Merkel against the Drachma lobby

Tens of thousands of angry Greeks "saluted" Angela Merkel at her trip to Greece. Instead of thanking Germany for billions of Euros financial aid, Greeks are swearing at Merkel and blaming her for all their problems.

The Greek Government budget deficit is about 20 billion Euros. The biggest share of it is financed by Germany, via the EU bailout funds. Greek pensioners and state officers are having their money thanks to Germany. If Germany decides just to do nothing - neither to give money, nor to require austerity, then Greece will simply go bankrupt. The country will have to go out of Euro zone, reestablish Drachma and devalue it. At the end the overall reduction in living standard and personal income will be much greater than even in the most fierce austerity plan.

The austerity plan is a mercy and not a punishment for the troubled country. It is a chance for less pain. Chaotic self-regulation without any aid is usually a catastrophe for all.

Anyway Greeks are protesting against their own savior. Merkel is compared to Hitler and some protesters are clothed in Nazi uniforms. Greeks want just German money, but not German and general creditor's conditions. Greeks want more and more money and at the same time they are cursing the owner of the money.

On Balkans there is a joke: "Feed a dog to bite you". I.e. make much good to someone to receive just hate and ingratitude in exchange. But on Balkans there is also another joke - love and hate are very strong and very easy to change. I.e. if left without any aid, Greece will crash, but soon after that will start loving Germany... :)))

There is also some rational explanation of the absurd that happens in Greece. It's the so called "Drachma lobby". A Group of wealthy in influential Greeks that want Euro to be abandoned and Drachma to be reestablished. They will have a chance of erasing and devaluing their debts if Drachma is back and most of banks go bankrupt. These people pay for protests and propagate against austerity via owned by them media. They have deputies and ministers in Government. In fact this group looks like has almost achieved victory. Every day of lacking reforms and artificial excuses works for the Drachma.

October 9th 2012

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