Scanlyze

The Online Journal of Insight, Satire, Desire, Wit and Observation

What the EU’s “austerity” for Greece has really meant

Let’s talk about what the EU’s “austerity” for Greece has really meant.

There have been a series of loans from international and national institutions to cover liabilities of those who would be hurt by a default on Greek bonds. It hasn’t reduced Greece’s debt or improved its balance of payments. Coupled with the imposed cuts in benefits and increase in taxes in Greece, rather than encouraging growth, the German Empire, oh excuse me, rather, EU, has forced the collapse of the Greek economy as a way of imposing collective punishment on the people of Greece, while shifting the burden of a Greek default from private investors to EU taxpayers.

Copyright © 2015 Henry Edward Hardy

7 July, 2015 Posted by | capitalism, EU, Germany, Greece, politics, scanlyze | , , , , , , | Leave a comment

Hypocrite much, Germany?

It is myopic for the Germans to be so harsh and moralistic about the impeding Greek default. Germany, who benefited from the Marshall Plan and the 1953 forgiveness of half of their war debt of 31 billion (1953) Deutschmarks debt via the London Debt Agreement, should know the benefits of debt forgiveness and reconstruction over the long term. Greece was one of the creditor countries which forgave half of Germany’s enormous postwar debt, and let them pay the remainder over time such that the final payment of 69 million euros wasn’t made until 2010.

Hypocrite much, Germany?

London Agreement on German External Debts (wikipedia)

Copyright © 2015 Henry Edward Hardy

7 July, 2015 Posted by | debt, Germany, Greece, hypocrite, Marshall Plan, reconstruction, scanlyze | , , , , , | Leave a comment

I don’t see the problem with a Greek default

I don’t see the problem with a Greek default, return to the drachma, devaluation, and reconstruction. The default means some big hedge fund folks will lose billions. Cry me a river. C’est la guerre.

Russia defaulted in 1998, and it is getting near default conditions now due to western sanctions.

Argentina defaulted in 2002, but now has brought 93 percent of the defaulted bonds out of default in the 2010 debt restructuring.

Cyprus defaulted on sovereign bonds in 2013.

A small country like Greece defaulting shouldn’t be a problem for the world community. It will be painful enough for Greece without deliberately trying to undermine the left-wing and technocratic and intellectually competent government or to punish the people as a whole for their democratic vote.

As a younger nation, the USA suffered repeated economic collapses and national bank failures. The Panic of 1819. The Panic of 1837 and the collapse of the Second Bank of the United States. The Panic of 1873. The Panic of 1907. The collapse of the Bank of the United States (a private bank) in 1931 which started the Great Depression. Please some lessons learned people. This isn’t something which never happened before and means the Greeks have to be ostracized. The market will punish them for a default. Unless and until they redeem the defaulted bonds, Greece will pay a premium on any future debt it issues.

If the capitalist leaders actually understood and believed in liberal capitalism they would let things take their course and let those who made bad investments eat the losses. And if they were wise social democrats the would make a safety net to bring Greece back to full employment and a favorable balance of trade and payments. What we are seeing from the EU and the international bodies is more akin to mercantilism.

Trying to force a Greek collapse to punish them for defaulting on some bonds is quite stupid and petty. And did the walruses of the right really see off Yanis Varoufakis because he was way cooler then them, actually understood economics, and said snarky meanspirited things about them? Boo hoo.

Copyright © 2015 Henry Edward Hardy

7 July, 2015 Posted by | capitalism, default, Greece, panic, scanlyze, Varoufakis | , , , , , , , | Leave a comment