Aug 192017
 

By Michael Nevradakis, 99GetSmart

Originally published at MintPressNews

A resident tries to extinguish a forest fire at Kalamos village, north of Athens, on Sunday, Aug. 13, 2017.  A total of 53 wildfires broke out in Greece Saturday and more have done so Sunday, including on the beach resort of Kalamos near Athens. (AP Photo/Yorgos Karahalis)

A resident tries to extinguish a forest fire at Kalamos village, north of Athens, on Sunday, Aug. 13, 2017. A total of 53 wildfires broke out in Greece Saturday and more have done so Sunday, including on the beach resort of Kalamos near Athens. (AP Photo/Yorgos Karahalis)

Selling a struggling nation to the highest corporate, oligarchic, and state bidders may be just the way things work in the world, but please stop trumpeting it as a great “success story.” Greece’s forests are burning, its economy sold out, its citizens struggling more than before they were “saved.”

ATHENS, GREECE — (Analysis) Exactly two years ago, on August 14, 2015, the “leftist” SYRIZA-led Greek coalition government — just over a month removed from a referendum that saw 62 percent of voters rejecting a new austerity plan proposed by the “troika” of Greece’s lenders, the European Commission, the European Central Bank, and the International Monetary Fund — put the final nail in the coffin of the referendum result, passing the third, and most onerous to date, memorandum proposal, foreseeing ever-harsher austerity measures, cuts, and privatizations.

Today, the sweet smell of “success” is in the air.

If by success, of course, you meant the smell of charred forest, then you would be correct.

Greece is burning, and not just due to the high summer temperatures. Dozens upon dozens of forest fires throughout the country, which broke out in the space of less than a week, have covered Athens and much of Greece with a choking, smoky haze. Outside of Athens, huge forest fires have raged over a span of over 25 kilometers and, as of this writing, a period of three days, inundating the city with a smoky haze.

It could be said that this is the perfect complement to the winter atmosphere in the city, when Athens is blanketed by a noxious smog, the result of the burning of makeshift fireplaces and furnaces keeping many of the city’s residents warm; residents who can no longer afford absurdly-taxed heating oil or to run electric inverters.

In a 24-hour period between August 13 and 14, 91 fires broke out in Greece. On the island of Zakynthos alone, 22 fires occurred during this period, just a few weeks after earlier fires burned parts of the island, which is a popular tourist destination. Across the strait, the mainland region of Ileia—which was heavily impacted by destructive and large-scale fires a decade ago, in the summer of 2007—once again fell prey to fires that ignited in multiple locations.

Both a blessing—due to their capacity to moderate scorching summer temperatures—and a curse, Greece’s famed August winds, known as the “meltemi,” helped fuel many of these fires and aided in spreading them across large areas, igniting multiple fronts. But the outbreak of all of these fires and the scale of their intensity cannot be attributed to heat and wind alone.

The large fires in Zakynthos and outside of Athens, for instance, began along multiple fronts within minutes, hinting at coordinated arson attacks.

Indeed, evidence of arson, including gas canisters and large convex lenses, have already been discovered in Kalamos, the location near Athens where one of the blazes originated.

Two convex lenses placed next to a large canister of natural gas found near Kalamos, a suburb of

Two convex lenses placed next to a large canister of natural gas found near Kalamos, a suburb of Athens.

On August 15, a 62-year-old man, said to be an employee of the Labor Ministry, who was in possession of numerous tools with which a blaze could be lit, was caught and arrested near Mount Parnitha, which itself had been previously reduced to ashes following destructive fires in August 2007. According to Gianna Tsoupra, adviser to the SYRIZA-affiliated regional governor of the Athens region Rena Dourou, such fires are an unfortunate “natural phenomenon.”

Greece burns: who benefits?

Volunteers try to extinguish the fire outside a military base at the village of Varnava , north of Athens, Aug. 14, 2017. (AP/Petros Giannakouris)

Volunteers try to extinguish the fire outside a military base at the village of Varnava , north of Athens, Aug. 14, 2017. (AP/Petros Giannakouris)

These fires could be described as a microcosm of much of what is wrong with Greece — as well as with the institution the country supposedly cannot survive without, the European Union. Greece today is the only European country without a national cadastre (forest registry). While areas classified as forestland are constitutionally protected, this classification is largely based onaerial photography dating back to 1945 or earlier. The results are often comical.

For instance, a portion of the site of Athens’ former international airport—slated for privatization and development by the same SYRIZA government which prior to its election promised to abolish these very actions—has beenclassified as “forestland,” due to the vegetation which existed on the site in the 1937-39 time period. Indeed, the lack of an actual complete registry has led to a number of unintentional — or perhaps intentional — consequences.

Burned land can, for instance, be sold to developers and then reclassifiedafter the fact. A 2011 study by the Athens Polytechnic Institute found that approximately one million structures in Greece were constructed illegally (including on land previously covered by forest). Flexible legislation, such as Greek Law 4014/2011, allows such illegal properties to be “legalized” upon the payment of a fine—a practice viewed favorably for its lucrative income-generating potential by both the Greek government and its “partners” in the troika.

In turn, this practice fuels—pun intended—more and more fires. According to GlobalForestWatch, over 150,000 hectares of Greek forest have been destroyed since 2000, one percent of the total land area of the country.

At the onset of the Greek economic crisis, former government minister Theodoros Pangalos—whose governments oversaw and tolerated many of the aforementioned practices—stated, in an attempt to ascribe collective guilt and blame to the entire populace for the causes of the crisis, that the Greek people “ate it all together,” implying that the citizenry collectively took advantage of corruption and graft for its own benefit.

As with many attempts at stereotyping, there is a grain of truth in this statement. On the island of Crete for instance, the “Residents Outside Town Planning” club represents approximately 45,000 illegal homeowners.

However, the beneficiaries of such practices extend beyond just a certain segment of the Greek populace. “Ex-pats” who have relocated to Greece from countries considered by many self-loathing Greeks as “civilized” and “law-abiding” have taken advantage of such laws to purchase properties constructed illegally. Indeed, “ex-pats” looking to purchase property in Greece are even advised as to how an illegal property can be legalized. These very same “ex-pats” — reflecting arrogant, time-honored colonial habits that die hard — are known for lecturing the clearly lazy, wayward, and corrupt Greeks for engaging in such terrible practices as “tax evasion” through the withholding of receipts for small purchases.

Meanwhile, Greece continues to reap the benefits of its membership in the “European family”—where, we are told, in a position supported by the entirety of the political representation in the national parliament, the country must remain “at all costs.” With Greece in flames, the EU’s Civil Protection Mechanism obliged Greece’s fire service, already stretched thin due to fires at home and EU-supported economic austerity, to send two firefighting planes to Albania to battle forest fires in that country.

A woman with a bucket walks among burnt forest land during a wildfire near the suburb of Kaisariani in eastern Athens, on, Aug. 10, 2017. (AP/Petros Giannakouris)

A woman with a bucket walks among burnt forest land during a wildfire near the suburb of Kaisariani in eastern Athens, on, Aug. 10, 2017. (AP/Petros Giannakouris)

Conversely, no corresponding mobilization seems to have occurred at the EU level to fight fires in Greece. France, for instance, felt no need to display “solidarity” towards its “European partner,” refusing a request to send aerial firefighting aircraft to Greece, citing its own difficulties with fires. It is unclear why Greece could not respond in the same manner to the EU’s demands to send planes to Albania.

In a tacit admission of who truly controls the purse strings in Greece, Giorgos Patoulis, the mayor of the northern Athens suburb of Maroussi and president of the Hellenic Union of Municipalities (KEDE), admitted in a radio interviewthat Greece’s limited resources to fight fires via aerial means are a direct consequence of the actions of those who control the country’s public spending. Since 2016, when the Greek Parliament essentially voted itself voteless, Greece’s annual budget has been determined by the EU itself.

Greece: Business as usual?

Israeli Prime Minister Benjamin Netanyahu, left, talks with Greek Prime Minister Alexis Tsipras during their meeting in Thessaloniki, Greece's second largest city on Thursday, June 15, 2017. Under heavy security Netanyahu is in northern Greece to discuss plans to become a key supplier of European energy through an ambitious Mediterranean undersea natural gas pipeline project. (AP/Giannis Papanikos)

Israeli Prime Minister Benjamin Netanyahu, left, talks with Greek Prime Minister Alexis Tsipras during their meeting in Thessaloniki, Greece’s second largest city on Thursday, June 15, 2017. Under heavy security Netanyahu is in northern Greece to discuss plans to become a key supplier of European energy through an ambitious Mediterranean undersea natural gas pipeline project. (AP/Giannis Papanikos)

Following the 9/11 attacks in the United States, with a country in mourning, then-president George W. Bush famously uttered that America was “open for business.” The current government in Greece is apparently following the same playbook.

The SYRIZA-led government, many of whose members once participated in protest movements against apartheid Israel’s actions in Palestine, recently agreed to expedite efforts on the development of the EastMed pipeline, which would transport natural gas from Israeli gas fields to Greece, Italy, and Cyprus, in a project co-financed by the European Union and previously supported by the Obama administration.

Oddly enough, the proposed pipeline route includes a 600-kilometer overland route in mainland Greece, passing right through the Mani region of the Peloponnese that burned to the ground in early July.

Legislation currently being considered would officially declassify urban green spaces, such as parkland, that are currently considered “forestland” and protected by existing constitutional provisions. Loosening these protections would open the door to the economic “development” of the little remaining green space in Greece’s overcrowded, densely-populated, and haphazardly-planned cities. Meanwhile, in December the Greek Parliament passed Law 4442, Article 33 of which relaxes prior regulations on economic activity and the economic development of Greece’s archaeological sites. This law was passed at the behest of Greece’s so-called “saviors” in the troika.

According to Greek Prime Minister Alexis Tsipras though — as well as to the global neoliberal press that fawns over him and his commitment to the “bitter medicine” of austerity — all is well in Greece and the sweet smell of success, rather than that of smoldering ashes, is indeed in the air. In an absurd and comical interview published by the bible of “leftists” worldwide, The Guardian, on July 24, Tsipras described a reality in which apparently only he, his fellow government ministers and members of parliament, and his supporters in the press and the troika apparently reside.

In this interview, Tsipras claimed that “the worst is clearly behind us,” that Greece’s economy is “on the up,” and that his government “will extract the country from the crisis.” He excused his rejection of the referendum result of July 2015 as a “compromise” that prevented Greece from turning “into Afghanistan.” This statement reflects the same blatant fearmongering about the impact of a Greek departure from the EU and Eurozone that is practiced by the Greek and international mass media — which purportedly have fought the “leftist” government of Tsipras — and by the main Greek opposition, the neoliberal-right New Democracy party.

The “objective” Guardian could not conceal its support for Tsipras’ brand of neoliberal “leftism,” peppering the article with language excusing away the actions of Tsipras and his government. SYRIZA’s first-place finish with 36 percent of the vote in the September 2015 elections amidst record voter abstention is described as a “mandate,” while the austerity measures imposed by the troika are described as a “rescue programme” that may be accompanied by “much-needed debt relief.”

Tsipras himself defended his government’s position — to never consider an exit from the Eurozone and the EU — on the grounds that Europe would lose an important part of its history and heritage, an ironic statement when one considers that it is Greece that is losing its history, heritage, culture, language, and especially its sovereignty as a result of its membership in these institutions. This statement did, however, echo Tsipras’ January 25, 2015 victory speech that accompanied his initial ascent to power, a speech that contained constant references to “saving Europe” but no references to saving Greece, the country he was elected to govern.

One day after this puff piece was published by The Guardian, the SYRIZA-led government and the international media (including, you guessed it, The Guardian) triumphantly proclaimed Greece’s “return to the markets” — as Greece “successfully” held its first bond sale in three years, selling 3 billion euros’ worth of five-year bonds at a yield (interest rate) of 4.625 percent.

Compare this to the yields of other EU member-states as of August 15, including Belgium (-0.191 percent), France (-0.146 percent), Germany (-0.284 percent); crisis-hit countries such as Italy (0.7 percent), Portugal (1.089 percent), and Spain (0.217 percent); or even Romania (2.6 percent). It is evident that the idea of a common market and a common currency falls flat on its face. Greece’s 4.625 percent yield can also be compared to those in such economic powerhouses as Malaysia (3.622 percent), Botswana (4.2 percent), the Philippines (4.659 percent), and Vietnam (4.681 percent).

The government of EU and Eurozone member-state Greece is — in honor, it would seem, of Pyrrhus and his “victory” — celebrating its ability to once again borrow on the international markets, at rates comparable to those of Vietnam and the Philippines and worse than Botswana, in order to repay the “bailouts” (in reality, loans) received from its creditors in the troika — which were used to repay the debt that is blamed for thrusting Greece into its current economic predicament in the first place!

Greek Prime Minister Alexis Tsipras, left, welcomes European Commissioner for Economy Pierre Moscovici at Maximos Mansion in Athens, July 25, 2017. Greece is poised to tap international bond markets for the first time in three years in a move the government claims will signal the country is ready to emerge from its bailout era. (AP/Thanassis Stavrakis)

Greek Prime Minister Alexis Tsipras, left, welcomes European Commissioner for Economy Pierre Moscovici at Maximos Mansion in Athens, July 25, 2017. Greece is poised to tap international bond markets for the first time in three years in a move the government claims will signal the country is ready to emerge from its bailout era. (AP/Thanassis Stavrakis)

Reality, however, must not be allowed to interfere with the sweet scent of success. Hence another one of the Greek government’s and troika’s recent success stories, the purported “loosening” of Greece’s capital controls, imposed under the watch of the supposedly “heroic” former finance minister Yanis Varoufakis, which have restricted withdrawals from Greek bank accounts since June 28, 2015. Earlier in August, the Greek government announced a new limit on withdrawals from Greek bank accounts of 1,800 euros per month, replacing the previous limit of 840 euros every two weeks.

Simple math, however, demonstrates that the Greek government and its backers in the troika must consider the Greek people extremely stupid: an 840 euro withdrawal limit each two weeks amounts to a maximum of 21,840 euros per year, while a 1,800 euro monthly withdrawal limit equates to 21,600 euros annually — a reduction, in other words. The Guardian, however, joined the Greek government and most of the press corps in describing this as a “relaxation,” and further evidence of Greece’s “success story.”

Notably, this is not the first time that “fuzzy math” has been used to “loosen” Greece’s capital controls. When initially imposed, a limit of withdrawals of 60 euros per day was established. This 60 euro daily limit was “relaxed” in September of 2015 to a weekly limit of 420 euros, which again equates to 60 euros per day.

