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Friday, August 14, 2015

Have Inflation "Repay" Greek Debt And Growth Reduce Indebtedness!

"The Greek Godfather would say to the official creditors something like this: 'I’ll make you an offer which you cannot refuse. I will do you the favor of repaying your loans down to the last Eurocent. Not today, but in 50 years from now. All I ask you in exchange is that I don’t have to pay interest during those 50 years. That will make a world of difference to me and you will hardly feel it'."

3 comments:

  1. it will come, one way or another.

    But there are sublayers I would like to understand beneath the more general suggestion that "the Greek" have to suffer due to being forced by the European Behemoth to suffer for the benefit of German banks. Or implicitly that German banks would have failed without making the Greek people suffer.

    I allude to YV and his highly manipulative annotated versions on the latest agreement. Memorandum of Understanding

    It no doubt could have been better then it is, but never mind here isOriginal version, without polemics

    Without any doubt at all, it could have been clearer.

    Serious critiques or help concerning YV's polemics?

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  2. The reason that Greeks want a debt haircut is so that they regain access to the markets and start borrowing anew.

    Should this happen, the beneficiaries are going to be the same old groups: public servants, privileged pensioners, protected professions, contractors of public works, and generally speaking groups that are connected to the system.

    Can Greece be saved? No. The damage done by 30 years of corrupt unmeritocratic policies is too deep to be undone. Attitudes largely remain the same. Greece doesn't know and doesn't care to generate value. In fact, it opposes generating value, cause once it does, the old system will lose it's grip on the economy.

    It's a sad story, the tale of modern Greece is.

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    Replies
    1. I would guess that the agreements are such that Greece's borrowing (assuming it could get market access again) would be governed/limited by those agreements. So much more so if the official lenders were to agree to a haircut.

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