There was a large thread on this awhile back. This article might do a real good job of explaining why Germany does not want to for give any Greece debt. Pretty interesting that the issues in Greece allegedly allow Germany to balance its own budget.
In a fiat system one can really easily make the argument that all a country has to do is do well enough to make its debt payments and obligations and things will work out. On occasion, the fiat system will get caught up with two much junk and we will see a bailout or debt will have to be forgiven. Then the issue becomes who gets debt forgiven and who has to pay.
Anyway, I have read a little on Greece since it was really headline news. Supposedly, some of the austerity and collateral for loan forgiveness would be selling or giving rights away of their national treasures(beaches, statues, buildings)-I pretty much think that is the wrong answer. Not sure how they become anything other than a slave state if one takes away what I think is their largest money making industry(tourism).
I would think something along the lines of forgiving 10% of the debt, Greece revamping pension system for people under 50, making Greeks pay their taxes,and Greece removing a lot of its taxes and restrictions/rules on hiring and business control can be the more thorough plan mentioned by Germany in the article.
http://news.yahoo.com/germany-gained-100-bn-euros-greece-crisis-study-004849827.html
In a fiat system one can really easily make the argument that all a country has to do is do well enough to make its debt payments and obligations and things will work out. On occasion, the fiat system will get caught up with two much junk and we will see a bailout or debt will have to be forgiven. Then the issue becomes who gets debt forgiven and who has to pay.
Anyway, I have read a little on Greece since it was really headline news. Supposedly, some of the austerity and collateral for loan forgiveness would be selling or giving rights away of their national treasures(beaches, statues, buildings)-I pretty much think that is the wrong answer. Not sure how they become anything other than a slave state if one takes away what I think is their largest money making industry(tourism).
I would think something along the lines of forgiving 10% of the debt, Greece revamping pension system for people under 50, making Greeks pay their taxes,and Greece removing a lot of its taxes and restrictions/rules on hiring and business control can be the more thorough plan mentioned by Germany in the article.
http://news.yahoo.com/germany-gained-100-bn-euros-greece-crisis-study-004849827.html
