Cyprus-Forum.com

[Get Real!]

Nikita, we are now talking about the 350 billion which Greece owes which is about 190% of Greece's GDP.

This is a noose around Greece's neck for the next 50 years. Any short term foreign exchange requirements pale into insignificance.

Greece needs the following:

1. a debt write down,
2. or be allowed to print.

Printing your own currency only satisfies internal needs (pensions, allowances, etc) like Nikitas explained but at the same time it ruins your chances of trading globally to pay off external debt because your currency will be worthless and credit ratings poor.

The alternative that creditors will probably want to hear is the ceasing of assets but I don’t know how that works at the international level.

[Paphitis]

No Greek official has mentioned default. They talk of restructuring and debt sustainability. The two are not the same. Are they?

It would be hard to convince the citizens of the other EU nations that they will be taxed because Greece decided not to repay loans. The accumulated ill will has a huge cost.

That is just a scare tactic to turn Europe against Greece and it has been very effective.

Let's face it, if Greece's debt to it's creditors is reduced by let's say 175 Billion, it is a drop in the ocean across an EU of 550 million.

But that is not what they are worried about, is it?

They are worried over the precedence. But I gave up worrying about the EZ a long time ago!

[Paphitis]

Nikita, we are now talking about the 350 billion which Greece owes which is about 190% of Greece's GDP.

This is a noose around Greece's neck for the next 50 years. Any short term foreign exchange requirements pale into insignificance.

Greece needs the following:

1. a debt write down,
2. or be allowed to print.

Printing your own currency only satisfies internal needs (pensions, allowances, etc) like Nikitas explained but at the same time it ruins your chances of trading globally to pay off external debt because your currency will be worthless and credit ratings poor.

The alternative that creditors will probably want to hear is the ceasing of assets but I don’t know how that works at the international level.

I disagree.

Australia is a mass exporter of resources and makes a big hoo hah about a devalued currency because it's good for trade.

[Get Real!]

Don’t be surprised if little Greek islands start swapping hands… they’re worth a fortune.

[Nikitas]

In the case of Argentina there was the seizure of their caadet training ship in Ghana, a huge prestige blow for a nation. I recall also a New York court passing judgement in favor of a hedge fund against Argentina last year.

Restructuring will defray repayment and hopefully the GDP will rise in the meantime and thereby bring down the ratio of debt to GDP. Though that has its own challenges, ie the change of the current anti enterprise attitude at all levels of the administration to a pro business environment.

As for the international acceptance of the drachma. Back when the drachma had a negotiated rate of exchange we could not use it out of Greece. Travelling or business involved getting foreign exchange locally from Greek banks and that had cost both in money and time.

Today there was information that Paypal has suspended dealings with clients using Greek credit cards and bank accounts. It sounds insignificant but it is not, many new and promising businesses, including IT startups use Paypal because local banks just cannot service their needs. This one affects me personally too though not critically, yet.

[Paphitis]

Don’t be surprised if little Greek islands start swapping hands… they’re worth a fortune.

Ftou ftou

Greece is not for sale!

A countries sovereignty is sacred! How many islands does Cyprus have to sell is also a question you need to ask yourself because your debt ratio is approaching 170%

Maybe you're next. Maybe it's all part of a bigger plan to take your resources for a song.

[Nikitas]

I know of two islands for sale, one is Patroclos, towards Sounion, the other is Petalioi in the south Evia bay. They have been for sale for as long as I can remember. Once potential buyers realise the cost of doing anything on an island they run.

[Paphitis]

I know of two islands for sale, one is Patroclos, towards Sounion, the other is Petalioi in the south Evia bay. They have been for sale for as long as I can remember. Once potential buyers realise the cost of doing anything on an island they run.

What gives Greece the right to sell the people's κληρονομιά;

[Get Real!]

I know of two islands for sale, one is Patroclos, towards Sounion, the other is Petalioi in the south Evia bay. They have been for sale for as long as I can remember. Once potential buyers realise the cost of doing anything on an island they run.

And what sort of money would they attract? The price that is...

[Get Real!]

I know of two islands for sale, one is Patroclos, towards Sounion, the other is Petalioi in the south Evia bay. They have been for sale for as long as I can remember. Once potential buyers realise the cost of doing anything on an island they run.

What gives Greece the right to sell the people's κληρονομιά;

It’s called the right of foreigners owing your arse.