German Hypocrisy: Never Repaid Own Debts, Forces Others to Pay Up

[Hasbara Buster]

German Hypocrisy: Never Repaid Own Debts, Forces Others to Pay Up

As Germany is all over Greece, trying to make the little Mediterranean nation repay its huge government debt by forcing the country's top officials to come up with new measures time and again, Berlin is forgetting one very important point – the Germans have never repaid their own debts.

Thomas Piketty, a renowned French economist, pulled no punches with Germany and its harsh stance towards the Greek debt, pointing out true hypocrisy on behalf of Berlin, since the Germans have never repaid their own debts.

"When I hear the Germans say thahypoct they maintain a very moral stance about debt and strongly believe that debts must be repaid, then I think: what a huge joke! Germany is the country that has never repaid its debts. It has no standing to lecture other nations," Piketty told German newspaper Die Zeit in an interview.

Piketty noted that German debts were restructured or forgiven in some ways by its creditors after World War II, which helped the country stabilize its economy and reach high rates of economic growth.

"After the war ended in 1945, Germany's debt amounted to over 200% of its GDP. Ten years later, little of that remained: public debt was less than 20% of GDP. Around the same time, France managed a similarly artful turnaround. We never would have managed this unbelievably fast reduction in debt through the fiscal discipline that we today recommend to Greece."

The French economist also urged the German government to soften its stance on the Greek debt, otherwise it could lead to the destruction of Europe and the European idea of unity and forgiveness.

"We need to look ahead. Europe was founded on debt forgiveness and investment in the future. Not on the idea of endless penance. We need to remember this," the Frenchman stressed.

Greece is one of the countries hit worst by the 2007-2008 financial crisis. The country received financial help from the European Union twice, in 2010 and 2012, but austerity caused a decline in GDP and as a result lead to the country's inability to resolve its debts in 2015.

Greece owes about $270 billion of its total $350-billion debt to the International Monetary Fund, the European Central Bank and some Eurozone countries.

Read more: http://sputniknews.com/politics/20150706/1024292414.html#ixzz3f9Mv5sVe

 

[Faiez]

Piketty noted that German debts were restructured or forgiven in some ways by its creditors after World War II, which helped the country stabilize its economy and reach high rates of economic growth.

That was due to political reasons. The west wanted a strong west germany to counter communism on the other side of the border. Plus the country was in ruins already, so it needed the debt forgiven and restructured, they had already fought a war against the world and were expected to fight another great war against an even more powerful force.

Maybe greece should start a war with turkey or something, then they'll get the debt restructured.

 

[syedali73]

German Hypocrisy: Never Repaid Own Debts, Forces Others to Pay Up

As Germany is all over Greece, trying to make the little Mediterranean nation repay its huge government debt by forcing the country's top officials to come up with new measures time and again, Berlin is forgetting one very important point – the Germans have never repaid their own debts.

Thomas Piketty, a renowned French economist, pulled no punches with Germany and its harsh stance towards the Greek debt, pointing out true hypocrisy on behalf of Berlin, since the Germans have never repaid their own debts.

"When I hear the Germans say thahypoct they maintain a very moral stance about debt and strongly believe that debts must be repaid, then I think: what a huge joke! Germany is the country that has never repaid its debts. It has no standing to lecture other nations," Piketty told German newspaper Die Zeit in an interview.

Piketty noted that German debts were restructured or forgiven in some ways by its creditors after World War II, which helped the country stabilize its economy and reach high rates of economic growth.

"After the war ended in 1945, Germany's debt amounted to over 200% of its GDP. Ten years later, little of that remained: public debt was less than 20% of GDP. Around the same time, France managed a similarly artful turnaround. We never would have managed this unbelievably fast reduction in debt through the fiscal discipline that we today recommend to Greece."

The French economist also urged the German government to soften its stance on the Greek debt, otherwise it could lead to the destruction of Europe and the European idea of unity and forgiveness.

"We need to look ahead. Europe was founded on debt forgiveness and investment in the future. Not on the idea of endless penance. We need to remember this," the Frenchman stressed.

Greece is one of the countries hit worst by the 2007-2008 financial crisis. The country received financial help from the European Union twice, in 2010 and 2012, but austerity caused a decline in GDP and as a result lead to the country's inability to resolve its debts in 2015.

Greece owes about $270 billion of its total $350-billion debt to the International Monetary Fund, the European Central Bank and some Eurozone countries.

