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The plan outlined in the post above discriminates between foreign and domestic creditors. Do you support that?
However, as an initial threat in order to bargain down to a sensible position it might make sense.
Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman
If the powers that be do not want German taxpayers to bail out Greek sovereign bonds, then there is no reason for Irish taxpayers to bail out German pension funds.
Friends come and go. Enemies accumulate.
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