Greece's problem is probably an indicator of the world economy. The US itself has a national debt of about $17 trillion, but it's not suffering like Greece. IMO, this is due to the productivity of the US and the potential productivity for years to come. As such, many countries are willing to buy American bonds which in turn help to finance the government expenditures, including the payments for interests of previous bonds. Obviously, this trend can't go on forever. And the American public will have to fix this problem sooner than later.
Unfortunately, Greece has no choice in the matter. They don't want to pay the debts because it would drastically affect their standard of living. IMO, the EU leaders would have to adopt a "Marshall Plan" for Greece which is similar to what the Americans did for the European countries after WWII. If not, other countries in Europe, such as Italy, Spain and Portugal, could fall in the same trap of financial insolvency. With that scenario, a world economic depression could follow just as well. ---In FairfieldLife@yahoogroups.com, <s3raphita@...> wrote : Greece has decisively rejected the austerity package wanted by other EU members. What this means is unclear to everyone. Greece could be on its way out of the Eurozone and the fallout for the EU could be a long-term recession. It will end in tears whatever. Greece owes $330 billion. There are only 11 million Greeks! One article discussing the crisis mentioned that Britain once defaulted on its debt to the USA. I'd never heard of that one but it turns out that in 1934 Britain defaulted on war debts to the USA worth about $350 billion in today’s money. So virtually the same amount! Most people think we have paid the debt off, but we haven’t. So if you Yanks are short of cash you know where to look.
