Default Is Best Way to Fix the Economy

[Politico]

"Finally"? Lots of people have been saying this since the beginning. Of course, the point would be to reach the opposite of 2006, not return to 2006. Still, I remain skeptical of this plan, because even if it did work, I'm not convinced it would be better than the status quo.

Oh come on.  These debts will never be repaid unless it is through reflation anyway.  We might as well recognize this. 

It is true the date we really need to return to is about 1969 or 1972, and yes, this would require massive redistribution and other improvements in State policy, but even erasing the debt would be a step in the right direction.

Yeah, the wonderful era of black and white TVs that managed to display NBC, CBS, ABC and PBS. Let's return to those days.

[Politico]

Yeah, the wonderful era of black and white TVs that managed to display NBC, CBS, ABC and PBS. Let's return to those days.

Would your quality of life be significantly lower because of black/white tv and a less network channels?

No, because I do not watch TV. But my life would be drastically less productive and enjoyable if we returned to 1969-1972 technology. The progress of the last forty years has brought us many wonderful products, and I believe today is better than 1969-1972 as a result.

My point was this: If you really believe 1969-1972 is the "Golden Era," what the hell are you doing on your computer right now?

[Politico]

It is definitely not an option for the smaller players like Greece, though. They wouldn't get any credits anymore after their default.

The Greek debt should simply be paid off by poof-money from the ECB.  

Its just air, guys.

Why should Germany endure any inflation because of Greece's recklessness? Why should responsible holders of Euros see their net worth take a hit because of irresponsible people in Greece? Kick Greece out of the euro zone, and then they are more than welcome to pursue Zimbabwe-style policies.

As for private debtors in the US, in most cases people are able to declare bankruptcy if they feel inclined or are forced to do so. In most cases, people made their bed, so they can sleep in it. One thing that is not even realistic is thinking these people can default and get access to credit immediately thereafter.

[Politico]

Why should Germany endure any inflation because of Greece's recklessness? Why should responsible holders of Euros see their net worth take a hit because of irresponsible people in Greece? Kick Greece out of the euro zone, and then they are more than welcome to pursue Zimbabwe-style policies.

As for private debtors in the US, in most cases people are able to declare bankruptcy if they feel inclined or are forced to do so. In most cases, people made their bed, so they can sleep in it. One thing that is not even realistic is thinking these people can default and get access to credit immediately thereafter.

You are totally blinded by your moralizing priggery, Politico.  Not only are these people not 'to blame' for their debts and misfortunes (these being caused by the capitalist system), you are only hurting yourself by trying to 'punish' them. 

You need to abandon this idea of 'individual responsibility' and realize that it is your capitalist system which is unworkable, and the policies of the rich and powerful which are to blame, not some 'action' by some powerless nobodies.

You can be taken seriously after you actually complete a university-level course in macroeconomics and microeconomics. I am beginning to suspect you are not even old enough to have completed your high school education yet.

[Politico]

You can be taken seriously after you actually complete a university-level course in macroeconomics and microeconomics. I am beginning to suspect you are not even old enough to have completed your high school education yet.

Um, dude, I teach economics at a university.

Yeah, and I won both a Gold Medal in the Olympics and the Nobel Prize in Economics.