Greek Austerity Measures...

[DodgyAgent]

The country doesn't seem in the tulip, far from it, thats all I was inferring. The pedantic comment was just that; Repsol doesn't/didn't own the company, they were in partnership, something to do with the original privatisation of it.

It didn't destroy the middle class, but certainly shafted them. I am not too sure they're being persued for money either, but I genuinely don't know, I just assumed if you defaulted, you defaulted and that was that.

I think it is a fair example of what will happen, and I'd live there, Argentina. Quite enjoyed it. I don't think Germany counts either. Whilst I understand 'extreme example' I don't think being bombed to **** by Americans/Russians/British, then being shaved apart by the allies, then being in the middle of a giant experiment in large scale communism is the same. I lived in Berlin in the late 60's/early 70's and it was ace.

Were you imprisoned during the war and stayed on afterwards?

[Old Hack]

Were you imprisoned during the war and stayed on afterwards?

No, My father was in the military. I still love Berlin, and it's a great place to visit.

[The_Equalizer]

The country doesn't seem in the tulip, far from it, thats all I was inferring. The pedantic comment was just that; Repsol doesn't/didn't own the company, they were in partnership, something to do with the original privatisation of it.

It didn't destroy the middle class, but certainly shafted them. I am not too sure they're being persued for money either, but I genuinely don't know, I just assumed if you defaulted, you defaulted and that was that.

I think it is a fair example of what will happen, and I'd live there, Argentina. Quite enjoyed it. I don't think Germany counts either. Whilst I understand 'extreme example' I don't think being bombed to **** by Americans/Russians/British, then being shaved apart by the allies, then being in the middle of a giant experiment in large scale communism is the same. I lived in Berlin in the late 60's/early 70's and it was ace.

Fair enough and, yes, I presume that if Greece dropped out of the Euro it would be pretty grim for a while, but better in the long run. I can't see them doing much else and have a sneaky feeling that that amount of cash being withdrawn from Greek banks at present might well mean things are decided before their next election.

[d000hg]

Is it possible for the greeks to default but keep the Euro?

I didn't see this answered - why does a defaulting country automatically leave the Eurozone?

[BigTime]

I didn't see this answered - why does a defaulting country automatically leave the Eurozone?

It doesn't. There's currently no means for it to leave the Euro.

[Diver]

No, My father was in the military. I still love Berlin, and it's a great place to visit.

I like Germany. My wife was an army brat. She was born in BMH Iserlohn one of the British Army Of The Rhine army hospitals. Her father was an RSM with The Royal Welsh Fusiliers based in Germany at the time before he took a posting in Hong Kong where my wife lived from the age of 7 until she was 14.

[BlasterBates]

I didn't see this answered - why does a defaulting country automatically leave the Eurozone?

Indeed....

But the problem is the Greeks wouldn't be able to print money nor issue bonds (well they can but no-one including the ECB will buy them).

This means either they hand out IOU's to their government employees or they introduce Drachma's and print them. One could argue there's no difference because the Drachma would be worthless, and that would be true. But by handing out monopoly money, the government can blame capitalist markets for their woes, it's psychological. A currency is nothing but a token of trust. In the end it's just a piece of paper and promise from a government that everyone believes (or not).

[Old Hack]

Fair enough and, yes, I presume that if Greece dropped out of the Euro it would be pretty grim for a while, but better in the long run. I can't see them doing much else and have a sneaky feeling that that amount of cash being withdrawn from Greek banks at present might well mean things are decided before their next election.

Me too, to be honest. I reckon the Greeks have already decided, and the ones that make the decisions at that. Might be simply forcing the Germans hands.

We'll see, but all the noise coming from Germany and UK (this is a referendum...), will probably harden resolve.

Going to be an interesting couple of years.

I quite like Greece too....

[BrilloPad]

Indeed....

But the problem is the Greeks wouldn't be able to print money nor issue bonds (well they can but no-one including the ECB will buy them).

This means either they hand out IOU's to their government employees or they introduce Drachma's and print them. One could argue there's no difference because the Drachma would be worthless, and that would be true. But by handing out monopoly money, the government can blame capitalist markets for their woes, it's psychological. A currency is nothing but a token of trust. In the end it's just a piece of paper and promise from a government that everyone believes (or not).

Sorry - but what is to stop them printing the bits of paper? Sorry if I am being thick.

[Old Hack]

Indeed....

But the problem is the Greeks wouldn't be able to print money nor issue bonds (well they can but no-one including the ECB will buy them).

This means either they hand out IOU's to their government employees or they introduce Drachma's and print them. One could argue there's no difference because the Drachma would be worthless, and that would be true. But by handing out monopoly money, the government can blame capitalist markets for their woes, it's psychological. A currency is nothing but a token of trust. In the end it's just a piece of paper and promise from a government that everyone believes (or not).

I agree with all of this. They'll reissue the Drachma, I am sure, and as long as it's still currency in the country, and they stop capital flight, and a few other things....

I reckon it will be bedlam everywhere for a year or so, then it will go back. Banks will eventually lend to them again, as thats the nature of banks.