Tuesday, July 7, 2015

Greece: Democracy Versus Disaster Capitalism

The dupes or mouthpieces of scumbag capitalists, the mega banks, and their political agents, having failed to intimidate the Greeks into voting yes for austerity, are now saying that the referendum no means nothing other than perhaps a trivial lessening of the punishment to be imposed on the Greeks by their creditors. In particular, it is asserted that whatever the ultimate arrangements, those work-shy, tax-evading, early retiring Greeks will have to work much harder and longer for less, while paying more tax and selling off state assets for cents on the Euro to capitalist predators such as George Soros. 

Thing is though, there's no way short of war that Greece can be made to repay it's sovereign debt, which now totals 180% of GDP. So if the Greek government keeps its nerve, the question will prove to be not about the terms imposed on Greece by the disaster capitalists, but the terms imposed on the disaster capitalists by Greece. 

And how that question is resolved has no bearing on the other question critical to Greece's economic health, namely, whether Greece retains the Euro or restores its own currency. For reasons we spelled out elsewhere, the Euro is highly toxic to the slower growing European economies, which are forced by the overvalued Euro — relative to their productivity — to tolerate unnaturally high unemployment, and low investment, while at the same time it is highly advantageous to Germany and other faster growing economies which enjoy as a result of the undervalued Euro — relative to their productivity — the benefits of abnormally low unemployment and high investment. 

The problem of Greek debt and its resolution is brilliantly stated by French economist, Tomas Picketty in an interview with the German newspaper Die Zeit: "Germany Has Never Repaid Its Debts; It Has No Standing To Lecture Other Nations".

The time for the creditors to slash Greek debt and for Greece to exit the Euro is now.


WUFS: Planned US Coup in Greece?

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