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It is easy to agree with your last para, Simon, as we say the same thing. I agree with your first para also. I am taking issue with the history angle, but I am not saying there isn't a political issue. I think that the problem can be solved by economics, but you can only start the economic problem if the political problem is out of the way.

Take the period of German hyperinflation as an example. The problem was political: The US, UK, France and Belgium insisted on enormous payment for war damage after 1918. As a consequence, the German economy was ruined. Hope was lost, not just for the younger generation, but for all. While France and Belgium kept insisting on the impossible, the US and the UK slowly understood that the social effect of hyperinflation and unemployment was getting dangerous. Once the four former allies agreed they had been asking to much, the solution was economic and easy: currency reform and debt forgiveness. We all know the solution came too late.

Now, 1923 is not 2015 and the circumstances are not the same, but it would be foolish, especially if you are German, not to learn the lesson that it is possible to ask too much of a country in debt. There are several perfectly good ways too diminish the Greek debt burden. I described an economic solution for Greece in item 6 above. That leaves the question of what reforms you can ask of Greece. I would think that enforcing existing Greek law would be the minimum.

However, either side can overplay its hand, especially during this childish posturing period. That would mean stupidity wins and all parties would lose.

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