are the options?
According to a Bloomberg article, Greece can either have the debt restructured, haircut,
or devalue its currency.
I believe that debt restructuring and haircut should happen because Greece cannot
simply pay back the money and the IMF agrees and EU knows. However, the debt
restructuring should be conditional on making reforms and making achieving milestones.
I pray that the Greek people can put their act together instead of protesting because
that will only make things worse. Burning and destroying does not add to GDP...
Devaluing currency is a possibility but it is uncertain whether it will work. Yes, it will make
Greece more competitive but also broke....
So how do we solve this problem? Well, the best case scenario is that Greece sells some
unnecessary assets and increases productivity, which seems quite far away right now.
But given that Greeks are smart and accomplished (Yes, western civilization advanced
there the most), I am sure they will figure it out. At the mean time, we can
help by going on vacation to Greece and also mentoring Greeks who are willing to push it
through.
From Snapshot Serengeti
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