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View Diary: Don't Cry for Greece, Argentina (87 comments)

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  •  Different (5+ / 0-)
    Recommended by:
    Sparhawk, erush1345, randomfacts, Matt Z, Pozzo
    Got that Greece? How about you Italy? England? Oh and what do ya say, USA?

    The US and the UK have their own currencies. They do not have to default, they can always print more money to pay the bills.

    What will happen in the US is that money printing will continue and inflation will ultimately follow. As a result you will get your promised Social Security check ... it just won't buy anywhere near what you had hoped it would. Basically a stealth default through inflation.

    Greece will default and likely will eventually leave the Euro, though not the EU. Greece will not recover quickly. There are too many societal and structural problems to fix in short order. The problem is much much deeper than that faced by Argentina.

    "I can live with doubt and uncertainty and not knowing. I think it's much more interesting to live not knowing than to have answers which might be wrong". Feynman

    by taonow on Thu Nov 17, 2011 at 06:48:59 PM PST

    •  I doubt that... (1+ / 0-)
      Recommended by:
      Calgacus

      Argentina looks relatively stable now, but that makes it easy to forget how unstable they were back then. They were in the midst of food riots, documented starvation, crumbling manufacturing structure and completely corrupted political system. Yet they recovered from all that.

      Greece might have it bad, but it doesn't look like mass starvation is going on in the country right now. Overall, they look more stable than Argentina did when the default actually occurred.

      De air is de air. What can be done?

      by TPau on Fri Nov 18, 2011 at 01:11:28 AM PST

      [ Parent ]

    •  If this was easy (1+ / 0-)
      Recommended by:
      taonow

      for Germany, they would have facilitated Greece's exit which would have benefited Greece but not necessarily Germany.

      Greece will default and likely will eventually leave the Euro, though not the EU. Greece will not recover quickly.

      Germany and some other Euro countries are more invested in keeping Greece "hostage" that Greece itself. Because.... because the crisis is systemic and way bigger than the so-called Greek problem.

      It's a game of CYA and find somebody to blame.

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