[quote=Hatfield]
I think the only path forward is for Greece to default, exit the Euro, and inflate their way out of this mess. Greece is a tiny portion of the Eurozone GDP. The problem is when Italy, Portugal, Spain, and possibly Ireland all decide to follow suit, and I don’t see how that can be prevented one Greece establishes a precedent.

I really don’t see the Euro surviving, long-term.[/quote]

How do you inflate your way out of this mess? Why do people think oh we can just inflate this debt away, easy peazy? Do you have an example of a nation that inflated away it’s debt problems? I know of nations that have defaulted but none that just inflated the problem away.

The Greek government has to stop spending more than they take in revenue. Deficit spending via issuing new currency has the same effect on peoples purchasing power as just cutting the benefits. Maybe it’s easier from a legal perspective to pay pensions in Dracmas even though they don’t buy as much. The end result is the same.

Greece has already defaulted. Yeah maybe Germany and the rest of the EU members decide to kick the can again but any money they continue to give Greece isn’t going to be paid back. At this point any loans given to Greece should be treated as gifts.