Good news - real fall in inflation!

[DodgyAgent]

It is almost impossible for a weak country to leave the Euro. Its not exactly easy for a strong country to leave - but it is doable.

Why? Example?

[DodgyAgent]

And why would it?

There are no benefits at all - inflation will be x00% per year, default on euro bonds will prevent further sales of debt and who wants to buy bonds issued in quickly depreciating currency?!?

If greece were to leave the Euro its people would have to prove to the outside world that they would be worth lending to. A few years of pain, lesson learnt and then fast track to prosperity. If they stay in the Euro they will spend decades in poverty paying off debts with little or no hope of ever seeing prosperity again.

[BlasterBates]

Why? Example?

It's called poverty Dodgy....you know not having any money and living in a cardboard box.

It's basically what happened in Argentina, when 60% of the population ended up below the poverty line.

You might prefer to live in a cardboard box so as not to have the Euro, but most people would rather not.

[sasguru]

It's called poverty Dodgy....you know not having any money and living in a cardboard box.

It's basically what happened in Argentina, when 60% of the population ended up below the poverty line.

You might prefer to live in a cardboard box so as not to have the Euro, but most people would rather not.

Quite. It's what happened when Argentina followed IMF-prescribed austerity.
You're learning, finally.
God knows it took an effort to get the idea into your thick bonce.

[ChimpMaster]

Well everyone expects a recession so guess what? We probably won't get one.

Load up on assets I say.

[AtW]

If greece were to leave the Euro its people would have to prove to the outside world that they would be worth lending to.

Why would someone lend to a recent defaulter who did that because it was convinient way out and also why lend to someone who sells bonds in rapidly depreciating currency?

Big of demand for euro bonds is because it is denominated in reserve currency, with a cheap hedge against dollar (using their bonds) investment is reasonably safe.

[BlasterBates]

Quite. It's what happened when Argentina followed IMF-prescribed austerity.
You're learning, finally.
God knows it took an effort to get the idea into your thick bonce.

I see so when Greece leaves the Euro, defaults on it's debts and goes to the IMF with a begging bowl, the US and all the other countries are going to flood Greece with enough money to keep up their lifestyles.



I don't think so.

[DodgyAgent]

It's called poverty Dodgy....you know not having any money and living in a cardboard box.

It's basically what happened in Argentina, when 60% of the population ended up below the poverty line.

And once it had recovered the economy started to grow rapidly again. at least the Argentines were responsible for themselves. I dont know which planet you live on but I can only presume it is the one that grows money on its trees.
If a country spends too much and gets itself into to debt it learns and grows stronger even though it has to go through a few years of pain. Within the largesse of the Eurozone sovereign countries are hidden from themselves and their profligacy,they are artificially supported and never have the chance to recover. Eventually the whole Eurozone will blow up.

[sasguru]

Lessons from Argentina

[DodgyAgent]

I see so when Greece leaves the Euro, defaults on it's debts and goes to the IMF with a begging bowl, the US and all the other countries are going to flood Greece with enough money to keep up their lifestyles.



I don't think so.

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