Why would Greece have to drop the Euro?

Ok we all know that Greece will never pay back the loans. And the fear is that it will take down the Euro with it.
But why would they be forced to quit using the Euro?

Just stop loaning them more Euros. Stop printing more Euros than the union can back up.

It could still be the currency of the land in Greece.


An argument can be made that Hawaii should have their own currency. Have you seen the prices of things there?

Puerto Rico uses the dollar.

Just who would benifit from Greece starting up the Dracma presses?

reply to post by samkent


They have no control of the Euro, which for a free and independent nation is completely STUPID at all levels. They essentially leave themselves open to being controlled by those that do control the currency. For instance all Euro countries that have the Euro as their currency must fit into financial guidelines. Britain, outside of the Euro is able to monetize their debt while in a bad economy (buy their own debt) ... Greece cannot do that.

Greece would have to drop the Euro in order to escape debt.. it would effectively be a default and any outstanding debts in Euros would be void. With control of their own currency they would not have to stop certain public spending because they could adjust the currency functions accordingly (like Britain and the US)....

However..

If they do drop the Euro and turn to monetizing their own currency Greeks will see very high inflation that will ultimately lower (drastically) the prosperity of the average Greek. Essentially Greece would return to the way it was prior to joining the EU (very poor)