If a Sovereign Nation goes Bankrupt

imagesWikipedia – Since a sovereign government, by definition, controls its own affairs, it cannot be obliged to pay back its debt. Nonetheless, governments may face severe pressure from lending countries. In a few extreme cases, a major creditor nation, before the establishment of the UN Charter Article 2 (4) prohibiting use of force by states made threats of war or waged war against a debtor nation for failing to pay back debt to seize assets to enforce its creditor’s rights.

So what if Greece defaults? Nothing really happens, life goes on. At worst, its overseas assets will be seized. Bankruptcy of a nation is not the same as bankruptcy of a person or corporation. Nations can avoid bankruptcy by printing money as the US, Eurozone and Japan did. Money printing is in effect a default on loans. The problem is that Greece is no longer a sovereign nation. It is tied to the Eurozone. Greece cannot just print money at will. But Greece can still default. It cannot possibly pay back its loans. The lenders knew the bad state of affairs in Greece and continue to intoxicate Greece with more loans. This is the same modus operandi as the US subprime crisis. The lenders took the risk. Now Greece can simply smile and walk away. This is precisely what UKIP leader told Greek Prime Minister to do.

In an impassioned speech, the un-resigned UKIP leader Nigel Farage told Greek Prime Minister Alexis Tsipras to take “courage” and quit the euro after the latest emergency bailout talks broke down.

Farage said it was time to “get back control of your country,” adding the banks would “give you no more.”

He addressed Tsipras at the European Parliament in Brussels after Greece missed the final deadline to repay its debt on Tuesday.

Subsequent talks broke down, and Greece has been given another deadline to try and reach a resolution.

If no proposals are accepted, eurozone leaders have scheduled emergency talks on Sunday night to discuss the effects of the potential Grexit.

“They will give you no more, these people. They can’t afford to. If they give you more, they will have to give other eurozone members more,” Farage said.

“Your moment has come and, frankly, if you’ve got the courage, you should lead the Greek people out of the eurozone with your head held high.

“Get back your democracy, get back control of your country, give your people the leadership and the hope that they crave.

“Yes, it’ll be tough for the first few months but, with a devalued currency and friends of Greece all over the world, you will recover.”

This is true democracy in action!


1 Samuel 8:5
And said unto him, Behold, thou art old, and thy sons walk not in thy ways: now make us a king to judge us like all the nations.


 

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