Quote:
Originally Posted by Regret$
Not true. If the nuclear power starts to lose, there is a high probability of nuclear warfare.
You can't say that. You really don't know what happens in such a situation, since it's never happened (at least in a non-nuclear country overruns nuclear country scenario) and is quite unlikely to happen for self-evident reasons.
For wars at a distance, the US is generally considered to have lost the Vietnam war, but no nuclear weapons were used. Similarly, the Soviets weren't able to defeat the Afghan resistance.
If the nuclear power is losing then the probability of nuclear war might well increase, but it'd increase from a miniscule level to small a level that is nowhere near what I'd call "high probability."
Quote:
Originally Posted by Phil
AFAIK the technocrats who took over did so with the full blessing of their political leaders, at least i know that was the case in Italy. It was awesome because it installed leaders who were guaranteed to do the politically unthinkable when required and wasnt just another bunch of money lent with no strings attached and a zero chance of it making a difference. Again, as i understand the situation, i havent done any deep reading on it, i just saw a few news pieces on it.
Sure, the new appointees will be able to make policy choices that their predecessors couldn't or wouldn't, but I don't see how that does anything but worsen the potential for conflict in the event the economic situation deteriorates to the point of an Italian default. They'll be seen as the ones appointed from afar who imposed policies that ultimately led to a depression, decreased standards of living, etc. (as is standard for whoever is in office during economic crises) It'll breed nationalism and social unrest, IMO.
Again, under a smooth glide-path scenario none of this matters; debt is written down, bank are recapitalized, we see a recession (maybe even a severe one), living standards decrease a bit and stay stagnant for a while after that, and that's about the extent of it. In the event of a non-smooth scenario, however, the risks to peace definitely rise to, what are to me, uncomfortable levels.
Personally, I kind of hope the ECB decide to become the lender of last resort, and eases rates all over the Eurozone, but there seems to be a lot of German/Belgian opposition to that, from what I've read. Austerity tied to set-amount bailout packages will not suffice, as it just lowers GDP resulting in near-term worsening of the Debt/GDP ratios. That pushes the cost of funding even higher, and the lending nations won't have the stomach to continue bailing out the "profligate" nations until the medium-term rolls around and the balance sheets are repaired.