Jump to content
House Price Crash Forum
Sign in to follow this  
rollover

America’S Very Own Greece

Recommended Posts

The eyes of the world are trained on Greece, this week, as it teeters on the brink of disaster. Which perhaps helps to explain Alejandro García Padilla’s timing: the Puerto Rico governor chose Monday to announce that the island territory is insolvent, and cannot (will not) pay back its $72 billion in debt. Not on time and in full, in any case.

screen-shot-2015-06-30-at-2-33-10-pm.png

Puerto Rico, like Greece, is the poor southern cousin of a politically-motivated monetary union which was not designed with such populations in mind. Like Greece, it is burdened with a massive debt it can’t realistically pay back. Like Greece, it is therefore going to default. And like Greece, that default is going to prove extraordinarily painful, in large part because of the constraints being imposed from the north.

The big question in Puerto Rico is what’s going to happen to its debt. http://fusion.net/story/159325/the-tragedy-of-puerto-rico-americas-very-own-greece/

Another domino is falling.

Share this post


Link to post
Share on other sites

These enormous sums of money are meaningless. What do they actually represent? To an individual money has a meaning, it represents what his time is worth, what goods he can consume, what he needs to hold in reserve for unexpected events. But the amounts needed are relatively small.

When you get to amounts in 10s of millions, let alone billions, they become meaningless, well they would to me. I don't think I could comprehend how long it would take me to spend it, and on what. My sense of value would be totally distorted.

What on earth does $72 billion represent in reality?

Share this post


Link to post
Share on other sites

These enormous sums of money are meaningless. What do they actually represent? To an individual money has a meaning, it represents what his time is worth, what goods he can consume, what he needs to hold in reserve for unexpected events. But the amounts needed are relatively small.

When you get to amounts in 10s of millions, let alone billions, they become meaningless, well they would to me. I don't think I could comprehend how long it would take me to spend it, and on what. My sense of value would be totally distorted.

What on earth does $72 billion represent in reality?

About 0.1% of the combined GDPs of all the nations of the world.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   93 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.