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Whenever we watch, read or hear the news these days it is impossible not to see, read or hear something about Greece, the oldest democracy in the world. I do not want to find an explanation for the current Greek crisis, but there are some things I see, just as everybody can see them. And they are not very positive. Certainly not for the Greek people.
Poverty is at an unimaginable high, youth unemployment is soaring with more than 60% (!), and those taking the hardest hits are the elderly, the young people, the simple families, the workers. That makes me wonder what our politicians are all bickering about, when millions of children, women and men slide down towards total poverty at a hallucinating rate. Whatever your political conviction, if you have a heart you cannot ignore what is happening right now inside the European Union.
Politicians of both sides, the Greek government on one side, the ‘Troïka’ (European Commission, European Central Bank, and the International Monetary Fund) on the other, are hitting the public with bolder and bolder statements, it looks more like a contest between mountain gorilla’s about the supremacy over the flock. And lots of what is told is just Ballyhoo to get us on their side, never mind the truth. Because the truth still is that millions of Europeans are suffering right now because of our politicians ineptitude to find a human solution for this crisis.
The ECB and EU are fast to point out they already spent billions and billions on the Greek economy. What the public is not aware of is that indeed, the ECB invested millions in the Greek economy, but it never benefited for more than 90% of these vast sums to invest in its economy. It starts to become a tiring and boring story, but the winners are again our banks. How come? Well, in the past the banks bought bonds from the Greek State, and as the Greek rating was low, the interest margins were very high. Now Greece is heading towards a total collapse, the EU and ECB decided to buy back these bonds from the banks who wanted to make nice – but risky – profits in the recent past.
In short: our financial institutions wanted to earn good money by buying risky bonds, and when the risks of a collapse of Greece became too high, Europe bought these bonds from the banks (don’t worry, they got a nice deal) with our money, that we paid as taxpayers throughout Europe. So now our banks got out of the danger zone – yes, exactly those we spent billions on in a not-so-distant past because of the junk-bonds in their portfolio – and again our money we worked for was abused to buy these bonds. Stating that the ECB invested all those billions in the Greek economy is thus far from the truth. AND now the Greek people have to pay back these bonds to the ECB, bonds the financial institutions bought in the first place as risk-capital to make nice profits.
It is true, Greece has a long history of corruption, where taxes were often not collected, Greece has a humongous bureaucracy incomparable with any other European country, and there are so many more problems to be addressed without delay. But imposing higher taxes on pensions and increasing the TVA, just as the Troika demands, victimizes those who are in need today and strikes them with poverty. This is not in any way acceptable for me, as an European, and as a human being.
Our politicians should stop their strategic and tactical games, interfering with the democratic process of a country where the people chose the government they wanted, and do what they are paid and chosen for: to help the ones in need, to solve the growing problems and to serve the people of Europe. But I guess this is not figuring on their agenda since they joined politics.
Love ❤️, yann.
p.s.: for those wanting some more detailed info, below is a list of recent quotes of renown economists and political analysts about the Greek crisis.
Joseph Stiglitz (Nobel laureate in economics): “I can think of no depression, ever, that has been so deliberate and had such catastrophic consequences. It is startling that the Troika has refused to accept responsibility for any of this or admit how bad its forecasts and models have been. But what is even more surprising is that Europe’s leaders have not learned”.
Martin Guzman (Columbia University): “The disparity between what the Troika thought would happen and what has emerged has been striking — and not because Greece didn’t do what it was supposed to do, but because it did, and the models were very, ver flawed”.
Peter Morici (University of Maryland): “Neither Germany’s finance minister, nor any other European government or competent private institution, has tabled a credible analysis demonstrating how more austerity and labor-market reforms (read more layoffs and wage cuts) will instigate growth and not result in even bigger losses for bondholders down the road. Another round of austerity would only further pummel the Greek economy, and impose economic deprivation that European leaders should be ashamed to engineer.”
Vicky Pryce (chief economic advisor at the Centre for Economics and Business Research): “The rescue that took place in the banking sector was really more of a rescue of northern European financial institutions that had exposed themselves to Greece. The concern about this particular debt is that all it did is it transferred this large burden to the Greeks.”
Paul Krugman (Nobel laureate in economics): “The Troika clearly did a reverse Corleone — they made Tsipras an offer he can’t accept, and presumably did this knowingly. So the ultimatum was, in effect, a move to replace the Greek government. And even if you don’t like Syriza, that has to be disturbing for anyone who believes in European ideals.”
Mark Weisbrot (co-director of the Center for Economic and Policy Research): “The confrontation between the new Greek government and the European authorities is the first time since the Great Recession that voters have successfully been able to challenge the Troika’s previously unaccountable power. Their policies have been widely unpopular in Europe, but this is the first government that is really forcing them to change. So European authorities continue to take steps to undermine the Greek economy and government, hoping to get rid of the government and get a new one that will do what they want”
Larry Summers (former US Treasury Secretary): “Greece is a failed state in waiting. Greeks have imposed more austerity on themselves than any industrialized country has suffered since the Depression.”