In all fairness, I said they'd get the *ability* to bring the spiral under control, I didn't say they'd actually exercise that ability :-) The way things are now they don't have the option of currency controls!. If they get the option there is still the possibility that they abuse it.

From Greece's PoV, it's better to have the ability to control and not need it rather than needing the ability to control and not having it!

The austerity measures proposed would leave them with indefinite debt that can never be repaid. If the option of staying in the EU means that they'll be debtors for the rest of time then they may as well take their chances and default on the debt instead - defaulting at least gives them a chance.

Think about it this way: Let's say you are in debt, and the only penalty for defaulting is lower credit rating. If your creditor asks you to sell your means of earning money (say, sell all your computing equipment, car and house) as part of "austerity measures" before they give you any more money, you are better off defaulting on the debt. Their austerity measures will handicap your ability to repay the debt anyway, so why not default?

This is the state that Greece finds itself in, and the EU knows full well that if a precedence is set regarding defaults then just about all the weaker/debtor economies in EU will consider defaulting as well. After all, countries leaving the EU can still trade with China, Middle East and the whole of Africa for essentials - maybe the Russians too. It won't be perfect, nor better, but it will be an option. Trading with the strong economies do not work so well when you don't control your own currency.

As simplistic as you think it is, it's happened before and it will happen again.

You appear to be under the impression that this doesn't happen often, of that if it does the results are as dire as you say. In actual fact it happens so often with few highly negative consequences that there is even discussion about how to stop countries simply inflating away their debt.

Yes, it is that common, and countries regularly do this with few highly negative results, mostly because they are already at the bottom and can only go up. Greece is in this position - bowing to the EU pressure for certain austerity policies might hurt far far worse than simply telling the creditors to fuck off and printing their own money.

Regardless of how simplistic you may think this is, the only chance they have might be to print their own money, albeit in a responsible manner. The austerity measures proposed seem to be punitive at best; such measures would definitely result in almost perpetual debt (Some other poster elsethread posted a very informative and insightful breakdown of *why* the austerity measures are worse for greece than simply printing their own money).

I don't understand what you mean by this (I'm serious, not being facetious): weak economies need to export goods and services/import currency. Greece doesn't need to worry about anyone wanting their drachmas - they should be trying to get dollars/euros/etc *in*, not drachmas *out*. Hence my reply to "printing money that nobody wants". Sure, nobody wants it outside of Greece, but a weak currency for Greece means that, for things Greece does not need to import, it becomes cheaper to live.

Sure - they'll pay more for iShinies and automobiles. But, they'll pay less for food (they *can* grow themselves) and a weak currency gives them more value on any goods/service surplus they possess. With the strong currency, it doesn't matter what austerity measures they take - they'll still drown.

PS. It's nice to have someone disagree on slashdot without first hurling insults about "crying manbabies", "clueless noob", "libertard/republitard", etc. Please keep up the good work :-)

Currency control is widely acknowledged as one of the levers used in directing the economy. Surely you are not proposing that currency control has no effect no the economy? After all, Greece probably won't care if no one wants their drachmas; creditors (like Germany) will have to either take it or forfeit the debt.

Managing the exchange rate is something a country can do if they print their own money. They can't do it if they have no control over the currency. Poor economies need weak currencies to enable profitable exports. Rich economies need strong currencies to enable profitable imports. Greece would do better with a weak currency than with a strong one at this point.

As I keep pointing out, weak economies have nothing to gain and everything to lose if they cannot control the production of their currency. The weakest EU member (currently Greece) will always be at a trade disadvantage if forced to use money not under their control. Weak economies use a mixture of both currency and interest rates to reign in a spiral. Greece can't do this if they're using the euro.

Hah! The EU would be much more harmed by a country leaving than the country that leaves. The country that leaves instantly get's the ability to control their economy. All the EU gets, OTOH, is the danger set by a precedent. Only the rich countries benefit from a common currency. Should all the poor countries leave those rich countries would be in more than a little trouble.

Why the arbitrary limit?

I heard it was waiting for her in an alley.

I found that gamers didn't make great Computer Programming students either. OTOH, many computer programmers love games.

What's the official stance on avians? ;-)

Look up the bike-shed problem.

You're confused. I'm in South Africa. I live here. We have never had hyperinflation. Perhaps you meant "Zimbabwe"?

Here - Eat your words: you said more than one comment floated to +3 If you aren't prepared to eat your words, you shouldn't say them!

Ah. So when you claimed that comments about women being unsuitable for tech were at +3, you meant in a different story?

That's actually quite funny, I assumed that you were making claims about that story. Why on earth would I suddenly post comments about different stories?

You made the claim that numerous such posts exists. I couldn't find even one. Neither can you, it seems. There's no point in replying anymore - you can't find an example of such a comment/post, and neither can I.

You said :

yeah, I don't believe you: prove me wrong and link to one, please.