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Germany (and lots of Europe) was rebuilt at great expense and with considerable willingness to forgive debts or reparations, because, quite rightly, the world r

by craigyk 11y ago

Germany (and lots of Europe) was rebuilt at great expense and with considerable willingness to forgive debts or reparations, because, quite rightly, the world realized impsosing draconian penalties on Germany after wwi was a major factor leading to wwii. Even since the end of the wwii, Germany had to have debt forgiven and be bailed out more than once for reckless economic policy. Now I feel like whoever is calling the shots are not just being hypocritical, but downright shortsighted. Greece messed up, but they've paid a hefty price, just tell the creditors they're SOL and are going to have to accept a haircut, forgive a majority of the debt and move on.

intrasight 11y ago
That is indeed the historical facts. I think that the Greeks need to remind the Germans of this each and every day. https://en.wikipedia.org/wiki/London_Agreement_on_German_External_Debts https://en.wikipedia.org/wiki/London_Agreement_on_German_Ext... "Under the London Debts Agreement of 1953, the repayable amount was reduced by 50% to about 15 billion marks and stretched out over 30 years, and compared to the fast-growing German economy were of minor impact.[2] An important term of the agreement was that repayments were only due while West Germany ran a trade surplus, and that repayments were limited to 3% of export earnings. This gave Germany’s creditors a powerful incentive to import German goods, assisting reconstruction.[3] The agreement significantly contributed to the growth of the post-war German economy and reemergence of Germany as a world economic power. It allowed Germany to enter international economic institutions such as the World Bank, International Monetary Fund and World Trade Organization."
- craigyk 11y ago
  Greece would kill for those kinds of terms I think. the people in charge of policy back then cared about long-term political and economic stability, the people in charge today mostly care about getting saved from their stupid investments.

by craigyk 11y ago

intrasight 11y ago

That is indeed the historical facts. I think that the Greeks need to remind the Germans of this each and every day. https://en.wikipedia.org/wiki/London_Agreement_on_German_External_Debts https://en.wikipedia.org/wiki/London_Agreement_on_German_Ext... "Under the London Debts Agreement of 1953, the repayable amount was reduced by 50% to about 15 billion marks and stretched out over 30 years, and compared to the fast-growing German economy were of minor impact.[2] An important term of the agreement was that repayments were only due while West Germany ran a trade surplus, and that repayments were limited to 3% of export earnings. This gave Germany’s creditors a powerful incentive to import German goods, assisting reconstruction.[3] The agreement significantly contributed to the growth of the post-war German economy and reemergence of Germany as a world economic power. It allowed Germany to enter international economic institutions such as the World Bank, International Monetary Fund and World Trade Organization."

craigyk 11y ago
Greece would kill for those kinds of terms I think. the people in charge of policy back then cared about long-term political and economic stability, the people in charge today mostly care about getting saved from their stupid investments.