In July 2016, this limit was again “loosened”—by permitting withdrawals of 840 euros every two weeks, which again equated to 60 euros per day and 420 euros per week. The current annual limit of 21,600 euros comes out to a daily mean of 59.18 euros per day, less than when the capital controls were initially imposed in 2015!

Greece’s “success story” is indeed so great that Greek justice minister Stavros Kontonis, in interviews with Greek state television ERT and state news agency ANA-MPA, stated his belief that the recent spate of fires in the country is the result of an “organized plan to destabilize the country” hatched by unnamed elements who do not wish to see Greece’s economic “recovery” continue.

EU and media hypocrisy at its finest

On August 1, the former head of Greece’s Statistical Authority (ELSTAT), one-time IMF staffer Andreas Georgiou, was issued a two-year suspended prison sentence by a court of appeals in Athens on charges of breach of duty. Georgiou had been accused by whistleblowers such as Zoe Georganta, a former member of ELSTAT’s board of directors, of manipulating Greece’s deficit and debt figures to cause them to appear worse than they were in reality, thereby providing the political impetus necessary to drag Greece under the troika’s austerity and privatization regime. While the charges of breach of duty related to the lesser crime of having sent data regarding Greece’s 2009 budget deficit to Eurostat without consulting with ELSTAT’s board, this nevertheless represented a victory for those in Greece who have stood opposed to the austerity policies of the past eight years.

Opponents of “Brexit” and proponents of the European Union often hysterically claim that without the EU, human rights would somehow fly out the window. They must not have seen the reaction to the Georgiou case and the eventual verdict, on the part of the Nobel Prize-winning EU. European Commission coordinating spokesperson for Economic and Financial Affairs, Annika Breidthardt, expressed “concern” over the Georgiou ruling, claiming that ELSTAT’s independence was breached and that its members were not being “protected in line with the law,” further adding that the case would be examined by the Euro Working Group this autumn and that an appeal would be a possibility.

Prior to the verdict, Margaritis Schinas, the Greek-born chief spokesperson of the European Commission and former member of the European Parliament with the New Democracy party in Greece, again relayed the Commission’s disappointment and waning trust in Greece over the charges Georgiou was facing. Most damningly though, it was revealed that one of the requirements that the Greek government was obliged to enforce, in order to receive an 8.5 billion euro tranche of loan funds (which had already been earmarked for Greece due to the prior implementation of other troika demands), was to fully cover the cost of Georgiou’s legal defense. Coincidentally, of course, soon after these concerns were raised, a clause inserted into legislation pending before the Greek parliament provided for the full payment of Georgiou’s legal defense costs by the Greek state, via ELSTAT.

Andreas Georgiou, stands outside the headquarters of the Statistics agency, in Athens, Greece. (AP/Petros Giannakouris)

Andreas Georgiou, stands outside the headquarters of the Statistics agency, in Athens, Greece. (AP/Petros Giannakouris)

Following the European Union’s lead, the press corps could not conceal their disappointment, seething over Georgiou’s guilty verdict. In an August 4 editorial, Bloomberg described the prosecution of Georgiou as “scandalous” and as “punishment” for “cleaning up” Greece’s finances. That same day, The Washington Post — owned by Jeff Bezos of Amazon and CIA fame, and quick to label independent news sites such as Mint Press News as “fake news” — stated in an editorial that Georgiou was “scapegoated” and was “only doing his job.” The Financial Timescharacterized the Georgiou trial as a “farce,” warning that the decision would “drive a wedge between Athens and euro area creditors.”

In turn, a ludicrous Politico hit piece claimed that Greece “condemned itself” by “convicting an honest statistician” in a decision that “raises questions about the integrity of the country’s institutions.” The author of this particular article, Megan Greene, seems to have taken on the side job of being Georgiou’s public advocate on Twitter, where she also has publicly demonstrated comfortable relationships with editors from Greece’s neoliberal newspaper of record, Kathimerini, and with Greek politicians.

Interestingly, the “integrity” of Greece’s “institutions” was not called into question when, for instance, the Areios Pagos, Greece’s supreme court, ruled in early July that legislation rolling back Greek worker rights — which was implemented as part of Greece’s second memorandum agreement with the troika, and passed by the government of the non-elected technocrat prime minister and former central banker Lucas Papademos — was constitutional. According to the decision issued by the court, the laws in question had the purpose of increasing the “competitiveness” of Greek businesses and it followed that the resulting decrease in labor costs (wages) was therefore in the public interest.

Not a word of protest was uttered by the European Commission, the Financial Times, The Washington Post, Bloomberg, Politico, Megan Greene, or Kathimerini over this decision. Nor was the integrity of Greece’s judicial institutions questioned when, later in July, an appeals court in Athens ruled that wage reductions of up to 45 percent were “legal and constitutional.” Again there was silence from the European Commission and its supporters in the press corps.

Indeed, instead of protest, the president of the Areios Pagos was rewarded: just days after the decision that found that the troika-imposed cutback in worker rights was constitutional, the president of the court, Vassiliki Thanou-Christophilou, was hired as the supervisor of the legal office of prime minister Tsipras, purportedly on a non-salaried basis. Notably, Thanou-Christophilou had also served as Greece’s caretaker prime minister for approximately one month, prior to the September 2015 parliamentary elections.

A “success story” – on paper only

Clearly congratulating himself on a job well done, Tsipras is now reportedly taking a vacation, while much of the country is up in flames, literally and figuratively. And why not? Tourism is said to be breaking records; unemployment is claimed to be on the decline; a primary budget surplus has been achieved; the current austerity program is claimed by Tsipras to be set to finish in 2018; the government is again claiming it will launch a television and radio licensing process to “go after” Greece’s oligarchs, and Greece is even reported to be launching talks to join the BRICS’ development bank. Sounds great, right? Let’s deconstruct these claims.

The August full moon has become an annual commemoration in Greece. Occurring during the peak of Greece’s tourist season, the night of the August full moon is a time when museums and historical sites throughout the country open their doors to the public, hosting free tours and live concerts.

This year, the August 7 full moon was accompanied by a partial lunar eclipse. And, this year’s crowds at museums and historical sites were larger than in previous years. This could be attributed, in part, to tourism. Greece is expecting to achieve record tourist arrivals, which this year are projected to surpass 30 million visitors.

The August full moon rises above the 5th Century BC Temple of Poseidon at Cape Sounio, south of Athens, on Aug. 7, 2017. More than a hundred of Greece's ancient sites _ but not the Acropolis in Athens _ and museums were kept open until late Monday and concerts organized to allow visitors to enjoy the full moon, which is accompanied by a partial lunar eclipse. (AP/Petros Giannakouris)

The August full moon rises above the 5th Century BC Temple of Poseidon at Cape Sounio, south of Athens, on Aug. 7, 2017. More than a hundred of Greece’s ancient sites _ but not the Acropolis in Athens _ and museums were kept open until late Monday and concerts organized to allow visitors to enjoy the full moon, which is accompanied by a partial lunar eclipse. (AP/Petros Giannakouris)

There is another factor, however: while foreign tourists are arriving in Greece in droves, Greek residents are increasingly stuck at home — unable to afford even a brief vacation inside their own country and deprived of the opportunity to enjoy Greece’s beautiful beaches, islands, and countryside even for a few days. A 2016 study found that domestic tourism has decreased by 45 percent during the crisis.

Athens neighborhoods that used to resemble ghost towns during August, were this year only moderately less vibrant than during the rest of the year. Unable to afford a vacation, many Greeks stayed home—and likely attended those free full-moon events in record numbers.

Of course, privatizations were supposed to “save” Greece, including Greek tourism, justifying the sell-off of 14 profitable Greek regional airports and the port of Piraeus, the largest port in Greece and one of the largest in Europe. The 14 airports were purchased by a consortium of investors led by Fraport, owned by the German state.

Proponents of privatization in Greece, conditioned over many decades to demonize anything and everything that is publicly owned or operated, argued that this investment was necessary to “improve” these airports and their “efficiency.” Those “improvements” are already evident, as complaints have been rolling in from travelers and employees alike: extremely long queues and a lack of air conditioning have been reported to be commonplace to a far greater extent than in the past, indeed the new normal, while parking privileges for employees at the Fraport-owned airports have all but been curtailed.

Quite fittingly, the final agreement that was reached between the Greek government and Fraport for the privatization of the 14 airports was based on a royal decree enacted by Greece’s “pro-western” post-war government in 1953 and signed by King Paul, of German lineage through the House of Schleswig-Holstein-Sonderburg-Glücksburg.

Such privatizations have been touted as “investments” that provide far-reaching benefits and jobs to the Greek economy, and as signs of investor confidence in Greece. The benefits they have actually provided Greece, however, are dubious, as seen in the case of Fraport. This is also evident in the case of the Chinese-owned Cosco, which purchased a controlling share in the entire port of Piraeus from the Greek state in 2016, and which had previously purchased the container port of Piraeus in an agreement with the then-government of the Panhellenic Socialist Movement (PASOK) in 2011. What Cosco seems to have actually delivered to Piraeus are Chinese-style labor conditions, under which workers are, for instance, encouraged to urinate into the sea instead of taking toilet breaks.

From a tourism standpoint, however, these privatizations are part of a larger negative trend that goes largely unreported: the profits from these airports and seaports, which previously entered public coffers, now go straight to Germany and China. In the meantime, the “all-inclusive” and cruise-ship models of tourism are those that have been most vigorously developed in recent years.

This means that foreign visitors often arrive in Greece via foreign-owned charter airlines or cruise ships, on vacations that are usually booked with foreign travel agents and tour operators. They then spend most of their time on the cruise ship or inside an all-inclusive resort, contributing very little spending to the real economy. This is evidenced by statistics showing that despite Greece’s record arrivals, spending per tourist is on a decline, at a mere 430 euros per visitor, 15 percent less than Greece’s nearest competitor in the region.

China, of course, is also a member of BRICS, and it has been reported in recent weeks that Greece has entered talks to formally apply for membership in the BRICS’ New Development Bank. Many opponents of neoliberalism around the world have touted BRICS as an alternative to the existing economic order. But is it really? China’s labor record, for instance, suggests otherwise — as does the Temer regime currently at the helm in Brazil, a favorite of Washington, which is currently enforcing troika-style austerity and is embroiled in corruption scandals. The same could be said of India, which is on board with much of the Western world’s efforts to eliminate cash and physical currency.

But what about Russia? Many in Greece believe that Russia and Vladimir Putin can “save” Greece—if only Greece would turn its back on the Eurozone, EU, and NATO. Throughout the crisis, it has been rumored that there were secret plans for Greece to turn to Russia if it could not achieve “bailout” deals with the troika, but there seems to be no real evidence that Russia ever had such an aid package prepared for Greece, or that it was ever willing to provide such assistance. What is clear, however, is that Russia,  like China and like Germany, sees fertile ground in Greece for its own investments.

In Febrary 2016, a series of economic deals were signed between Greece and Russia. At the time, the Russian government expressed its interest in a number of potential privatization deals in Greece. Flashing forward to April of this year, a majority share (67 percent) of the port of Greece’s second largest city, Thessaloniki, which is viewed as a strategic gateway to the Balkans, was privatized. The buyer? The Deutsche Invest Equity Partners-CMA consortium, in which a major investor is a business figure by the name of Ivan Savvidis.

Who is Savvidis? Born in Georgia when it was part of the former Soviet Union, Savvidis was employed in a state-owned tobacco factory during the Soviet years, becoming its general director soon after the collapse of the USSR and subsequent privatization of the factory. Savvidis was previously a deputy with Russia’s ruling party, United Russia, in the country’s parliament. He is also chairman of the SKA Rostov-on-Don football club in Russia.

Prior to the 2010s, he was unknown in Greece, and there is some question as to whether he had even visited the country. In recent years, however, he has made his presence felt in Greece—especially since SYRIZA ascended to power. It could be said that he’s followed the path to power and influence that is preferred by the Greek oligarchic class.

His first big splash was through the purchase of the PAOK football club in Thessaloniki, joining the ranks of other oligarchs who own football teams in Greece. His group of companies has made various investments in Greece, such as in the field of tourism, where he has bought out various hotels and established an aviation company.

More recently, Savvidis began his foray into Greece’s utterly corrupt media sector, first via his participation in last year’s licensing bid for nationwide television licenses — a process ultimately struck down by Greece’s highest administrative court due to constitutional irregularities. Unabated, he has purchased the major daily tabloid Ethnos and financial newspaper Imerisia, as well as a share in the financially struggling national television station Mega Channel. These purchases were followed by his buyout of another national television station, Epsilon TV, earlier this month.

These purchases have solidified Savvidis’ place in the Greek media landscape, just in time for the relaunch of the licensing bid for nationwide television stations by the SYRIZA-led government. Following the rejection of last year’s bidding process by Greece’s administrative high court, the government has set up a new bidding process, this time in conjunction with the purportedly independent national broadcasting regulator, but which repeats many of the same lies that were heard prior to last year’s bid.  These lies pertain particularly to the number of stations that the television spectrum can “fit” — a number that has now increased to seven national stations from four last year, but that is still far fewer than in other countries (such as Italy), and that all but ensures the continuation of an oligopoly controlled by a few powerful actors, namely Greece’s traditional oligarchs and more recent entrants like Savvidis.

For the SYRIZA-led government, however, this forthcoming television licensing bid—which is said to be likely to extend to radio as well, with onerous requirements that smaller and rural stations will likely be unable to fulfill—represents another part of its “success story,” via the “fulfillment” of one of its many campaign promises, namely to “restore law and order” to the broadcast landscape. In reality, though, whereas the main opposition party SYRIZA promised to “crush” the oligarchs once in power, it is now preparing to turn the media landscape over to them officially. It should be noted at this point that the entirety of Greece’s major media owners have maintained, throughout the crisis, a staunch and unflinching pro-EU, pro-Eurozone, pro-austerity line.

The puff piece published by The Guardian touted the drop in Greece’s official unemployment rate to 21.7 percent, from a peak of 27.9 percent in 2013, as yet another aspect of SYRIZA’s “success story.” Much is left unsaid, however: the long-term unemployed, who are not counted in the statistics; the 500,000-plus person “brain drain” out of Greece during the crisis years; the poor working conditions and paltry wages of many of those who are still employed; part-time jobs that are counted as “full” employment; the aforementioned rollback of worker rights; the job insecurity that workers face, including going months at a time without pay or enduring unpaid overtime, and their fear of leaving due to the uncertainty of being able to find any other job; and so forth.

