Thursday, March 8, 2012

The downward spiral is working well. How about an upward spiral?

About 6 months ago, the German Economy Minister Roesler visited Greece with a delegation of about 70 businessmen. The official purpose was to explore possibilities for German investment in Greece and to provide other assistance to Greece. Something worthy of a Nobel Peace Prize.

Only recently, Minister Roesler expressed deep frustration that Greece would not accept the hand which had been held out. Nothing was done to implement measures which had been agreed upon. In Roesler's view, this kind of "helping oneself with the help of others" has no priority on the part of Greece.

Michalis Chrysochoidis, Roesler's counterpart on the Greek side, has, of course, a different explanation. In his view, the Germans had no interest in new investments in Greece nor in helping Greece but their only interest was/is to get open bills paid. Something not worthy of a Nobel Peace Prize.

Lidl has already left Greece. OBI, Praktiker and others are very unhappy about their performance in Greece. They are beginning to feel boycotted. Couldn't blame them if they left Greece, too. Wouldn't be good for Greece if they did.

This is somewhat reminiscent of kindergarden: "...I will be bad to you because you were bad to me...". The trouble is that such a downward spiral has a way of reinfocing itself. In the long run, Keynes would predict, both sides will be dead...

What exactly is so difficult about getting an upward spiral in motion? It, too, would have a way of reinfocing itself. That's what adults should concentrate on (instead of acting like children in kindergarden)!


  1. Lidl has left Greece?? I don't think so... the stores are open, they still advertise on TV here. Aldi left a few years ago, but Lidl is here and although I have no idea how well they're doing, based on how quickly they sell out of absolutely everything they supposedly sell, I would say they are doing just fine.

    1. Of course you are right! I always mix up Lidl and Aldi. Sorry! (personally, I think Greece would have been better off if Lidl had gone and Aldi stayed...).