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This European Union related article has been awarded BRONZE status for quality. It's getting there, but could be better with improvement. See RationalWiki:Article rating for more information.


At least it is more reasonable than the old claim that any year now the US is going to turn into the Weimar Republic. Pi 3:14 (talk) 13:20, 21 June 2012 (UTC)

Well, barely. And the Weimar craze didn't get that much mainstream exposure to be honest. When I was looking for citations all I needed to do was Google "[random economic powerhouse] + Greece." Osaka Sun (talk) 13:32, 21 June 2012 (UTC)
Wait, this is an actual thing? Well, the world is going a bit mental. Scarlet A.pngpathetic 14:44, 21 June 2012 (UTC)
Shocking, isn't it. Osaka Sun (talk) 14:56, 21 June 2012 (UTC)

The issue of monetary sovereignty[edit]

I guess it depends how you define bankruptcy but there are several examples of monetary sovereign nations defaulting on their debt.. Redchuck.gif ГенгисOur ignorance is God; what we know is science.Moderator 20:47, 21 June 2012 (UTC)

AFAIK, they did have their own currencies but they were pegged to another currency, usually the dollar. Nebuchadnezzar (talk) 20:50, 21 June 2012 (UTC)
It does give the impression that extravagant printing of money isn't a serious issue. The rest is fine, but I'll reword it. Osaka Sun (talk) 21:22, 21 June 2012 (UTC)
Surely they weren't all pegged to the dollar? Redchuck.gif ГенгисOur ignorance is God; what we know is science.Moderator 21:37, 21 June 2012 (UTC)
Sovereign != monetary sovereignty. "Sovereign" on that page only refers to territorial sovereignty. The cases that I'm familiar with involve commodity-backed currencies (e.g., gold standard) or debts denominated in foreign currency. Monetarily sovereign nations can default on their debt if they want to, but it would be a stupid idea. I wouldn't be surprised if it's happened before due to some political maneuvering. But they never have to go bankrupt, though you could say firing up the printing presses until you get hyperinflation is a de facto declaration of bankruptcy. Though you can always revamp your currency as Weimar Germany did with the Rentenmark. Nebuchadnezzar (talk) 22:11, 21 June 2012 (UTC)
Well, actually it is better for a country to go bankrupt than printing money: going bankrupt affects only creditors (often foreign creditors), while hyperinflation destroys the (money-based) economy. Moreover, the more you print the more the money is worthless, and it is not so difficult to reach a point when printing money costs more than the printed money. In fact, Greece itself went bankrupt for part of its debt during the debt crisis.— Unsigned, by: / talk / contribs