About Greece! And the nature of modern govt&finance

My friend with long experience in Greece and its surroundings writes me:

“It sounds to me that, basically and unavoidably, Greece is simply a bankrupt nation.  All these efforts to delay that are just that–delaying tactics. Thus when the EU or the banks or whoever it is gives Greece the 130billlion Euros, it will for the most part, I believe, just go to pay off the bondholders–who willl then be given new bonds (longer terms, lower interest).  But nothing changes with the Greek’s economy or its debts–not only to foreigners but to the Greek people: doctors and pharmacists going unpaid for months (they are paid by the national health plan), teachers unpaid for months, etc, etc. The entire Greek society is over its head in debt–even after many have in fact already taken severe paycuts.  I really do not see how they are going to climb out of this hole..”

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