Since the birth of the euro, interest rates
were unreasonably low for the economies of southern Europe with the sole
purpose of propelling the growth of unified Germany
In 1953, through the so-called London Agreement
on German External Debts, also known as the London Debt Agreement, half of the
foreign debt of West Germany was condoned by a group of at least nineteen
countries, among which were Greece and Spain. The purpose was to lighten the
burden of its debt so that it could grow and recover from the disaster caused
by herself during World War II.
Such agreement included the provision that West
Germany would pay only when obtained trade surplus, limiting payments to 3% of
German exports. It was an incentive for creditor countries imported German
products. Among the draconian provisions of the Troika to Greece at the moment,
there is no clause that encourages similar good things. It is considered that only
Greeks themselves are responsible for their agonizing situation, and they have
to paid for it.
Since the birth of the euro, interest rates
were unreasonably low for the economies of southern Europe with the sole
purpose of propelling the growth of unified Germany. Interest rates incendiary
for the reheated Mediterranean economies that caused by the perverse mechanisms
in place since its inception, the debt bubble, public and private, who are
unable to stop in time. Southern Europe has paid too much for the exemplary German reunification.
Taking advantage of the situation of the
defective birth of the single currency, German and French banks lent to Greece,
without serious risk assessment, that Greece cheerfully demanded. They knew
they were playing with fire and pay the piper the other: sooner or later would
transfer their portfolios poisoned to the public sector. They knew they were
systemic institutions.
Costly errors committed by such private banks
were then distributed pro rata among European citizens, via liquidity
mechanisms put in place to avoid a larger disaster to that caused by Lehman
Brothers.
For the moment the Troika has only offered in
exchange for anguish, a trouble refinancing, guaranteeing a terrible economic
downturn that has caused the debt burden becomes increasingly unbearable,
impossible to ever pay whatever the weight growth. Spain is on the same path
despite the current meanders.
Perhaps that fear of seeing the speck in your
neighbor's eye instead of the beam in itself so that makes attacks from Spain
to Greece are terribly cruel and ruthless. They have been in the tens of
embarrassing media comments that cause redness and cause embarrassment.
It has been accused of failing country since
classical times, vague and corrupt, and I do not know what else. The same could
be said of us. In Greece, as in Spain, most people are honest, competent and
hardworking.
That does not mean that both democracies are
ill and that their citizens have not wanted to recognize at the polls the democratic fallacy that starred.
Its population fell under the nouveau riche syndrome that deserves everything
by the state, the occurrence pretend ignorance to believe that the public tap
was unlimited. Irresponsible politicians, are retreating caste or emergent,
they have dealt in such prime perception. Are the terrible consequences of
uncritical poor education system (LOGSE*)
and the uncritical education triumphant.
· *Spanish
primary and secondary education´s system.
They have not (us) been able to create a system
of checks and balances that will control the institutions that promote
political and economic meritocracy instead of this suicide and decadent
“sillycracie”, for not to say strongest things
, where the most incapable members of society they manage forever govern.
Perverse mechanisms that have raised an
oversized public sector, inefficient and bureaucratic every day, that sucks
resources should be aimed at strengthening the real economy, but today prevents
him develop.
Greek politicians, meanwhile, instead of
strengthening the real economy, as money spent to assemble cribs and
disseminate privileges, encouraging corruption and irrigate the country with
improper and absurd subsidies and infraestructures, similar to the Spanish way.
This, together with an absurd and incomplete
design of the euro did not guarantee budgetary rigor of its members, without
financial controls and a policy of interest rates by the European Central Bank
in accordance with the internal situation in Europe and not only Germany, led
Greece (and Spain) to the current situation.
When the issue blew up rather than cut their
losses by closing intervening or European banks guilty of irresponsibly
encourage Greek bubble (and Spanish) debt expelling their inept managers, the
mechanisms created for the purpose, and all public in that moment, They
provided additional funding to Greece by the classic kick forward in order to
hide their own misery, repaying loans to such guilty banks , so that they could
go out without punishing responsibilities.
The first Greek bailout was a bailout of
Germany and France made between all Europeans. They would have to be the ones
to pay the collapse of its banks virtually broken.
In Spain, for doing the same, the bicentennial
homelands savings boxes, happily financed by the same banking system , passed
away after a long life exemplary life. There have always been incompetent
politicians, maybe not as many as now. Despite them, the legendary Spanish
savings banks were well managed until the entry into the euro and its partisan
use by acolytes domiciled in seventeen irresponsible “little nations “ in
similar way to Greek institutions.
What destroyed them in just eight years old when the raw material
in Spain had always been equally poor? Something had to see in all this the
nefarious design of the euro, of which Greece is paying the entire bill when it
should only pay half or less, if we compare the situation of modern Greece with
the circumstances of Germany 62 years ago, and the origin very different from
the debt of both.
The original sins of everyone playing in
different leagues. Germany had launched two catastrophic world wars. To our
knowledge, the crushed Greece has not triggered any. In 1953 the world was
generous with West Germany. He intended not to repeat the mistakes of the
Versailles Treaty.
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| Rotterdam ( Holland ) destroyed by Germans in WWII |
Greece has committed multiple errors. They do
not deny it or them. The troika, led by Germany, has accentuated them with the
decline to pardon part of the debt ,in exchange to reform a viable state, budgetary rigor,
sensible reforms far failed ultraliberal doctrine, and assumable conditions to
enable them to grow, in just reciprocity to grace Greece (and Spain) they had
with Germany then.
Why Germany is unable to correspond with dignity
to Greece? Sunday's referendum was passionate rather than political. A hopeless
right to complain. It reflected the mood of the humiliated people , without future
or budding skyline in the distance. USA went better during the Great Depression.
Varufakis blew herself despite winning his
choice. What most annoyed his colleagues is proof that he knew more than
anyone. So they have no mercy. Why did not anyone miss the thick words
addressed to the troika, disturbed or form, like it or not their sex appeal, was
being or disagree with their ideology? He has more reason than a saint with his
words? Time will tell and newspaper archives will pale.
Greece is grieving own faults and those of
their tormentors. Spain will follow sooner or later. If the euro does not
redraw if the troika institutions do not reflect and how some decency and
generosity, if they do not reform themselves with sense for once, the dream of
Europe will vanish.
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