There are some interesting similarities with this situation, and the squeeze reparations put on Germany in the late 1920's. Greece cannot meet their obligations, and the harder they try, the more their economy shrinks, and the harder it is to meet their obligations. Growth is the only way out, but creditors don't have the patience for it. I wonder if non-Greekbank failures will follow the Grexit.Regling also explicitly opposed the current plans of the Greek government to reduce some taxes and increase the minimum wage and pensions, saying that this amounts to “moving backward” and is putting negotiations in danger.
It's almost as if the German government - who is one of the primary creditors for Greece, and one of the least willing to bend - has either forgotten, or is consciously ignoring their own economic history. I wonder how long it will be until the greeks are using wheelbarrows full of Deutschemarks Drachmas to get a loaf of bread.
Indeed. What's the saying? "Power corrupts, and absolute power corrupts absolutely"?As for Germany, it seems that people in power tend to act like people in power, regardless of their history.