That makes no sense, if there budget was balanced, they wouldn't have had to implement austerity to pay back their creditors.Non-sequitur argumentIn a year or two.Not in the long run, you are simply wrong.
Define long run.
They need a devalued currency to boost exports and the overall economy.
Absolutely. And with that devauled currency comes less oil and other imports.
Austerity(spending cuts and tax hikes) has gutted their economy and since it was implemented unemployment has risen in a parallel fashion.
And a huge currency devaluation also leads to spending cuts.
They would be better off defaulting like Iceland did and taking the short term hit.
Iceland didn't need huge gifts from other countries to finance a bloated welfare state.
Greece is dependent on their exports, most notably their shipping/maritime industry. There wasn't an energy crisis when they had a weaker currency before the Euro
Doesn't lead to spending cuts if you default on the debt agreement, which is what they should do.
Austerity isn't a gift, it has been the death of their economy. If investors don't like the default, tough shit, they made a bad bet and should have never let Greece into the EU to begin with.
They're dependent on borrowing.
What has their deficit been the last few years, excluding debt payments?
What's the projection for this year and next?
They'll have to cut spending to get into balance. Like I said, they'll look back on this austerity with nostalgia. The good old days.
Why don't you google it?
If they default, they won't have to pay off the debt or "balance".
If their budget was balanced already, they could default and not cut spending.
It's not. If austerity was tough when the EU was giving them money, it'll be worse when the EU stops.
That makes no sense, if there budget was balanced, they wouldn't have had to implement austerity to pay back their creditors.
They had to implement austerity because their creditors weren't going to keep throwing more money at Greece. Screwing their creditors does not make more money available for their excessive social spending.