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05/10/2011 | | Argentina, Debt Default, econ70.com, Elliot's Brief Blog, Euroland, Foreign Debt, Graphsandlaughs.net, Greece, Greek Default, IMF
Greece must leave the Euro! Argentina (Arg) shows why. From ’98 through ’01 Arg was in a bad recession; the Peso was pegged to the USD. Arg borrowed from the IMF cut spending and the economy tanked. Then Arg defaulted on its foreign debt. The economy shank a bit but has been great since. In 3 years Arg was back to its pre–recession level of GDP. If Greece remains in Euroland it will take it 10 yrs.