Wednesday, 8 July 2015

Greece is the scapegoat of a failed system & ideology

In a profoundly undemocratic union with arbitrary financial rules (not made to resist negative demand shocks), it is not the responsibility of the greek people or any other people in the EZ for that matter, to ensure euro bank deposits. The euro is a foreign currency for EVERYONE. It's not even a common currency union, it's just a system of hard pegs between countries. You can't have a common currency union without a common banking union. The so-called bailouts that the Troika made didn't come from the pockets of european tax-payers, it came from the ECB's computer via keystrokes.
A no vote against austerity IS a VICTORY for democracy and for EVERYONE in Europe, not just for Greece or for the Periphery.
If you understand double-entry bookkeeping and the fact that austerity is USELESS & NEEDLESS - and that what Greece is experiencing is just the symptoms of private debt deflation (the result of the end of the Great Moderation) amplified by active pro-cyclical fiscal policy, then you CANNOT be in favor of Troika policies of extend and pretend.
Government debt write offs while maintaining austerity DON'T work! You're simply draining more income while the Greek domestic private sector tries to deleverage. If the Greek government works to achieve a fiscal surplus & if the foreign sector works to be in surplus as well - the Greek domestic private sector can only be in a position of deficit. If Greece caves in to Troika package, they will continue their economic depression for another decade or even more.
The referendum was called by Tsipras in order to see if they have enough popular support to pursue their anti-austerity agenda. Without popular support, they cannot negotiate with the financial neocolonialists, nor organize a proper Grexit.
Hitler and the nazis came to power NOT during Weimar hyperinflation, but during Weimar hyper-austerity! The nazis brought in full employment via enough fiscal stimulus, pure and simple - sadly, they focused more on military production rather than civilian production. If the Weimar government would have run adequate fiscal stimulus, then nazis would have remained a minor/obscure political force.
I'm sorry, the EuroZone is run by criminals and charlatans! That's the very definition of neoliberal policies and the end result. Don't punish the banks, punish the poor and labor. IMF bloody well knew that the bailout provisions (austerity) would lead to negative economic growth, to negative social developments, and to the exacerbation of debt to GDP (once again, deficit to GDP and gov debt to GDP are SYMPTOMS, NOT causes). Troika wants to bleed Greece some more, cause otherwise the Periphery might start growing some actual balls between their legs and demand a better deal for their countries.

"What is happening in Greece (and in others parts of the Periphery) is a humanitarian disaster inflicted on people by a neo-liberal ideology that is invariant to reality and the facts of its own criminality."
~Bill Mitchell

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