Playground Bully Theory Vs. Eurozone Gang Rules; The Only (and Ironic) Solution

Playground bullies pick on the weak and the feeble. Extortion (lunch money, allowances,  etc.) are common means of avoidance.

But feeding the bully never does any good. It’s only when the bullied party takes action (a punch in the nose qualifies but so might complaining to the principal),  does resolution of the problem occur.

It’s much harder on a bully facing a gang. Punching a gang leader in the nose could get you killed. 

A frequent and unfortunate happening in inner city schools is for the bullied person to seek relief by joining the gang.

I am not talking about Chicago, Detroit, or LA inter city schools. I am talking about Germany, the ECB, and the gang of 17 vs. Greece.

Who’s the Bully?

In the following discussion, some might object to my posing Germany as the bully. They will claim Greece did this on its own.

The reality is both sides are guilty.  Germany knew (or should have known) that Greece was a bad risk.

There is a price to be paid for making bad loans. That price is inevitable default.  When you insist you do not have to pay a reasonable price for mistakes you made or insist that debt be paid back when it can’t, you become a bully.

Keeping the Gang In Line

A few days ago I saw this report Eurogroup leaves door open for Syriza to partially renegotiate.

On February 2, the EU Observer reported France, US Support Greece in Debt Battle.

That bit of hope did not last long. Yesterday, French President Francois Hollande warned Greek Prime Minister Alexis Tsipras that “respecting the rules is necessary for all, for France too, and it’s not always easy.”

Also yesterday, The Financial Times reported Spain Keeps Hawkish Eye on Greece as Southern Solidarity Crumbles.

Gang Solidarity Reached

What happened to the token gestures towards Greece?

Gang leader Germany squashed every overture towards Greece, no matter how slight. Then, having reached solidarity against the outcast, the Mob Enforcer (affectionately known as the ECB) threw down the gauntlet.

For a description of the enforcement process, please see ECB Revokes Greek Bonds as Collateral; ECB vs. Novices; Brass Knuckles.

When it comes to playground bullies there are five possible resolutions.

Five Outcomes