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FLPanhandle

(7,107 posts)

10. Greece has no real option

Reply to Stephen Retired (Original post)

Mon Jan 26, 2015, 09:10 AM

Jan 2015

They are bankrupt and still want to borrow money to cover a massive deficit.

Last time they went to the well to cover their costs, the EU balked unless they at least made some effort to balance their budget.

Now, the Greeks want to toss that agreement and are asking to borrow even more.

The Greeks can default and try to make it on their own revenue (ouch) or work a deal to borrow even more (ouch).

Somewhere along the way Greece needs to increase revenue (close all those tax loopholes) and decrease spending.

Getting off the Euro is also imperative but will also result in a forced balanced budget.

There is no leverage the Greeks have as they are basically the beggars here.

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Greece must bow to austerity or go bust, says EU [View all] Stephen Retired Jan 2015 OP

So we'll see who blinks first. n/t PoliticAverse Jan 2015 #1

Of course they believe that they hold all of the cards. TexasTowelie Jan 2015 #2

They hold the "if you want more money you have to do what we say" card. n/t PoliticAverse Jan 2015 #4

Syriza holds a higher card - without the interest payments, they think Greece wouldn't need money Yo_Mama Jan 2015 #29

And no one will invest in Greece. candelista Jan 2015 #43

Feeling good about that? JackRiddler Jan 2015 #61

What is your problem? candelista Jan 2015 #67

Same with the US Yupster Jan 2015 #44

Yes, but we aren't running the massive budget deficits as a percent of GDP Yo_Mama Jan 2015 #47

Don't disagree with you about Greece, truebluegreen Jan 2015 #52

Then the solution, is not to ask for anymore money from people you regard as crooks, I guess. freshwest Jan 2015 #56

"Radical Left" was the headline at washingtonpost.com, as well. delrem Jan 2015 #3

Do you see 'radical' as negative? muriel_volestrangler Jan 2015 #13

context is everything. delrem Jan 2015 #15

Unfortunately, I need some context for that gnomic utterance muriel_volestrangler Jan 2015 #16

Iceland did ok... Helen Borg Jan 2015 #5

As well as implementing austerity and borrowing billions from the IMF hack89 Jan 2015 #8

Actually Iceland still has a mountain of debt. DCBob Jan 2015 #23

The EU is demanding it be paid before they are allowed to join FLPanhandle Jan 2015 #24

Iceland recently withdrew its EU application. roamer65 Jan 2015 #35

And at the time had a debt of 50% of GDP not Greece's 177% whatthehey Jan 2015 #53

EU can't allow Greece to set a precedent. joshcryer Jan 2015 #6

Or Italy, Spain or Portugal. n/t amandabeech Jan 2015 #54

Like Venezuela . .. PosterChild Jan 2015 #7

Greece to EU: fuck off. blackspade Jan 2015 #9

They can certainly do that, but they must be prepared for the consequences. Adrahil Jan 2015 #12

Yes, they need to rethink their way of life and all. Helen Borg Jan 2015 #14

It has already caused massive problems truebluegreen Jan 2015 #55

Well, duh... Helen Borg Jan 2015 #58

Nice talking to you. nt truebluegreen Jan 2015 #63

The "duh" was not directed at you, FYI. nt Helen Borg Jan 2015 #64

The way the IMF goes about.... sendero Jan 2015 #65

Greece has no real option FLPanhandle Jan 2015 #10

There is always an option Jack Rabbit Jan 2015 #17

That is an option FLPanhandle Jan 2015 #18

There will be some short term pain involved, but the Greeks owe it to themselve to shorten the term Jack Rabbit Jan 2015 #22

They can get money from China or the BRIC Cosmic Kitten Jan 2015 #30

To whom do they owe the money? Dyedinthewoolliberal Jan 2015 #28

It's not just the old debt, it's getting loans to cover their current spend FLPanhandle Jan 2015 #31

But what I mean is Dyedinthewoolliberal Jan 2015 #36

Depends on how the government cuts their spending FLPanhandle Jan 2015 #42

Greece may not. DeSwiss Jan 2015 #51

This is fresh ----wait until the food supply is affected warrant46 Jan 2015 #11

That's like being given the choice of smallpox or typhoid. hobbit709 Jan 2015 #19

Go Tsipras! Bragi Jan 2015 #20

Severe Austerity against Germany lovuian Jan 2015 #21

There's some austerity going on right here at home elias49 Jan 2015 #25

Who will scold us? JustABozoOnThisBus Jan 2015 #27

According to Paul Krugman, ND-Dem Jan 2015 #37

Thanks, no idea of those stats. Could you link the Krugman piece, too? freshwest Jan 2015 #57

link: ND-Dem Jan 2015 #59

Thanks! He always breaks it down. I wish he was in the government sometimes... freshwest Jan 2015 #60

They have 9% of our debt madville Jan 2015 #62

If they're threatening Greece with 'going bust', Greece should return the favour Erich Bloodaxe BSN Jan 2015 #26

That is exactly the platform Syriza campaigned on. Yo_Mama Jan 2015 #34

That's the Argentina strategy, which has some advantages Recursion Jan 2015 #39

My gut feeling, which might be ignorant of important less than obvious factors Erich Bloodaxe BSN Jan 2015 #46

How about instead of the poor picking up the tab the wealthy actually pay taxes?? Fearless Jan 2015 #32

The Euro was a massive mistake. Dawson Leery Jan 2015 #33

The euro is the real culprit here, I agree. Divorcing monetary and fiscal policy was a stupid idea Recursion Jan 2015 #40

Greece may have to take another short term hit in order to recover. Dawson Leery Jan 2015 #66

Syriza will get something but not enough TooPragmatic Jan 2015 #38

Plenty of "marginal" European countries aren't on the Euro Recursion Jan 2015 #41

But Greece does not have a currency TooPragmatic Jan 2015 #45

Austerity of a singularity seveneyes Jan 2015 #48

Time to Bit the Bullet Sparhawk60 Jan 2015 #49

K&R DeSwiss Jan 2015 #50