The problem with the euro, a problem not forseen by those masters of intelligence who brought us the banking crisis
they can't inflate out of the problem. INflation is normally the issue of last recourse with a countrywide inability to repay debt. Inflate the currency and the debt magically disappears. A standard course of action that be.
Euro..one or two or three of more hold the debt in euro. The non debtor nations hold no debt so the euro cannot be debased significantly.
Germany and others would be left holding the financial bag.
So...the pickel they are in and the various strategies to remedy the defaults.
My guess....eventually nations pull out of the euro(or get thrown out) or(lesser chance)....a two currency euro occurs. ONe for debtor nations and one for not.
Debts of all sorts and kinds are defaulted all the time, always have been in a historical context, nations corporations individuals. WE could look at financial history as going from one default to another in a very large time contest, it is that common. Though defaults take many sundry forms some quite covert. The notion this spells the end to all social programs is a new wrinkle to the issue in this particular place and time.
Political agenda that be..little related to the issue. A worker being able to retire at 65 as opposed to 55 in say greece....it is easy to see how that little relates to the scope of the debt greece is faced with. What amazes me is that people eat that stuff up with not a question.
Yes....never looking at the mechanism behind the debt where it originated where it comes and where it goes and who benefits by its movements to credit or default. ...the real story...not pap for the masses to digest.
Iceland...refused the debt, by public policy refused to cover the bankers in their play(still being sued on that)....just had their bonds reset,,,none the worse for wear..
Argentina before that.....those stories you will not hear...what happens when they the people refuse to pay.....exactly what......Iceland is what....
or believe their phantasy.
"This order considers that progress can be achieved more rapidly during a single month of self-transformation through terrifying conditions in rough terrain and in "the abode of harmful forces" than through meditating for a period of three years in towns and monasteries"....Takpo Tashi Namgyal.