mellownomad said:You would likely speak differently if you were the one being asked to surrender part of your own savings to bail out Greece.
Besides, you keep drifting away from the actual topic.
I fail to see how your statement relates to my comment. You advocate for others to stop importing Middle Eastern products—essentially oil—but when I ask if you are personally prepared to live without using it, I get two or three nonsensical answers that dodge the question entirely..
It is the same thing here; you mention your savings, yet suggest that Germans, Dutchmen, Danes, Frenchmen, and Englishmen should forfeit their savings just to prevent some kind of war..
Please, at least try to separate the part where you call on others to do exactly what you aren't willing to do yourself.😁
As the saying goes: put your money where your mouth is.
By the way, Germany has paid off its debts.
That is exactly the kind of socialist mindset I am talking about. Beyond wanting someone else to give up their claims, they would also want someone else to hand over their savings (very much in the style of Piketty).
Well, those people—the Germans, Dutchmen, Danes, Frenchmen, and Englishmen—actually built up those savings through the profits they made by exporting goods to Greece. So, it isn't really about them giving up their "savings," but rather sharing a portion of the earnings they generated.
It’s a lot like when you shop at Walmart and they give you reward vouchers; those vouchers give you the right to buy things or get a discount on certain products.
In that scenario, Walmart isn't sacrificing its savings; it’s just distributing a slice of its revenue. You could technically call it savings, but in a standard customer-retailer relationship, this is just how things work.
Or think about going to a restaurant; you’ll often find yourself being offered a complimentary drink after a heavy lunch, a little something the restaurant earned back through your patronage.
Quincy:
By the way, Germany has already paid off its debts. That’s exactly the kind of socialism I’m talking about. Beyond wanting others to waive their claims, they also want others to sacrifice their savings, much like what Piketty describes. Germany |
Germany never actually repaid the real value of its war reparations, if you look at what Piketty points out.
When it became clear that Germany couldn't meet its obligations, the debt was restructured and the repayment period was extended, meaning they didn't settle their final obligations until 2010.
On top of the fact that part of the debt was essentially forgiven, the US dollar has lost significant value since 1953. What $1 could buy you back then might cost you $8 in 2015.
Yet, the debt was settled at face value.
But all of this gets conveniently forgotten. People drone on about losing savings, the obligation to pay the last Euro, financial discipline, and all that.
They ignore the fact that the Eurozone nations took on Greece's debts from private banks. By forcing Greece to pay, they are essentially trying to collect what was already paid to private banks—banks that pocketed the interest, handed out bonuses, and distributed profits, while leaving the taxpayers and savers, whose money was used to buy those Greek bonds, to deal with the fallout.
It’s also overlooked that Germany itself owes $5,217,014 million and enjoys much more favorable interest rates on its debt compared to Greece. In effect, Germany earns a spread of about 3-4% on the interest difference from the Greek debt.
This pattern has been repeated over and over. Without being properly refuted or challenged, people forget this sequence of events and who is truly responsible for the situation in Greece. It wasn't just the Greeks; it was their politicians who took on debt to serve their own interests.
Actually, Greece has a smaller budget deficit (3.5% of GDP) than the US (which we can compare to our own fiscal struggles), and without credit obligations, they are closer to meeting the European Union's requirements for deficit limits.
I wonder what everyone will have to say when our own "creditors" come knocking and force us to live like ascetics, just as they are doing to Greece now.
Maybe then we'll see things differently, or perhaps it's time to organize quickly and demand that our politicians stop saddling us with more debt, while many continue to enjoy perks funded by that very borrowing.
If we believe that all interest-bearing debt must be paid back by any means necessary, then maybe it's time to take to the streets and challenge the Government that keeps borrowing for us, especially since the debt is approaching 100% of our GDP.