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Economy

Taitertots

(7,745 posts)

20. They should have done it a long time ago

Reply to 1StrongBlackMan (Original post)

Sat May 12, 2012, 04:37 PM

May 2012

They are going into debt to pay the usurious interest rates on their debt.

Any austerity that would result from refusal to lend would have to be less than the austerity required to repay.

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29 replies

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I have an incredibly naive question ... [View all] 1StrongBlackMan May 2012 OP

Check out the recent history of Iceland Jackpine Radical May 2012 #1

Actually ... 1StrongBlackMan May 2012 #14

Agree with JackPine. Iceland is a reasonable model for what you're describing. Scuba May 2012 #2

Yep.... follow Iceland... MrMickeysMom May 2012 #3

Iceland didn't default on their soverign debt and they don't need a debt bailout. n/t PoliticAverse May 2012 #7

They didn't need to default on their sovereign debt.. girl gone mad May 2012 #10

Please explain what they did, then... MrMickeysMom May 2012 #11

A key difference between Iceland and Greece is Iceland has their own currency PoliticAverse May 2012 #17

I think I'm understanding the glossary of terms better... MrMickeysMom May 2012 #18

Greek Drachma IIRC FogerRox May 2012 #21

??? MrMickeysMom May 2012 #22

IIRC is If I Recall Correctly FogerRox May 2012 #29

This was a post an expat Icelander made here earlier OnlinePoker May 2012 #16

The problem with Greece is that... TreasonousBastard May 2012 #4

it's a bad analogy comparing national debts to credit cards. provis99 May 2012 #5

"Eventually every country has to pay its bills because the credit card will max out" girl gone mad May 2012 #9

Could you explain why? Revaluing a currency... TreasonousBastard May 2012 #13

Greece uses the Euro not their own 'fiat currency'. PoliticAverse May 2012 #6

Greece doesn't use fiat currency, they use the Euro. girl gone mad May 2012 #8

the euro IS fiat currency. ret5hd May 2012 #12

I meant specifically its own fiat. girl gone mad May 2012 #15

To keep this discussion going ... 1StrongBlackMan May 2012 #19

They should have done it a long time ago Taitertots May 2012 #20

Isn't it really about nationalizing banks thus ending reliability on phoney money? mother earth May 2012 #23

"how far off would the US be in doing likewise." dixiegrrrrl May 2012 #24

Thanks for the reply, dixiegrrrrl, I know our printing presses are in full force under the Wall St mother earth May 2012 #25

Indeed, you are correct. dixiegrrrrl May 2012 #26

"IMF is indeed pushing for a new currency." mother earth May 2012 #27

From Paul Krugman's site: mother earth May 2012 #28