Just the 500,000-plus person brain drain alone would be enough for Greece’s unemployment rate to skyrocket, had these individuals not emigrated.

Ah, but Greece has attained—and maintained—a primary budget surplus, which reached 3.05 billion euros in the first seven months of 2017. That’s good news, right? Not if one considers what a primary budget surplus actually is. Briefly, it means that the Greek state is spending less than it is taking in as revenue. While this may sound prudent, what decades and centuries of experiments in economic austerity have demonstrated is that for countries experiencing a severe economic depression, as in the case of Greece, maintenance of a primary budget surplus merely exacerbates the problem: money is sucked out of the real economy and not returned to it.

As spending continues to decrease in a cash-starved economy where taxes are increasing and wages are declining, more and more cuts have to be made to government spending in order to meet surplus targets, perpetuating a never-ending death spiral.

In the case of Greece, the SYRIZA-led government, in an agreement with the troika earlier this year, pledged to maintain a primary budget surplus of 3.5 percent of its GDP each year through 2023, and 2 percent annual surpluses thereafter until 2060. Tsipras’ claims, therefore,  that Greece’s austerity program will come to a close sometime in 2018 are laughable: the maintenance of primary budget surpluses is, by definition, the continuation of austerity—which Greece has pledged to continue for (at least) the next 43 years!

But nevertheless, the smell of success is in the air. Prime Minister Tsipras and The Guardian say so, after all. The problem is, that scent hasn’t been detected by ordinary Greeks or by small business owners. Just in the first half of 2017, more than 15,000 businesses shuttered in Greece. But while the SYRIZA-led government is preparing to “crush” Greece’s oligarchs — who, like oligarchs the world over, evade their fair share of taxes by shifting profits offshore — the state has gotten to the bottom of Greece’s supposed problem with tax evasion via other apparently more effective means.

In July, a man who has been unemployed since 2010 and whose income consisted of 24 cents in interest from his bank account, was issued a 4,470 euro tax bill, as the Greek tax system presumes that citizens have a certain income level if they have a bank account, home, or automobile in their possession—even if they are unemployed, even if the property was inherited, even if the citizen is in fact currently impoverished.

In another case, a 49-year-old man in the town of Almiros was arrested and fined for the offense of selling 20 watermelons and 12 cantaloupes without a valid license. Greece’s television and radio stations, however, have operated without official licenses for decades, without anyone so much as batting an eyelash.

In yet another example, if you are a property owner in Greece, rental leases must now be submitted electronically to the tax authorities, with the owner immediately taxed on a percentage of the foreseen rental income for the entire year—before that income has been earned for the year! If, as in the case of a neighbor of this author in Athens, a renter skips town without having paid rent, the owner is nevertheless taxed on this “income.” The deadbeat tenant’s inability to pay–and your consequent taxation on “income” never received–is apparently your problem, not that of the tax office or finance minister!

An uncertain future, not a “success story”

A house damaged by the forest fire stands among pine trees north of Athens, at Kalamos, on, Aug. 16, 2017.  (AP/Ioanna Spanou)

A house damaged by the forest fire stands among pine trees north of Athens, at Kalamos, on, Aug. 16, 2017. (AP/Ioanna Spanou)

As this piece is being written, the smoky smell of the fires raging outside of Athens still hangs ominously in the air, on a day that is supposed to be a national holiday in Greece. For the prime minister and the members of the SYRIZA-led coalition government — as well as for the unabashedly pro-EU, pro-euro, pro-austerity press corps — it is the sweet smell of success that is hanging in the air. Success that exists, if at all, on paper only, as far removed from reality as the government that is nominally in control of the country, and the European and international institutions that are actually at the helm — in Brussels, Berlin, and elsewhere.

A decade ago, in the summer of 2007 and in the aftermath of the aforementioned destructive fires on Mount Parnitha and the Ileia region, an anonymous call went “viral” via SMS text messaging and bloggers, calling upon citizens to wear black and to descend upon Athens’ Syntagma Square, and other central points throughout Greece, for a “non-partisan” protestagainst the then-New Democracy government for its response to the blazes. This was perhaps the first such protest in the country’s modern-day history. Strangely, following the destructive fires of this summer and despite almost ubiquitous smartphone and social media usage, no such similar calls have been extended.

 

Were the 2007 protests an aberration? Possibly. In Greece, the “Indignants” movement disappeared, never to reappear again, after the summer of 2011 and a last hurrah in February 2012 consisting of protests against the second memorandum. In the weeks leading up to the 2015 referendum, a “Solidarity with Greece” movement emerged in major cities in Europe and North America, where academic leftists and ivory-tower activists who somehow were able to procure large quantities of SYRIZA flags, organized rallies against the “blackmail” and “coup” SYRIZA and the Greek people were facing at the hands of the European institutions — which were apparently not evil enough, however, to warrant advocating in favor of “Grexit.”

Following SYRIZA’s wholesale rejection of the referendum result though, an interesting thing happened: this “solidarity” movement largely disappeared — as did its rallies, though perhaps not the SYRIZA flags. Today, a key participant in these rallies, Irish author and “eurocommunist” activist Helena Sheehan, is shilling her recently-published book, Syriza Wave: Surging and Crashing with the Greek Left. Sheehan has taken advantage of the public catfight between Tsipras and Varoufakis to generate some extra publicity for her book, which she admits she was not the best qualified to write.

Nevertheless, Sheehan gently chides SYRIZA for its capitulation and its supporters’ broken dreams, but does not question the European path followed by SYRIZA and by its predecessors before it. The “European dream” and open borders are a good thing, whereas restoration of national sovereignty is “fascist.” Sadly, there was no word from Sheehan as to when the “solidarity” rallies would take to the streets once more.

Returning to political reality, opinion surveys in Greece, to the extent that they can be trusted, consistently show the former governing party, New Democracy, with a steady and sometimes overwhelming lead. Popular sentiment on the street is that whenever new elections are held again, New Democracy will emerge victorious—though it is likely that they too will fall far short of a parliamentary majority, even with the 50-seat parliamentary bonus undemocratically awarded to the winner.

Just in case anybody believes New Democracy will represent a change in direction for Greece though, they would be wrong. It was two years ago when, following the referendum that overwhelmingly rejected the troika’s new austerity proposal for Greece, the SYRIZA-led government turned its back on the result and rammed through memorandum agreement number three for Greece, upon which much of today’s continued cuts, privatizations, and austerity are based.

However, the third memorandum could not have been successfully passed in parliament without the votes of the members of former ruling New Democracy and “socialist” PASOK parties, as well as upstart pro-establishment party To Potami. New Democracy, like SYRIZA today, brought Greece back to the international financial markets via a bond tender in late 2013 with a similarly high yield — and, like SYRIZA, declared Greece a “success story” and claimed the end of the crisis was nearing.

For Greece’s “saviors,” there’s a scent of success in the air. But for the rest of the Greek populace, what’s in the air, literally and figuratively, is the scent of destruction. In a country where, over the past decade and more, Greece’s agriculture, industry, economy, the dreams of its people, and the country’s future have been methodically burned, why not the nation’s forests as well?

Jul 282017
 

By Michael Nevradakis, 99GetSmart

Originally published at MintPressNews

A woman uses her fan to cool down outside the Bank of Greece headquarters in Athens, July 24, 2017. (AP/Thanassis Stavrakis)

A woman uses her fan to cool down outside the Bank of Greece headquarters in Athens, July 24, 2017. (AP/Thanassis Stavrakis)

As Greeks look inward, they see a country that produces nothing of value and is inferior to the rest of the world – despite evidence to the contrary. The country has been mentally colonized, with outside powers convincing the Greeks that they can do no better.

ATHENS (Analysis)– Oscar López Rivera, the Puerto Rican activist, and advocate for independence whose 70-year prison sentence was commuted earlier this year, resulting in his release after serving 35 years, once had this to say about patriotism and colonialism:

To love the homeland costs nothing, what would be costly is if we lose it… As Puerto Ricans we have to accept the fact Puerto Rico is a colony… If we accept this truth then we must be ready and prepared to kickstart a decolonization process.”

For Rivera, this process begins with the decolonization of the mind:

Let’s face the problem of our colonial status. Let’s work to find a solution for it. Let’s decolonize our minds and spirits and become real citizens of Puerto Rico.”

Rivera’s words were, of course, made in reference to Puerto Rico. However, it can be said that they are also applicable to many other nations, including nominally independent states such as Greece, a country which has been ravaged by almost a decade of stifling economic austerity imposed by the European Union and the International Monetary Fund (IMF); a country which could be described as a modern-day debt colony.

Having been raised in the United States as a “third culture kid,” with one foot in the U.S. and one foot in Greece, allows me to see things in both societies simultaneously as a native and as a relative outsider. This has particularly been true during the past four-plus years, a period in which I have resided almost full-time in Athens as a doctoral student and journalist.

Interviewing hundreds of individuals in my academic and journalistic capacity, from politicians to journalists to academics, while being immersed in the mundane day-to-day realities of life in Greece, has been a truly unique experience. And what I often have observed in Greek society is disheartening, to say the least.

What follows are insights into a country which has been colonized not just economically and politically, but mentally as well. It is a case study on how a crisis can be perpetuated through divide-and-conquer techniques and by making an entire nation and its people feel worthless, guilty, inferior and demoralized. This process of colonization and globalization is followed through several steps: the minimization of a country and its people, the fostering of feelings of inferiority and collective guilt, the diminishing and depreciation of local culture, and the lionization of anything foreign and “civilized.”

Modern-day Greece: Fatalism, defeatism and hopelessness

The extent of the demoralization of the Greek people is plainly evident through everyday conversations and encounters. Ordinary Greeks, upon learning that I came to the country to perform academic research, react in surprise and confusion, wondering why anyone would be crazy enough to come to Greece to stay for an extended period. Years ago, soon after the onset of the crisis, two different taxi drivers, upon realizing that I was from overseas, questioned why I chose to come to Greece. “Why are you here? Don’t you see what is happening?” I was asked. “Leave now, as quickly as you can!”

Farmers stand behind a makeshift fire in front of tractors, near Kerdilia, Greece. (AP/Giannis Papanikos)

Farmers stand behind a makeshift fire in front of tractors, near Kerdilia, Greece. (AP/Giannis Papanikos)

Another driver interrogated me about job conditions in the United States, clearly because he had emigration on his mind. When I would mention that I was in Greece to perform academic research, but more importantly, because it was my homeland, people looked at me, quite simply, as if I were crazy.

On other occasions, upon learning that I am an autodidact in the Greek language, Greeks openly wondered why I chose to learn such an “insignificant” language as Greek, instead of a language which offered “potential,” such as German.

I could not escape this pessimism, even back in the United States in faraway Texas. At a farewell party for two Greek-American students who were graduating from my university, one of the students expressed interest in teaching English in Greece and living there for six months or a year. A student from Greece who was part of the conversation, however, warned her against such folly. “Don’t do it, you won’t like it,” he exclaimed. “Greece is only good for summer vacations.”

As far back as the “good old days” of the 1990s, when as a child I was privileged enough to travel to Greece with my family during the summer, I often used to hear mutterings about how much better things would be if Germans ruled Greece instead of the Greeks. Today, eight years into the worst economic crisis a developed country has endured in modern history and at a time when Greece is essentially governed by Brussels and Berlin, one still hears such sentiments expressed with alarming frequency.

Interviews, both academic and journalistic, that I have conducted dating back several years have revealed an overriding sentiment of hopelessness, a belief that the economic crisis that had befallen the country would not be overcome for many, many years. And while the crisis has indeed dragged on, one wonders to what extent such sentiments are self-fulfilling, as a result of the inertia and paralysis which result from the belief that nothing can or will change.

Mental colonization

In a 2013 interview which originally aired on Dialogos Radio, John Perkins, author of the bestselling book “Confessions of an Economic Hitman,” described how “economic hitmen” from institutions such as the IMF and the World Bank, as well as from the private sector, combine their economic takeover of an indebted nation, such as Greece, with a process of mental colonization:

…[T]hat’s part of the game: convince people that they’re wrong, that they’re inferior. The corporatocracy is incredibly good at that… It’s a policy of them versus us: We are good. We are right. We do everything right. You’re wrong. And in this case, all of this energy has been directed at the Greek people to say ‘you’re lazy; you didn’t do the right thing; you didn’t follow the right policies.”

An observer will quickly determine that Perkins’ words ring true in the case of Greece. Complaining, which was practically a national pastime in the pre-crisis years, has reached stratospheric proportions. A general sense of collective guilt permeates Greek society, and it is common to hear discussions and statements about how “we elected these leaders, we were corrupt, we weren’t good citizens, therefore we deserve our current predicament and everything that is being done to us.” If you note a fatalistic undertone in these utterances, you’re not alone.

This collective guilt has been strongly encouraged by Greece’s political class, who ironically are responsible to a significant degree for Greece’s present-day crisis. Former longtime government minister Theodoros Pangalos, infamous for his salty mouth and previously described by best-selling author Greg Palast as a “fat bastard,” cynically stated at the onset of the crisis that “we ate it all together,” insinuating that Greek citizens benefited collectively from the corruption, nepotism, and cronyism that previous governments (including his own) habitually engaged in.

Following from this collective guilt is a new trend in Greece in which people insist in engaging in what they believe to be the sort of “self-criticism” practiced in other “civilized” countries. In reality, as will be demonstrated, it is sentiments of self-loathing and inferiority which are expressed instead of frank and constructive criticism of the nation’s ills. In turn, these sentiments foster feelings of apathy, hopelessness and paralysis on a national scale, acting as obstacles to any positive transformation.

Greece: The worst in everything?

Contributing to the general sense of helplessness and hopelessness is a commonly-held view that Greece and Greek society are inferior to the “civilized” – as they are often called – countries of the West. This inferiority complex deeply pervades the Greek psyche and every aspect of present-day Greek society.

Greek Protesters hold European flags during an anti government rally outside the Greek parliament, central Athens, June 20 , 2017. (AP/Petros Giannakouris)

Greek Protesters hold European flags during an anti government rally outside the Greek parliament, central Athens, June 20 , 2017. (AP/Petros Giannakouris)

Such a mentality has long been present in Greece. Successive waves of immigration out of Greece throughout the 20th century and into the 1970s resulted in a mentality which still lingers, that the “grass is always greener” overseas. With the onset of the economic crisis in 2008-2009, a new wave of emigration out of Greece commenced and approximately 600,000 individuals left Greece during this period. This new wave of emigration has resulted in the re-emergence of these old mentalities.

