U.S. Treasury Secretary Calls Greek Debt Unsustainable



Jack LewWith Sunday’s final deadline for an agreement between Greece and its international creditors looming, U.S. Treasury Secretary Jack Lew urged the two sides to reach a viable solution.

In a discussion at the Brookings Institute on Wednesday, Lew agreed with the International Monetary Fund (IMF) report, which found that the Greek debt is unsustainable, and urged Europeans to move forward with debt restructuring.

“The reluctance to restructure European debt is deep on the part of many European players. I think it is a combination of an economic view and also the level of trust. I think what we will see in the next few days is can parties come together and build enough trust? Greece will take the actions that it needs to take so that Europe will restructure the debt in a way that is more sustainable,” he said.

Although Lew maintained that the risk of the European crisis affecting the United States is much smaller than it was in 2011, he noted that a deal between Greece and its creditors is important for geopolitical and economic stability.

“I have continued to believe that is in the best interest of all parties to find a solution,” he said. “Greece needs to have a sustainable debt path and a growth path in its future and good deal would give it a shot at that. I think it is a mistake for the European economy, the global economy, to take the risks involved with the uncontrollable crisis in Greece.”


14 COMMENTS

  1. “I’m sure the Greek people would accept incremental sacrifices for long term economic recovery.”

    This was the position of moderate center right Samaras that you previously slandered and ridiculed. That is exactly what he did with last bailout that are far left and far right extremists constantly, unfairly, condemn him for.

    The position of Marxist Syriza for the last few years has been rants, riots, and endless general strikes to end austerity and exit bailout. Our far leftists literally believed that EU taxpayers were going to roll back cuts in Greece, perpetually, on the backs of foreign taxpayers… or Syriza would be able to do it simply by walking away from debt. (with many of Syriza’s supporters still ridiculously believing this even as Tsipiras himself has given up)

  2. I am strongly against Tsipiras anti-austarity positions (since it would be on the backs of EU taxpayers). I constantly hammer him but I am a minority voice among Greeks.

    This doesn’t mean I don’t believe some in EU are now also behaving retarded by pandering to their own incompetent populists by assuring them their will be no debt relief for Greece. Whether EU agrees to debt relief or not its going to happen. There is simply no way with the state of Greece’s tiny economy it can pay back 320 billion Euros. (whether a voluntary haircut or through default)

    I understand this is in part an emotional counteraction to Tsipiras unruly behavior and demands but you would think the rest of the EU, with far less pressure on them, could have behaved like the adults in the room rather than schoolyard bullies. Saw a session of EU parliament where everyone was humiliating Tsipiras (effectively in front of a global audience) Even liberals were literally yelling at him while people were clapping. I actually felt sorry for Tsipiras for a moment. It didn’t make Tsiprias look bad. It made the EU look bad.

  3. The vote was “no”. That should also mean Greece gets “no” more money period. It’s their problem, no one else’s. Greece has become nothing more than a parasite off the economies of other countries. Greece made it’s own bed, let Greeks now sleep in it.

  4. “Greece has become nothing more than a parasite off the economies of
    other countries. Greece made it’s own bed, let Greeks now sleep in it.”

    Dirty corrupt Greeks are all parasites. Aggressor on the other hand is a noble man of principles. Look at how loudly he argued for Bush to be investigated for possibly committing war crimes by using torture on POWs. Look how loudly he complained against the NSA violating humanity’s right to privacy.

    Clearly he not a non-bandwagen jumping populist that complains about bandwagen jumping populists in another country. He’s a man of principles. This is why he evades over Skopje’s state sponsered irredentism… rather than criticize his country for evading over the matter. The Greek is always wrong because of course we are all dumb parasites. No racism going on.

  5. Instead of self-righteously complaining about him like our communist and fascists do why don’t you explain to everyone what he should have done different?

  6. It has become obviously clear that your FYROM mentality gives no quarter to the Greek people… I understand you must feel somewhat happy at their distress. Perhaps you should go to Greece and sleep in a Greek bed it might enlighten your hatred for them. I’ve visited Greece and the people are incredibly resilient. That past governments brought this onto them doesn’t mean the Greek people are parasites!

  7. Aggressor seems to have a lot of hatred towards the Greeks… I think the Greek people will bounce back its unfortunately going to take time and socio-economic sacrifice. But the Greeks I know are up to that and believe the Greek people are very resilient!

  8. It has become obviously clear that Aggressor’s hate for Greeks stems from his FYROM mentality! Calling the Greek people parasites shows how little he knows of the hard working people of this beautiful country. My own experience of the visits I’ve had there is that the Greek people are incredibly resilient and believe that they will bounce back.

  9. It seems you should look a little closer to your FYROM backyard as it isn’t normal to hate Greeks as much as you do. Perhaps you could learn a lesson or two from the Greek people’s resilience as opposed to your attempts to usurp their history…

  10. it was the UK/Asutralia/NewZealdn actually and 10% of Greece’s population was killed in WW2, more than any other country, then another 100k in the Civil War that followed. Greece also put up the fiercest resistance of all the Allied countries and won the first major victory in WW2 vs the Italians and took 8 months for the entire country to fall vs the rest of Europe that took 2 weeks. Not to mention it never fell as this was just the beginning of the resistance. The US was barely involved in Greece other than some very undercover operations in Crete and other areas with the various resistance groups