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Greek PM warns of default chaos

2012-01-04 22:02

Athens  - Greece's prime minister says his debt-crippled country faces a disorderly default in March if it fails to secure a continued flow of international rescue loans.

Prime Minister Lucas Papademos says decisions made in the next few weeks, ahead of a new visit by international debt inspectors, will determine whether Greece will remain in the 17-nation eurozone or revert to its pre-2002 currency, the drachma.

According to a transcript from his office, Papademos told union leaders and employer representatives on Wednesday that Greece's international creditors have called for a re-examination of labour costs to boost lagging competitiveness and fight high unemployment.

He warned that, unless significant reforms are made, Greece will not receive its next installment of rescue funds.

Comments
  • Graziella - 2012-01-05 14:37

    The global financial system cannot go on as it has. If countries are insolvent they need to be allowed to default. That might sound like a recipe for disaster, but Argentina defaulted in 2002, froze the banks, declared its foreign debts void, and cut itself off from IMF funding – and since then, it's been the fastest-growing economy in fast-growing South America. Sovereign and corporation defaults are part of tooth and nail capitalism - you lend money to someone who's a poor credit risk and you risk losing your money. Reject bail-outs which simply prop up banks and which give the materialists further opportunity to buy assets. Default is the honourable option. It will preserve dignity, sovereignty and assets. We can start the new Green economy again from there, minus the precepts of greed. Another option for Greece would be to divorce itself from the European Union and engage in its own Quantitative Easing and not be dictated to from Brussels.

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