring at nearly 25%.[45]

i.e. Thousands of Argentinians had to go and live in cardboard boxes.

Argentine economic crisis (1999

That was what happened when they dumped the IMF austerity and defaulted.

[BrilloPad]

i.e. Thousands of Argentinians had to go and live in cardboard boxes.

That is because all bank deposits were frozen. Which is what will happen if a weak country is forced out of the Euro.

[DodgyAgent]

...and what's the downside ?



i.e. Thousands of Argentinians had to go and live in cardboard boxes.

Argentine economic crisis (1999

That was what happened when they dumped the IMF austerity and defaulted.

They most certainly did. The difference being that with someone with your grasp of economics in charge they would have all been living in cardboard boxes.

[sasguru]

...and what's the downside ?



i.e. Thousands of Argentinians had to go and live in cardboard boxes.

Argentine economic crisis (1999

That was what happened when they dumped the IMF austerity and defaulted.

There were plenty living in boxes under IMF austerity.
The fact is that the depression and contraction in GDP from 1999 to 2002 ended in the first quarter after Argentina defaulted and they grew steadily from then on.

[AtW]

Then for 6 years you will not be able to borrow money meaning you will have to live within your means. Once you have achieved this then it is likely that lenders will look upon you favourably once again. The same will go for Greece.

You have not explained so far why would someone lend to Greece in their own currency when it will keep depreciating? They'll have massive inflation for years to come and very soon 1 euro will be worth 10000 drakhms.

[BrilloPad]

with a cheap hedge against dollar

Sounds like speculation to me. I am suprised you approve...

[BlasterBates]

The other thing to bear in mind is Argentina defaulted at a time when the world economy was booming. If Greece were to default messily it might cause a domino effect bringing the Eurozone to a collapse. i.e. Greece would be sitting there in a worldwide depression. It wouldn't necessarily bounce back like Argentina did.

[BrilloPad]

The other thing to bear in mind is Argentina defaulted at a time when the world economy was booming. If Greece were to default messily it might cause a domino effect bringing the Eurozone to a collapse. i.e. Greece would be sitting there in a worldwide depression. It wouldn't necessarily bounce back like Argentina did.

Greece will still have tourism. It should stick to what it is good at - with a floating currency it will be fine.

The other thing it could try doing is collecting taxes.

[Paddy]

If you go bankrupt you shed your debts and liabilities. Then for 6 years you will not be able to borrow money meaning you will have to live within your means. Once you have achieved this then it is likely that lenders will look upon you favourably once again. The same will go for Greece. Their alternative is to spend lifetimes paying off huge loans. It is a simple proven concept that has worked for many years. It works with individuals and it works with sovereign states.

And it is this "janet and John" grasp of the reality of running an economy/personal finances that seems to elude idiots like you and the self serving socialists who dreamt up the Euro and who now run Europe

I agree with you 100%

[sasguru]

The other thing to bear in mind is Argentina defaulted at a time when the world economy was booming. If Greece were to default messily it might cause a domino effect bringing the Eurozone to a collapse. i.e. Greece would be sitting there in a worldwide depression. It wouldn't necessarily bounce back like Argentina did.

I'm pleased with the progress you're making. Last year you were saying this was just a storm in a teacup