Saturday, 11 July 2015

People in glass houses should not throw stones

It's a murder story. 
The victim is being slowly strangled to death, the police were called by the victim but the cops were not interested and the crime is due to continue.
Of course the strangler has his objective, that of applying pressure, just short of asphyxiation. His head is lost in the passion of financial conservatism which he remembers as being the saviour of his own nation. What his memory excludes, as with all fanatics is the very generous terms which were offered to Germany when the "austerity", brought about by the "reparations" demanded, particularly by France after the 1st World War, were seen to be destroying the country and very sympathetic restoration was pursued, by particularly the Americans.
Also in 1953 when, due to the American Marshall Plan which in effect pumped 150 billion dollars into Europe to stimulate the war torn economies it also offered Germany enormous debt relief to help the country recover. 

The image therefore of the German Finance Minister, Wolfgang Schauble with his hand around the neck of Greece, demanding payment in full with "no debt relief" is to me beyond comprehension.

The commentators have been scathing of Alexis Tsipras for calling for a Referendum, winning an outstanding "No" vote on increased austerity (which mainly the Germans had  been demanding) and now, caving in to the pressure and accepting what the creditors demanded.
I think Tsipras played a blinder. Firstly he got the populous on his side and showed the unity and the desperation of the Greeks to the World, particularly to the U.S.
He made headline news and showed that even under the desperate straights his country was in under the hard, unyielding financial hegemony of Germany a nation showing no empathy when only 60 years ago the Germans were offered and needed exactly what they were now denying Greece.
When the EU cry about the massive bailouts they have placed in the Greek banking system they fail to mention that the bulk of the money is returned to the EU banking system as repayment for the last loan. It's a merry go round with few Greeks benefiting, other than being kept on "life support"
The focus of Tsipras is to get a moratorium, or a 'right off' of a large part of their debt so they can breath again. His modernisation of the Greek state, (tax and pensions), has been agreed but will take time but his focus and the glare of publicity he has shone on the impossible burden of existing debt will I hope drive the Wolfgang Shaubles of this world back into their den perhaps to read their own history and become a little less judgemental.

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