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Monday, July 6, 2015

Piketty Calls out German Hypocrisy on Debt

     In my last two posts I tried to game out what is next. What we seem to know at this point its:

    1. Krugman argues for Grexit as the best interests of the Greeks.

    2. The Greeks themselves though don't want to leave and Tsipras threw his colorful finance minister under the bus as a peace offering to the EU.

    3. There are some differences between the 2 powerful members of the EU-France and Germany on what to do next.  Germany as usual is calling for the hard line of dropping Greece while France is saying Grexit is not inevitable.

   http://diaryofarepublicanhater.blogspot.com/2015/07/grexit-or-not-and-latest-franco-german.html

   Piketty is calling out the Germans for gross hypocrisy and saying that this could be their downfall. Germany could 'end up n the trash heap of history'-w'eve herad prophecies like this in the last 200 years of European history!

  "If Germany doesn’t find a way to restructure the debt of countries within the eurozone, “its position on the debt crisis will be a grave danger to Europe,” said Piketty in an interview with German newspaper Die Zeit. The English translation of the original interview can be found here."

   "It was during his research for his book that Piketty saw Germany as the best example of a country that, ironically, has never repaid its external debt. In Capital, the French economist writes that “the amnesia award goes to Germany” for their chance forgetfulness of their history with debt. Given the inability of Greece to repay its roughly $300 billion debt to the International Monetary Fund and the European Central Bank, Piketty believes the current German attitude smacks of hypocrisy."

“When I hear the Germans say that they maintain a very moral stance about debt and strongly believe that debts must be repaid, then I think: what a huge joke! Germany isthe country that has never repaid its debts. It has no standing to lecture other nations,” he said in the interview.

  "Piketty’s suggestion is that countries in the euro come together for a debt conference call “to determine the maximum allowable budget deficit in order to prevent the regrowth of debt,” starting with Greece. If they don’t, Piketty has a warning for German Chancellor Angela Merkel: “Those who want to chase Greece out of the eurozone today will end up on the trash heap of history.”

    http://fortune.com/2015/07/06/germany-greece-piketty-austerity/

     At least I think that a Grexit may lead to the EU joining the ash heap of history. And Germany does not want this. 

     http://diaryofarepublicanhater.blogspot.com/2015/07/germany-and-greece-cowhos-parasite.html


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