Merkel’s Visit to Greece

German Chancellor Angela Merkel Sees Hope, as Greeks Protest – WSJ.com.

When Angela Merkel says that she sees a light at the end of the tunnel for Greece, she really means that she sees it for herself, elections in the fall. She needs to maintain the Greek and eurozone status quo until then.

She also said that Germany wants to be a “good partner and a real friend” to Greece. Actions speak louder than words, and a real friend would not allow the Greek depression to continue because of political pressure to humiliate and punish through austerity.

German voters do not want to give their money to the periphery through endless bailouts, and the austerity conditions are a way to show voters that she is being tough on Greece. Budget cutbacks in a tight-money, depressionary environment merely add create more misery and do virtually nothing to help economic growth.

Germany does not care about the Greek people. They are merely dispensing just enough aid to keep the patient alive but not enough to help him recover.

Samaras made a lot of promises about renegotiating the bailout, but he quickly broke all of them upon being elected. He is now the most willing collaborator with the German regime and troika.

Greece made its own bed and now should lie in it. This does not equate with endless bailouts, loans and refinancing shenanigans by the ECB. Rather, Greece needs to revert to its old national currency. The pain will become even greater, but then there will finally be a light at the end of the tunnel for Greece.

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