Greece is Bankrupt

[Sibling Zono (anon1mat0)]

to re-sequitur
--
I believed that most boats had Panamanian flags for similar reasons. On the same token, the Balboa (official currency in Panamá) is actually rare in the streets where the US Dollar is commonly used. That has prevented runaway inflation while in other Latin American countries it has been on double or triple digits in certain periods.

Now the Greeks are thinking in going back to the Drachma to devaluate it and go back to their pre-Euro inflation levels? 

[Swatopluk]

Normally I have sympathy for people protesting against the IWF treatment but in the case of Greece the state seems slightly more sane and less guilty than the protesters (even if only because the government finds itself with the back to the wall). I think they are aware that they are not kicked out simply because that would be the first domino to fall (with Spain, Portugal, Ireland and Italy to follow). Give them an 'easy' way out and they will fall back to their old ways.
Personally I'd say that this would be a great opportunity to solve the Cyprus question (that imo hinges primarily on Greek obstructionism). As long as one has the Greeks by the balls (and the Erdogan's Turkish administration is in dire need of a political success) there could be a chance.

[Sibling DavidH]

IMO the best thing for Cyprus is to let the question slowly resove itself on its own, which is happening now.  At a low level EU officials are quietly doing a lot of good; if the high-level politicians start to meddle they'll probably set things back by decades.
Because of the ash crisis I missed going through Ledra Street this spring (we'll go in the autumn, I hope), but a friend went through at Ledra Palace twice in April and tells me it's getting very relaxed these days.
There was certainly a huge improvement last October.

[Sibling Zono (anon1mat0)]

Everything I've read so far about the bailout mentions cuts in social services, hours, etc, but not one word about defense spending. According to wiki they spent 8.62 billion euros in 2008 or 3.3% of the GDP, I'm sure cutting that in a third would help quite a bit...

[Sibling DavidH]

But then the big, bad Turks would come and get them!   

You're right, of course, Zono, but with their mentality it's unlikely to happen.  Could be, the Army would take over again rather than see that.  The place is not exactly stable at the moment.

I think cutting down on tax evasion would also net a pile of money, but it may be that they can't enforce that, either.

[Swatopluk]

I just read in the papers that most private houses in Greece are formally unfinished becasue taxation begins only afterwards. Reminds me of the theory why the famous head of Nefertiti lacks the inlays in one eye.