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Liable for other peoples' debts

Today, German politicians decided, that Germany be liable for up to 211 billion Euros for the debts of other EU countries. Or, put differently: the politicians put the money of the current and future generations on the line for a country that lived way above its capabilities for too many years.

When the EU was founded, it was explicitly stated that no country needs ever be liable for any other. I understand that politics is hard, and letting Greece (and others) fall down might carry heavy, unforeseen consequences. Also, I understand that the Greek people are mostly innocent in all this and that the fault lies with their politicians and other corrupt entities in the nation.

However, what's happening these days is beyond the comprehensible.

If I were in a non-Germany EU country, I'd rejoice and continue making debts. It is likely that this won't be the last time that our politicians cave in to pressure by other nations who have a lesser understanding of budgeting and saving.

Since I am German, I can only shake my head, look to Berlin and ask myself whether this is the final straw that broke the camel's back. How the heck do the people over there ever want to regain the trust of their people? Politics has become the game of pleasing each other, who cares about the people? And the German politicians are (once again, remember credit default swaps?) at the forefront of this stupidity.

To me, there is only one solution to Greece's debts: make sure that what happened can never happen again, and then cut the debts, or slice them in half. Let the banks carry the weight, for it was them who gave out the loans too liberally. And if this forces a bank or two to default, let it happen, for fuck's sake. The consequences might be dire, but they'll subside. And that's surely better than trying to pretend that we can keep juggling this heavily inflated financial system.

Instead, the executives, elected to carry the trust of the people, are setting precedents for other countries to follow Greece, for it is likely that they wil be bailed out. By us. That is not the way to teach anyone the basics of economy: you can only spend as much as you earn, without exceptions. Debts will only come around to hurt you. I could puke.

NP: Godspeed You Black Emperor!: F# A# ∞