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But it is part of a larger process.

Profits were increased in Germany durng the 90ies and 00ies by decreasing relative salaries through worse conditions for unemployed, this set both the stage for the persistent current account surplus and the moral play where the Germans (but not the owners) has already tightened their belts and it is time for the Greeks to do the same.

Pillaging Greece and crushing their wages will then create a pool of really cheap workers for the core (see the Amazon stories), which in turn will drive down wages there. Though not having passed yet, it is also obvious that conservative forces wants the EU to allow companies to set contracts according to the law of the land of their HQ, rather then the law of the land where the work is done. So once Greece is sufficiently crushed, companies can place a HQ there and employ cleaners in the core for Greek wages and with Greek laws (dictated by Troika). Then comes another round of cuts in the core to increase competetivness. And anger is diverted at the feckless southerners that are taking the jobs.

Run and run it goes, when it ends nobody knows.

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by A swedish kind of death on Mon Feb 18th, 2013 at 03:45:27 AM EST
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