Three key moves the new Greek government should definitely do

A special message to Yanis Varoufakis

by system failure

Despite the positive announcements in the right direction by the new Greek government, which we should wait to see in practice, there are some key moves that should be done, related to the economy autonomy and debt relief.

1st: Nationalize central bank

The first important thing is to nationalize the central bank. The Bank of Greece (BoG) appears to be a private institution that determines the economic policy of the country. BoG "is a partially state owned S.A. share company with special privileges, with special restrictions and duties. It cannot operate as a commercial bank and the percentage of shares that can be under Greek state ownership cannot exceed 35%." (http://en.wikipedia.org/wiki/Bank_of_Greece) According to koutipandoras.gr, currently the percentage of shares under Greek state is only 6% and no one knows the major private stockholders, while stocks have been put in the Athens stock market. (http://www.koutipandoras.gr/article/9242/i-idiotiki-trapeza-tis-elladas-kai-ta-paradoxa-tis)

How is it possible the central bank to serve nation's interests when it belongs to private bankers? Very simple: It's not. There is currently some difficulty to nationalize the bank due to the complicated status of the ownership regime, but there could be many alternatives to be exploited by the Greek government right now.

2nd: Audit of Public Debt

Write off is not possible without an audit of public debt which must be done by an international committee. In case that SYRIZA and its partner Independent Greeks party haven't already start such an action in the background, they should start it immediately.

This is essential to examine the conditions under which the Greek state was loaded with such a huge debt. It is important to know who speculated from the Greek debt case inside and outside Greece, not only for the Greek people but also for the European people. The part of the debt which would be proved illegal should be written off.

Of course current German and European leadership and eurocrats, as well as domestic Greek oligarchy will fight fiercely such a perspective because most of them serve those interests that speculated with the Greek debt.

3rd: Prepare for Grexit and return to national currency

The government should be prepared for such a condition in case that the European and especially the Germans insist on the cruel line of the catastrophic austerity because eventually, the return to national currency may save Greece from this vicious cycle of death.

The government should take all the necessary actions including technical details. It's possible that the government already has such a secret agenda as a last defence line: “... the ECB will blackmail the government by threatening that will not purchase government bonds, therefore cut liquidity, in case that Greece choose a different path towards the reconstruction of the social state and labor rights, bringing minimum wage at pre-crisis levels, etc. However, the system shows signs of panic, which means that the European officials don't know exactly how SYRIZA will react. In case that SYRIZA has a secret agenda, and be pressed by the lenders beyond red lines, it could nationalize the central bank and return to the national currency, blowing up eurozone.” (http://failedevolution.blogspot.gr/2014/12/various-scenarios-for-national.html)

It is worth to remember that according to a 2011 article in Guardian “Rumours abound in Dublin that the Irish central bank is back printing punts just in case the eurozone does break up. And while that may be true, I don't know, but one would hope that there was some contingency plan in place just in the case the whole euro projected exploded. Then again, given the track record of European policymakers in dealing with the crisis so far, it wouldn't come as too great a shock if there was no plan B in existence.” (http://www.theguardian.com/business/ireland-business-blog-with-lisa-ocarroll/2011/sep/26/eurozone-crisis-ireland-euro-punt)

This would be the worst scenario for the Frankfurt-Brussels axis, as the banksters and the lobbyists will probably see their dream of the new Feudalism breaking to pieces. The experiment in Greece will be terminated for good.