The game of needs
The never-ending question of who needs who more. This is of course referring to the sudden “dilemma” among european union skeptics about Greece debt woes and their inclusion in the eurozone. But the other side of the coin is Germans need to keep Greece afloat. Why?
Cause Germany is the biggest benefactor of the eurozone system. Without it the Deutsche Mark wouldve been one of the strongest currencies in the world. This would obviously kill its export powerhouse industry which has been running a trade surplus since the 50s. The surplus of course strengthened when the eurozone partnership began in 2002.
So I do find this whole debacle about Greece leaving the eurozone fairly amusing. Firstly it will never happen. The destruction of confidence in the “system” would be overwhelming and would take years to recover. The idealogy behind the euro is trust and stability. This cannot be altered and a shock exit of a country could spark a domino effect which could see struggling “giants” Spain, Portugal and Italy ponder similar strategy for their own benefit. Members would start leaving the sinking boat.
Secondly the wait game tactic that is being played by Tsipras government is receiving a mixed response. With calls for a plan B to be devised. But will the shoulders of Varufakis be wide enough to design and lift another plan? Some propositions floating around seem to indicate that citizen capital flight controls could begin reducing the massive strain that the central bank of Greece is undertaking. With recoverable assets of around the 40 billion figure, it is surprising that the ECB allowed it to carry is well above that in the 90 billion scale in emergency liquidity. Nobody knows at whos cost of course.
It is still dumbfounding that an experts panel which could assist the Greek government on an optimal solution is not present. The game of pointing fingers is well under play and with no end on sight with the breakdown on negotiations between the Greeks and IMF.
But an old proverb still applies and it always will:
“Owe your banker $1000 and you are at his mercy; owe him $1 million and the position is reversed”