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Re:Greeks Reject Bailout Terms by dkopi on Sunday July 05, 2015 @04:57PM (#9834927)
One thing's for sure, without countries to bail them out, without banks to lend them more money - the greeks will have no other choice but to increase their tax income and decrease their spending. Austerity as some might call it.
Re:Greeks Reject Bailout Terms by atmosx on Sunday July 05, 2015 @05:02PM (#9834955)
If the ECB keeps the current regime for another 2 to 3 weeks, then Greece might be "forced" to go back to the Drachma and devalue. At that point you don't need to increase tax incomes but you might have a series of other problems (control devaluations, impose capital control for an undetermined period, etc.) - but in the long run, might be positive (According, to Krugman, Stiglitz, S. Keen, etc.)
Re:Greeks Reject Bailout Terms by dkopi on Sunday July 05, 2015 @05:08PM (#9834982)
Inflating away debt is another form of increasing tax revenues. Also known as Seigniorage. It's just a more sophisticated way of collecting taxes, and it will harm the poorest greeks and middle class first.
Re:Greeks Reject Bailout Terms by Mikeb85 on Sunday July 05, 2015 @05:32PM (#9835102)
Take away the debt payments, they're already running a surplus. No new loans = no reason to pay creditors. This is a worse outcome for Germany than Greece...