Greece must reform or leave eurozone, says German minister

theguardian.com ^ | 4 December 2016 | Helena Smith

[kabar]

The EU is in a death spiral.

[arthurus]

Greece needs to D&D, default and decamp. The lenders knew what they faced but set all that aside. The situation is real. Greece will not and cannot repay. If When Greece defaults both sides of the transaction will suffer mightily for a short time. Greece will recover to its perennial but not terribly depressed third world status. If all goes as well as can be, the banks will collapse and be allowed to go away.

[arthurus]

Reagan faced a similar situation though we are in it far deeper now than we were back then. Reagan collapsed the system, let the air out of the bubble. There was “war”also but it took the form of ramping up and winning the Cold War.No one was “too big to fail.” When they all did fail the economy was much shrunk because the fat and the gaud returned to dust and the muscle was disencumbered.It gave us 20 years of prosperity.

[arthurus]

At some point I expect Turkiye to assume direct control of those islands and Greece to shrink back to the peninsula and the close islands.