Comment Re:Germany should pay war reparations for WWII (Score 1) 743
At the time, it just make it easier for Germany to export
People keep saying this, as if driving your currency down requires some sort of special arcane skill that only the Greeks have. There are plenty of ways to do it - one of which is to run your economy in a completely irresponsible manner.
Not that devaluation is the magic bullet people are claiming anyway.
You are kind of missing the point.
Its not like the Greek economy wouldn't have just continued business as usual without the Euro... If Greece never joined the Eurozone, it would still have the screwed up economy it has today, we just wouldn't be hearing about this being some "crisis".
The only reason this is a "crisis" is because Germany - a major economic power - is involved as a major creditor. And the only reason why this is a "crisis" for Germany is because the German political establishment promised its people that Germany would never bail out a country on the Euro. But that was BS. The UK knew it was BS - crap like this is why they are still GPB and not Euro - and they warned Germany.
Before talk of the Eurozone, the financial markets traded the drachma as if it were the artificially inflated currency it was, then when Germany started talk of adding Greece, the drachma spiked, Greece then had money to buy goods from German companies, and some select currency traders cleaned up. But it was a short term con job. When the credit card ran up, it came time to pay the bills. And Greece has never been that good at paying bills. If it looks like a duck....
Germany didn't have to let Greece in. Greece couldn't even make the minimum requirements for the Eurozone, they were given a bunch of economic exception to join. Allowing Greece in was a real bad financial decision by the German politicians and banking industry that backed Greece's inclusion. Now they are whining about losing money on a risky proposition.
Time for Germany to quit whining, suck up the losses and move on. Its not like the German economy will collapse over this, just some Germans get a haircut. Take it as lesson learned.