If the Greek government were sane it would leave the Eurozone, suspend its membership of the EU, and invite in experts from Hong Kong to produce a monster package of reforms to make it the most open and least corrupt economy in the West. if that’s fantasy, the reality is far more improbable
Did Albert Einstein ever say, “compound interest is the eighth wonder of the world — he who understands it earns it, he who doesn’t pays it”?
The Internet isn’t sure. But it doesn’t matter. The basic point is sound. Compound interest is an astonishing force, the more so when it comes into play with the large sums of money representing national debts. Seemingly small changes in low interest rates make a huge difference when the sums of money involved are themselves huge.
If a government allows its borrowing to run out of control, the absolute sums of money needed to pay off the debt start to outstrip its capacity to extract that money from taxpayers or economic growth.