News
from the Greek battlefield
by system
failure
Greece's
creditors increase pressure on the Greek government as we approach
the day of the referendum
announced by Alexis Tsipras. After closed banks and capital controls,
the creditors are trying to postpone the democratic right of the
Greek people by all means. We are witnessing another operation of a
fierce propaganda war inside and outside Greece, concerning the
referendum.
Tsipras
surprised creditors by announcing the date of the referendum in a
very short time, therefore, financial mafia's propaganda mechanisms
are running with full force to shape public opinion towards "yes",
using terror scenarios. The closed banks scenery works on this
direction.
Propaganda
is directed in two targets. The first target is to show to the public
that the creditors are coming back with new proposals in order to
achieve a deal with the Greek government. This is an effort to force
the Greek government to drop the referendum, as it would have no
meaning under different proposals.
The
second target is to change the real question of the referendum and
set a false dilemma. European officials and Greek politicians of the
neoliberal opposition together with all mainstream private media,
repeat all the time that the real question of the referendum is not
about the new catastrophic measures imposed by the creditors. It's
about on whether Greece will stay in eurozone (or even Europe), or
not! The false dilemma is accompanied with the catastrophic Grexit
scenarios in order to spread the fear and make people vote for "yes".
Therefore,
Juncker appeared to bring a new proposal to the Greek government
before the expiration of Greece's latest dose to IMF in the first
hours of Wednesday. Of course, this was only a tactic move to force
Tsipras come to the table of negotiations. Tsipras smartly responded
the same way: he made a proposal
which probably knew that the creditors will reject.
Obviously,
the creditors try to avoid the referendum because it is doubtful that
they can change public opinion in such a short time, and Tsipras
delays because he wants to proceed in the referendum in any case.
Why
the creditors and the local oligarchs want to avoid this democratic
process, or, at least change Greek people's opinion towards "yes"?
Because if the Greek people reject the austerity measures, and even
better, with wide majority, the creditors would have to face directly
Greek people's will. How they could tell to the other Europeans that
they do not respect people's will?
However,
if the financial mafia representatives decide to punish the Greek
people for its resistance, in order to send the message to the others
in eurozone, they will probably proceed in full termination of
liquidity to the Greek banks through the ELA mechanism. And that
would be probably the stupidest thing they could do. The Leftist
Greek government will consider this as a direct war action and
Tsipras will grab the opportunity: will take full control of the
banking system - write-off debt - return to national currency. Here
is the truly crucial point: under such circumstances, the impact in
the global markets would probably make Lehman's collapse look like a
playground.
Read
also:
I would like to believe that Greece can stick two fingers up to Europe and get away with it but Tsipras did not believe the EU would call his bluff and now he's panicking. He believes the Eurozone banks owe too much money to Greece to let the country fail, but they appear quite happy for that to happen.The referendum was supposed to be a bargaining chip for the IMF and ECB to extend their loan facilities, they have just ignored it and now Tsipras is really thrashing around...
ReplyDeleteIt is not any more about money: it is about the dignity and life of many people in Greece. And the hope is great: not only for Greece, but also for many people around the world. When will this system, that crushed "common" people for the "sake" of a minority, go to an end ? It is time to say NO ! No to the tyranny of money over people. No to a system that stipulates that financial balance is more important than the lives of millions of people. On Sunday, I will say NO to this system (even if cannot vote in Greece).
ReplyDeleteThank you my friend. Agree 100%
DeleteUnfortunately reforms in Greece's economy are necessary and hugely overdue. Starting with its strange pension system that allows for a pensionable age below 65 years of age. Followed by trimming its inefficient government (after Syriza re-hired redundant government employees), reforming its dated and fraud-friendly tax code.
ReplyDeleteFor better or worse, Greece has not been able to bring off the necessary reforms under its own steam, making it very risky for creditors to lend Greece more money. Restructuring the debt is undoubtedly necessary, but will be discussed only after Greece has done all it can to reform its economy.
As I understand it, Greece's creditors are open to the idea of providing a social safety-net for pensioners unable to cope due to austerity measures. They are not blind to the social cost of austerity.
If further reforms (within months if a "Yes" vote is carried) are not an option, Greece would probably be better off leaving the Eurozone. Because then its new currency can be devalued and provide a frictionless adjustment in real wages to reflect its international competitiveness while keeping Greece's _internal_ demand alive.
Tactics and mr. Tsipras' wishes are not the issue. Long-term sustainability of the Greek economy is.