So far as I can follow, the Greek electorate now have the choice between voting Yes and agreeing to the IMF austerity package, and voting No and having their leaders agree to any “face-saving” variation, however miniscule, before accepting the IMF austerity package. You can be quite sure that the international elite will thoroughly humiliate Syriza by making abundantly clear that if they offer any change at all, it is absolutely miniscule. A change of nominal leader of Greece may result from the referendum, but nothing that changes the life of anybody who is not a politician. Either way in six months time we will be exactly back where we are now, only with opposition to the IMF broken as the next wave of pillage of the public sector comes.
The Euro project will continue to be extremely strong. New money will be funnelled into the pockets of bankers. It is important to recall that 100% of these bailout funds go to bankers, none of it goes to the Greek people and none of it stays in Greece. The same bankers will become the beneficiaries of servicing of new loans provided to vast corporations to buy up Greek public assets, cheap.
It would require a particular heartlessness to be indifferent to the demise of the idealistic hopes that backed Syriza. But in the end it proved they did not offer any actual choice of any significantly different outcome. There is no real choice on Sunday, no difference in outcome from which way people vote. Beware Greeks bearing rifts.
I agree with you. The referendum will change nothing. One way or another, Greece will remain in the euro (because that is what most Greeks want) and accept the IMF terms (because the alternative is economic collapse).
I said at the time of Scotland’s referendum that electorates don’t vote for a leap in the dark. The same applies here, and it is a measure much of our media’s cynical hypocrisy that they were aghast at Scotland breaking away from sterling but not at Greece breaking away from the euro, even though the Greece situation would be a lot worse as it is already comprehensively bankrupt.
Nevertheless, CNN has just reported this: Obama administration spied on German media as well as its government. Apparently, NSA was spying on Der Spiegel.
Apparently it was through this spying on Der Spiegel that the CIA learned that a top German official, Hans Josef Vorbeck, responsible for managing German counterterrorism efforts, was leaking information to Der Spiegel, as the CIA informed Vorbeck’s boss Günter Heiss, responsible for coordinating Germany’s intelligence services, leading to Vorbeck’s demotion. https://firstlook.org/theintercept/2015/07/03/after-spying-germany-cia-outs-leaker/
The spying on Der Spiegel is apparently big news in Germany, so I’m not sure an American outlet like CNN would have been able to ignore it. Here, for example, is the story in the Berlin newspaper Der Tagesspiegel (the West Berlin paper I used to read when I was stationed in Berlin; no relationship with Der Spiegel): “Spiegel” stellt Anzeige in Karlsruhe [Spiegel makes legal complaint in Karlsruhe [at the federal prosecutor’s office]].
“If the Greek government is any use at all, it will already have set up the printing presses ready to pump out an abundance of cheap drachmas.”
The Zimbabwe option, that’s a last resort not a solution.
CanSpeccy, granted, statistics and economics are mostly works of fiction, but I just love these sort of debt clocks…
http://www.nationaldebtclocks.org/debtclock/unitedkingdom
Whatever way they spin it, the UK is in deep doodah.
The interest on UK debt is currently about £42 billion a year. Currently, multi-national corporations and smaller businesses operating in the UK avoid paying about £150 billion a year in tax. Our present scumbag government are looking to make £12 billion in welfare cuts to the most poor and vulnerable in society.
132. Corporate tax avoidance by multinationals is a serious problem and fixing it will be complex. The Government is free to set the rate and the main
features of corporation tax in the UK but when dealing with multinationals also works within the internationally agreed OECD framework.
http://www.publications.parliament.uk/pa/ld201314/ldselect/ldeconaf/48/48.pdf
No, no, no, I can’t resist letting Chunky Mark off the leash..!
https://www.youtube.com/watch?v=Z016TP7zrzs
Can anyone spare a dime?
I agree with Can Speccy (and I think Craig, though Craig has not said what he thinks on the matter, in this post at any rate) on this matter.
