“Greece is about to find out what happens when one says, “FU! I’m not paying back a single dime you loaned me!” followed by, “Dude, I need to borrow some more money...”
Ironically, if a nation renounces its debt, lenders will line up to buy its bonds. A nation without debt has less risk. Greece has done that at least 5 times before. Spain is the default champion with at least 19!
To prevent an earthquake that ripples through the EU, they will accommodate Greece, no matter how they grumble.
You are absolutely right. EU Plutocrats are now shaking in their boots over the thought of Spain or Italy electing a government like this.
Don’t think so this time. What the rest of the EU fears is that if Greece is thrown a life preserver that will encourage other leftist governments like Spain to seek the same debt relief.
No, I think the Germany (let’s face it it’s the Krauts that call the tune in this case) will insist that the Greeks honor their commitments and if not they will let them default and go their own way with the drachma. The EU is strong enough now to weather that. And it will be an instructive lesson to other leftist governments who might want to try to skip out on their debts.