For a long time, we’ve been hearing about Greece as the poster child for failed economies, but then we get most of our news from an elite that values property over human life.
The Germans, who have a somewhat harsh demeanor toward “lazy” non-Aryans, refuses for its bankers to lose a dime, even though everyone says Greece can never repay the “loans” and the more the Greek economy declines, the more human suffering (who cares?) and the less it is able to repay the loans. But apparently the global elite bankers intend to squeeze every drop of blood out of that Greek turnip; buying up Greek property on the cheap and tightening its grip on that nation.
Iceland found itself in a similar situation after the crash of 2008-each citizen, right down to the babies, was in debt for $350,000 each. They refused to pay, were accused of terrorism by the UK and went through a painful adjustment, from which they seem to be recovering.
The new Greek leaders, Tsirpas and Varoufakis (T&V) are not stupid men. They have been negotiating and the bankers are adamant. So T&V have called for a referendum-let’s see what the Greek people have to say.
One of my favorite sites, Naked Capitalism, is fuming at the T&V because they say the referendum is a failure to lead: Don’t ask the people-LEAD. As if what the people think is irrelevant. I think the referendum is brilliant and I expected some move from outside the box from T&V. It will not resolve the problem; nothing will resolve the problem in a painless way, as everyone has been acknowledging from the start.
If T&V said, “Let’s default” they would be blamed for the pain that follows. They would be voted out and the next crew would prolong the agony. Naked Capitalism admits that the bankers are thugs and “kneecap breakers,” but expects T&V to be perfect paragons of virtue, but then economists are prone to ignore the human element.
In a documentary on Greece, the presenter asked many people if they preferred the Euro or the drachma. Everyone said the Euro. Why? They remember being somewhat poor under the drachma and somewhat better off under the Euro. That the “somewhat better off” was an illusion, a bubble, fake prosperity- is not perceived by the Greek people. The referendum forces them to think. Can John Q. Public think? Can he choose between painful alternatives? Or just say, “Make it all go away!”
We shall see.