Sunday, June 28, 2015

Greek Gift

To make several things clear:
  1. The origin of the Greek problem is in Greece, in its catastrophic government during last 30 years. Certainly, others has their part of the responsibility. They knew the situation, did not appropriately reacted and kept feeding money into Greece. But the main responsibility is on the shoulders of the successive Greek governments, elected in democratic election. The recent politics of IMF and EU has probably not helped to solve the situation, but they have been decided only after Greece has failed to execute adequate reforms itself. Mr.Tsipras should stop accusing everybody else and start the real reforms:
    • Is Greece still one of most non-egalitarianism state of Europe (as measured by GINI) ?
    • Has Greece still have one of the proportionally biggest army of the World ?
    • Is Orthodox Church still exonerated of the taxes ?
    • And shipbuilders ?
  2. Nobody has stolen the Greek money. The Greece has received the loan under better conditions that private investors (because states are considered less risky). Even after the catastrophy has become obvious, the Greek debt conditions have been kept better than for anybody else. Greek lenders suffer today as well as Greek people.
  3. It's not true that the erasure of the debt would be painless. In the end, someone will have to pay, directly on indirectly (for example by inflation). It's great to make a referendum about paying the debt. But other European countries then should hold similar referendum, if they accept that Greece will not paying them back their money. Such referendum would be especially interesting in countries, which have sanitized their states and economies after the crises and see today their economy awaking. Even more interesting would be the reaction of the former Russian colonies in the Central Europe, which have performed similar (liberal - what a horror !) reforms as are today proposed by IMF in the end of the last century with dramatically positive effect. And which have received far less European money that Greece.
  4. Of course everybody knows that Greece can't pay all its debts. But before the debt can be partially erased, the Greek economy should be reformed. Nobody wants to restart the same history as we are experiencing now. (By the way, IMF, so much hated by the current Greek government, is the only  one who proposes that; under the condition that Greece performs effective reforms.)

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