Europe is destroying Greece’s economy for no reason at all

In the end, there seems to be only one reason to make Greece do more austerity, and it’s hard to see how it makes any sense. That’s to try to make it pay back what it owes. Indeed, one European official said that the entire point of this was that they ‘want to get our money back some day.’ The problem, though, is it’s inconceivable Greece will ever do that. Many feel its debt should have been written down in 2010, but it wasn’t because it was ‘bailed out’ to the extent that it was given money to then give to French and German banks. The longer Europe demands this new debt be paid back, the longer Greece’s depression will go on. Now, it’s true that Europe has lowered the interest rates and extended the maturities on Greece’s debt so far out that, for now at least, it’s like a lot of it doesn’t exist. But eventually it will, and at that point they’ll either need to extend some more or hope that Greece has returned to growth.”

http://www.washingtonpost.com/blogs/wonkblog/wp/2015/06/23/europe-is-destroying-greeces-economy-for-no-reason-at-all/

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