Old attitudes die hard, and in hearing many Greeks describe their country, one detects an overriding attitude, a prevailing sentiment that views Greece as a “banana republic” and “uncivilized” and that everything is better overseas in the aforementioned “civilized” countries of Northern Europe and the West. There is indeed a Greek word for this mentality: “xenomania,” literally meaning a fascination with anything foreign. Xenomania is rampant in Greece: ranging from the use of “Greeklish” instead of the Greek language, to the all-encompassing preference for seemingly anything foreign, from food to music to fashion.

A common refrain that is heard in Greece whenever anything negative occurs in the country, no matter how minor or inconsequential, is that such things occur “only in Greece.” These assertions often reach epically absurd proportions.

In February, a horrific car accident on one of Greece’s national highways resulted in the death of four people, including a pregnant woman and her three-year-old child who were sitting in an automobile parked at a rest stop. Immediately, a chorus of comments was heard throughout the traditional and social media about how terrible Greece is in all aspects. An ex-race car driver and current driving school owner, known popularly as “Iaveris,” stated on national television in response to the tragedy that “Greeks are the worst people in the world,” a remark which was met with overwhelming agreement in Greece’s public discourse.

This same “logic” is regularly and consistently applied to every real or perceived negative story, event, or facet of life in Greece. Cost overruns on a public works project? Only in Greece! Government corruption? Nowhere is it worse than in Greece! Major bankers and politicians going unpunished for their crimes? Only in Greece! Destructive forest fires? Football fans rioting? Doctors practicing medicine without a license? Workers being obliged to work unpaid overtime hours? Crooked taxi drivers that overcharge passengers? Cruelty towards animals? Small businesses that don’t issue a receipt for a minor purchase? Unfair judicial decisions? Low quality, sensational media outlets? Garbage strikes, or strikes of any variety? You get the point. Apparently, all of these terrible things are the exclusive traits of, exist in, or occur only in Greece.

A motorcyclist looks on as he drives next to a pile of garbage in Piraeus, near Athens, on Monday, June 26, 2017. Municipality workers have been on strike for almost a week , hindering trash collection across the country. (AP/Petros Giannakouris)

A motorcyclist looks on as he drives next to a pile of garbage in Piraeus, near Athens, on Monday, June 26, 2017. Municipality workers have been on strike for almost a week , hindering trash collection across the country. (AP/Petros Giannakouris)

Compounding this confounding line of thinking, most Greeks seemingly do not want to hear anything contradicting these widely-held beliefs that Greece is a corrupt, worthless, useless nation, the worst in anything and everything. Evidence or arguments to the contrary are not ordinarily received in a positive manner.

Indeed, it is quite likely that one will be attacked, frequently quite nastily, for pointing out that, for instance, German aviation workers were on strike for more days than their Greek counterparts, or that corruption and crime and violence exists in other developed countries and are not the exclusive realm of Greece. When all else fails and they find themselves devoid of a counterargument, a simple “yes, but we’re worse anyway” serves as an all-purpose catch-all to continue insisting what a horrible species Greeks are. It truly has attained the status of a fetish.

Related to this mindset is a longstanding need for positive affirmation from “outside.” The opinions of foreigners and visitors to Greece are held in high regard – certainly much higher than the thoughts of fellow Greeks. Evening television newscasts invariably accompany significant stories about Greek economic or political developments with a rundown of how the foreign press and overseas news agencies are evaluating these stories.

A favorite of the news media are the seemingly never-ending “evaluations” of the extent to which Greece is meeting the fiscal targets set for it by its “saviors” in the troika of Greece’s lenders: the European Commission, the European Central Bank and the IMF. Like a teacher lecturing a wayward student, the Greek media breathlessly report on the evaluation of foreign bankers and credit rating agencies, pedantically informing the public whether Greece is a “model student” of sound finance or not.

Ironically, when hatchet jobs have been performed against Greece by the international media – such as during the onset of the crisis, where numerous foreign (particularly German, British and American) media outlets published highly derogatory and racist accounts of the Greek crisis, portraying Greeks as lazy, culturally deficient and reckless, there was nary a word of organized protest out of Greece. The same was true in the 1990s, when Greece was, for example, absurdly blamed by Western media for the TWA Flight 800 disaster and described as a hotbed of terrorism, or deemed too incompetent and incapable of organizing the 2004 Summer Olympic Games prior to the event.

The evaluation of foreigners is valued, so long as they are foreigners from “civilized” countries which, in the eyes of many Greeks, are paragons of virtue and rule of law and can do no wrong. By comparison, Greece is viewed by Greeks themselves as a country that can barely do anything right.

Even positive news is often dismissed. Stories of Greek students who earned an award or distinction are met by comments about how they should “go abroad” to “save themselves.” A significant sporting achievement, such as Greece’s recent gold medal in the European under-20 basketball championships, inevitably leads to comments such as how “basketball is the only thing that functions properly in Greece.”

As with purported self-criticism, so-called self-deprecation is popular in Greece. Dating back well before the economic crisis, the material of stand-up comedians and television satire programs airing on outlets owned by corrupt oligarchs with specific political and social agendas invariably focused on corrupt, thieving or incompetent Greeks, the crooked government and the “dysfunction” of “Greek reality.” As with many stereotypes, there is a degree of truth – but when repeated ad nauseum, even in satirical form, such portrayals attain the de facto status of being the whole, entire truth.

Indeed, the media, just like the politicians, love to foster hopelessness and despair in the populace, whilst pushing a globalized diet of programming down people’s throats. Television newscasts frequently feature stories about Greeks who “made it” abroad, with their success generally attributed to the fact that they left Greece and found their fortunes in a “civilized” country. The “success stories” of those who opened a café in Helsinki or landed a job with NASA in Houston are touted; accounts of the less successful are ignored.

Life in these countries is idealized, and is often accompanied by stories of the Greek “brain drain,” or of innovative Greeks who found their entrepreneurial ideas stifled by “Greek bureaucracy”—without, however, ever performing any deeper investigation into exactly why the bureaucracy and public sector operate in such a manner. Foreign movies and TV series further paint an idealized portrait of the “civilized West.”

Years ago, pre-crisis, I recall being asked, in one conversation, if my family’s home in the United States was similar to that of “the Winslow family” (referencing the TV series “Family Matters”). This mentality is further reinforced by the experiences of many Greeks, whose only time spent abroad may have been a shopping trip to London, a vacation to the tourist attractions of Paris or Rome, or a few years spent in the artificial bubble of the “ivory tower” of academia, studying at a foreign university campus.

Exceptions do exist, and where they do, ridicule oftentimes follows. In a 2011 interview, Greek-American actress and television presenter Maria Menounos, who resides in the United States, stated her desire of eventually making Greece her permanent home. Reporting on this interview, privately-owned national broadcaster Alpha TV—at the time owned by the German RTL Group—heavily ridiculed Menounos for her interest in moving to a country whose residents all wish to leave. Through the tone of its report, Alpha TV portrayed Menounos (and by extension, anyone else who might harbor similar thoughts) as delusional, while reflecting the status quo school of thought that people are better off leaving the country, rather than staying – or, for that matter, moving to Greece from abroad.

In another example from 2012, Greek actress Katerina Moutsatsou, who also resides in the United States, produced a YouTube video titled “I Am Hellene,” a production which was meant to raise the spirits of the Greek people and to express some pride that was (and still is) sorely lacking. The video quickly went viral, soliciting a tremendous response from the media and the public – largely consisting of derision, insults, and vitriol. Some accused Moutsatsos of being a “fascist,” others mocked anyone who would even consider saying anything positive about Greece.

One particularly insidious form of conditioning is performed by Greek sports journalists. Knowing that they are reaching a demographic largely comprised of young men who are often frustrated and jobless, and resentful towards the Greek state for obligating them to spend nine months performing useless and menial tasks as military conscripts, these journalists, somewhat subliminally, use their platform to play with their audience’s frustration while delivering messages meant to further perpetuate the Greek inferiority complex.

For instance, the beautiful football palaces of England or Spain, the “well-behaved” spectators, the amazing and superior athletes, are all touted ad infinitum, which constant references to “corrupt Greek athletics” and “decrepit stadiums” and “incompetence,” messages which are taken to heart by a demographic that likely doesn’t watch television newscasts or regularly visit online news portals. The behavior of, say, British or German or other European football fans outside the stadium and outside the country is conveniently overlooked, while Greek spectators are lectured about their “lack of civility,” criticisms then parroted by legions of sports fans across Greece.

Devaluing the domestic, lionizing the foreign

The cultural and mental colonization of Greece has also resulted in the phenomenon of mimicry. The behaviors and habits of the “civilized West” are increasingly being adopted and naturalized, at the expense of anything Greek. Domestic products and culture are often viewed as passé, old-fashioned, or outdated.

The examples are numerous. For instance, it is fashionable for Greek women to ensure their skin is as white and pale as possible—quite an accomplishment in a Mediterranean climate and with a Mediterranean skin tone—while blonde is the hair color of choice. Young men have fully adopted hipster fashion, including full beards and “retro” mustaches, in another trend that has arrived from abroad.

In the movie “National Lampoon’s European Vacation,” a stereotypical French waiter snidely remarks in French, “two American champagnes” when the Griswold family orders two Coca-Colas. Today, a more apt description might be “Greek champagne.” Attentive guests at restaurants in Greece, in observing the habits of Greek patrons, will notice that Coca-Cola products are consumed at practically every table, while beer, instead of wine or retsina or ouzo, is overwhelmingly the alcoholic beverage of choice.

Greek commuters stand near a McDonald's restaurant in Marathon, Greece. (AP/Lefteris Pitarakis)

Greek commuters stand near a McDonald’s restaurant in Marathon, Greece. (AP/Lefteris Pitarakis)

In everyday conversation, more and more English words are making their appearance, not just in order to describe new, foreign concepts or ideas for which there may not necessarily be a Greek translation, but also words for which there is a perfectly ordinary Greek equivalent. For instance, “live” is now used to denote a live broadcast or a live concert, instead of the Greek equivalents of “live.” “Off” is uttered instead of the Greek equivalent, while other words and phrases such as “air conditioning” or “parking” are now far more commonly used than their well-known and easy-to-remember Greek language versions. Looking at Greece’s burgeoning startup scene, the lingua franca is English, even in social media conversations between Greeks, residing in Greece, who are active in this sector. Insisting on speaking only in Greek is a surefire way to be branded “old-fashioned” or “nationalist.”

An examination of storefronts in any city, town, or tourist resort in Greece will show that the majority of business names are non-Greek. Most television and radio stations have adopted foreign or transliterated names: “Skai” (Sky) TV and Radio, Star Channel, Antenna TV, Alpha TV and Epsilon TV (written in English), Real FM, Athens Deejay, Sport FM, Kiss FM, and numerous others. Foreign names are considered “hip” and “marketable,” Greek names old-fashioned and backward.

Indeed, as a radio producer, I’ve found that scanning a city’s radio stations often provides great insights into the local culture and tastes. In Athens, more radio stations play non-Greek music than Greek music. More radio stations in Athens play American and British pop and rock music, than in New York City or London. The aforementioned “xenomania” in all its glory.

The pale-skinned women and the men with bushy hipster beards and Uncle Pennybags mustaches are often seen adorning apparel and accessories, such as t-shirts or handbags, which prominently display the British or American or even German flags. Wearing anything depicting the Greek flag, however, is a swift and certain way to be branded a member of the “far-right,” a “nationalist,” an “ethnocentrist,” a “racist,” and a “xenophobe.”

In Athens and in all cities and towns throughout Greece, many of the major thoroughfares are not named after prominent Greeks of the country’s ancient and modern past (save for politicians, who ensured certain roads were named after themselves), but are named after members of Greece’s foreign-imposed and long-abolished Bavarian royalty, such as Queen Amalia and King Constantine. These street names serve as everyday reminders of Greece’s neo-colonial past. Famous ancient Greek figures such as Socrates and Plato are typically relegated to the names of secondary thoroughfares and back streets.

Divide and conquer in action

Divide and conquer is a technique that historically has been utilized by colonizers to weaken colonized peoples, turning native populations against each other instead of against their conquerors. However, this is a technique which is equally effective in countries which are nominally independent, as in the case of Greece.

Employed to perfection by Greece’s “guardians,” such as the British and the Bavarians, in the early years following independence from the Ottoman Empire, divide and conquer has been employed repeatedly since then, such as in the aftermath of World War II, when the main Greek resistance movement, accused of supporting communism, was pitted against far-right collaborationist forces, resulting in a two-year civil war. The collaborators, with the help of “allies” such as the British, emerged victorious and asserted their control over the country.

Divide and conquer is still used in a number of clever and carefully cultivated ways in Greece today. One of the main dividing lines that has been developed over a series of decades is that between the public and private sectors. Fueling this division has been decades of public sector ineptitude and inefficiency. Public sector employees have been viewed as privileged, coddled, and corrupt; public services and utilities have themselves been considered spendthrift, mismanaged, and havens of corruption and nepotism.

Employees in the private sector are resentful of these public sector privileges and advantages, real or imagined, and the media and politicians have gladly taken advantage of the divide. When, for instance, wages in the private sector are slashed, at the insistence of the troika, private sector employees, instead of questioning why their salaries should be cut, openly question why the public sector is not subjected to similar reductions (even if, in reality, public sector wages have also been repeatedly cut).

What nobody seems to ask or understand is exactly why the Greek public sector operates in the manner in which it does. Instead, it’s assumed that it’s the result of some sort of general deficiency of the Greek populace – the “lazy Greeks” meme that is also often repeated in the foreign press. The true answer, however, may be hinted at in an intriguing document, openly featured by the CIA on its website, titled “Timeless Tips for Simple Sabotage.”

In this manual, strategies to destabilize adversaries from within via their public sector and bureaucracy are outlined. Some of these strategies may seem familiar to anyone who has dealt with Greek bureaucracy: lowering morale by issuing undeserved promotions while discriminating against efficient employees, making simple tasks and processes as complicated as possible, and putting off more pressing priorities for endless meetings of “committees.” While this document supposedly is no longer in use, there is no reason to believe that its strategies were not, and are not, still utilized – or that such methods were only used against “enemy” states.

