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One should also remember that we see austerity implemented in countries that are nowhere near a sovereign default. It's a purely ideological thing, and doesn't actually help avoid defaults either.
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Jul 19, 2015 09:32
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IAMNOTADOCTOR posted:I don't get this sorry, Greece still has not had a sovereign default so the answer would be pretty good in terms of sovereign default? So if you had to pick which one has done more to keep Greece from defaulting, would you say that it's austerity or the rest of the Eurozone and the IMF lending them hella cash?
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Jul 19, 2015 17:36
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IAMNOTADOCTOR posted:The EU and IMF lending cash was contingent on austerity. So there's not really a choice to make between those two? So your silver bullet retort is literally the claim that austerity and loans are somehow inseparable on a conceptual level? That's a new one, I'll have to admit.
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Jul 19, 2015 19:47
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ColoradoCleric posted:See the reality is its better to renege on your payments and declare bankrupty because even with ruined credit you still have the meager hard cash of $5 in your pocket and this is a good way to run a country's finances. Leaving aside that a country's finances don't operate under the same principles as your finances, if you're insolvent then it's literally better to declare bankruptcy than to keep trying to pay back a debt that you can't afford. This is why bankruptcy law exists in the first place. ColoradoCleric posted:I wonder what Greece would have had to do to rack up so much debt where this even becomes an issue. You need to impose so much austerity that your GDP tanks by like a quarter in a few years. This is how you reach the dizzying heights of about 175% debt to GDP, even though the nominal value of the debt is lower than it was before the poo poo hit the fan.
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Jul 29, 2015 19:37
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