“Maybe this question is way off the deep end or maybe I have personally not grasped the Greek Tragedy correctly, anyway here goes. Alexis Tsipras has had a few meetings with Russia. There has been discussion in other arenas about quitting the Union. If they quit the Union they revert back to using their Greek currency again. However, isn't the debt through this default wiped away because it is a lost investment owed to other members? And if that is true why wouldn't Tsipras leave the Union default a balance sheet the Greeks will never repay and start again. And soon after they begin again take the Russians up on their deal for a port for $500 billion. That makes them whole again and maybe even a stronger country for it. What am I missing here? And thanks for your considering this question.

David Fuller's view

Thanks for a great question.  I am unable to answer definitively but it is a realistic prospect.  There is an element of presumably unstated blackmail involved.  Some people have advised the EU to take a longer-term view for this very reason, and President Obama probably agrees on this point.  Greek banks hold some of their debt but that would be more than offset if Russia actually contributed $500bn.  The downside for Greece would be a reduction in trade and tourism from the EU and USA.