Still, the damage has been done, and the hatred and disgust which many in the Greek private sector and the populace at large feel towards the public sector and its employees has helped pave the way for the tacit acceptance of privatizations of key public assets, utilities, and services, such as airports, harbors, and telecommunications infrastructure.

A simple example suffices to illustrate just how deeply ingrained this divide is. While 90 percent of OTE, the former state telecommunications monopoly, is now owned by Deutsche Telekom and other private investors, and while the privatization of OTE began in 1996, it is still largely considered state-owned (the state actually owns only 10 percent of OTE) and its employees “public servants.” In a recent visit to an isolated Greek island where OTE was the only broadband provider, Internet access was consistently “down” for at least 16 hours per day. Locals I spoke with blamed “lazy public servants” for the problem – but were unaware that OTE has, for over 20 years, been privatized.

“We don’t produce anything”

Contributing further still to the misery and defeatism in Greece is a commonly-held perception that the country “doesn’t produce anything.” And this ostensibly being the case, it means that Greece is in a helpless position, reliant upon foreigners and particularly the EU. It is not unusual to hear Greeks talk about how “we are the beggars of Europe” and how “we cannot survive” without the EU.

The reality, however, is far more complex. It is certainly true that Greece’s production base has diminished since the early 1980s (Greece entered the EU in 1981). There are several reasons for this. Some of these reasons have to do with the EU and its regulations, such as its common agricultural policies, which dictates to member-states what to grow, what not to grow, what seeds and crop varieties are permitted or prohibited, where to export and at what prices, and where not to export. Greece’s agricultural base has, as a result, been battered since 1981.

During this same period, increased foreign influence and the arrival of “easy money” from “Europe” led more and more people to desire what they perceived to be a more “European” lifestyle and career. Working the land was old-fashioned and backwards; a desk job or studying to become a lawyer or doctor was the thing to do. Never mind that even if there was no economic crisis, Greece could not possibly absorb so many doctors and lawyers – and even more so when very few doctors, if any, are willing to go to smaller islands and rural regions which are truly in need of their services.

A tractor carries crates of grapes at a vineyard in Tirnavos, central Greece. The European Union has given Greece two months to double taxes on tsipouro, arguing it does not have the right to keep a reduced duty that is reserved for some traditionally made products. (AP/Thanassis Stavrakis)

A tractor carries crates of grapes at a vineyard in Tirnavos, central Greece. The European Union has given Greece two months to double taxes on tsipouro, arguing it does not have the right to keep a reduced duty that is reserved for some traditionally made products. (AP/Thanassis Stavrakis)

These areas, unfortunately, did not offer the “European lifestyle,” complete with hipster pubs and sushi bars, that the new generation, encouraged by their parents, craved. Even in cases where young adults are in a position where they can take over a successful family-owned business, they often opt to pursue a profession seen to deliver more status and prestige – even if it means leaving Greece in the process.

Since the early 1980s, Greece’s borders were also opened up to imports from other EU member-states, particularly Europe’s export powerhouse, Germany. Greece’s previously successful industry, producing everything from buses and tractors to refrigerators and stoves, was wrecked. Many industries were bought out, shuttered, or operations were outsourced. Under the dictates of Greece’s so-called “bailout” agreements, many remaining industries, including the Hellenic Vehicle Industry (which, for example, produces buses, trolleys, and military vehicles) and the Hellenic arms and defense industries are slated for privatization or closure.

Meanwhile, a visit to any supermarket and careful observation of the purchasing habits of ordinary Greeks reveals a marked preference for foreign products, even when similar (and often higher quality) domestic products are available. Oftentimes, Greek products simply go unnoticed. At other times, they are considered old-fashioned, while many shoppers complain that they are expensive – which, actually, is frequently not the case.

This author, in keeping with a “shop local” philosophy which was also practiced in the United States, purchases almost exclusively domestically-produced products without breaking the bank. According to many, this is simply not possible, for “we don’t produce anything,” and as one purportedly “anti-EU” activist once told me, “we need to buy [European] cheese for our kids’ sandwiches.”

Such “European cheeses” are found at the breakfast buffets of most Greek hotels, very few of which engage in any effort to promote domestic dishes and products to foreign visitors who, perhaps, might be interested in trying something different from what they are used to – or at least having something authentically Greek available as an option. Instead, one will invariably find butter from Denmark, marmalade from Bulgaria, milk from Germany, cheese from Holland and honey from Turkey. Locally-produced fresh fruits and vegetables, fresh-baked breads and pies, local juices and beverages, Greek yogurt and cheeses, and a host of other high-quality and widely-available domestic products, are not so widely available precisely at those locations where they should be exposed to the country’s visitors: hotels.

As one hotel owner in the island of Karpathos is said to have uttered, regarding the lack of local goods offered: “why should I make [local producers] big shots by offering their products?” Divide and conquer in action.

This fear of leaving Europe extends beyond just the material world. Academics at all educational levels are infamous for their love and support towards the EU. Many of them are beneficiaries of various European funding and grant programs or of scholarship and mobility programs such as Erasmus+, and are terrified of losing such privileges. What these educators fail to realize is that Erasmus+ is not limited to EU member-states, and that international and academic cooperation is not something that cannot exist independently of the EU.

In keeping with “European” norms, it should be no surprise, then, that changes to the educational curriculum have consistently reduced the emphasis on the Greek language, Greek history and ancient Greece, while since the 1980s, students are taught that they are “European first, then Greek.”

An abject lack of pride

In crisis-hit Greece, seemingly any positive statement about Greece or any refutal of “woe is me” statements such as “we’re the worst in everything,” is met with an immediate response, ranging from jeers to personal attacks and insults. Any expression of pride in anything pertaining to the country is construed as “ethnocentrism” and “nationalism.” Even insisting on speaking proper Greek, instead of throwing in English for every second word uttered, is clearly a sign of “nationalism” and “far-right” tendencies. Wanting to stay in Greece for anything more than summer vacation is met with astonishment, while any suggestion that other “civilized” countries are not as perfect as thought, is met with anger.

If, like this author, the individual delivering that message happens to be, say, a Greek-American, diminutive remarks about “hazoamerikanakia” (gullible little Greek-Americans) who “don’t know anything about Greece” swiftly follow. Interestingly, a lack of knowledge about life abroad does not prevent the same individuals from relentless insistence about the perfection of “civilized” countries.

A man walks next a graffiti in central Athens on Tuesday, June 19, 2012. (AP Photo/Petros Giannakouris)

A man walks next a graffiti in central Athens on, June 19, 2012. (AP/Petros Giannakouris)

This lack of pride is reflected in more mundane everyday realities as well. Approximately half of Greece’s population has piled into the greater Athens area. Internal migration led to the population of the city skyrocketing in the postwar period. Built (very much intentionally) without any planning, zoning, or suitable infrastructure to handle this influx, the urban area faces a number of problems, from a lack of green space to crowded narrow streets, and for many decades, smog and pollution (though public transportation projects such as the metro system, and now the economic crisis, have minimized this problem).

Athens is a city where practically everybody is from somewhere else. And even after two or three generations of residing in Athens, most inhabitants don’t consider themselves Athenians, but instead, part of whatever region of Greece they trace their roots to. Since Athens is not “their” city, little emphasis is placed on striving to improve quality of life and living conditions in the city – such as cleaning up garbage, removing ugly graffiti, or repairing the city’s often tumultuous sidewalks.

A great deal of emphasis, however, is placed on grumbling about these quality of life issues. And, at the same time, most Athenians insist on remaining in Athens (even if jobless), and bristle at the suggestion of returning to their region of origin, even if they consider themselves members of that community and not Athenians. If they must leave, they’d rather emigrate abroad. It’s a complex mentality that an outsider cannot explain with anything resembling logic.

Of course, many do choose to leave – the country, that is. And if one thing is certain, it’s that many of the 600,000 or so who have departed Greece during the crisis have no intention of ever repatriating. Indeed, many Greeks who have left for “greener pastures” have actively attempted to conceal their Greek identity. This author has encountered numerous Greek students studying overseas – almost none of whom have any desire to return – who deliberately make efforts never to speak Greek or to ever associate with others of Greek origin.

Older generations of the Greek diaspora, in turn, often view Greece not much differently from many scholars of the classics and archaeology – that is, that nothing good has happened in Greece in 2,500 years. Many are highly critical of every aspect of Greek society, crossing the boundary from “tough love” to invective, while wearing permanent “blinders,” extolling the virtues and conveniently ignoring the deficiencies of their new homelands. Other members of the diaspora restrict their connection to Greece to summer vacations, folklore and partying. Interestingly, many are just as fanatical and divided along the lines of the corrupt political party system of Greece as their counterparts in the motherland.

A losing battle

Greece, like other countries of the Mediterranean, is a country whose people have a flair for the (over)dramatic. Sensationalism rules the roost, and in times of crisis, that sensationalism is of a highly negative, toxic nature. A brush fire near a historic site, for instance, is portrayed by yellow journalists and bloggers as the “DESTRUCTION OF A HISTORICAL MONUMENT.” An increase in imports of seafood—likely due to overfishing in the Greek seas—is headlined as “THE DEATH OF GREEK FISHING.” This scaremongering easily permeates the psyche of ordinary Greeks.

Exaggerations in the opposite direction are made about everything happening in the “civilized” countries. There is no crime – police officers patrol every corner. There is no nepotism or corruption – all these countries operate as total and complete meritocracies. Public works projects never go over budget, media outlets aren’t irresponsible, football fans never turn violent, higher education and university campuses are models of perfection, and all these countries are, of course, fiscally responsible and elect only politicians who care, first and foremost, about the best interests of their country and their people.

Constant comparisons are made to the perceived or real shortcomings of anything that is done in Greece with statements such as “oh, in the civilized countries, this is how it’s done.” In none of these countries are there economic difficulties, poverty, or homelessness, while Greece is, as one individual recently kept insisting to me, now a “third-world” basket case for these very reasons. I must have imagined all the homeless people that were an everyday part of life during my years in New York City or, say, my 2013 visit to Brussels!

In such an atmosphere, it’s no surprise that most faces I see on the street in Athens seem to have etched into permanent frowns. It’s not a shock that suicides – once rare in this sunny Mediterranean nation with a pleasant climate – have skyrocketed and are in a sense lionized, viewed as an unavoidable inevitability and a heroic act of “resistance.”

A man sleeps at the entrance of a bank branch in Athens, July 24, 2017. (AP/Thanassis Stavrakis)

A man sleeps at the entrance of a bank branch in Athens, July 24, 2017. (AP/Thanassis Stavrakis)

Meanwhile, real resistance on the streets and the picket lines is conspicuously lacking, as it mostly has been since early 2012, when the second memorandum was rammed into effect. Five years later, Greece has now enacted its fourth memorandum, or “bailout.” Protests are largely confined to spasmodic, isolated grievances – such as over measures permitting retail shops to operate on Sundays – which are ineffective, quickly forgotten, typically have low turnouts, and easily broken up by riot police if needed.

The entirety of the political representation in the Greek parliament is pro-EU and pro-Euro, even if this is couched in slightly different rhetoric from one party to another. Voter abstention has sharply increased in Greece and is likely to increase further. A significant amount of voters have given up – and many are simply waiting for a “savior” to arrive, or be imposed – from above, or from outside the country’s borders.

Here, divide and conquer rears its head again: between “Europhiles” who believe Greece’s place is “in Europe” (where would it go, Antarctica?); those who desire closer alignment with the United States, NATO, and Israel; those who fall into some combination of the first two categories; and those who believe that Russia, Vladimir Putin, and the BRICS countries are Greece’s “saviors” despite there being absolutely no evidence that this is the case.

This divide mirrors, in many ways, the post-war left-right, fascist-communist dichotomy which resulted in the civil war and the deep societal wounds which followed, which was further exacerbated by regimes such as the U.S.-backed “regime of the colonels” between 1967-1974. Notably, none of these positions foresees a Greece that will stand up on its own and assert its sovereignty. It’s assumed and ingrained in the national psyche that Greece must be aligned with some power, operating as a vassal state in exchange for some marginal benefits and “protection.”

Just as with the claims that Greece “doesn’t produce anything,” we see nationwide Stockholm Syndrome in action again: Greece cannot survive without being ruled from outside. In the meantime, collective guilt abounds in Greece; guilt that frequently leads to shame, which often results in hopelessness or depression, as evidenced by the alarming increase in suicides. Throughout Greece, one encounters abandoned automobiles and motorcycles, left on the street, often with personal belongings still inside and license plates still attached. No effort is made to even attempt to sell these vehicles, even for scrap.

Storefronts are abandoned, often for years at a time. Mail piles up inside, garbage piles up outside, and the owners of these properties can’t be bothered to make an effort to clean these properties and make them presentable, if for nothing else than out of respect for neighbors and to prevent the neighborhood’s further decline into blight. Just in my neighborhood in Athens, a bookstore has been closed for a year or more, its books still on display in the window, covers slowly fading from exposure to sunlight. Nearby, increasingly petrified baked goods remain in the window of a suddenly shuttered bakery. Newly-closed businesses invariably post signs in their window announcing “renovations.” This is an attempt to “save face, ”as these signs are quickly replaced by “for rent” signs. Increasingly, Greeks are not just giving up, they’re throwing in the towel.

Jean-Paul Sartre once famously stated that “a lost battle is a battle one thinks one has lost.” The tragic reality in Greece today, most Greeks, beaten down by the crisis and by the effects of what can be described as savage globalization, are plagued by feelings of collective guilt, self-loathing, hopelessness, feelings of inferiority, and apathy. The “inferiority” of Greece and the Greek people, and their “guilt,” are accepted as “facts of life.” It is, therefore, no surprise to see Greece ranked fourth worldwide in Bloomberg’s misery index for 2017.

When one believes they have lost a battle, that means that they also recognize some other entity as the victor. In the case of Greece, that victor could be recognized as the EU and countries considered by average Greeks as “superior” and “civilized.” Writing in 1377, North African historian and historiographer Ibn Khaldun provides us with insights which could help explain Greece’s “xenomania” and nationwide Stockholm Syndrome today:

The vanquished always want to imitate the victor in his distinctive mark, his dress, his occupation, and all his other conditions and customs. The reason for this is that the soul always sees perfection in the person who is superior to it and to whom it is subservient. It considers him perfect, either because the respect it has for him impresses it, or because it erroneously assumes that its own subservience to him is not due to the nature of defeat but to the perfection of the victor. If that erroneous assumption fixes itself in the soul, it becomes a firm belief. The soul, then, adopts all the manners of the victor and assimilates itself to him. This, then, is imitation.

