Views: 2941|Replies: 25

Blaming Merket Is Unfair . . . She Tried Her Very Best. [Copy link] 中文

Rank: 8Rank: 8

Post time 2015-6-29 17:06:57 |Display all floors
Germans are justifiably angry at the Greek government for failing to live up to its obligations to repay debt that had been made as light as possible for the Greeks to pay off, with many extensions in between, but some folks are now blaming Merkel for her kindness to the Greeks that is now believed to have spoiled the Greek government into spending more than it could afford.  

The fault is not in Merkel, but in the system.  It allowed easy credit in exchange for tariff-free trade.  The obvious result is that a less competitive country is bound to end up borrowing on the easy credit, and buying as much as possible under the tariff-free trade, which was exactly what Greece did.

Tariff-free trade is not healthy for everyone.  Nor is easy credit a favor to all.  Weaker, more backward countries, need to have protective tariffs to dissuade its citizens from over-spending, and worse yet, borrowing on easy credit to over-spend with, a double whammy for the financial system.  They also need the discipline of budgeting for the interest and principal payments, in order to not over-borrow as well.

Capital controls are necessary when major mistakes in the form of free trade and easy credit have already taken place, and are dictating the destiny of entire countries, pushing them mindlessly over the cliff that is sure to result in deaths by starvation, by exposure to the elements, by untreated sickness, and by violence in the streets.  Malaysia instituted capital controls during the 1997 Asian Currency Crisis, while Indonesia did not, and the results were strikingly different.  Malaysia survived the attack of Western speculative capital on her currency, while Indonesia was robbed and maimed by it.  Those who preach against capital control for all countries either do not know what they are talking about, or know exactly what they are talking about, and do not mind that it isn't true.  Every car needs a brake even if you do not use the brake to get anywhere (you use the gas pedal).  

Merkel can save the Euro, save Germany, and save Greece by encouraging Greece to implement capital controls, and declare that as a creditor, she must pressure Greece to pay up at the earliest possible time, but that as a fellow European, she must support Greece's use of capital controls to make the most use of the remaining Euros that she has, to make sure it is used where it is most needed, such as in the purchase of medicines for its sick, food for its hungry, and shelter for its homeless.  By buying time for the ECB, the IMF, and the Bundesbank, Merkel in effect is injecting liquidity to the frozen banking system.  With capital controls, austerity becomes a challenge to achieve, rather than a punishment to avoid.  This may yet be the best way to achieve the kinds of reforms that Germany wanted to see in Greece, except that this is now self-imposed by Greece on itself to survive with dignity.  We can only wish the EU, Germany, France and Greece well, and hope that they will give themselves some more time, which provides a different form of liquidity that mere money cannot buy.





Use magic tools Report

Rank: 2

Post time 2015-6-29 17:36:32 |Display all floors
Merkel will go down as a failure when the inevitable happens and Greece exit the euro. She contributed to this crisis by not backing a full bailout in 2010. Instead merkel involved the international monetary fund against the advice her finance minister had given her. Those well disposed towards the german chancellor say she brought in the IMF to prevent Greece from putting the euro commission under to much pressure. The most powerful woman in the world shied away from taking responsibility in Greece fate, because sharing it out with as many others as possible was her way of protecting herself from any blame.

Use magic tools Report

Rank: 2

Post time 2015-6-29 18:59:50 |Display all floors


It's a Greek tragedy.........not. A German tragedy.



It does shows how successive lousy governments in Greece can destroy a country like Greece.



Now......the Greeks will swap a good currency in Euro for its own lousy currency .....in the best circumstance......Greece will suffer for next 20 years for the mistakes of their government.


No way to avoid this Greek tragedy.





Use magic tools Report

Rank: 2

Post time 2015-6-29 19:37:07 |Display all floors
How long will the Greeks suffer will depend on the competence of their government in coming years.



But all evidence suggest this is another lousy, incompetent government.




Use magic tools Report

Rank: 8Rank: 8

Post time 2015-6-30 08:52:29 |Display all floors
"AUSTERITY" IS THE LIPSTICK COVERING "AUSCHWITZERY" AND SHOULD BE BANNED.

