As I added in my edit, Greece has a primary budget surplus. There would be no ongoing deficit.
Existing debt would be paid off with the expedient of default and currency devaluation, just as other countries have historically done. A little rough patch and then things look up. Seems a much healthier alternative than decades of economic suffering due to more and more austerity and the consequences thereof.
> there's no infrastructure to print new bills
I can't imagine that is a very hard problem to solve.
> On top of that, would Greece leave the EU? There's a lot of greek living and working abroad under the EU residence/work rules. Would such a vote not be perceived as a "No" to europe, effectively pushing greece out of the EU at least on a temporary basis?
Does leaving the Euro mean leaving the Eurozone? That's an honest question. I don't think it does, but I've heard this said before.
On your final point, I don't disagree: at least right now leaving the Eurozone is politically untenable. But I suspect that economically it might be the most sensible thing to do, and not just for Greece. Unless Europe forms a real fiscal union, this kind of madness will happen over and over.
All current debts are held in EUR or other foreign currencies. Currency devaluation won't help with the existing debt. I doubt a single creditor would accept exchanging EUR denominated debts to New Drachme.
> I can't imagine that is a very hard problem to solve.
Even the greek finance minister considers that a major roadblock.
> As I added in my edit, Greece has a primary budget surplus. There would be no ongoing deficit.
Greece had a primary surplus, it's tethering on the edge of not having a surplus any more. Greece desperately needs money to invest and kick-start its economy. And then there's still the IMF debt and the IMF always wants and gets its money. Even Argentina treated the IMF debts preferential. Who would step up and cover that?
However, I think it would be possible for the EU to agree to amend the contracts to allow Greece to leave the Euro while staying inside the EU, if Greece so wishes.
Greece, and Greeks, do have money. I am not sure what you mean. It's not as if Greece is the only poor country which imports most of its food.
Food prices have already been skyrocketing. As the article points out, austerity has tanked the Greek economy despite repeated predictions by European 'experts' that any minute now, austerity would cause Greece to turn a corner. Why do you think food prices would get substantially worse?
On top of that, would Greece leave the EU? There's a lot of greek living and working abroad under the EU residence/work rules. Would such a vote not be perceived as a "No" to europe, effectively pushing greece out of the EU at least on a temporary basis?
I'm not convinced that the Grexit is a workable alternative in a larger context.