Interesting it will be. Germany says 'no debt writedowns will be accepted'. Greece says they dont want to write down anyway. I guess they just wont pay.
Greece will roll back at least some of the austerity measures.
So, you have Greece that owes a motza now. And cannot repay the motza. And will go into debt more motzas (actually who will lend to them).
So, you have a broke country (drug addict) that refuses to stay on the program set up for it to withdraw from its habit. It simply says 'being off the money (drugs) is too hard, we refuse to do it'
Greece bonds now surge to almost 11%. (Do you want to hold Greek bonds that return you 11%)
There only one possible outcome
1) Greece will declare it will repay NIL of its debt; it will do an Argentina
2) Greece will leave the EU
3) Greece will then print money to pay for the ongoing internal money splash to keep voters happy
4) Greece currency will crash and people will be crushed, become super poor, by inflation
So, in 5 to 10 years, Greece will be one of the poorest countries on earth, run by corruption and remain a world leader in human trafficking.
But at least the next year will be (superficially) better than the last year. That is the way pollies and voters work... just give us goodies now, and leave the consquences to the babies.
What you see in Greece will begin to happen in country after country. Culminating in the USA. YOU CANNOT LIVE ON PONZI DEBT FOREVER.
