True, and Risk/debt is a major function of Capitalism.
you might enjoy this: interfluidity » Greece
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What fact?
You think they’re going to get on boats and take that big army to California? Uhm, no.
Nuclear detente at the end of the day.
Read the post, or not…
I did, in fact. Your lack of clarity still exists but now I no longer care. 
Victory at last.
Eh, I think it would actually result in a lot of pain. The dollar is so strong (and thus confers on its users certain advantages in trade) partly because it been clear for decades that our official policy is that we would never try to pull that kind of crap. A target of a couple percent inflation per year is one thing, doing an intentional devaluation for that purpose would, IMO, cause the dollar to take a reputation hit that could reduce its use as a stable international currency and further devalue it.
Of course, international users might look around and decide that the dollar would still be the least bad option, so who knows.
To the topic at hand, they should have left when the first crisis happened. Haircuts all around, and they’d be back on the path of growth by now. Like in the States (I believe), bailouts just prolong the pain by delaying the inevitable adjustments/writedowns.
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It certainly is an interesting question–going from tbills that grow at what, 0.1% to a negative 5% in a year? It would hurt. But in the hypothetical scenario that we paid back china in full in one lump payment, the biggest hit would still be on social security, medicare, and medicade.
So if you upped taxes ~1% and directed all that revenue to stabilize Japan and all the BRIC countries, it would be a wash. Political suicide? Sure! Actual suicide by individuals? …likely. Suicide of a nation? Not even close.
Besides (giggle)…,“so what currency are ya gonna use NOW!? The euro? The renminbi?”. It’s terrible to say, but even with some deflation the dollar is still soooo much stronger than any other currency.
What is the most valuable unit of currency? The Kuwaiti Dinar?
Let’s just go back to the Pound. But not this new fangled pound.
NOTE FOR YOUNG PEOPLE AND AMERICANS: One Shilling = Five Pee. It helps to understand the antique finances of the Wichfinder Army if you know the original British monetary system:
Two farthings = One Ha’penny. Two ha’pennies = One Penny. Three pennies = A Thrupenny Bit. Two Thrupences = A Sixpence. Two Sixpences = One Shilling, or Bob. Two Bob = A Florin. One Florin and One Sixpence = Half a Crown. Four Half Crowns = Ten Bob Note. Two Ten Bob Notes = One Pound (or 240 pennies). One Pound and One Shilling = One Guinea.
The British resisted decimalized currency for a long time because they thought it was too complicated.
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All those lovely factors!
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Everything I know about British money I learned from my dad playing this song when I was little (it was on reel to reel!)
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thanks, I did enjoy it.
Angela Merkel when visiting Greece, was asked at customs - Occupation?
“No, just visiting”
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Apparently this inflation was one of the ways that Germany got out of their large debt problem post WWII, according to Picketty:
Why do people keep saying Germany didn’t pay it’s debt back? It either didn’t incur any, or if you are talking about war reparations they paid out quite a bit actually.
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But not all of it. Unlike certain winners of conflicts, the USA forgave most WWII debts in the end.
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Of course Greece wasn’t thinking about the possible negative consequences during a downturn when they were joining a currency union with stronger economies. They were concentrating on the lower cost of borrowing that they got after adopting the Euro. And they got those lower rates precisely BECAUSE they didn’t have the power to unilaterally devalue their currency.
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I just wanna say that I’m in love with Varoufakis for
- His clear and opinionated attitude in interviews last week (and smarmy insider
reticence shown then) - His astoundingly integrity-laden resignation this week, by getting out of the way after ripping the band-aid off. I’ve never seen a nobler political move taken.
- His personal awareness of the situation - in getting the hell out of Dodge right now (which has been my only suggestion to anyone who asked “What should Greece do now?” for while)
- His charming and smarmy and totally-informed interview presence in the 1993 interview linked to in this article at http://www.theawl.com/2015/07/three-things-to-read-about-greece - because its just so precious.
