It was almost a total capitulation.
Other nations, who had considered joining the Eurozone and who have been watching how this played out, might want to rethink that. You can be pretty certain that the Brits have been spraining their arms, patting themselves on the back, for keeping to the Pound.
4 comments:
WTF could you reasonably expect though? Greece HASN'T gotten it's shit together despite many attempts to help it over many years.
Something had to be done, and Greece wouldn't play nice before.
Sucks to be them, but really what would you have the rest of Europe do?
The floggings of Greek pensioners shall continue until morale improves or they all starve to death.
The core problem here is that the only way to avoid the crippling Eurozone-enforced deflation that is causing Greece's economy to crash is to abandon the Euro and go back to the drachma, but Syriza cannot do that because the majority of Greeks don't want that. The Greek people basically told Syriza, "get rid of the crippling deflation without doing what's necessary to get rid of it," which of course is impossible.
So this is a case of Greeks getting what they want -- more crippling deflation, more fire sale of Greek assets to German buyers, and so forth. Unless Greece decides to be an independent nation (complete with its own currency) they will continue to be slaves on massa Germanys' plantation. But the Greeks still seem to think they're better off inside the Eurozone than outside, for reasons that make no sense at all.
It is becoming evident that the "Eurozone" is effectively territory that has been economically colonized by Germany.
Germany is essentially using the southern tier of the Eurozone to drive down the price of the Euro so that its exports are cheaper. Germany is using the suffering of Greeks to make it cheaper to export Volkswagens to the rest of the world. Plus if you look at the deal, it requires that Greece turn over most of its tax-producing assets to a German-run trust fund to be used to repay the debts, most of which are owned by a bailout fund that is dominated by the Germans. Shades of the Ottoman Debt Administration! Yeah, that worked out well...
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