Lazarus411 on 28/11/2012 at 15:25

---

There's talk that if the Eurozone breaks up then it would cause a massive world recession. It's kind of weird that the whole global economy was/is dependant of the fate of a small country like Greece with a population of about 10 million people.

Pyrian on 28/11/2012 at 17:06

---

There's talk that a massive worldwide recession is what's stressing the European Union to the breaking point in the first place. :p It's not just Greece, though. Spain, Italy, and more are also having issues. Others, not so much, which of course makes the strain worse. The problem isn't that the EU is doing poorly as a whole, the problem is that some parts of the EU are doing so much worse than others that the coherence is gone.

The way I hear it, the shared currency has become a problem; normally, under similar circumstances, Greece's currency would be losing value against, say, Germany's. Nobody really likes falling currency values and the corresponding inflation of import prices and ultimately lots of things, but that would simultaneously relieve debt pressure and increase the competitiveness of their own offerings. (Furthermore, as Krugman likes to harp on, a country with debt in its own currency does not tend to default on its debt, as in its worst case scenario it can just print more, inflation be damned).

faetal on 28/11/2012 at 19:30

---

.

Renzatic on 28/11/2012 at 20:49

---

HIIIGGGGHHHHWWWWAAAAYYYY TO THA EUROZONE! EUROZONE!

Renzatic on 28/11/2012 at 21:45

---

OF DOOM