It is, unfortunately, this very imitation that one observes in crisis-stricken Greece today. A society where the majority whines and complains, or simply gets up and leaves, but does not demand. A nation that is demoralized; defeated; consumed by hopelessness; devoid of pride, self-respect, and self-confidence; paralyzed by fear; hampered by ignorance; and gripped by feelings of inferiority, cannot deliver change.

This situation, of course, suits the powers that be magnificently. A society of self-loathers, a nation that is defeated and demoralized, will not pose a threat to those responsible for that oppression, while other “civilized” countries reap the ancillary benefits of the crisis, as the economic beneficiaries of the mass exodus and “brain drain” from Greece. This is savage globalization in action.

In other words, Greece is a prime candidate for, in the words of Oscar López Rivera, the kickstarting of a decolonization process. His words may have been intended for Puerto Rico, but they are similarly applicable to Greece. But will the people of Greece heed Oscar’s words?

Jul 182017
 

By Michael Nevradakis, 99GetSmart

Originally published at MintPressNews

Ancient Greece is perhaps best known for its contributions to mankind in the areas of philosophy, architecture, and science. But a modern-day economist suggests that some of the economic practices that were used in ancient times could help to solve Greece’s current debt crisis.

A man waves a Greek flag in front of the Greek Parliament during a rally against new austerity measures in Athens, May 18, 2017. (AP/Yorgos Karahalis)

A man waves a Greek flag in front of the Greek Parliament during a rally against new austerity measures in Athens, May 18, 2017. (AP/Yorgos Karahalis)

ATHENS (Interview) — Closing in on a full decade in duration, the Greek economic crisis is unprecedented in the modern history of economically-developed nations. During this period, Greece’s GDP has declined by over a quarter, unemployment has skyrocketed to record levels, salaries and pensions have been decimated and a significant percentage of Greece’s population, particularly its young university graduates, have migrated abroad.

Four separate memorandum packages that allegedly “bailed out” Greece have instead squeezed the economy to its limits through the imposition of harsh austerity measures, cuts, and privatizations even of profitable public assets. Meanwhile, most of the “bailout” funds, which are actually monies that have been loaned to Greece, have been routed right back to European banks, with very little of that money actually entering the Greek economy.

MintPress News recently spoke with economist and author Spiros Lavdiotis in an interview that initially aired on Dialogos Radio in two parts in May and June. Lavdiotis is a former analyst for the Bank of Canada and has written several books and articles on the Greek economic situation during the crisis. He has also extensively researched the economics of ancient Greece and the connections of ancient philosophy with modern-day economic challenges.

In this interview, Lavdiotis discusses austerity, the present-day Greek economic situation, the reasons why he believes Greece must exit the eurozone and the manner in which it can do so, while also explaining what ancient Greece can teach us about dealing with debt today.

MintPress News (MPN): Share with us a few words about austerity as an economic doctrine, and how this doctrine developed.

Spiros Lavdiotis (SL): The modern form of austerity developed in the meeting of Toronto of the G20 [in 2010]. There was a split in the opinion, in that high-level meeting. The Americans espoused the principles of Keynesianism in trying to recover from the financial crisis of 2008, when the whole of the financial system collapsed, particularly after the bankruptcy of Lehman Brothers in September 2008. Together with the United States in espousing the principles of Keynes were India, Russia, and China. At the same time, the Europeans split from this idea. They thought that in order to save their own weak financial system, that austerity is the only way to do it.

The crisis that started in the United States with the subprime loans and developed in a snowball fashion, to a great extent it disseminated its waves to the European system, which was weaker than the U.S. system. [The fact is] that the eurozone does not have and is not built on sound principles. It is a legal construction which is incomplete because there is no political union, banking union, or financial union. There is no such thing, it was simply a “reverse creation,” starting from a legal structure of the monetary union, and then trying to instigate a political union. It’s very unusual, it’s never happened in the history of civilization.

As a result, when the crisis came, everything fell apart. They didn’t know what to do. In a bulletin which was issued by the European Central Bank (ECB) in May 2010, they admitted that they were in a state of complete collapse. They didn’t have any mechanism, nothing. So they tried to save themselves—particularly the Germans, who had the biggest exposure to the system, the German and the French banks. They decided not to apply Keynesian principles and to follow austerity.

Greek Prime Minister George Papandreou, right, welcomes the head of the International Monetary Fund Dominique Strauss-Kahn at his office in Athens on Dec. 7, 2010. Strauss-Kahn was in Greece to negotiate terms of the repayment of the three-year euro110 billion ($150 billion) bailout loan intended to saved the debt-ridden country from default. (AP/Thanassis Stavrakis)

Greek Prime Minister George Papandreou, right, welcomes the head of the International Monetary Fund Dominique Strauss-Kahn at his office in Athens on Dec. 7, 2010. Strauss-Kahn was in Greece to negotiate terms of the repayment of the three-year euro110 billion ($150 billion) bailout loan intended to saved the debt-ridden country from default. (AP/Thanassis Stavrakis)

Austerity is a dangerous policy because it means that a country has financial problems due to the budget and due to deficits in the foreign exchange, in other words in the balance of payments. In order to alleviate itself, it has to impose austerity measures. How does this work? The theory says, through “confidence.” What does “confidence” mean? The theory says that when people and investors see that there is stability and the country can be saved, then “confidence” is going to build. These are unbelievable things. That’s why the measures of austerity were called “friendly to growth” measures. There is no such thing! These things never work.

In Greece, they miscalculated the “multiplier effects” of the policies which they imposed on debt and incomes. As a result, the Greek economy collapsed completely. In the second year of the imposition of the austerity measures, in 2011, GDP collapsed by 7 percent. All these measures were called “reforms,” but were not reforms. They killed the economy, salaries, pensions.

I remind you that in Greece, 50 percent of the national income arises from pensions. It was a total catastrophe. The unemployment rate, from 7.8 percent, shot up to 28 percent, and it is still measured artificially at 23 percent. This is a dismal situation. People have no hope about finding jobs, and they immigrate. The immigration rate has surpassed more than 600,000 people, from which 250,000 are educated people with degrees who are unable to find anything decent [in Greece].

Overall, the GDP from 2008 until now has fallen by 28 percent. This is the longest, in time and magnitude, drop in growth in economic terms of any developed country. This has never happened before. Even in the Great Depression in the United States, unemployment reached 25 percent and it took only three years to start recovering.

MPN: Why is there such a great insistence on economic austerity, such as in the case of Greece, and are there any examples that you can identify where any country was able to emerge from a financial crisis and return to growth as a result of austerity?

SL: Not to my knowledge. Herbert Hoover tried to impose austerity, and in two years the situation was very severe. There is no such example in the history of economics. I do not know how they developed this type of “friendly to growth” austerity. This is unbelievable, this is a myth, there is no such thing. They have tried to save the financial system of Europe, which was collapsing, and at the same time Germany went ahead and accepted this because it wants to keep the European free trade zone intact.

As you know, there are only nine EU countries which do not participate in the eurozone. The main thing was for Germany to maintain the primacy of its export power. In order to do that in this modern era, you have to maintain the financial system following the principles of free trade, the three basic principles of the Maastricht Treaty: freedom of commerce, freedom of services, and freedom of labor, and of course that presupposes the freedom of capital.

The euro is based on irrevocable exchange. In other words, it’s not like the Bretton Woods agreement, [based on] the gold standard. If a country was in a fundamental disequilibrium, they could devalue up to 10 percent and get out more easily from the predicament. Now with the euro, you cannot. As long as you entered with an exchange that was determined then, that’s it, there’s nothing you can do. It’s like an iron chain, and if you cannot fit from the very beginning—as was the case in Greece—but the European Union knew that, that the Greeks were cooking the numbers.

But the Germans wanted to sell frigates and planes to Greece, the same with the French, and therefore they closed their eyes. They wanted to have Greece there, due to the fact that they could expand their own markets to Greece, due to the different economic and industrial development of the country while at the same time not having to be afraid of devaluation. That was the main goal of Germany.

At the beginning, Germany was exporting two-thirds of their products to European countries. Then it shifted and started exporting to Asia, with its biggest market being China. But just remember that even now, exports constitute 46 percent of Germany’s GDP. They had the power to institute this policy, and the Greek politicians decided to protect the banks. This was a mistake. There were always interlocking interests between the politicians and the banking system in Greece, but I think it was also ignorance, they didn’t know the extent of that relationship in passing the losses of the banking system to the Greek taxpayer.

The amounts are tremendous. They involve a sum of 240-plus billion euros. [By comparison], Greece has a GDP of 175 billion euros. You have a small economy producing 175 billion euros [of economic activity] and you transfer 240 billion in banking system losses that have nothing to do with the Greek economy, this is close to 150 percent of GDP. This would be the same as a $25 trillion bank recapitalization in the United States.

The United States can still print money though, but in the eurozone, all the countries have to give up their monetary sovereignty. It was given to the EU, where in effect you had only one institution, the ECB, and therefore you are transferring all the rights of creating money to one institution which then, in order for you to have money, they will [fund] you by charging interest, but not directly to the member-states, only to the banking systems. The state, to finance its expenditures and the coverage of all programs for health and for welfare and whatever expenses were necessary for the state, had to borrow.

And to borrow from whom? Because the ECB does not directly lend to states, it had to borrow from the private sector, and the private sector had to borrow the funds from the ECB, which was charging interest. The commercial banks then had to charge extra interest to lend money to the Greek state. What happened then? The Greek state had to charge taxpayers with higher taxes to cover these expenditures. Greece entered the European Monetary Union in 2002. By 2008 we were already bankrupt, but they simply did not announce it to the public.

Internationally they did not know that the problem of the Greek state was mostly the banking system. They were talking about “corrupt Greeks.” Yes, there were corrupt Greeks, and the politicians are very corrupt in Greece, this is acknowledged, but the politicians never behaved in placing the common good ahead of themselves.

Right now we are faced, according to the latest budget, with more than 563 billion euros—which is the sum of all of the debt that occurred due to all the banking losses which entered the Greek budget—because there is no fiscal union in Europe.

MPN: “Seisachtheia” is a concept that many are not familiar with. It is also the topic of one of your books. Tell us about this ancient Greek concept and what it may teach us about debt today.

SL: There are a lot of similarities with what happened then, in the 6th century BC, in ancient Athens, with what is happening now. Back then, ancient Athens was in a great economic ordeal due to the fact that the wealth of the city was accumulated among the richest people, and the richest people of that period were landowners. They charged interest between 16 and 36 percent for those who did not have money and wanted to borrow money.

If an agrarian wanted to cultivate the fields, which were all owned by the landowners, they either had to pay one-sixth of the gross cultivation to them as a rent, or they had to go and borrow at the aforementioned rates. Eventually, it was impossible. If there was a bad crop one year, how could they give the one-sixth to the landowner? Therefore they had to borrow and they were going bankrupt.

In this Feb. 2, 2016 photo farmers stand behind a makeshift fire in front of tractors, near Kerdilia, Greece. Combine a rapidly aging population, a depleted work force and leaky finances and any country’s pension system would be in trouble. For debt-hobbled, unemployment-plagued Greece, it’s a nightmare.(AP/Giannis Papanikos)

In this Feb. 2, 2016 photo farmers stand behind a makeshift fire in front of tractors, near Kerdilia, Greece. Combine a rapidly aging population, a depleted work force and leaky finances and any country’s pension system would be in trouble. For debt-hobbled, unemployment-plagued Greece, it’s a nightmare.(AP/Giannis Papanikos)

At that time in history, it was not instituted to give land or other items as collateral. You were placing as collateral your own body, your wife, and your children. So if you were unable to pay, the debtor was given the right by law—not only in Greece but in all ancient regions, including Asia Minor, Sumeria, and Iraq—to be captured and sold as a slave. A famous site for slave exchanges at that time was the island of Aegina, just outside the port of Piraeus.

Solon was the highest official elected by the Athenians to solve this problem, because they were evacuating, just like right now the Greeks are evacuating Greece because they cannot find jobs. This is a very serious situation here in Greece because there isn’t even unemployment insurance. They say there is, but right now there are more than 1,200,000 people officially unemployed, and they pay unemployment insurance for less than 10 percent. And what kind of unemployment insurance? Its 260 euros per month, and only 10 percent [of the unemployed], or 117,000 people, get unemployment insurance.

This is the European system, which exists because there is no law or regulation or principle within the EU, particularly in the eurozone, which gives a right to work. While in the United States the Federal Reserve law says that all monetary policy will be in accordance to maximum employment, price stability and low long-term interest rates. The constitution, according to the Maastricht treaty, of the ECB says there is only one goal, and that goal is price stability. That’s it. Nothing about employment, they don’t even care about it.

This is why Greeks have to immigrate because at the same time there is no law to determine the minimum wage rate, which is the level at which a human being can survive decently. There is now a law which determines that the minimum wage rate for unskilled labor is 486 euros per month. Just think about all of you who are living in Canada or in the United States or Australia and you visit Greece. Is it possible, with 486 euros per month, for a person to live decently?

No, they cannot. You’re reduced to a pauper. It is undeclared slavery. And even the salaries, even as a civil servant, the monthly salaries are lower than that in many instances. As the minister of labor in Greece has announced, about 125,000 people are employed with a salary of fewer than 100 euros per month.

I say this because the situation in Greece is really very severe, and it’s not an accident that recently a report released by the Cologne Institute of Economic Research has said that Greece is in last place of all EU nations in terms of its poverty level, which has reached 40 percent. That’s not far from what the International Monetary Fund (IMF) acknowledged with the data of 2015, [showing] the poverty level in Greece then as 36 percent.

However, people think this is not important, particularly academics who completely dismiss all these things and say that we must remain in the eurozone, without taking into consideration the severe economic situation and the predicament that many people are in and the suffering that keeps going.

[In ancient Greece], Solon resolved those problems. The Athenians were deserting Athens and the fields were uncultivated. As a result, even the rich people said that a solution had to be found. The city was on the verge of civil war. So they elected Solon because he was famous for his integrity and knowledge and because he was middle class, not rich and not poor. Therefore, the rich trusted him and the poor also trusted him, because when he was young he showed characteristics of patriotism.

Solon enacted the “seisachtheia,” and this word remained for centuries, and even now as a word it is extremely powerful. It means “I remove the weight of debts.” It was the first macroeconomic plan that was instituted in the history of civilization. The first thing that Solon thing was institute laws which abolished lending by placing your body as collateral. That was the first time such a law was established in the history of humanity. That’s why Solon’s name remains today as such a significant light in the development of human civilization.

