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Thread: Quick Economic Question

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    Default Quick Economic Question

    I know this is probably not the most appropriate place, but I have to ask, people keep saying if Greece doesn't pass austerity it will go bankrupt. Question is....what happens when a country goes bankrupt, does it cease to exist, do they close all the businesses and ship people off to another not bankrupt country!!! Just wondering.

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    Quote Originally Posted by doodlebug View Post
    I know this is probably not the most appropriate place, but I have to ask, people keep saying if Greece doesn't pass austerity it will go bankrupt. Question is....what happens when a country goes bankrupt, does it cease to exist, do they close all the businesses and ship people off to another not bankrupt country!!! Just wondering.
    Greece is technically already bankrupt, where it doesn't have the money to pay its bills. Normally a country would print more money to cover the expenses, thus devaluing its currency. As Greece is linked to the Euro they obviously cant devalue.
    No all the businesses dont close !
    Come in she said "I'll give you shelter from the storm "

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    Quote Originally Posted by mellors View Post
    Greece is technically already bankrupt, where it doesn't have the money to pay its bills. Normally a country would print more money to cover the expenses, thus devaluing its currency. As Greece is linked to the Euro they obviously cant devalue.
    No all the businesses dont close !
    Thats what I thought, so basically the country continues, but because of the euro monetary system the EU keeps it running and paying its bills!!! sounds to me like they should just declare bankruptcy and avoid all the riots etc...

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    Quote Originally Posted by doodlebug View Post
    I know this is probably not the most appropriate place, but I have to ask, people keep saying if Greece doesn't pass austerity it will go bankrupt. Question is....what happens when a country goes bankrupt, does it cease to exist, do they close all the businesses and ship people off to another not bankrupt country!!! Just wondering.
    Countries have gone bankrupt before - Argentina about 10 years ago and Germany at the end of the 2nd World War.
    Germany became a very strong country again, when the process of their new economy took shape.

    Businesses close down, budgets have to be imposed and get back to basics.

    The barter system is the only way forward - exchange of goods and services

    Any ladies need some legal advice in exchange for a quickie

    Maybe some meat and veg in exchange for a massage
    Last edited by Forrest; 29-06-11 at 21:27.

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    If Greece go bankrupt that mean he cannot pay back its external debts, if Greece was not part of Euro zone is currency will be devaluted and became valuless. But because he is part of the euro zone the rest of euro zone cannot let that happened.
    Greece will go throught a hard privatisation (sell to private company many own state company) scheme, to get out.

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    Quote Originally Posted by Forrest View Post
    Countries have gone bankrupt before - Argentina about 10 years ago and Germany at the end of the 2nd World War. Germany became a very strong country again, when the process of their new economy took shape.

    Businesses close down, budgets have to be imposed and get back to basics.

    The barter system is the only way forward - exchange of goods and services

    Any ladies need some legal advice in exchange for a quickie

    Maybe some meat and veg in exchange for a massage
    I like the idea of bartering ! I have skills that i cant really say on here tho.
    Come in she said "I'll give you shelter from the storm "

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    Apart from the clear example of Argentia, the defacto reality is that both the US & Japan* are bankrupt- but they're "too big to fail".. Greece will be propped up yet again (just like IRL) but eventually someone has to pay the piper- perhaps the question to ask is- can the Euro continue to exist?- seems Ger & France are determined (for now) to ensure that happens but apart from Ger & the Netherlands, all of the EU is teethering on edge of the sherriff's collection vans- idk where this is leading but I don't think the endgame will be pretty

    ( national debt is 250% of GDP)

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    Quote Originally Posted by Franken996 View Post
    Apart from the clear example of Argentia, the defacto reality is that both the US & Japan* are bankrupt- but they're "too big to fail".. Greece will be propped up yet again (just like IRL) but eventually someone has to pay the piper- perhaps the question to ask is- can the Euro continue to exist?- seems Ger & France are determined (for now) to ensure that happens but apart from Ger & the Netherlands, all of the EU is teethering on edge of the sherriff's collection vans- idk where this is leading but I don't think the endgame will be pretty

    ( national debt is 250% of GDP)
    So the whole world will be bankrupt, owe money to the world bank!!!!! So why don't we just close the world bank, end of third world debt, end of first world debt....is this too simple, or is it just that a few billionaires would lose out?

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    Quote Originally Posted by doodlebug View Post
    Thats what I thought, so basically the country continues, but because of the euro monetary system the EU keeps it running and paying its bills!!! sounds to me like they should just declare bankruptcy and avoid all the riots etc...
    Possible that also the EU will stop paying the bills.
    And the riots might get worse.
    I feel no pitty for the Greeks

    Quote Originally Posted by sasha eve View Post
    If Greece go bankrupt that mean he cannot pay back its external debts, if Greece was not part of Euro zone is currency will be devaluted and became valuless. But because he is part of the euro zone the rest of euro zone cannot let that happened.
    .
    Actually the EU can let a bankruptcy happen and in my opinion it should!


    Quote Originally Posted by Franken996 View Post
    Apart from the clear example of Argentia, the defacto reality is that both the US & Japan* are bankrupt- but they're "too big to fail".. Greece will be propped up yet again (just like IRL) but eventually someone has to pay the piper- perhaps the question to ask is- can the Euro continue to exist?- seems Ger & France are determined (for now) to ensure that happens but apart from Ger & the Netherlands, all of the EU is teethering on edge of the sherriff's collection vans- idk where this is leading but I don't think the endgame will be pretty

    ( national debt is 250% of GDP)
    The US is highly in debts but they are only bankrupt if either they decide to stop borrowing further money or stop printing money. The US can and does inflate some of it debts away with the printing press.
    Regarding Japan - most of the Japanese debt is hold by the Japanese people - at very very low interest rates.

    Quote Originally Posted by doodlebug View Post
    So the whole world will be bankrupt, owe money to the world bank!!!!! So why don't we just close the world bank, end of third world debt, end of first world debt....is this too simple, or is it just that a few billionaires would lose out?
    No the debt structure is really different from country to country - American debt is mainy held by the British, Japanese and the Chinese, Japanese and German debts are mainly hold by their own people.
    Not billonaires would lose out if you wirte everything off - but also loads and loads of pensioners, insurances etc.
    Furthermore if debt is written off the country wil llose the capability to borrow again for many years to come - which is a problem in case you live beyond your means.

  13. Default

    If Greece defaults its declared bankrupt, it has no money to run the country also unable to pay peoples wages (teachers,doctors,nurses,police,army, and all other civil service workers) and then the Euro Zone is in serious trouble including the rest of the world who invested in Greece and the Euro.........................

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