Debt is like a backpack with rocks
Europe is in constitutional crisis. No one seems to have the power to impose a
sensible resolution of its peripheral countries' debt crisis. Instead of
restructuring the manifestly unsustainable debt burdens of Portugal, Ireland,
and Greece (the PIGs), politicians and policymakers are pushing for ever-larger
bailout packages with ever-less realistic austerity conditions.
http://www.guardian.co.uk/business/economics-blog/2013/may/23/eurozone-crisis-france-germany-kenneth-rogoff
What to do?
a)restructure = we can't pay so much so forgive us 50%---------> The north doesn't want this
b)Put some inflation in the system---------------> There is zero inflation
c)Get some growth-----------------------> if Europe cuts the cost of labor/taxes/energy bill,etc.... we might get some real growth. This is not going to happen.
What to do? We will need to restructure. Debt is like a backpack with rocks. People can not work with a huge backpack full of rock's. You can't move!
If Europe want to get away from this.
1.Restructure fast
2.No one will lend again to finance Greece, etc..... If they do it they will do it at their own risk
3.Greece will have to live with their own taxes.
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