Spiegel: German Government considers Grexit 'unavoidable' if Syriza wins Elections

[The Don]

But they won't because you don't default inside a currency zone. If you defaulted inside a currency zone, you'd be entirely dependent onthe central bank/other countries of the currency zone for all funds raised - which in turn would push their bond prices up because it is clear that the ECB/Germany/Netherlands are borrowing on your behalf. Again, why do you think the Germans are so unkeen on the idea of Eurobonds that the EU/ECB were pushing for? Because they know the runaway spending of the PIGS will continue, and all Euro bonds will they rise with interest.

Correct me if i'm wrong but didn't they default in 2012?

Devaluation of a currency is better than remaining inside a currency zone of which you are not suited to. If you devalue, your at least bringing your currency into line with your economy where as at the moment Greece is completely unsuited to the high price of the Euro in terms of its economy.

Britain, at the end of the imperial age, famously devalued under the Wilson Government when our economy was in clear decline and we'd lost the colonies: the Pound Sterling wasn't worth what it was and was only being shored up by HM Treasury backing it with assets... a temporary fix.

Devaluing their currency has proven to be a failure in the past, once again, why would it be different this time?

[-:Undertaker:-]

Correct me if i'm wrong but didn't they default in 2012?

Greece hasn't defaulted, parts of the debt were 'written off' but it didn't default.

Devaluing their currency has proven to be a failure in the past, once again, why would it be different this time?

Erm, no it hasn't. Almost every country in the world uses devaluation when in tough times because although not ideal, if the economic circumstances change then your currency must then change to match it: again, Greece using the Euro is absurd as India using the US Dollar.

The Greeks and southern European nations have found to their cost what happens when you hand over control of your monetary policy.