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Where is Germany taking us?

Dimitris Ar. Kazis, 22/2/2012

Where is Germany taking us?

Many have recently pointed out the similarities between the Weimar Republic (1919-1939) and the current situation in our country (translators note: Greece). Despite substantial differences in the size and structure of the two economies, the common denominator is the enforced repayment of unbearable state debt to creditors as a matter of urgency, especially now that the country has been forced to accept that state revenues will have to be deposited in a special account from which the creditors will be paid first, and only what remains will end in the coffers of the state. The consequences for Germany back then are known: poverty, destruction of the social fabric, riots, political instability, ruthless enrichment of a few and the rise of the Nazis. For Germany, those were the consequences of a military defeat. In Greece they are the result of a society which for three decades grew delirious and content with itself , under the leadership and by the example of governments of dubious competence and integrity.

If the aim for Greece really was the future improvement of the country then, after the traumatic experience of the 20s, Germany would have taken a different stance on the Greek question. Certainly not that of virulent austerity which is killing the economy and the morale of the population. It is asserted that only with "shock therapy" substantial change can be achieved in - mainly - the state sector and the dominant perceptions and bad habits. This has some basis in that people fighting for survival every day are prepared to tolerate what they would never accept if they didn't give in to the spectre of hunger and the sense of there being no way out.

However, there are limits on what and for how long a people can suffer. Those limits have mainly to do with how equally the burden is shared, and whether it creates prospects for improvement. Neither is the case at the moment. The measures are unfair, are being imposed in a clumsy and unexpected manner and affect those already "registered", leaving intact the sharks and also the systematically tax evading plumbers, electricians, middlemen, doctors, solicitors etc. who now entrench themselves on the shortsighted abolition of tax exemptions: "What do I gain if I ask the plumber for a receipt? To be told to then pay more, plus 23% VAT?" Thus, VAT is not paid but also the plumber doesn't declare taxable income. So the usual... law-abiding citizens are called to make up for the tax gap. You can't create tax conscience among the citizens by horizontally abolishing tax exemptions. All you do is "tax-grab", which makes the situation worse and strengthens the conviction that "one who doesn't steal from the state is either trapped or an idiot".

Apart from that, not a word on investment and growth. The banks don't lend, deposits are withdrawn to either hide or to pay exactions and public investment is been cut. This, unemployment and recession are getting worse.

Don't the "troikans" know these things? Of course they do. Therefore their stance, insisting on cuts in wages and pensions without matching investments - but also their persistent ruthless assault on property - can only be explained in one way: They are trying to get as much money out of the country as is possible (before a possible bankruptcy), to push for structural changes in the economy and administration, and at the same time to reduce the wages to a level with the Balkans and to drive the value of property down so that it will be come uneconomical for one to have many properties (as it's the case in Germany where only 25% of the citizens own a house). This way the best properties will be purchased cheaply.

Some will say: "Well, don't you see how badly we fare, as a state and as a society? Didn't we cause all this?" Of course we made ourselves into a target and some are trying to profit, ganging up with some of "our people". Our partners are right in many things. However, I do not accept that our partners' motives are pure because if they were they would take care of job creation, something that's not possible by strangling the economy and with no investments. Justifiably one comes to the conclusion that Merkozy were essentially biding time in order to prepare adequately for a proper bankruptcy, which the measures hastily lead the country to. All this while only averting the catastrophe at the last moment with their loan injections under conditions of ever increasing severity, indebting the country for years to come. The Greek crisis clearly highlighted the structural deficiencies of the eurozone and, due to lack of relevant experience, various approaches were tried on the back of our country before they decided on how to deal with a crisis like this.

In order to cover up their own dodgy practices (hedge funds, forcing Greece to buy weapons etc) and failures, they keep accusing Greece that she won't implement what was agreed (read imposed), that is "she is hesitating to tie the noose around her neck". Well, which people have ever shown tolerance to such barbaric measures? Even the disciplined Germans - would they accept enforced reductions of their wages and pensions by 50% in only two years and in times of peace? Even more so when those are clearly not the final measures and when there is no sign of any light at the end of the tunnel? Surely not. Which means they are exploiting our weakness, they are squeezing us with their terrorising statements and double standards. It would probably be preferable and more honest if the Germans and the French told us from the beginning that "we write-off your debt if you exit the eurozone" and leave it with us to decide with a referendum.

So, who benefits from the malaise of the countries of the South?

1. France, Germany and the rest are lending but with interest (increasing our debt), so they are not incurring a loss. If they really wanted to help they would be lending interest free and the Germans would hasten to pay the war reparations that they've owed us for 66 years now. Instead they are bullying us to not raise the issue. It has also been reported that they are applying pressure on us to buy weapons instead of guaranteeing our borders in order for us to be able to cut down on defence.

2. Unemployment in high debt countries forces a large part of their workforce to immigrate and Germany is happy to receive them. Germany's birth rate is low and they need people, as they did in the 50's. But Germany now can pick skilled people, the education of whom others spent lots of money on and whom the new employers will take in ready and for free. They prefer unemployed Europeans from the South to Indians, muslims and others whom they don't want. The latter can stay parked in the entry countries as the "Dublin II" accord dictates, which we criminally signed up to unconditionally in 2003 resulting in the country being flooded with illegal immigrants.

3. What is really missing from the North is the sun and a sense of relaxation. A fall in the prices of property in the South creates opportunities for the northerners (and others) to buy bargain property in Greece and elsewhere. Also the sun can be used for the production of power to be consumed up north. Is this the kind of investment they are designing for us? Only when our wages fall roughly to Balkans levels will they think of investing on productive industries of their liking, since Greece doesn't even know what it wants in order to demand it.

4. There is a lot of talk about oil and minerals in Greece. Without doubt Germany and others will grab a piece so that we can pay back the debt. The more hungry we are, the easier and cheaper we will surrender them. The soup kitchens seem to suggest that this is already happening.

5. The crisis in the South (and elsewhere) presents parts of the German elite with the opportunity to re-attempt to enforce German dominance over Europe, this time through the economy. The DNA of the German ruling class seems to have remained unchanged (equally of the Greek one - read Souris of 1890) and it's characterised by arrogance, a manichean view on things (either black or white - no shades of grey) and enforcement by punishment. It remains to be seen in the future what they will achieve. For now they manage to provoke reaction from more and more peoples.

Of course is not the German people's fault what it is been done by default. Many Germans disagree with the handling of their leadership. However the majority are been influenced by both the official and unofficial propaganda and see us (rightly to a point) negatively. The most important point though is that the European institutions and integration on a basis of equality as envisaged by R. Schuman have been clearly been put aside.

What is worse for us is that we are not in a position to self-govern, to agree about what we want and to demand it with concerted effort at home and forcefully claim it abroad. We have not learned how to have a dialogue and to get along. Because of this we always seek foreign arbitration. It's not accidental that we've had five dictatorships in the 20th century. We've got a state and union movement that torpedo any attempt towards growth and meritocracy. We waste precious time and and have no organised researched infrastructure that any continuum. Once upon a time we had a KEPE (Centre for Planning and Economics Research) who shaped development policies. Our politicians made it change direction so that it wouldn't interfere with its meritocratic assessments, proposals and conclusions (by the same logic they spray people with chemicals so they don't gather to protest). We don't have politicians who have any gravity or vigour. Thus, we go where the Germans and others are taking us to...

Are we ever going to take our fate in our hands as a country? Maybe now is the opportunity.

Source: http://www.tovima.gr/opinions/article/?aid=444913&h1=true

Translated by Petros Diveris on 22/2/2012

Submitted by , Thursday 23 February 2012