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Spitfire
Ahhhhh.....denial, the standard response from those living a myth. Don't be too concerned about other countries and their debts - you don't have to pay them off, just focus on yours, and as a sign of genuine faith also payback the "haircut" everybody took to accomodate you to buy more time and allow some repayments to be made.
The sustainability of the debt is directly related to how hard you are prepared to work and the sacrifices you are prepared to make......not the charitable concessions gifted in order to pander to your lack of willingness to pay back what was borrowed at the appropriate market rates!
It's easy to understand, but not quite as simple as you make it out to be.... what's even easier to understand is that Greece borrowed more than it could afford to pay back at the time or in the forseeable future, reckless and negligent in the extreme ( mind you having done it on several occasions before, they had plenty of practice).
It's simple, spend less than you earn, stop borrowing more and pay back as much of the principal as possible as soon as practical! It doesn't just have to cut back a lot from the people, but from all areas.....spend less than you earn! It is a vicious circle .....if you let it be one.......spend less-earn more!
More denial! Focus on what can be done...spend less-earn more...not what can't be done- devaluing currency! Currency devaluing in only one of a myriad of things that can be done to be more competitive!
[QUOTEWhen Greece entered the Eurozone (2002) and made euro its currency, the value of the euro corresponded into 0,87 dollars. 12 years later the euro corresponds to 1,3 or more dollars.
This means that all countries have to be more competitive, but this rate of euro means that only the very strong countries can be competitive in reality, like Germany.
][/QUOTE]
Again more denial!!!!....see above, it's getting tiresome pointing out the obvious!
What has Greece given away?...rhetorical question...spend less- earn more FFS! The idea(l) of the EU is good in principal, but when it's member countries don't take note of the smallprint or are willing to sacrifice sovreignity for loans/money, or couldn't be stuffed keeping an eye on their masters in Brussels, they get what they deserve!
Actually we don't owe our arse. That's very simplistic. The debt is not much compared to other countries.
It's the sustainability of the debt that is under question and what this program is supposed to be for.
It's the sustainability of the debt that is under question and what this program is supposed to be for.
The sustainability of the debt is directly related to how hard you are prepared to work and the sacrifices you are prepared to make......not the charitable concessions gifted in order to pander to your lack of willingness to pay back what was borrowed at the appropriate market rates!
To make it understandable. Greece's debt corresponds to 170% of its GDP. This means that all the money it can make in one year (the 100% of the GDP) and 70% of the money in the second year (the rest of the debt) is what it owes.
So in order to be able to pay for the ever growing debt there has to be a way to sustain the the flowing of cash that go to the paying of the debt, mainly the interests from the debt.
This means that it has to cut back a lot from the people.
It is however a Vicious circle situation, as the debt increases and Greece cuts back more and more.
This means that it has to cut back a lot from the people.
It is however a Vicious circle situation, as the debt increases and Greece cuts back more and more.
Now, why is this a vicious circle? Because Greece, having the euro currency, it cannot devaluate it in order to be more competitive and have the chance to make more money. Nobody can, because it is a matter of the central bank of europe which is run by the germans, hence the Germans are the boss.
[QUOTEWhen Greece entered the Eurozone (2002) and made euro its currency, the value of the euro corresponded into 0,87 dollars. 12 years later the euro corresponds to 1,3 or more dollars.
This means that all countries have to be more competitive, but this rate of euro means that only the very strong countries can be competitive in reality, like Germany.
][/QUOTE]
Again more denial!!!!....see above, it's getting tiresome pointing out the obvious!
This has resulted into a situtation where a country, in order to keep up with that policy is giving away everything.
And this is what any country that wants to enter the E.U. should avoid.
Or avoid the E.U. altogether, which is a better idea overall.
And this is what any country that wants to enter the E.U. should avoid.
Or avoid the E.U. altogether, which is a better idea overall.
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