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Can Greece Force a New Deal?


#1

Can Greece Force a New Deal?

Robert Kuttner

Greece and the European Union could face a showdown in their debt talks as early as this week. And if you had to place odds right now, the likelihood is that the stubbornness of Europe's senior leaders will create a catastrophe for both Greece and the EU.

Here is the state of play. The new Greek leaders, Prime Minister Alexis Tsipras and Finance Minister Yanis Varoufakis, spent most of the past two weeks making the case for relaxed terms. They hit a stone wall.


#2

"Under the current agreement, EU financial institutions spoon-feed loans to Greece, 80 percent of which cycle right out of Greece to pay holders of Greek bonds. Greece itself gets little benefit.

In return, Greece is supposed to continue imposing crushing austerity terms. Most onerously, the Greek government is expected to run a "primary" budget surplus (excluding interest payments) equal to 4.5 percent of GDP. Greece is also supposed to keep cutting wages."

When Naomi Klein published "The Shock Doctrine" she delineated how the new Disaster Capitalism operates, and it's gone global to already impact South Africa, Chile, Russia, Spain, Greece, and other nations.

Its logic resembles a cross between the business world's "hostile takeover," and the metrics being applied to U.S. public schools as a pretext for terming them failures in order to close them down. That way their assets can be seized by today's 21st century robber-barons.

THAT is the logic being applied to Greece through the Central (and mostly German) bankers.

Providing them with criteria that cannot BE satisfied, Greece is then termed a failure and its assets... arguably seized.

Let's hope that the new Left leaning government outplays the Central Bankers' hands for as most intelligent readers recognize, what's done unto Greece will be done unto other member states. The 1% has rang up a toll (through its own massive bets and orchestrated global Ponzi scheme); and now like vampires, it requires a steady stream of fiscal blood from warm bodies to maintain its own viability.

This monster has to be stopped. Its goal is to cannibalize the world, one nation and ecosystem at a time.


#3

In regard to this quote:

"If such a crisis of insolvency did occur, one outcome could be Greece leaving the euro and returning to the old drachma. Such a move could well be accompanied by mass economic dislocation and deeper suffering -- or the ECB and the IMF could decide to lubricate it with new loans to ease the transition as much as possible."

There is another option. It would involve loans direct from the new BRICS consortium--i.e. Brazil, Russia, India, China and South Africa.

If the bankers really believed in FREE trade and honored capitalism providing nations with Best Deal Options, then they would step aside if BRICS offered Greece loans on better terms.

This is a game for control on the part of central bankers. It's not enough that so few persons already own so much of the world's wealth, they're still pushing for more! It doesn't matter to today's pharaoh-kings that so many are living lives of squalor, hunger, and despair... they've rigged much of the global financial system to serve their own narrow ends and objectives.

Democracy was allegedly born in Greece. Now Greece summons its resurrection from the cross of materialism-- a hybrid of Mammon's worship of money supported by Mars rules (that is, massive armed forces).


#4

At home, we have Chapter 11 of the bankruptcy code. If a corporation can no longer pay its debts, a bankruptcy judge sorts out its assets, decides who gets repaid first, and settles debts at so many cents on the dollar. The corporation can then survive with a fresh start.

Or, we just give them trillions of our tax money and they continue to bilk us.


#5

If the Germans really had a grasp of their own history they would realize that the terrible period of hyperinflation and depression that they suffered in the 30's was brought on by their own inability to pay off a national debt brought on by the reparations of WW 1. After another loss in WW 2 a different tactic was tried. Debt was forgiven, the Marshall plan stimulated the rebuilding of the economy and trade deals were extended on favorable terms. The German economy instead of wallowing in depression as after the first world war prospered. The Germans however did not learn this lesson. They have not offered to other nations was given to them. Instead they puff themselves up and self righteously inflict the punishment on others that they had previously suffered themselves. Shame on them. More than shame on the bankers who have imposed this suffering. It's not too much to call them evil.