Oh, and while I’m at it here’s a recent piece by Nafeez Ahmed, who gives the Monbat a gentle ride…
https://medium.com/insurge-intelligence/george-monbiot-and-the-iraq-war-bullshit-brigade-6287c7bd5f1c
The Monbat, of course, is garlic and silver bullet territory for the likes of me, because the Monbat supports all things nuclear.
Oh, but I forget, we mustn’t mention the ‘F’ word here.
Until we’re all dead…
Der Spiegel‘s commentary on the revelations: An Attack on Press Freedom: SPIEGEL Targeted by US Intelligence:
I fear Der Spiegel is going to have to learn the bitter reality that there is no democracy in Germany when the Americans demand otherwise. And the same is presumably true of America’s other so-called “allies”.
When a country like Greece has an unemployment rate of 25% (50% amongst its youth apparently), it is clearly bankrupt and unable to pay its debt. Everybody knows this. After all Greece has had five years of austerity, trying to service its debt, and things just get worse.
So what is the real issue here? I would suggest that the real issue is that Greece cannot be seen to win, otherwise other heavily indebted first world countries might follow suit and welch on their own debt. The very real concern for the EU and the world is that a Greek default could set off a chain reaction and prove to be just the first of many dominoes that fall.
Japans twenty year fight to reconcile should have been included with instructonal insight for IMF/world bank et al. Austerity does not work, but I don’t have a workable alternative rather than default. The EU seems to think they can absorb this. We will see.
The viciousness and ruthlessness of the European Project has been revealed in all it gory details by the actions to humiliate Greece and destroy its economy , driving its people into poverty and despair.
This is Financial warfare in all its sordid glory. A coup d’Etat by banks instead of tanks.
The intention is to force a Goverment change if the YES vote succeeds, as Alex Tsipars will be forced to resign should he fail to receive a mandate from the electorate.
This ensures a more compliant Govt in power. Whether it is corrupt, is no matter , as long as it complies in the austerity measures and the plunder of the Greek State assets by privatization at fire sale prices.
Since the financial crisis began in 2008, powerful financial interests using the Troika as its attack dog and puppet political forces in Europe and Greece are executing a coordinated effort to push, democratically-elected governments from power and smash populist opposition to corporate rule and austerity policies.
They control the media and are using fear mongering to influence the voters. This tactic was also used in the Scottish referendum.
The rules of Propaganda as espoused by its Master, Edward Louis Bernays are in full flow, disinformation ,demonization, deceit, deception, fear mongering, lies, distraction are all in play.
The basics of Economics are turned on its head. Austerity is clearly a false philosophy. Production is the requirement to create wealth and investment is necessary ,not retrenchment.
Take care of jobs and the Economy will take care of itself. (JM Keynes).
A country that does not control its own currency is not free and is at the mercy of the Financial Powers who do control and manipulate it with issued debt. Debt is a weapon of coercion and Financial warfare.
The Commissars of the EU, such as Mario Draghi( ex Goldman Sachs) are unelected and do not represent the will of the people.
Next in line for the austerity treatment are Italy and Spain. Ireland has already been cowed into submission with the compliance of its weaselly politicians and is indebted to the Financiers into perpetuity.
The original ideals of the EU were for a European wide Free Trade Zone and free movement of Labour.
Whether these ideals were suborned , or the intentions were always to use its Financial power of a single currency, to subdue the Sovereign countries to the Financial powers, and enable extortion of their economies is a mute point.
We have arrived at a Dictatorship. A Dictatorship of the Financial powers using neoliberalism and the EU as their modus operandi.
Scotland beware, there is no freedom or democracy within the EU, only poverty, and serfdom to the shadowy Financial Powers.
RobG @ 11.21
I also seem to recall that the scumbags reduced the top rate of tax to 45% on the very same day they introduced the bedroom tax which had a direct negative impact on the deficit they claim they want to reduce.