The next thing that he did was to devalue the Athenian currency at the time, which was the Greek drachma. He devalued the Greek drachma to make the foreign trade of Athens more competitive. At the same time, he created incentives for people to come and work in Athens, from other cities that were highly developed, promising to issue Athenian citizenship.

He tried to augment or develop foreign trade in the context that the exports of the city had to be equalized with imports. Solon was the person who instituted the principle that, in order for a country to have self-sufficiency and to be an independent nation, the revenues achieved from exports have to be equalized with the revenues given to imports. This was something that no Greek state politicians have achieved since Greece became an independent nation.

Solon was the person who instituted the “church of the demos,” meaning direct democracy. Officials were directly elected by the people, and Solon was elected as an archon of Athens for 21 years continuously because back then you were elected for one year. This was enough time for him to take [Athens] out of its economic morass and to develop its place as one of the highest civilized nations of the ancient period.

MPN: How and in what way could Greece denounce its public debt, and what does international law and international legal precedent foresee for the issue of its debt?

SL: It is very difficult to really try to eliminate the debt legally, because there is no international law which establishes the principles between creditors and debtors when nations are involved. International law, and every state have bankruptcy laws that concern companies and individuals, but in terms of international law, there are no specific principles [for nations]. This is why a national delegation, the debtor, has to sit down with creditors and determine bilaterally how they’re going to resolve this issue, because nobody can benefit by squeezing the other, like what is happening right now to Greece.

Protesting hospital staff sit in front of a wall that they built at the entrance of the Greek Finance Ministry with a banner depicting Greek Prime Minister Alexis Thipras , Deputy Health Minister Pavlos Polakis and Greek Finance Minister Euclid Tsakalotos wearing ties reading in Greek ''Ministry of broken promises" and " We drown in debt and bailouts" in central Athens. (AP/Petros Giannakouris)

Protesting hospital staff sit in front of a wall that they built at the entrance of the Greek Finance Ministry with a banner depicting Greek Prime Minister Alexis Thipras , Deputy Health Minister Pavlos Polakis and Greek Finance Minister Euclid Tsakalotos wearing ties reading in Greek ”Ministry of broken promises” and ” We drown in debt and bailouts” in central Athens, June 16, 2017. (AP/Petros Giannakouris)

Greeks have nothing to do with the losses of the banks. They’re responsible for about 70 billion [euros] due to corrupt politicians, but 70 billion is manageable because it is less than 50 percent of GDP. Why does the Greek taxpayer have to pay because of irregularities and anomalies in the eurozone, due to the fact that this is a legal institution and is not a political or fiscal union? Why do the Greek people have to pay for all these losses?

There is no international law that can resolve this issue, and this is one of the reasons why we have a big advantage, legally and ethically, to tell them that we’re stopping payments because our country is impoverished, we’re in a humanitarian crisis, why should we pay unilaterally? When you make a deal of lending and borrowing, you have two parties. Why do banks get excluded and the borrower has to carry all the weight? It’s unbelievable.

The banks did all this damage because they invested in toxic bonds in various futures markets, in securitized products which they didn’t even understand, and they carried enormous losses, hundreds of billions, and they’ve placed it on the shoulders of a small country with a GDP of 175 billion euros. What type of justice is this? With the Greek situation and the suffering imposed on all Greeks, who are not all crooks, why should they be destroyed economically?

This is going to take more a generation, to put Greece back where it was. And probably not even that because right now, Greece’s national income and GDP growth are below 2003 levels. Greece has lost about 15 years. But in terms of moral values and general values, they’ve been completely demoralized. Only 3 percent of the public now believes in politicians. This is why this situation is not going to go away either. It’s the biggest economic crime that has ever been committed.

How is it possible for all these losses, which involve not just the Greek banks but also the German banks, the French banks, the Dutch banks, to have been passed only to Greece? The international system is connected, through the euro, which creates an international platform for capital to move freely from one country to another. At any time, any money can be transferred from Athens to Berlin, from Berlin to Frankfurt, from Frankfurt to Paris. All of these losses were in the end sustained by the Greeks because the politicians accepted this. This is why it’s going to be an issue that’s going to last, because the sums are huge.

According to the [Greek] national budget, which was voted and passed in December 2016, it has receipts from credit money—in other words, borrowed money—of 563 billion euros. The total budget of the Greek state, in other words, is 614 billion euros, while the revenues of the Greek state are 50 billion euros, of which 46 billion comes from taxes. This is 320 percent more than the GDP of Greece, and it’s signed by the Greek president and by the minister of finance! How is it possible to claim that Greece is benefiting from this money while at the same time the economy has collapsed by more than 28 percent?

You can understand here, the impasse and the unfairness and what has happened to the Greek state. A lot of people outside [Greece] have realized this. They are talking about the looting of Greece, because now in order to [pay the debt], they are saying to Greece that it has to sell all the public assets. Now we have to sell what our fathers and our ancestors tried to create. They fought for this land, now they have to sell it to pay interest upon interest which has already been paid.

Since we have entered the memorandums, we have paid over 60 billion euros [in interest], and they call this “solidarity.” And according to the new calculations, the payments the Greek state [is responsible for] up to 2030 total 160 billion euros just in interest. This is usury! This is one of the most extreme forms of usury. How is it possible to survive? Everything is going to fall apart.

If in the epoch of Solon they were escaping Athens to save their skins and not to be sold as slaves, here [in Greece] no decent person can remain. This is the situation of the eurozone, the legal laws that were passed creating this union which have nothing to do with humanity. It’s simply an interest scheme, a payment scheme for those countries that are richer. And the countries that are richer are the countries of northern Europe. This is why southern Europe has almost collapsed, and we’ll see this year whether Italy can save their own banking system.

MPN: Would it be correct to say that Greece would be able to undertake unilateral action to declare a stoppage of payments or to denounce or write down the debt once it leaves the eurozone and returns to a national domestic currency?

SL: We should remember that we [Greece] are a member of the eurozone. In other words, we cannot take unilateral action. The de jure bankruptcy of the nation will take place while the country is still a member of the eurozone. In other words, the government can declare a moratorium, a temporary stoppage of payments of six months to foreign lenders. At the same time, the government can immediately start negotiations with the European authorities: the European Commission and the ECB.

The main problem of the Greek debt is that the Greek debt that has been accumulated, [placed] in the budget of 2016, having the signature of the Greek state, amounts to 563 billion euros, which are credit receipts. The lenders forced the Greek government to pass all future debt of the Greek state [into the budget], and the problem, the time schedule of the Greek debt [repayment] is stretched to 2060. The ratio of debt to GDP exceeds 320 percent.

This amount, most of it—about 95 percent—has not accumulated due to the extravagance and excesses of the Greek state. Ninety-five percent of it is debt which has been incurred by the banking system as a whole, not just Greek banks, but also the whole eurozone system, involving mainly German and French banks who have lent to the Greek banks. Therefore, these payments are related to the whole eurozone system and not to the Greek state alone. Yet the taxpayers of the Greek state [are on the hook].

For that reason, we [can] expose all of the official records through a task force appointed by experts from other states—an international task force—that will verify what was published recently, one year ago by the Technical University of Berlin, which determined that the two initial memorandums, involving amounts [totaling] 240 billion euros that were given to the Greek state and named “bailouts,” weren’t given to bail out Greece. They were given to bail out the banking system!

According to this study, less than 5 percent has gone to the Greek economy, and the rest, about 95.5 percent, went for the repayment of the debt and losses of the banking system of Europe as a whole. That’s the problem that was created due to the inflexibility of the euro system. Because the euro has an irrevocable exchange rate, and after the global crisis in 2008, which was actually a financial crisis, it was impossible for the eurozone to cope with this.

For some reason, politicians accepted this, for the losses of the entire euro system to be taken by Greece, to be paid by the Greek taxpayers, while these losses involved the whole system, because the eurozone system is a system which is very incomplete, has many faults. It’s a creation where they put the carriage in front and the horse in the back.

MPN: What happens in the event that Greece does not find that the Europeans are willing to negotiate on the issue of the debt?

SL: In my view that would be almost impossible and it would be irresponsible, because Greece represents a huge bomb of debt. If they do not accept [a write-down], they’re going to expose the whole system to great dangers, due to the systemic risk that is involved in the banking system. The European banks are not only connected with the Greek banks, which are bankrupt, but also with the American banks – which according to certain financial analysts are exposed to a tune of more than 3 trillion euros to the European banks. Therefore, some analysts say that the Greek case is like Lehman Brothers squared.

This is why it’s so dangerous. This actually explains the political stance of previous governments in joining hands with the European authorities, for Greeks to bear this huge burden that doesn’t belong to them. As I said, 95 percent of the loans [given to Greece] are to save the banks and not the Greek state.

MPN: Recently, we have again begun to hear murmurs about the possibility of “Grexit,” as well as statements from various sources, such as the Hellenic Federation of Enterprises, and a joint statement by 14 Greek economists who are based outside of Greece, about the many “dangers” and “perils” of a Greek exit from the eurozone, and the economic “catastrophe” that would follow. How do you respond to these claims, and to this fear that is being repeatedly expressed?

SL: That’s why they don’t want Greece to get out from the eurozone, precisely for their own benefit. Greece holds a huge bomb of debt. Most of it, the Greek public was not responsible for. There were losses due to the imperfections in the architecture of the European system, and these losses have to be divided and shared by the other countries, not only by Greece. Greece and the Greek taxpayer are not responsible to pay taxes, a 24-percent value-added tax (VAT) and enormous prices for gasoline. Now we pay more than 1.50 euros for a liter of gasoline. How is it possible for this country to develop? It cannot.

Everybody is terrified of a Greek exit, but Greece has to exit in order to save itself. But Germany doesn’t want that. Why? Because of the domino effect, because of the systemic risk of the banking system. Germany wants to save their own system, a banking system which is also in terrible shape. [Germany] wants to maintain its status and the benefits that it gets from the eurozone.

The eurozone is a platform where all countries give up their monetary sovereignty and there is no convertibility of the euro. It is an irrevocable exchange, and therefore Germany has a uniform platform to export its own goods, to mobilize its great exporting machine, without having to fear a country devaluing. Since, from the very beginning, it was the net exporter, it was obvious that through time, all the wealth would be accumulated [in] Germany.

Right now, Germany sits on hundreds of billions of euros of net surpluses. Germany is following a neo-mercantalist model and has a tremendous benefit by exporting those goods. The other countries that have deficits, eventually they have to borrow the funds from the German surpluses. But Germany doesn’t do that. It makes direct investments in other countries, like Greece.

FILE - In this Sunday, Oct. 18, 2015 file photo, a man walks past street art depicting Greek Prime Minister Alexis Tsipras and German Chancellor Angela Merkel in Athens, Greece. Tsipras' decision to sign off on a bailout led to many in his left-wing Syriza party to quit in protest.

A man walks past street art depicting Greek Prime Minister Alexis Tsipras and German Chancellor Angela Merkel in Athens, Greece. Tsipras’ decision to sign off on a bailout led to many in his left-wing Syriza party to quit in protest.

Right now, OTE [the formerly state-owned telecommunications company of Greece] doesn’t belong to Greece. Greece doesn’t have even 1 percent of shares in OTE. The majority of OTE now belongs to Deutsche Telekom, and the rest belongs to other international funds. Greece has no position there. Can you imagine if [there is a national emergency], what happens?

It is a fact that they call this “privatization,” but Deutsche Telekom is not a private company. It belongs to the German Federation. It’s a public institution. Similarly, [Greece] recently sold 14 airports to a German company [Fraport] that belongs to the German state, it’s not a private company. The [Athens international airport] Eleftherios Venizelos was sold initially to Germans, to Hochtief. Forty percent remains with the Greek state, but this [is also up for privatization]. But we already sold 14 airports. Why were they sold? Because we have to pay interest on the loans that have been imposed on us.

This is a situation where, I think, a decent politician with integrity can go ahead and try to tell the creditors “enough is enough, we have to settle this issue,” not to accept all these conditions just because Germany doesn’t want to resolve the issue because it has [upcoming] elections and because [German finance minister] Schäuble says that “debt is debt” and that it must be repaid. No, debt is not debt in this particular case, because [Greece] did not create that debt! You created it and passed it to us!

That’s why the banks are bankrupt, because the central bank decided, in order to fight the Greek people and to humiliate them, [prior to] the referendum of July 2015, to close the Greek banks. There is not even a legal definition to give the ECB the power to close the banks. Similarly, they closed the banks because they tried to affect the vote of the electorate. It was so obvious to close the banks and destroy all of the accounts, and nothing was said internationally!

The stocks of the banking issues in the Athens Stock Exchange had three “limit downs” consecutively, [a loss of] 30 percent. They lost 90 percent of their value, people were destroyed, firms were closed, and nobody said anything, people were waiting in line at ATMs to get money, [feeling] threatened and [worried] that they would be unable to feed themselves. They internationally humiliated the Greeks. Why did this happen? To frighten [the public] in order to [stay in] the eurozone.

The same tactic [is being used] now. Even though we have defaulted before, such as with the phony “PSI” [a “haircut” on Greek bonds enacted in late 2011 and early 2012] that supposedly “saved” Greece. By doing that, [this brought] the second memorandum, a loan of 130 billion euros. This did not save Greece. This money went, again, to recapitalize banks and to pay the debts that the Greek banks had from borrowed funds from the French and the German banks.

The creditor has a responsibility when lending money and therefore must accept losses from the borrower. But unfortunately this is not the story, and this is why “Grexit” is so important.

MPN: One option that we have been hearing about from analysts is the possibility of introducing a dual or parallel currency in Greece. What is the distinction between a dual or parallel currency on the one hand, and a national domestic currency on the other hand? And what would be the consequences of introducing a dual or parallel currency?

SL: First of all, a dual or parallel currency in Greece doesn’t solve the problem. This is simply a gimmick. The ECB has the monopoly power and according to the laws of the ECB, there is no such law or ordinance which allows nations to create a second currency. That would violate the principles of the treaty. That’s why the ECB [designed this system], to have control over the issue of money. For them, they have only one goal: price stability. Therefore, how would it be possible to give Greece the right to create a parallel currency when, at the same time, Italy is almost ready to default?

