Austerity Finally Loses In Greece!

[Newpublius]

That is why they should just repudiate their foreign debt.

That would, of course, impose the very same austerity. They'd be locked out of the credit markets and they'd have to balance their budgets. They WANT TO consume more than they produce. Creditors need to wake up here and take note.

[Newpublius]

Can anyone explain how austerity helped Europe in general and Greece in particular?

Economic liberalization would absolutely help Europe in general. It would shift resources from their bloated unproductive public sector to the the private sector. That badly needs to happen.

[Peter1469]

That would, of course, impose the very same austerity. They'd be locked out of the credit markets and they'd have to balance their budgets. They WANT TO consume more than they produce. Creditors need to wake up here and take note.

They are at the point where nobody is going to give them anymore good deals. They need their own currency, devalue it, and tell foreign creditors to toss off.

In the old days that would cause a war, but Europe is a bunch of p-words these days. This is their best course of action with all bad options.

[Ransom]

Course.....who are we to criticize Greece.

https://www.cbo.gov/publication/49892

[Howey]

Course.....who are we to criticize Greece.

https://www.cbo.gov/publication/49892

And there you have it!

The inevitable comparison of the multibillion complicated economy of an entire nation to that of Greece, who's economy is basically the size of the State of Oregon.

[Howey]

Massive fail, @Ransom

[The Sage of Main Street]

That is why they should just repudiate their foreign debt.

Didn't Iceland tell the Banksters to shove it? And the dire consequences that Greedhead oinkonomists predicted for them never happened?

Third, predatory lenders always brag about being brave risk-takers and then want to get bailed out when their gambles don't pay off.

[Peter1469]

Didn't Iceland tell the Banksters to shove it? And the dire consequences that Greedhead oinkonomists predicted for them never happened?

Third, predatory lenders always brag about being brave risk-takers and then want to get bailed out when their gambles don't pay off.

Yes, Iceland refused to use tax dollars to pay banker debt. Their economy crashed but came back fast.

[Ransom]

Massive fail, @Ransom

Typical answer for someone who didn't read the link...but then wouldn't understand it anyway.

Thought you were leaving.