#6

What is so bizarre is that even though we see the consequences of the austerity agenda, we continue to (slowly) implement it here in the US. We chose a different strategy, starting at the bottom, quietly working our way up, while even our liberal media overlook the consequences.This gradual approach seems to be far more successful.


#7

Please! why does everyone refuse to see the wood in the trees?
There is one, and only one, cause of all our economic woes. During the early 1900's our stupid/corrupt politicians signed away our Sovereign "rights" , that allowed us to print and issue our own interest free, debt free money; and since then we have all become "debt slaves". Our rights to print and issue our own money out of thin air were ceded to private banking Corporations, thus now, we borrow all our money from them, and they simply print it out of thin air, and charge us interest for the privilege. Given the nature of our economic cycles, the booms and busts, it is virtually impossible for us ever to repay all such debts, especially since, when they print our borrowings, they do not also print the money to cover the interest repayments. This particular economic consequence was recorded centuries ago in the well known fable about the boy who possessed a goose that laid "golden" eggs; he sold the goose for a paltry sum and forever thereafter he was destitute.

The remedy for our problems is simple; we abrogate any agreement previously made, reclaim our Sovereign "rights" to print and issue our own debt free interest free money.

This will enable us to stop income-taxing of individuals; we may pay everyone that needs it a social wage, based on a break even computation, this will eliminate poverty and deprivation; those in receipt of the Social wage will be encouraged into employment, without loss of this Social wage, and to work for any employer for additional income, mutually agreed between them. this gives control of work and income to the "workman". Employers will gain a workforce of people willing to accept much lower wages than previously paid, thus making the employer production cost significantly lower; plus, the employer no longer collects taxes for the Government. The employer Corporation/business will pay tax annually as usual. The collection of V.A.T. or G.S.T., consumer taxes will cease.

All Government expenditures will be provided by the planned issue of our own debt free interest free money using legislation approved by Parliament. Health, Education, University courses, Infrastructure of all kinds, etc. etc.

Provided that all of these expenditures are actually "spent" into circulation they will not create inflation; inflation will occur, for instance, when too much money chases too few "goods". The Government must own and run it's own Bank, just like the original Commonwealth Bank. No Private Bank or Corporation will be permitted to create money, under any guise; our financial system will revert to one of "sound " money. Sound money is that which turns around sound borrowing and lending, controlled by being liquid cash, backed by the ownership of assets, and strict criteria keeping them in balance; borrowing and lending outside of these criteria, characterised as "high risk", will be permitted between parties willing to accept such risk, and then, only when it involves their own wholly owned assets.

Interest rates in the private sector will be set by the private sector. The floating exchange rate will be converted into "fixed" rates decided by Government, and as decided between Sovereign Nations and embodied in trade agreements. Our currency will not be traded on "Exchanges", our Nation will be immunised against the manipulated predations of the "Market".

The foregoing explains the broad brush strokes involved, but in summary we would have a Nation with little or no foreign debt, a Nation whose domestic economy sits on a solid unshakeable base, a Nation better able to compete in the wider World, a Nation without poverty whose peoples are empowered to think and work for themselves, a Nation rescued from the avarice of the "Money Lenders", and above all, a Government able to be free and Independent, instead of being owned by Corporate money and influence. This is named "The Universal Economy" because it will operate anywhere.

For those who doubt the efficacy of this proposal, I suggest they study the United States example. The clever banking Corporations engineered the U.S. dollar to be the Worlds reserve currency. Ever since the U.S. has been printing money out of thin air, the only Nation to do so, now they have military bases in more than one hundred and seven Nations, they have engineered regime change and wars in countless Nations, and recently have printed trillions of dollars, called quantitative easing, and poured it into foreign banks and financial Institutions trying to prevent the next meltdown; but it is not working because their printed money was not spent into circulation, instead it inflated the prices of shares and real estate, the bust cometh.


#8

I think we're beginning to see the true genius of John Maynard Keynes and to better understand how our monetary
system works and does not work. We have a great opportunity, right now, to get it Right both at home and internationally.