Highly worthwhile article by economist Paul Krugman – who is always worth reading – from the 29/6 edition of the NYT:
http://kielarowski.net/2015/06/29/greece-over-the-brink/
He claims the Euro itself was a mistake, Greece should vote “No” and leave the Euro, and that accepting the deal on offer, Greece would be facing endless austerity, and an interminable depression.
Looks like there’s another option on the cards: a bail out. IMF is, for some strange reason, talking sense by saying that Greek debt is unsustainable even with “austerity” measures. So a bailout is necessary one way or another. Still, that doesn’t seem to change much, because the troika will no doubt demand “austerity” measures in return for partial debt cancellation aka, bailout. The only weapon the Greeks have is the threat of “contagion” of some sort ruining Frau Merkel’s dream and the US government’s grand plan. Full bailout, no austerity, or we all go down together, supposedly, is the Greek trump card. Might not be up to much though when dealing with a bunch of power-mad psychos. They’re as likely to throw all the toys out of the pram as be reasonable.
“If the Greek government is any use at all, it will already have set up the printing presses ready to pump out an abundance of cheap drachmas.”
The Zimbabwe option, that’s a last resort not a solution.
No, it’s just a prerequisite to having your own currency.
Agree with Rod Russell, the bankers are opposed to Greece exiting the Euro because it sets a precedent for the next weakest economies. The Euro which is cheap for Germany is too expensive for Greece. If Greece exits the Eurozone, the Euro will be slightly strengthened, which will increase the pressure on the next weakest economies in the Zone, Spain, Portugal and Italy, which may all then consider restoring their national currencies — which is a sensible idea. Then it will become evident that the EU is not a work of genius but a deeply flawed economic and political arrangement that cannot survive without massive reform.
@ RobG
The interest on UK debt is currently about £42 billion a year. Currently, multi-national corporations and smaller businesses operating in the UK avoid paying about £150 billion a year in tax. Our present scumbag government are looking to make £12 billion in welfare cuts to the most poor and vulnerable in society.
Interest on the national debt of £42 billion a year is manageable, although if interest rates were to double, triple or quadruple, then, the debt would be a problem. In theory, at least, the national debt is incurred as the result of investment in infrastructure, education, healthcare, etc., which should have a positive yield both economic and utilitarian. Of course if it’s pissed away on free board and lodging for illegal immigrants and other crazy schemes the effects can be negative.
The best way to deal with the problem of corporate tax evasion is to eliminate the corporation tax altogether. Then you’d have more of a level playing field with fast-growing, low-tax economies such as those of Russia (momentarily checked) and China, which have very low tax rates, which means higher rates of business investment and therefore greater demand for labor and therefore more jobs and higher wages.
The way to tax corporate earnings is when they are received by shareholders. In the case of foreign -owned corporations, a withholding tax on dividends has a similar result.
In the 60s there used to be a dreadful game show, Double Your Money. The jingle – ‘double your money and take it away’.
https://www.youtube.com/watch?v=yPCc_UjqZxE
The theme obviously entered the Tories’ subconscious.
Inheritance tax to be scrapped on homes worth up to £1m
http://www.bbc.co.uk/news/uk-33393480
PS Only applicable to ‘hard working families’. The poor, homeless and destitute can get lost.
Prof Galbraith debunks nine myths.
Nine Myths About the Greek Crisis
By Prof. James K Galbraith
3 July 2015
The citizens of Greece face a referendum Sunday that could decide the survival of their elected government and the fate of the country in the Eurozone and Europe. Narrowly, they’re voting on whether to accept or reject the terms dictated by their creditors last week. But what’s really at stake? The answers aren’t what you’d think.
I have had a close view of the process, both from the US and Athens, after working for the past four years with Yanis Varoufakis, now the Greek finance minister. I’ve come to realize that there are many myths in circulation about this crisis; here are nine that Americans should see through.’
http://www.globalresearch.ca/nine-myths-about-the-greek-crisis/5460153
What an absolute bunkum?
