This whole euro topic has been talked about in the news a lot, and I thought I’d talk about it, seeing as all this economic stuff is weirdly interesting. I have no idea why, but I guess I can’t ignore stuff that interests me. So basically, in this post, I’m gonna talk about mostly what I think this whole business is and what they should do to help themselves.
I’m gonna be talking about Greece mostly, because according to the news, they are in a bad state. But let me clear this up. I really don’t think the actual PEOPLE of Greece are poor and everything. They’re probably doing OK, considering they’re in ‘so much debt’. I think it’s the actual COUNTRY that’s poor.
(By the way, most of this information comes from my dad so if it’s wrong, sorry.)
He said that their GDP (gross domestic product) is less than the money they owe (they owe 110% of it). That’s pretty bad. So how are they supposed to pay all that back?
There’s two options. First one is that other countries in the euro (mainly Germany) bail them out by giving them loads of money to pay their debts. OR they ‘default’ on all their debts and leave the euro. The first one’s more likely. The second one seems pretty strange. That way, Greece wouldn’t even have to pay back their debts, leaving all the other countries annoyed. But if they bail Greece out, they’ve given a lot of their money away for free, so they’d be annoyed. Either way, it’s very annoying for them.
Which one do you think they’ll do? The first one is nice, but no one really has money to just give away. Even if they were super kind and wonderful people, they kind of NEED the money too. I think, in this world, they’d probably go kindness < money. So they’d be like ‘Ugh. FINE. Here’s a couple of billion euros. Grr.’ instrad of ‘here’s loads of money. I hope you enjoy it and get out of debt :)’
I really don’t know what’s going to happen. Greece is in a bit of a… predicament right now. I guess they could just print a bit more money, but that has problems too. What are they going to do? Maybe they need…
A MONEY REVOLUTION!!
I wonder who will be the one to lead it…?
Your monetary blogger, Jaz