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To: Bank Holding Company who wrote (252043)	6/5/2010 8:12:26 PM
From: Elroy Jetson	Respond to of 306849

The problem with Greece is similar to the problem faced by say New Jersey. The owe debt respectively in Euros and Dollars, but neither Greece nor New Jersey can print them. So yes, both Greece and New Jersey can easily default on their debt. If Greece owed debt in Drachmas, they could simply print the drachmas to pay the debt and face an inability to borrow again in their own currency. Problem solved with a ongoing currency devaluation as the debt came due. But both New Jersey and Greece will face severe cut-backs in spending to maintain enough revenue for debt service, since they can't print Dollars or Euros. The "collapse" in a state like Zimbabwe was because they owed debt in Euros and Dollars, so they faced the cut-back in spending to maintain their debt payments, or simply defaulted and could not borrow more. In Zimbabwe the very corrupt ruler maintained power by paying himself and his goons high wages with new money which maintained their lifestyle through imports as he instituted theft polices which transferred ownership of farms and businesses to his goons who had no idea of how to run there operations. So production fell dramatically. This is a very special situation of a madman destroying everything. .