We Are Bankrupt!

Athens - Everyone knew it was coming, and for the last two years expert economists have assured the masses that Greece will not go bankrupt. But now, with debt at 567% of GDP, Greece has filed and will close on the 30th of June for total bankruptcy.

As a first in the modern world, a country will be allowed to default on its loans. But what will the consequences be? It may be that Greece will not be able to get a loan again. However, it may cause global lenders to endorse a ripple effect across the world.

New standards of nation lending could affect countries that are in debt. Restrictions to the ratio of loan size to GDP could come to fruition, or possibly limits in general towards how much a country can borrow regarding what and when they could pay.

Greece will now be a pariah within the European community -- but that might be exactly where they want to be. The Euro Dollar did not work for Greece. It is time for them to return to a currency that fits the needs and wants of their nation. A return to the Drachma will be good for global commerce and give Greece an edge in the export/import business.

Unfortunately, international trading partners will not look so favorably on the new Drachma. As Greece has defaulted on loans, and seen to a vast debt accumulation beyond repayment, it will be hard for other countries to realize and accept an exchange rate with Greece out of the expectation that it is backed by high inflation and volatility.

Greece will recover. The Greek people are hearty and proud.