The European crisis that has been caused by a series of incredibly bad policy decisions of Europe, lead by
may be coming to a head. Paul Krugman,
among others has already written about the demise of Greece’s participation in
the Euro, and news stories are now dominated about Greece leaving the Euro and
the implications of that action, rather than before when stories talked about
how the crisis had been solved and how it was inconceivable that Greece or any
country could leave the Euro.
At this point in time the just completed elections in
Greece have left the country with
no government. Greece has a parliamentary
form of government, but a lot of parties means a coalition must be formed to
form a government. A coalition cannot be
formed because the second leading vote getting party will not participate in a
government with parties that negotiated and support the horrible infliction of
pain from the bailout conditions.
There is no question that the leader in Europe from all of this is
Germany. And now there is no question that the policy
against Greece is being
driven by Germany
wanting to punish Greece
for its profligate ways.
“It is undisputed that the Greek people have to suffer from the consequences of decades of neglect. There is no easy path,” said Wolfgang Schäuble, the German finance minister, while heading into the meeting.
Now there is no doubt that
lied about its economic conditions in order to get into the European
Union. But there is also no doubt that
the rest of Europe knew this at the time, and that they wanted Greece in the Union. And most of all there is no doubt that the
policy imposed on Greece
is not working, will not work and cannot work.
But now we know that a working policy was not what
wanted in the first place. They wanted
to punish Greece
because Greeks did not act like Germans.
Looking back in history, that’s not always such a bad thing.