Why did Greece default?

| February 21, 2012 | Comments (0)

People think that the reasons Greece defaulted are complex and difficult to understand.

That couldn’t be further from the truth.

Greece defaulted because they are living beyond their means

The truth is simple: The country as a whole borrowed money to feed its people, rather than having people work to produce what they 1-2=0?needed.

Greece will have to pay back someday…

When you borrow money, some day you will have to pay back. If you can’t pay back (which is now happening to Greece), others will stop lending you money, because they no longer trust you.

Then suddenly you will find yourself in a very difficult situation: Used to borrowing money from others as one of your primary ways to feed yourself, you are ill prepared to support yourself. Simply put, you have grown lazy and fat, just getting stuff for free all the time. It is not easy to suddenly change your ways and start producing stuff to earn your living.

…or pay the consequences

And then you will have to give up all the benefits you enjoyed all those years, move into a shitty apartment (if even that) and feed yourself on a cheap diet consisting of rise and beans every day.

Or, you will have to beg for money (bail-outs), in which case the people giving you money can put some conditions to giving you money, such as: “For your own good (and for mine, so that I don’t have to deal with your petty beggary in the future), if you want my money now, you will have to change your ways. You will have to get rid of all those luxuries you enjoyed, and actually start working to earn your living.”

The real reason why Greece defaulted

THAT is why Greece defaulted (well, is about to default very soon).

(And, of course, because they didn’t use a service like www.innervare.com. But that is too obvious to write about.)

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Category: Politics

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