Why is a Greek default a big deal?

piezoe · May 16, 2012

Quote from Random.Capital:

It appears they are being a bit smarter than that - buying up long-term access to resources ex-USA instead. It's a tricky business - "nationalizing" is always a threat - but it's certainly better than blowing it all on hookers and blow in Vegas or buying the Rockefeller Center for a zillion dollars.

That is, indeed, clever. And a shrewd move on their part.

zdreg · May 16, 2012

Quote from Random.Capital:

It appears they are being a bit smarter than that - buying up long-term access to resources ex-USA instead. It's a tricky business - "nationalizing" is always a threat - but it's certainly better than blowing it all on hookers and blow in Vegas or buying the Rockefeller Center for a zillion dollars.

or pebble beach california.
they learned from japan's mistakes.

jem · May 16, 2012

The financial lie of debt financing is up.
Its time to rewrite the book.

The U.S. needs to end this idea of debt financing and just make one big print... retire our debt at once and never issue another bond.

That should go a long way to balancing our budget.
End some wars, pull in the troops and cut every salary and govt budget by 3% a year til we balance.

Why is this so hard to envision? Because we have bought into this debt financing crap.

If greece dropped out of the Euro that would be like their big print.

If they then balanced their budget they would be better off.

The whole issue is that Govts are not living on balanced budgets...

Guess what its all relative... if everyone balances their govt budgets and deflates together, we all revert to our proper standards of living. The only ones screwed are the people making money off the debt.

After that... it will be back to the competition. Those govt which do not overspend and over tax will experience real growth.

piezoe · May 16, 2012

Quote from jem:

The financial lie of debt financing is up.
Its time to rewrite the book.

The U.S. needs to end this idea of debt financing and just make one big print... retire our debt at once and never issue another bond.

That should go a long way to balancing our budget.
End some wars, pull in the troops and cut every salary and govt budget by 3% a year til we balance.

Why is this so hard to envision? Because we have bought into this debt financing crap.

If greece dropped out of the Euro that would be like their big print.

If they then balanced their budget they would be better off.

The whole issue is that Govts are not living on balanced budgets...

Guess what its all relative... if everyone balances their govt budgets and deflates together, we all revert to our proper standards of living. The only ones screwed are the people making money off the debt.

After that... it will be back to the competition. Those govt which do not overspend and over tax will experience real growth.

Jem, you continue to amaze and astound.

KINGOFSHORTS · May 16, 2012

Greece will be better off once the go back to the Drachma. It will make the country inexpensive for tourists.

Greece produces nothing,has no natural resources it can leverage and the only thing that they can offer is tourism.

If you make tourism cheap and affordable again, they will see lots of Gringos throwing money around and the economy of Greece can get back to what it should be, servicing tourists.

syrre · May 16, 2012

because many others will try to follow. there are several nations in worse shape.

zdreg · May 16, 2012

Quote from KINGOFSHORTS:

Greece will be better off once the go back to the Drachma. It will make the country inexpensive for tourists.

Greece produces nothing,has no natural resources it can leverage and the only thing that they can offer is tourism.

If you make tourism cheap and affordable again, they will see lots of Gringos throwing money around and the economy of Greece can get back to what it should be, servicing tourists.

i have never heard of chinese refer to as gringos

ammo · May 16, 2012

Quote from zdreg:

no country has ever inflated its way to prosperity. it usually leads to an adolph hitler or juan peron and economic disaster.

"]Thats what I am thinking. ECB just needs to do what the US is doing and print out the debt. And for Europe if they have a cheaper currency it makes them more competitive in the global economy."

competitive devaluations, as u are suggesting, will lead to a depression just as it happened in the 30's.

the loans are in monopoly money,printed fiat currency,greece leaves, prints out 100 billion drachma and sends half of them to the ecb,problem solved

mgabriel01 · May 16, 2012

Quote from morganist:

The Yuan is difficult because it is pegged to the USD. All precious metals are good. I like silver palladium is good also. Mining stocks are good. In terms of currency I would go with Australia, New Zealand, Canada, South America maybe. To be honest it is hard to get good investments. Also I have suspicions the government will come and take any assets of value away soon to "Pay off the deficit".

The Swiss Franc might be good but they have capped to avoid such a currency transfer.

The Yuan is not difficult, its impossible. It's printed by a government that is not accountable to anyone and can change the rules of the game (at least internally) any time it chooses.
Its a very rigged game today!

mgabriel01 · May 16, 2012

Quote from Random.Capital:

It appears they are being a bit smarter than that - buying up long-term access to resources ex-USA instead. It's a tricky business - "nationalizing" is always a threat - but it's certainly better than blowing it all on hookers and blow in Vegas or buying the Rockefeller Center for a zillion dollars.

Pebble Beach would be a steal at 750 Million!
Bwahahahahahah