Greek debt crisis demonstrates perils of lending to your euro friends

[johnyj]

"The war is over; let the occupation begin."

The occupation is wanted by Greeks thyself. If they didn't taken all those money (credits) without thinking that are not their money and that one day must be returned back (even with interests) now it wouldn't be in all this mess. But they wanted to make the good life without thinking to much about from where come the money which gave them this kind of life and that to make that needed work and not credits. I would tell better: let's work begin. If they work hard had chances to be free again.

https://en.wikipedia.org/wiki/Government_debt

All the governments do this today, look at the national debt of US/Japan/Germany, they are magnitudes larger than Greece and they will never be able to repay. However all these other governments' central bank can always print new money and lend it to their government to pay back their old debt, while Greece central bank does not have this right because Euro is printed by ECB, that's the fundamental problem for Greece

Japan for example has much worse debt to GDP ratio than Greece, so they have experienced slow growth for almost 20 years, but still they do not need to ask for another nation's permission to print new money to pay back the old debt

Your analysis is not correct. No one of debt mentioned by you of the country above is like the Greek debt. Nor in structure and nor from where is. And nor (that is important) unsustainable like it is the Greek debt. Tell me from what country has taken money Germany or Usa and from which country they had impossibility to pay that debt (if exists). Greeks had money without worked, Greeks has cheated (with false financial data) to have that money, Greeks has cheated to enter in EU (falsified the balances and the financial data). Greeks has in its nature doing this things because is the five time that succeed this situation in its history. In the Greece half of the people don't pay the taxes of hide the financial data to not pay the taxes. Greeks had the money of the others and had voted to not give back the money to the owners. Do a search in internet and you will find all those data. Tell me which of countries mentioned by you had doing these things? Which, among others, are the countries (part of those) which have give the money to the Greeks.

To help you a little I give this article about the habit of the Greeks to take the money of the others and to not want to give them back those.

http://finance.yahoo.com/news/a-brief-history-of-financial-crises-in-greece-214114194.html

Did you read that wiki article about government debt?
https://en.wikipedia.org/wiki/Government_debt

Let me quote this for you:
"Government bonds are sometimes regarded as risk-free bonds, because national governments can raise taxes or reduce spending, and in extreme cases they can "print more money" to redeem the bond at maturity. Most developed country governments are prohibited by law from printing money directly, that function having been relegated to their central banks. However, central banks may buy government bonds in order to finance government spending, thereby monetizing the debt."

Just look at the facts: Japan's debt to GDP ratio is more than 214%, Greece is only 161%, why no one is blaming Japan? Because they simply print some Japanese Yen to solve their problem. Give the Greece central bank the right to print Euro, then everything will be back to normal overnight

[n2004al]

"The war is over; let the occupation begin."

The occupation is wanted by Greeks thyself. If they didn't taken all those money (credits) without thinking that are not their money and that one day must be returned back (even with interests) now it wouldn't be in all this mess. But they wanted to make the good life without thinking to much about from where come the money which gave them this kind of life and that to make that needed work and not credits. I would tell better: let's work begin. If they work hard had chances to be free again.

https://en.wikipedia.org/wiki/Government_debt

All the governments do this today, look at the national debt of US/Japan/Germany, they are magnitudes larger than Greece and they will never be able to repay. However all these other governments' central bank can always print new money and lend it to their government to pay back their old debt, while Greece central bank does not have this right because Euro is printed by ECB, that's the fundamental problem for Greece

Japan for example has much worse debt to GDP ratio than Greece, so they have experienced slow growth for almost 20 years, but still they do not need to ask for another nation's permission to print new money to pay back the old debt

Your analysis is not correct. No one of debt mentioned by you of the country above is like the Greek debt. Nor in structure and nor from where is. And nor (that is important) unsustainable like it is the Greek debt. Tell me from what country has taken money Germany or Usa and from which country they had impossibility to pay that debt (if exists). Greeks had money without worked, Greeks has cheated (with false financial data) to have that money, Greeks has cheated to enter in EU (falsified the balances and the financial data). Greeks has in its nature doing this things because is the five time that succeed this situation in its history. In the Greece half of the people don't pay the taxes of hide the financial data to not pay the taxes. Greeks had the money of the others and had voted to not give back the money to the owners. Do a search in internet and you will find all those data. Tell me which of countries mentioned by you had doing these things? Which, among others, are the countries (part of those) which have give the money to the Greeks.

To help you a little I give this article about the habit of the Greeks to take the money of the others and to not want to give them back those.

http://finance.yahoo.com/news/a-brief-history-of-financial-crises-in-greece-214114194.html

Did you read that wiki article about government debt?
https://en.wikipedia.org/wiki/Government_debt

Let me quote this for you:
"Government bonds are sometimes regarded as risk-free bonds, because national governments can raise taxes or reduce spending, and in extreme cases they can "print more money" to redeem the bond at maturity. Most developed country governments are prohibited by law from printing money directly, that function having been relegated to their central banks. However, central banks may buy government bonds in order to finance government spending, thereby monetizing the debt."

Just look at the facts: Japan's debt to GDP ratio is more than 214%, Greece is only 161%, why no one is blaming Japan? Because they simply print some Japanese Yen to solve their problem. Give the Greece central bank the right to print Euro, then everything will be back to normal overnight

Because the Japan is able to pay their debt and Greece not. Even if the debt of Japan is double of that. Because Japan work and Greeks don't. Greeks cheat their Government about the money and the Japan not. It is not problem of Central Bank. If Greeks will have Central Bank they will print money without ceasing. Money that don't justify their state of economy. Because they are accustomed to cheat and lie about everything and with everything. After every crisis they will print other money continuously. Going down and down. The money cannot be paid with new printed money (which is the thing that do the Central Bank) BUT WITH WORK.

[johnyj]

Just look at the facts: Japan's debt to GDP ratio is more than 214%, Greece is only 161%, why no one is blaming Japan? Because they simply print some Japanese Yen to solve their problem. Give the Greece central bank the right to print Euro, then everything will be back to normal overnight

Because the Japan is able to pay their debt and Greece not. Even if the debt of Japan is double of that. Because Japan work and Greeks don't. Greeks cheat their Government about the money and the Japan not. It is not problem of Central Bank. If Greeks will have Central Bank they will print money without ceasing. Money that don't justify their state of economy. Because they are accustomed to cheat and lie about everything and with everything. After every crisis they will print other money continuously. Going down and down. The money cannot be paid with new printed money (which is the thing that do the Central Bank) BUT WITH WORK.

Following this reasoning, ECB must get punished more than Greece people, because they never work, they just print money. Unfortunately, central banks print money, rest of the people work, that's how it works, and has been working for hundreds of years

"During the Early Modern era, European monarchs would often default on their loans or arbitrarily refuse to pay them back. This generally made financiers wary of lending to the king and the finances of countries that were often at war remained extremely volatile.

The creation of the first central bank in England - an institution designed to lend to the government - was initially an expedient by William III of England for the financing of his war against France. He engaged a syndicate of City traders and merchants to offer for sale an issue of government debt. This syndicate soon evolved into the Bank of England, eventually financing the wars of the Duke of Marlborough and later Imperial conquests."

"The founding of the Bank of England revolutionized public finance and put an end to defaults such as the Great Stop of the Exchequer of 1672, when Charles II had suspended payments on his bills. From then on, the British Government would never fail to repay its creditors. In the following centuries, other countries in Europe and later around the world adopted similar financial institutions to manage their government debt."