That is a real possibility. Which is why you immediately pay all debts in the new Greek Drachma. New Drachma, new tax code, new business regulations. Greece should be open for business on day 1. Creditors become the first new investors, willing or not.LawBeefaroni wrote:If I can read between the lines, I think Drazzil is saying that a cheap currency will lead to lots more tourism and new manufacturing industries.
But I don't see that happening.
I see breakdown in public services and infrastructure, which would make tourism and manufacturing less appealing. And the cheap currency will just lead to high inflation with the Euro or USD being preferred.
The only way that the New Drachma would work the way Draz envisions is if they announce it far in advance and everyone immediately speculatively invests in manufacturing and tourism before it is rolled out. Which no one is going to do. They'll wait and see and by the time they do, Greece will be in the throes of hyperinflation.
Regardless of what happens this sucks for everyone. Also, this one huge downfall of a globalized economy. Everyone depends on everyone.