Re:Devaluation is austerity done right
by nickik on Thursday June 14, 2012 @11:13AM
(#4111663)
I agree that most countrys dont acctually do Austerity but I think some of these countrys are to far for austerity to work, they have to default.
People say that is not possible because of the Euro but that is BS, even on the gold standard countrys defaulted.
The reason that greek can not just default is because of EU regulation not the Euro per se (or any common currecny).
The defaulting country would have to default, balance the buded and start again (update there democracy and constituion would be a plus). Real wages would have to go down, lifing standards would go down, government handouts would have to go down but it would set a sound platform for recovery. The EU could help with Aid for the people that got hit hardest.
They should have done that in 2008, like iceland they would be much better of now.
People say that is not possible because of the Euro but that is BS, even on the gold standard countrys defaulted.
The reason that greek can not just default is because of EU regulation not the Euro per se (or any common currecny).
The defaulting country would have to default, balance the buded and start again (update there democracy and constituion would be a plus). Real wages would have to go down, lifing standards would go down, government handouts would have to go down but it would set a sound platform for recovery. The EU could help with Aid for the people that got hit hardest.
They should have done that in 2008, like iceland they would be much better of now.