Greek Debt Explained By An Economics Professor

The Greek debt crisis is nuanced, complex and hard to make sense of. We called an economics expert and asked him to simplify it for us. Turns out solutions aren't easily predictable for the debt-ridden country.

[GadgetAddict]

This doesn't really explain the greek debt. It simply highlights some control measures put in place that are affected the Greek people right now.

[Gomes]

As a portuguese fearing a contagious effect. I can only hope the "Yes" wins and Syriza gets out of government...

[sunnyrainyday]

It's sad to see Greece fall because of their rich culture and history as intellectuals. I hope they can pick them selves back up in whatever way they can. (I say 'in whatever way they can' because I have absolute 0 idea how that could happen because I know nothing of the political and economic climate other than what was in this video, and am not well versed in economy).

[mistermood]

i swear Spain and Italy are going to be next...

[Requestnetwork]

People thought Greece using the euro was a good idea and now people think austerity is a good idea. Sorry Greece, you're doomed.

[angelocardoc]

What did Greece do with all the money it borrowed?
Did they borrow money for infrastructure?
Did they borrow money to start some sort of industry in Greece?

Tax compliance.  
How many Greeks are actually paying their taxes?


Where do they think the government will get money to pay back IMF loans?
Just borrow more money to pay back the borrowed money from before?!?!

[TheWantedPig]

Would this be the fall of the Greek Empire? :P

[TheBaldingPied]

I wonder if Greece is going to pull an Iceland.

[redhat]

all these video explaining about greek financial collapse talked as if greek had working economy plan and know what they're doing in the first place

[fifthgear]

Going to the drachma would be really harsh for the first few months to a year, but after that things settle down it'll will get progressively better overtime. Under the EU imposed austerity things are never gonna get better for the greek people.

[billymodo]

What a poor video presentation! The title boasts that an explanation will be shown but all we get is a summary of the present situation,
For all those who are interested Here is an actual explanation and a solution.

When any government wants to spend money they don't raise it by taxing people they borrow it... All of it! Each national government puts paper in a printer and prints of a pile of IOU's called Government bonds. These bonds are purchased by wealthy individuals, banks and other financial institutions. To pay that money back each government has to tax it's people. When a politician tells you what percentage of your tax is used to pay for schools or infrastructure, or defence etc they are always lying.
Everything is paid for out of borrowed money which is repaid by tax revenue. Governments are always pushing for economic growth because this extra financial activity raises the money to pay the interest to the lenders.
None of the EU governments have raised enough in taxes to pay back all the money they've borrowed. The shortfall is call a deficit.
The Central European Bank and the IMF love it to bits when a nation runs up a deficit. They then force the country in difficulty to borrow even more to make the missed payments up.
Borrowing money to pay off loans you can't afford is as stupid as it sounds. It's a trap!

None of the money is real! When you put a thousand Euros into your bank it becomes their money. For every Euro the take in they are allowed to lend out another nine fake, made up Euros!
That's why it only takes ten per cent of all the banks depositors to withdraw their money before the bank has no 'Real' Money left. When they have no real money and have loaned people a pile of fake, non-existent made up money... THEY PANIC! Or Collapse.

The money borrowed by past Greek governments is fake money that they were forced/tricked into borrowing and will forever leave them under the control of the bankers who run the Central European Bank and the IMF.

The solution is easy... Every nation is lawfully allowed to issue it's own currency. All the Greek Government needs to do is Issue a Greek Currency to it's own people. They must gather in all the Euros and return them to the owner. (then tell them that they will receive nothing beyond that amount)
All future government borrowing must be banned.
If the Greek government issues it's own Currency and has no borrowings to pay back it could abolish all 'Personal' Taxation. (if taxes are used to pay back borrowing no borrowing would require no personal taxation) The Greek people will have a lot more disposable income which will be a massive boost to the economy, jobs and prosperity.

Once the Greek people do this every nation will have to do this because the people in the rest of the world will want to be as prosperous and wealthy as the Greeks.
Once all the nations wake up to the fact that they can issue their own currency the Central European bank and the IMF will have no control or power. Because of this they will attempt to assassinate any leader who dares to try it on.

Greece must... Leave the Euro
Introduce it's own national currency.
End all personal taxation
Stop all future Greek governments from borrowing money.... Job Done!

[sique]

How did they go broke in the first place? please simplify thanks!

[farshnuke]

This is the point where I find myself on common ground with the likes of Nigel Farage as the Euro and the EU is looking dodgy as fuck right now but really the problem is banks don't recognise that they will make more money sooner if they hold off on debt repayment until the Greek economy is booming again they can start being paid back

[foxcool]

Just cancel their debt, it's not worth it anymore trying to milk they out when there's not milk left

[RaiderMike]

Im confused.. What does this mean to America? Can we be affected by this?

Poor Greek people.. Oh well it needed to happen