The Economist has a piece on the Greek debt crisis.
Here is our question for the pundits.
Let's
say for purposes of calculation that there are ca. 10000000 Greeks (it
is actually more like 11 million) with a government debt of ca.
€300000000000 (some say 320 billion). Reduce both by 7 zeros and you get
ca. €30000 per Greek. The question then becomes why it was permitted to
loan out that kind of money to a basically non-industrial 3rd world
nation that has no structural basis to ever repay that kind of
exorbitant debt.
Is the indirect devaluation of the Euro over time actually a clever long-term financial plan instituted by strong nations via absurdly exorbitant lending to weak borrower nations? What other rational explanation is there?
