"Drachma" is an ancient Greek currency unit and translates as a "handful",
which is a lot less than what Greece will need to pay off all its debts.
For two years, everyone has been asking what would happen if Greece left the
euro and went back to the drachma. Now that time may be upon us. ... With Greece unable to devalue its currency, the country is hobbled with
crippling debt payments it cannot afford. Even though it has cut its debt in half, Greece has been subject to much
social unrest as five years of recession and bailout-imposed spending cuts have
bitten hard.
Last week, a majority of Greeks voted for parties that want to rip up the
country's bailout agreement with the European Union and International Monetary
Fund (IMF) - including neo-Nazis.
The biggest winner was the leftist anti-bailout coalition, Syriza, whose
share of the vote more than tripled and who describe the austerity imposed by
the bailout as "barbaric".
Syriza is among those holding talks about forming a government, one that
rejects policies of austerity, and if it comes to pass, a Syriza-led government
will definitely not adhere to the terms of the bailout.....So how would Greece leave the euro?
No big
announcement
In reality, the new prime minister probably will not announce it on TV one
day, between broadcasts of the lottery and the football.
The new government will want to renegotiate some parts
of the bailout, but if that doesn't happen, then Greece could simply stop paying
its debt.
That would be a euro default. Actually, a second, as Greece technically defaulted on its debts when it
renegotiated a 50% write-off of its debts with its creditors earlier this
year....And that would put the ball back in Brussels' court
