The eurozone crisis calls for radical solutions – and one of the most thrilling has been tried and testedCompare the terms demanded of the Greek government to those offered to the banks. Eurozone ministers now insist upon unconditional surrender: a national abasement that makes a mockery of democracy. But when the banks were bailed out, governments magicked up the necessary money almost unconditionally.They shyly requested a few token reforms, then looked away when the bankers disregarded themThe German government, now crushing the life out of southern Europe, merely tickled its own banks. As the New York Times reported, though the corrupt German banking system “required a bailout bigger than the one American banks received”, “there is little appetite for change in Germany because the banking system is so deeply intertwined with its politics, serving as a rich source of patronage and financing for local projects”. Related: Greece set to apply for loan extension as pressure for deal mounts – as it happened This little pot of money kept circulating, enabling Wörgl to repave the streets, rebuild the water system Continue reading...
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