1) Kick them out of EMU and send them back to their miserable drachma, which would, of course, suffer an immediate devaluation of 50% or more...This sounds like a bankster's fondest dream. Outrageous? Compare it to the Icelandic option of default and I think this elaborate scenario has more chance of being realized.
2) Allow European banks to continue to accrue interest on Greek government debt... the European Central Bank will issue scrip to the banks in the sum of unpaid coupon payments ... “I bought your paper from the guys you owe, and now you owe me..."
3) ...seize Greek assets everywhere in Europe, starting with foreign-currency bank accounts, Greek ships in international ports, and so forth...
4) Demand that the Greek government seize the property of Greek citizens who have not paid taxes and auction it to foreigners. That would bring in plenty of foreign exchange. Sell the Parthenon, too. Sell it all.
The difference between Iceland and Greece is that the French and German governments hold so much Greek debt.
