“The Awesome Gratuitousness of the Greek Crisis” bemoans Paul Krugman. Really? Is not that a bit naïve? How does that fit with converting the Drachma at twice the rate, or Lagarde changing her music, after the Greeks had accepted her conditions? Does not it all look at a different plan of the “Deep State”? Like having just one boss, supposedly located in a White House?
Indeed, my dear Paul Krugman, the exact chronology of events makes one rather believe that [IMF Director Lagarde] is following her usual pattern: doing what she’s told to do, and taking the heat, as Dominique Deux, an esteemed commenter on this site, puts it. Dominique’s profession involves him with this sort of people, he is in a good position to know.
So is it a case that: “There are horrible people who, instead of solving a problem, tangle it up and make it harder to solve for anyone who wants to deal with it. Whoever does not know how to hit the nail on the head should be asked not to hit it at all.”
[Friedrich Nietzsche The Wanderer and His Shadow, aphorism 326, 1880.]
Well, I don’t think so. The Drachma was deliberately converted at twice its rate. Everybody knew it at the time. That was clearly a time bomb.
Paul Krugman’s Analysis Of The Raw Data, I Agree With:
“I’ve been looking back at the numbers, readily available from the IMF, and what strikes me is how relatively mild Greek fiscal problems looked on the eve of crisis.
In 2007, Greece had public debt of slightly more than 100 percent of GDP — high, but not out of line with levels that many countries including, for example, the UK have carried for decades and even generations at a stretch. It had a budget deficit of about 7 percent of GDP. If we think that normal times involve 2 percent growth and 2 percent inflation, a deficit of 4 percent of GDP would be consistent with a stable debt/GDP ratio; so the fiscal gap was around 3 points, not trivial but hardly something that should have been impossible to close.
Now, the IMF says that the structural deficit was much larger — but this reflects its estimate that the Greek economy was operating 10 percent above capacity, which I don’t believe for a minute.”
And Krugman concludes that:
“So yes, Greece was overspending, but not by all that much. It was over indebted, but again not by all that much. How did this turn into a catastrophe that among other things saw debt soar to 170 percent of GDP despite savage austerity?
The euro straitjacket, plus inadequately expansionary monetary policy within the eurozone, are the obvious culprits. But that, surely, is the deep question here. If Europe as currently organized can turn medium-sized fiscal failings into this kind of nightmare, the system is fundamentally unworkable.”
Well, the system was revealed to be unworkable, thanks to the 2008 financial crisis. States were asked to come in, and replenish banks stolen by plutocrats. Meanwhile, the taxing authority and capability of states had been stolen by the likes of Jean-Claude Junckers:
I Stole, Thus I lead:
The president of the European Commission, Jean-Claude Junckers, speaks of “betrayal” (“trahison” in his native French). He should know about betrayal. Whereas the semi-mythical Corleone in the movie “The Godfather” stole millions, Junckers helped to steal directly hundreds of billions of Euros, and, indirectly, trillions.
When the Euro was conceived by Jacques Delors and his colleagues, it was supposed to stand on two legs, one financial, one economic. However, jealous national governments decided to do away with the economic leg. Only after the 2008 financial crisis was reluctantly built a partial banking union (with mutual insurance and inspection of the biggest banks).
In Greece, as elsewhere, governments saved failing banks with public funds. However, in Greece, the real deficit was higher than the official one, and Greece needed a supplementary help from foreign institutions such as the ECB, EC, and IMF (the “Troika”).
The Troika provided enough rope with its help, to hang Greece with, thanks to “austerity” measures.
Let’s Vote NO To Plutocrats and Their Obsequious Servants:
Here is Paul Krugman again:
….”acceding to the troika’s ultimatum would represent the final abandonment of any pretense of Greek independence. Don’t be taken in by claims that troika officials are just technocrats explaining to the ignorant Greeks what must be done. These supposed technocrats are in fact fantasists who have disregarded everything we know about macroeconomics, and have been wrong every step of the way. This isn’t about analysis, it’s about power — the power of the creditors to pull the plug on the Greek economy, which persists as long as euro exit is considered unthinkable.”
The ECB, the IMF and European “leaders” are not incompetent. They are extremely powerful, and thus extremely corrupt. What use is their absolute power, if they do not show they can use it absolutely? Should not they engage in the hard work plutocrats and banksters have entrusted them with? Otherwise why should they, or their relations, get rewarded when they come out?
What they want to hide is the nature of the financial crisis, and thus the nature of finance.
“Austerity” is another word for the plutocratization banksters have increasingly brought, over the last few decades. They define the rules, they write the laws. They are indignant that the Greeks vote, because the Greek elite ought to be mature enough to feel that Democracy, Demos-Kratos, People Power, is just a mask for the power of the few and well connected.
There is no reason for austerity whatsoever, if one lived in democracy.
Verily, there is plenty of money out there, among the filthy rich, and plenty of capacity to make money, as needed for We The People. What is in short supply is the will to provide money for We The People.
Alain Bauer, a top, world class criminologist who does not teach only in France but also overseas, for example China, Singapore, estimates that the total money hidden in tiny tax havens amounts to 70 trillion dollars. Even more money is hidden in plain sight, thanks to Delaware and Great Britain (the famous “Non-Doms”), and shell companies.
Money Creation Is Diverted To Plutocrats, By Plutocrats:
It’s not different from Stalinism, fundamentally!
Even more money is created by the banks for financial derivative trading. The size of that trade, somewhere out there on planet finance is more than ten times world GDP (so it’s around 800 trillion dollars). How come most of the money created is created for the richest, by the richest?
Don’t forget that banks are given a public mandate to create most of the money. So, in a sense, bankers ought to be just what they are: public employees, the modern equivalent of those who struck coins for the government in the three thousand years prior.
It frequently happens in history that minor events act like the proverbial snowball. This, clearly, maybe one such case. It is, in particular, the IMF, based in Washington, last I checked, which is pulling the plug.
What is Washington doing in what ought to be internal European affairs? Well, demolishing a financially independent Europe. Agents of the USA such as the head of the ECB, Draghi, will be happy to oblige. Draghi got his Phd at MIT, and was later vice-chairman at Goldman-Sachs a Financial Uber Conspiracy Katastrophe (with a telling acronym).
What could go wrong? Last time there was a catastrophe of financial type, banksters lost the banks’ money to plutocrats, and We The People was asked to reimburse the banks. Thus, overall, the wealthiest people and organizations came out of it even richer.
Now the Greeks are refusing to obey, and get ever poorer with their own agreement. Time for another catastrophe? If well done, the rich ought to get even richer. With a little bit of help from their friends at the ECB, IMF, EU, EC, and all these strings pulled from Washington and New York, etc.
We have different hearts than those of Wall Street, and it is exactly what the Greeks are now showing for all to see.