11 thoughts on “On BBC Radio 4’s ‘Today’, discussing Greece’s latest descent into the abyss

  1. German tourists spend as much as never before. Just Greece is not benefitting. Reason seems to be fear of missed connections due to strikes and too high price level due to Euro.

  2. Berlin & Frankfurt are playing stupid games trying to crush Greece into the earth tobgetvits hands on Greek gold and infrastructure in a fire sale.
    As Yanis has consisently said Greece must be allowed to.default and leave the euro to save itself from facisim and potential civil war.
    Merkel knows this but fears of a domino effect of a Grexit then closely followed by Spain, Portugal and Ireland thus leaving Germany stuck with a Mickey Mouse currency no one wants….

    • RJK – Merkel wants collapse for cheap Greek assets or she is frightened of collapse? You can’t have both, which is it?

  3. It’s simply amazing that Merkel is blaming the IMF for austerity. When in fact it was her own plan to invite the IMF into the Troika a. for technical knowledge Merkel did not have and b. for the IMF to share 20% of the burden since in Merkel’s mind America was responsible for the European crisis and the US had to pay somehow for the problem fix through IMF contributions.

    All I can say is: What a hypocrite !!!!!!


    • Dean – Your not going to like this. –

      When the Greek politicians tell you they wont raise taxes or that Greece “has the money” you don’t believe them do you? And yet when the Greek politicians say it is Germany’s fault you believe them? Do you think the Greek politicians only say the truth when it suits them? Or are they consistent in their lies? Whichever you believe it must mean Germany is doing the opposite of what the Greek politicians claim because it is obvious that the Greek politicians do not tell the truth all the time.

      Let me summarise –
      Greek politicians always truthful = False re Papandreou/Samaras election “promises”
      Greek politicians tell the truth when it suits them = Possible, in which case it suits them to blame Germany and it suits them to lie to the Greek people about taxes and cuts
      Greek politicians always lie = Possible, in which case Germany not the cause of the problems and they will do the opposite of anything which sounds good for the people.

      Whatever the case may be you cant listen to Greek politicians. Now it is possible that German industrial giants want a piece of Greek resources? Possible but is exposing Germany to massive hostility throughout the world. Do you really think that Germany is deliberately exposing itself to anti-German sentiment? Is that helping German industry buy up Greek assets? I would say absolutely not, can you imagine the political ramifications for any politician in Greece that public supported Siemens take over of the national power company for example?

      In short, if I was Siemens and I was in the market to buy Greek state assets my actions of collapsing the Greek economy until now have moved me further from my goals not closer. I don’t think there is any way you could see German firms buying up Greek assets in the current climate. You disagree?

      And lets assume that this anti German propaganda has been a defence measure of the Greek politicians to save the country from “Germany”. Look at the damage they are doing to the country in order to “save” it. Do you really believe they have the interests of their countrymen at heart?

      In short, the anti German position makes NO logical sense. Feel free to point out the gaping hole in the logic of the argument I have just laid out.

    • Richard:

      Germany has made a profit of at least 120 Bil. euros from the Greek crisis. The 3 components of profit are as follows:

      1. Bond interest savings at 85 Billion
      2. Increased exports due to lower euro value: 45 Bil.
      3. Other: 15 Bil.

      (as you can see the German profit is at least 145 Bil, so I said 120+ to give you some breathing space).

      We can examine the 3 components anytime you wish.

      Germany’s cost for the OSI is only 17 Bil. euro. It’s nothing compared to the overall German profit. Absolutely nothing especially when compared to what it could really cost Germany when her credit worthiness gets lowered ( a forgone conclusion).

    • Dean – Thank you for putting something concrete in your reply. Something that is sadly lacking with a lot of the replies.

      Bond interest savings – I assume you mean Germany. If it was Germany’s plan to get negative yield on its debt then it was genius. Its negative because people are using it as a hedge against Germany going back to the DM.

      Increased exports – I hadnt thought of that.

      Basically you seem to be suggesting that Germany is profiting from the chaos and that Germany could be causing the chaos on purpose. If I understand correctly?

    • Dean:

      About 8 hours before you posted here that the bond interest savings to Germany were 85 BEUR so far, you had posted in another blog that they were 80 BEUR. I mean, what’s 5 BEUR these days, anyway! I repeat here the comment which I made in the other blog about your statement.

      In the last 2 years, Germany’s new borrowings were a little over 400 BEUR (mostly for refinancing of maturing debt). An interest benefit of 80-85 BEUR would have represented an interest rate benefit of about 20% p.a. Germany borrows today at near zero. You are saying that Germany, without the Greek crisis, would have borrowed at around 20% p.a. I say that Germany, without the Greek crisis, would have borrowed at less than 20% p.a. Let readers judge the math.

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