Read more: http://sputniknews.com/politics/20150706/1024292414.html#ixzz3f9Mv5sVe

Yes but unlike Greek, German elite was not evading taxes and spending more than earnings. To compare post-war Germany or France with present day Greece is kind of absurd.

 

[Gazi]

German Hypocrisy: Never Repaid Own Debts, Forces Others to Pay Up

As Germany is all over Greece, trying to make the little Mediterranean nation repay its huge government debt by forcing the country's top officials to come up with new measures time and again, Berlin is forgetting one very important point – the Germans have never repaid their own debts.

Thomas Piketty, a renowned French economist, pulled no punches with Germany and its harsh stance towards the Greek debt, pointing out true hypocrisy on behalf of Berlin, since the Germans have never repaid their own debts.

"When I hear the Germans say thahypoct they maintain a very moral stance about debt and strongly believe that debts must be repaid, then I think: what a huge joke! Germany is the country that has never repaid its debts. It has no standing to lecture other nations," Piketty told German newspaper Die Zeit in an interview.

Piketty noted that German debts were restructured or forgiven in some ways by its creditors after World War II, which helped the country stabilize its economy and reach high rates of economic growth.

"After the war ended in 1945, Germany's debt amounted to over 200% of its GDP. Ten years later, little of that remained: public debt was less than 20% of GDP. Around the same time, France managed a similarly artful turnaround. We never would have managed this unbelievably fast reduction in debt through the fiscal discipline that we today recommend to Greece."

The French economist also urged the German government to soften its stance on the Greek debt, otherwise it could lead to the destruction of Europe and the European idea of unity and forgiveness.

"We need to look ahead. Europe was founded on debt forgiveness and investment in the future. Not on the idea of endless penance. We need to remember this," the Frenchman stressed.

Greece is one of the countries hit worst by the 2007-2008 financial crisis. The country received financial help from the European Union twice, in 2010 and 2012, but austerity caused a decline in GDP and as a result lead to the country's inability to resolve its debts in 2015.

Greece owes about $270 billion of its total $350-billion debt to the International Monetary Fund, the European Central Bank and some Eurozone countries.

Read more: http://sputniknews.com/politics/20150706/1024292414.html#ixzz3f9Mv5sVe

In return for Written Off Debts and Rescheduling Germans had to accept Pacifism like system as well. Even Today Germans doesnt have a strong standing Army and is rely on EU and NATO for its Defense so it was kind of like TRADEOFF while on the other hand what TRADEOFF can Greeks offer in return of Loan Adjustments????I dont think any so that is why they have to play by EU rules rather then their own unless they come up with some kind of Tradeoff with EU like Germans did after WWII.

 

[bsruzm]

''German Hypocrisy''

''Piketty noted that German debts were restructured or forgiven in some ways by its creditors after World War II, which helped the country stabilize its economy and reach high rates of economic growth.''

 

[Kaniska]

Greece should come out Euro and restructure its own economy...

 

[Penguin]

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London Agreement on German External Debts

The London Agreement on German External Debts, also known as the London Debt Agreement (German: Londoner Schuldenabkommen), was a debt relief treaty between the Federal Republic of Germany and creditor nations. It was concluded in London during negotiations which lasted from February 27 to August 8, 1953.

The London Debt Agreement covered a number of different types of German debt from before and after the Second World War. Some of them arose directly out of the efforts to finance the reparations system, while others reflect extensive lending, mostly by U.S. investors to German firms and governments.

The parties that were involved besides West Germany included Belgium, Canada, Denmark, France, Great Britain, Greece, Iran, Ireland, Italy, Liechtenstein, Luxembourg, Norway, Pakistan, Spain, Sweden, Switzerland, South Africa, the United States, Yugoslavia and others. The states of the Eastern Bloc were not involved. The negotiations lasted from February 27 to August 8, 1953.

The total under negotiation was 16 billion marks of debt resulting from the Treaty of Versailles after World War I which had not been paid in the 1930s, but which Germany decided to repay to restore its reputation. This money was owed to government and private banks in the U.S., France and Britain. Another 16 billion marks represented postwar loans by the U.S. 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.

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.

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.

Some of the agreement included debts to be paid after the reunification of Germany. Over decades it seemed unlikely to transpire, but in 1990 another 239.4 million Deutsche Mark of unpaid coupons were revived. On 3 October 2010 the last payment was made of 69.9 million euro. This is considered to be the last payment by Germany on all known debts resulting from both world wars.

London Agreement on German External Debts - Wikipedia, the free encyclopedia