The main problem of the problem in Greece seems to lie with the
huge amount of unsecured loans it racked up.
I wonder. When an individual or company borrows large amount of
money, they are often expected to provide something as a security.
e.g. mortgaging their property etc.
How come when Greece borrowed so much money, no one asked them
to provide something as collateral?
I think that it is the responsibility of every
country/government to be financially prudent and to spend within
their means.
So, why not require countries to place their land as collateral
when they want to borrow money?
E.g. I want to borrow X billion dollars. I place X hectares of
land valued at X billion dollars as collateral. In event that I
default, the creditor will have full sovereignty over that piece of
land.
Independence is only for those who are responsible and can
afford it. This would help to remove irresponsible countries, and
place them under the rule of more responsible ones. And furthermore
with collateral involved, we will not see catastrophies like the
Greek crisis where billions of dollars will vaporize if the
government decided to default.
