Greece Debt spending is 10% of GDP, the real economic standard is down 12.3%, meaning Greece is yet another country in a prolonged economic depression. That level of deficit spending is never sustainable, and the problems are incredible - you might get away with it for a single year, but you then add to the core government commitments of spending - covering that deficit spending plus the interest on that debt. Two years, and you’re cutting out social programs just to service the debt. Four years, and you’re drowning in debt.
The choice is difficult, but real - If Greece tomorrow tore up all the debt, they’d still be in heaps of economic trouble, as they’re adding to their deficit in huge numbers each and every day. All that would happen with debt forgiveness is the need for it to be repeated over and over again.
Precisely. I have been trying to explain that to some people. It is mathematically impossible to bail out Greece as long as spending exceeds real and potential revenue. And it is a guarantee that isn't going to change.