Merkel initially stood side by side with Hollande in insisting there would be no further disbursements of Euros beyond what was promised under the emergency lending cap of 89 billion, of which only 45 billion were left as of last Saturday.  With a bank holiday and capital controls, which are not too bad really, as nobody is starving to death on the streets, and everyone still carries on with his or her daily living, the remaining Euros are sure to last until July 6th.  No problem.  The problem begins with "the day after" the referendum, if the vote is a NO, which it most likely will be, because the terms of the loan extension basically requires the Greeks to throw their elderly (pensioners) into the streets, turning them into overnight beggars, who in due time will begin to get sick and die, pretty much predictably given their age and lack of food, shelter and medicines.  No different from barbaric tribes sending their old men into the woods to die, so that they won't compete with the young for the little food they could find.  Stripping an old man of his pension when he cannot earn a living with his rickety body is basically a death sentence, even if it is couched in euphemistic terms of "austerity", better called "Auschwitzery", turning an entire country into a concentration camp where the old and the sick are denied the food and shelter that the young and strong can afford.

No wonder the younger generation of Greeks feel they were utterly humiliated when they were told to turn their elderly out into the streets as homeless vagabonds, whose certain fate is death by starvation and disease - let us not kid ourselves!

Where is Amnesty Internationale or Human Rights Watch?  Oh, forgot that they get their donations in Euros and Dollars, not in defunct Drachmas.

What Tsipras calls "humilliation" is actually an understatement.  It is a command to commit patricide and matricide, and this act on a large scale, is simply genocide.

What are we debating about?

The logic of monetary prudence dictates that debts cannot be forgiven, but the principals loaned can be printed out of thin air, return of which to the printing press is a moral right of the lender and a moral duty of the borrower, even if its return would turn tens of thousands of pensioners into overnight paupers, and in a month, into sick and dying shadows of their former selves.

Greece has the right and the duty to stand up for its elderly generation, as a matter of honor for its youth, and in this fight, they have every right to re-issue their own national currency, as the "logic" of foreign currencies is couched in justice, without mercy.  

If the EU and IMF want their pound of flesh closest to the heart of the Greek nation, they would have to get it without shedding a single drop of Grecian blood, or have to pay in kind.




Use magic tools Report

Rank: 2

Post time 2015-6-30 11:05:21 |Display all floors
abramicus Post time: 2015-6-30 08:52
"AUSTERITY" IS THE LIPSTICK COVERING "AUSCHWITZERY" AND SHOULD BE BANNED.

Merkel initially stood si ...

Every action has its own consequences.


This Greek tragedy reminds us that lousy governments can bring great disasters to a country.


No matter how unpleasant, no matter how disastrous on the Greek people........the future is bankruptcy and Greek exit from Europe zone.


Given the circumstances, given the politics and politicians,
Given the nationalism and blame creditors.........


Is there any other option?


Use magic tools Report

Rank: 8Rank: 8

Post time 2015-6-30 12:46:15 |Display all floors
WHEN THE LAWS OF THE JUNGLE ARE CODIFIED BY HUMAN BEINGS . . . ALL ARE DEHUMANIZED.

WHEN THE SATISFACTION OF A DEBT REQUIRES THAT THE ELDERLY OF A NATION STOP RECEIVING THEIR PENSIONS, WHICH LEADS WITHIN WEEKS TO THEIR DEATH BY STARVATION, AND WE CALL IT THE RULE OF LAW, WE SHOULD BE ASHAMED OF OURSELVES, THAT OUR LAWS ARE NOTHING MORE THAN THE WRITTEN, EMBELLISHED LAWS OF THE JUNGLE, THAT BEASTS AND BRUTES OBEY WITHOUT REQUIRING AN IOTA OF EDUCATION OR CIVILIZATION.

SUCH LAWS ARE THE BASIS OF FASCISM, THE ERADICATION OF THOSE WHO ARE UNFIT TO SURVIVE, BY STARVATION, BY OVERWORK, AND BY DISEASE.

THESE LAWS IN THEMSELVES ARE CRIMES AGAINST HUMANITY.


Use magic tools Report

You can't reply post until you log in Log in | register

BACK TO THE TOP
Contact us:Tel: (86)010-84883548, Email: blog@chinadaily.com.cn
Blog announcement:| We reserve the right, and you authorize us, to use content, including words, photos and videos, which you provide to our blog
platform, for non-profit purposes on China Daily media, comprising newspaper, website, iPad and other social media accounts.