PIGS nationalizing corporations and banks after bankruptcy?

[Loppan Torkel]

Greece is being pressured to privatise and sell most of it's assets to pay the loans. Say they do this. Later Italy, Spain and Portugal do the same, but they still keep spiralling down until they claim bankruptcy. Now they've got nothing, the Euro has lost all meaning and they're basically working for the Chinese.

What would keep them from nationalising what they can like Venezuela did to try rebuild their nations? Is this at all possible? How would China respond?

 

[innonimatu]

Greece is being pressured to privatise and sell most of it's assets to pay the loans. Say they do this. Later Italy, Spain and Portugal do the same, but they still keep spiralling down until they claim bankruptcy. Now they've got nothing, the Euro has lost all meaning and they're basically working for the Chinese.

What would keep them from nationalising what they can like Venezuela did to try rebuild their nations? Is this at all possible? How would China respond?

Who cares about China? It's Germany we might have to prepare for war against, it it came to gunboat diplomacy. All the "internal devaluation" in those countries is being pushed by Germany, for the benefit of german companies as an alternative to China (and Central Europe). The 'PIIGS' would be set up as the "next China" for the EU's low-value industry, as protectionism and greater political and economic assertion by the Chinese ends the cycle of foreign corporations basing manufacturing in China. The world is changing, and some groups are reacting and making contingency plans... but they should not forget that others can also plan for contingencies...

edit: obviously, there isn't going to be any gunboat diplomacy or war, for once NATO is useful. But there will be plenty of political and trade battles.