Oddly, I hear this self-flagellating nonsense from Greeks themselves: we are lazy. We deserve our punishment. Nonsense. The average Greek works more hours in a year than any other worker in the 34 nations of the OECD; Germans the least.
The Euro's Father Describes his Little Bastard
Alexis Tsipras, the leader of Syriza, would like to pretend that austerity and the euro are two different things, that you can marry the pretty girl but not invite her ugly sister to the wedding.
The euro is simply the other side of the supply-side coin. As Mundell explained it, the euro is the way in which congresses and parliaments can be stripped of all power over monetary and fiscal policy. Bothersome democracy is removed from the economic system. "Without fiscal policy," Mundell told me, "the only way nations can keep jobs is by the competitive reduction of rules on business."
Greece, to survive in a euro economy, can only revive employment by reducing wages. Indeed, the recent tiny reduction in unemployment is the sign that Greeks are slowly accepting a permanent future of low wages serving piña coladas to Germans on holiday cruises.
Nevertheless, Greece must pay Germany back, Mr. Tsipras, if you want to continue to use Germany's currency, that is.
Greece: Goldman Sacked
Greece's ruin began with secret, fraudulent currency swaps, designed a decade ago by Goldman Sachs, to conceal Greek deficits that exceeded the euro zone's 3%-of-GDP limit. In 2009, when the truth came out, Greek debt holders realized they had been cheated. These debt buyers then demanded usurious levels of interest (or, if you prefer, a high "spread") to insure themselves against future fraud. The compounding of this interest premium brought the Greek nation to its knees. In other words, the crimes committed to join and stay in the euro, not Greek profligacy, caused the crisis.
The USA, Brazil and China escaped from depression by controlling their money supply, government spending and currency exchange rates--crucial tools Greece gave up in return for the euro.
Worse, once the Trojan hearse of the euro entered Athens, tourism, Greece's main industry, drained to Turkey where hotels and souvenirs are priced in cheap lira. This allowed Dr. Mundell's remorseless wage-lowering machine, the euro, to do its work, to force Greece to strip all its workers of pensions and power.
Greece fell to its knees, with no choice but to beg Germany for mercy.
Ah, but they do, Mr. Schäuble. They can tell you to take your euro and shove it up your Merkel.