This self hating immigrant has as much grasp of economic science as an amoeba. The manifestly unconscious drivel on so many levels pontificating about a low tax economy, when the evaders are paying zero tax as it stands. However to further protect the said robber barons it is being promoted to enact it in statue too!
Evidently the taxation of the standard issue man/woman/child are OK so long as the corporation tax is abolished. Fact that the extortionate interest payments that are “manageable” nonsense is not the cause of the problem. To solve it; is to make sure the place turns in to free port status and the corporations don’t pay taxes! This hateful supremacist mongrel (something, Canadian) is peddling hate about board and lodging of immigrants, yet again.
The manifest testimony of the success of “banksterism” that has brought on the production of the money form thin air, to be far more precious and scarce than the people of the damn planet. You are right about not setting a precedence, as in the case of Iceland that has now turned itself around and currently is busy hunting and jailing the banksters that got it there.
A Greek’s view on the National and Global Significance of a “No” Vote;
http://www.counterpunch.org/2015/07/03/the-future-of-greece-without-illusions/
Would one solution to the Greek Rift & financial woes be to invite many foreign NGOs (funded naturally by the U.S. National Endowment for Democracy) to contribute to civil society, try to influence the poor pensioners, give the unemployed students something to do?
External funding of well over a billion U.S. Dollars has been noticed flowing in to Russian NGOs in 2014, a recent TV debate claimed.
It’s all Greek to me. . .
Habbabkuk @ 3.09 pm on 3 July: Come on, don’t be such a Dita von Tease. Whether your experience (and judgement) is socio-economic, political, insight into Balkan psychology, banking or EU systems, please do set out your wares. I for one – and I’m confident there are others – will gladly read your analysis on Greece’s travails; and your informed and careful assessment of the points Craig has made – in his usual provocative style – in the blog which started this thread.
It would be sad if your lasting reputation were to be that of the author of the world’s greatest unpublished novel or the artist whose works never disfigured a gallery wall. I’m reminded of the “Chinese” proverb for 29 February in Justin Wintle’s “Dragon’s Almanac – A Diary of Oriental Wisdom”: “Even an earthquake cannot destroy the city that was never built”.
^ Seconded ^
Iain Orr
Thanks, but no thanks.
“Of course if it’s pissed away on free board and lodging for illegal immigrants and other crazy schemes the effects can be negative.” Can Speecy.
Intelligent economic analysis, in this thread. Then he goes and spoils it all with the inevitable re-emergence of a bathetic obsession. In the macro-economic context, this particular allusion comment has no relevance to Greece, or indeed to the UK. It’s just a facile target for the tabloid media.
What’s happened to Cleggover, alumnus of the College of Europe? Has he anything to say on the Greek situation?
‘A brief spell as a lecturer at Sheffield University followed before he became a Liberal Democrat MEP in 1999. In 2000, Mr Clegg married leading commercial lawyer Miriam Gonzalez Durantez,a former Middle East expert at the Foreign Office. The couple, who met while studying at the College of Europe in Bruges, live in south-west London with their three children, Antonio, Alberto and Miguel.’
Lib Dem leader resigns: The Nick Clegg Story
» Download (577.05 KB PDF) BBC News (08/05/15)
Add to the above. ‘Bag carrier to Leon Brittan at the EU Commission’!!
https://www.coleurope.eu/press-articles#nid23599
Any news since Sheffield Hallam gave him the push?
Correction. He was re-elected with a reduced share of the vote but resigned as ‘leader’ of what’s left of the LDs.
https://en.wikipedia.org/wiki/Sheffield_Hallam_(UK_Parliament_constituency)
Habbabkuk; “But experience on here has taught me it’s pointless”
Oh well, nevermind; never stop you before, but yes you are never to old to learn.
Looking forwarding to not hearing your views, immensely ! 😀