The debt-for-GDP [in Italy] now exceeds 132 percent, but at the same time, because Italy is a huge economy—it exceeds 2.3 trillion euros in debt—if something happens to Italy, the whole system is finished. It finishes because this is actually what they have developed in the eurozone with this primary purpose of the ECB to have the absolute control of money. It’s like creating another gold standard, and the gold standard died because it created so many anomalies and irregularities in the international system, and wealth inequalities.

Given this experience and given the fact that the eurozone is built on a gold standard—[one] based on fiat currency, which gives the right to the ECB to create unlimited money, like right now with the quantitative easing, it has already purchased one trillion-plus euros in securities. But Greece is not allowed [to participate in the quantitative easing program]. Why? Because they want to subjugate this nation in the form of “reforms.” These are not reforms! Simply, they didn’t purchase the Greek securities, just to make Greece pay the interest [to the ECB], and to subjugate and demoralize Greece, to not be able to provide resistance.

All this talk of dual currencies, all this is just to create a sundry understanding of the situation, providing false expectations that this can save the situation. It cannot save the situation. Nothing can really be saved or be improved by introducing this type of [dual or parallel currency] system, but I don’t think it will be introduced.

The only solution is the national currency, because then you are going to take back the power of creating your own money, and together with this, taking back the freedom of your country and getting out from this system, like England [with Brexit]. England has established the existing monetary system. That system is called the British model, where at the top of this system is the Bank of England. Now they see that system is collapsing and they’re leaving [the EU], because they created that system.

At that time [when this system was created], England prevailed globally because it established the gold standard. Having an advanced industrial [and shipping] sector, they were able to control other nations economically. At the same time, as with India, taking surplus value from India to England, and establishing the gold standard in a position to control deficit nations and [be paid] interest, because they did not have gold, like Greece.

Remember John Maynard Keynes. Interest reproduces so fast. “Tokos” [the Greek word for “interest”] means “to bring something into existence.” Aristotle said that it was hated by the whole society, because it creates [wealth] with no effort. The same thing has been instituted now. The Greek state gave the power to the ECB, and this ECB, through usury mechanisms, lends to the Greek state, but the Greek state pays double interest to the ECB and to the commercial banks because the ECB is not a lender of last resort! This abolishes the basic principle of central banks. That’s a function of a central bank, to be a provider of last resort funds if something goes wrong in the system. The ECB does the opposite!

The Cyprus situation shows exactly what I’m trying to say. This is why it’s crazy to talk about parallel currencies. What happened in Cyprus? One day, because [the ECB] did not properly supervise the banking system—which is one of the duties of the central bank, to have good supervision—and there were certain irregularities with certain banks, like Marfin Bank and the Bank of Cyprus. Instead of helping [Cyprus] alleviate the problem, the [ECB] went and did the so-called “bail-in.” A “bail-in” means “to capture,” to go and take money out of accounts. Whoever had their money in Cyprus banks, above 100,000 euros, lost money.

This is the situation, the banking institution that Greece wants? This is extraction, an extraction mechanism! This is like the old tyrants of Syracuse, which if you did not obey his order—and I mention this because Plato went there to educate him, and he didn’t like what Plato was saying, so he wanted to kill him. His supervisors intervened and he was sold as a slave in Aegina, and since then he was recovered from an old student and he was saved. The same thing [exists] in the eurozone.

I think all of these plans [for a dual or parallel currency] were publicized more to confuse the public.

MPN: Describe the steps that Greece could follow in order to depart from the eurozone in an orderly fashion, to transition to a national domestic currency and to avoid the dangers that many believe Greece would face, such as devaluation, high inflation or difficulty importing goods.

SL: A number of these things are a creation of imagination. Let me provide the basic steps of the exit of Greece from the eurozone and the adaptation of a national currency, based on two fundamental premises. First, that democratic institutions are maintained, and the constitution of the country, and second, that there is political will. Now, [those] are very important, fundamental assumptions, which right now do not exist. This is the system of exit for Greece, under the assumption that a light finally comes to the brains of the Greek politicians. If that happens, these are the steps that should be taken.

The country is declared in a “state of necessity,” and Article 44 of the Greek constitution is implemented, which means that after the suggestion of the council of ministers, which the prime minister presides over, power is transferred to the president of the nation. This declaration of the “state of necessity” is not required to be passed through the current representative assembly.

Then, the president declares a temporary stoppage of payments, an international moratorium. That moratorium is going to take a period of six months. During these six months, there is a plan for the reconstruction of the country—because it will be a reconstruction, it is economic devastation. So, at the same time when you declare a stoppage of payments—and this is going to be only for the foreign lenders, internally everything is going to be okay—this saves about six billion euros that are being paid in interest at this time, but also we stop payments of capital.

Therefore, we’ll have the ability to feed the nation and also to maintain salaries and pensions at the same level, because at this particular stage there is a slight surplus in the national accounts. Then we’ll have the benefit that we save six billion euros in interest payments, which would go directly to the reconstruction of the country and programs of employment.

This is what’s most important, to alleviate poverty and unemployment. That’s the primary thing, and that requires, of course, great coordination, to employ the people and to stop or to minimize the scourge of [outward] immigration. We need our educated people. This country cannot survive with old people, which continuously this is the case. It’s an aging population in Greece.

Then at the same time, we establish various capital controls, because we need the capital to remain here and not be exported abroad. Those are the major steps that should be taken simultaneously with a declaration of the nation in a “state of necessity.” It should not frighten [anybody], it’s a normal procedure which is [a result of] the extraordinary crisis taking place right now in Greece. Also it gives you the power to [declare] illegal all the measures that were taken through the austerity measures, which were based not on law, not on humanity, not anything, they were just horizontal measures [impacting] everybody without taking into consideration the principles of justice.

By placing the country in a “state of necessity,” immediately you can re-institute laws which would completely determine the unacceptability or the illegality of the existing laws of the memorandums, including the first memorandum of May 2010, the second memorandum of 2012, and the third memorandum of 2015, a total of 236 billion euros. Out of this sum, only 5 percent went to the Greek economy and for reducing poverty. Ninety-five percent went to payments. Those are known facts.

The third step after this is that you [create] a commission. We have to institute an agency which will go on to audit the Greek debt and to be confirmed officially, through the help of a task force of international [experts], to be a completely objective commission to determine which is the lawful debt and which is the unethical, unacceptable and odious debt.

In the meantime, the country, through its own people—Greek officials—start negotiations with the European authorities, whether this is the European Commission, the Eurogroup or the ECB. Of course, all those discussions have to take place when, first, the Bank of Greece is completely nationalized. This is important, because the Bank of Greece is a company and 92 percent of the shareholders are not yet known to the Greek public. This is an offense to the democratic spirit of the Greek people.

At the same time, things are not so straight, they are highly complicated because of the collapse of the Greek banks, the ECB has lent about 73 billion to “save” the banks after the fact, meaning that initially it was not accepting Greek state bonds as collateral. As a result, the banks could not really find funds to finance growth or to finance projects for businesses. [The ECB] did that, again, just to indicate that they are the power and they determine all political consequences in Greece. They decided to do so when the international public was misled that SYRIZA was a “radical left” party.

[Soon after SYRIZA] was elected on Jan. 25, 2015, the ECB, on Feb. 4, went and declared unilaterally that Greek bonds, the bonds of the Greek state, are not acceptable, they are junk bonds. That meant that they were not accepted as collateral. So the banks would not be borrowing money from the ECB, and therefore the loan activity in Greece has fallen apart, going into [negative territory]. That further aggravated the situation.

Therefore, this situation should be taken into consideration, and that’s why the banks, initially, should go to a bank holiday. It’s a necessary thing that has to be done. The banking system is going to be closed, because you need to protect whatever savings there are.

This is the situation, and I’m sure that this is inconceivable to all of you living abroad, that this is the European model of a monetary system, but it’s not a monetary system. It’s an extractive system that lives on the blood of small and [minimally-]industrialized countries.

The next step after the banks are placed on a necessary bank holiday is the nationalization of the Bank of Greece, like the Bank of England, [which was] nationalized in 1946 and the Bank of Canada was nationalized in 1938. It’s to the benefit of all the parties to agree on this, [since] this whole situation is explosive. Why is it explosive? Because that huge amount that is owned by Greece, that exists 560 billion euros, it is something that can trigger like a bomb and the whole monetary system can collapse.

It would be another situation like the great global financial crisis of 2008, and the reason is that the U.S. system is interconnected with the European system. According to the latest reports, the U.S. banks have exposures of more than $3 trillion in European banks.

That’s the situation, that’s why it’s very important, that’s why everybody is talking about the Greek exit, because if Greece decides to pull the trigger then there’s going to be a very dangerous situation around the European, the Italian banking system. Italy has exposure of more than 2.3 trillion euros. If something happened there, then the whole European monetary system is going to collapse. We have power, in other words.

If one considers the benefits of this nation and the people that live in Greece, then we can achieve tremendous results. At the same time, in order to avoid this chaotic situation which a lot of people and particularly the academics are [predicting] but which is not going to be chaotic, but a normal situation after so many years in another currency, simply we will establish a three-month freeze of salaries and prices, so as not to have the problem of inflation.

Let me tell you how we’re going to determine the first exchange rate between the drachma and the euro. The initial exchange rate is introduced at parity, one new drachma equals one euro. This is the conversion [rate] for all accounts. All the loans now would be paid in Greek new drachmas, and whatever accounts remain in the banks, in the form of accounting—in other words, electronic money—those remain in euros, but simply whatever money is [withdrawn] is paid in new drachmas.

In other words, what you do is you stamp the existing euros with an indication that this is a new drachma. All the money, therefore, that is circulating outside the banks, [becomes] new drachmas, until the new currency is ready. So there is no problem with changing the existing banking system in Greece or the ATM system. Everything remains the same, we simply stamp the existing euros into a new currency. So a 10-euro bill becomes 10 drachmas. Salaries, again, are frozen, the same for prices, for a three-month period.

People queue in front of a bank for an ATM as a man lies on the ground begging for change, in Athens. (AP/Thanassis Stavrakis)

People queue in front of a bank for an ATM as a man lies on the ground begging for change, in Athens. (AP/Thanassis Stavrakis)

This is not something new. President Nixon did this in 1971 when he decided to get out of the fixed relationship of the dollar with gold. Then, the relationship was that one ounce of gold equaled 35 dollars. This was the beginning of the collapse of the Bretton Woods agreement, as he let the dollar be exchanged in the free markets. This was very successful, because the U.S. had problems at that time because it lost the Vietnam War and they were experiencing deficits, like Greece.

All these myths that a vacuum will follow, this is nonsense, because at this stage, the Greek trade balance account is balanced, because the imports are equal to the exports. We export 25 billion euros’ worth, we import about 40 [billion euros], but the difference is covered by services, and the services are tourism and the shipping fleet that Greece has, one of the greatest shipping fleets in the world. Knowing from Solon that the expenses of imports are covered by exports, this means that we have currency, foreign currency to pay [for our imports].

Again, we should remember [that during] the bankruptcy, we are still in the eurozone. You don’t go to the drachma [immediately]. This is a six-month period [of transition]. At the same time, you have the money to feed your people and to buy medicine, to buy oil, to buy whatever items are needed and are not produced in Greece.

And in the meantime, you save the six billion euros [in interest payments]. We don’t pay them any capital for the repayment of debt, and according to the Bank of Greece’s latest report, we still have foreign exchange funds right now, which are mostly in gold—about 5 billion euros. Therefore, from where does all this fear arise?

It’s going to take two or three months until the first newly-produced drachmas are placed in the market. Don’t think it’s a huge amount of money, cash, that is floating in the market. It’s about 20 billion euros. It’s enough, this money, to be circulating around, because multiplied by the velocity effect of money, it’s enough to start motivating the Greek economy. Here we do not have that either, everything is collapsing, the velocity is collapsing, because they’re taking out [money] by taxes.

Taxes destroy money, they do not create money. Paying the unfair interest to the Europeans that they call “solidarity,” six billion euros is an enormous amount with the multiplier effect. So simply, it requires guts. Freedom requires to be courageous and to be just, and I would add to this, to really work hard to achieve this objective.

Those are the most important measures. Just to add: in order for the new drachma to get validity, immediately you institute a law through which only the Greek drachma is acceptable as a payment to the Greek tax authorities. This is something that was said by Aristotle, [who] said that money is the creation of the law. That’s why it’s called “nomisma,” from “nomos” [the Greek word for “law”]. Itis a product of law and not of nature.

All these are myths that there’s going to be a collapse, that [the new currency] will not be accepted. Why won’t be accepted if the tax office accepts the money at the same rate as one euro? As long as it’s accepted at [a ratio of] one for one, why is the market not going to accept it?

One of the benefits during this period is that we will be able to lower tax rates. This is very important, to bring out the necessary steps for motivating foreign capital, but also the growth and development of businesses, because you are going to print the money to recapitalize.

All this ideological bias, that the euro is the only solution for Greece, is completely disastrous. It’s no solution. It’s the only catastrophic element for the complete elimination of the Greek state eventually. This is an extraction mechanism and a mechanism where all the loans, if you are not able to pay them, you are going to pay them by selling the public assets of the country.

Those are the basic steps. As long as it’s understood that it’s going to take a couple of months before the new national currency is cut, in Greece from Holargos [location of Greece’s mint], and still has the old machines through which the drachma was circulated. It’s going to take some time, but as long as there is patience and a belief that our freedom and future prosperity is based on reacquiring the capacity to create our own money, then the last necessary thing is that we and the European authorities understand that we have to find, together, a solution. Otherwise, it’s going to be a situation where everybody loses.

I conclude with the hope that finally, a light comes to the brains of the Greek politicians.

michael-120x120ABOUT THE AUTHOR
Michael Nevradakis

Michael Nevradakis is a Ph D candidate in media studies at the University of Texas at Austin and a US Fulbright Scholar presently based in Athens, Greece.

Jun 272017
 

By Michael Nevradakis, 99GetSmart

Originally published at MintPressNews:

A homeless person changes clothes outside a bank in central Athens. Nearly one-in-four Greeks are unemployed and receive no benefits. Poverty rates have surged here since the start of the crisis in late 2009, with nearly 36 percent of the country living in financial distress. (AP/Thanassis Stavrakis)

A homeless person changes clothes outside a bank in central Athens. Nearly one-in-four Greeks are unemployed and receive no benefits. Poverty rates have surged here since the start of the crisis in late 2009, with nearly 36 percent of the country living in financial distress. (AP/Thanassis Stavrakis)

ATHENS (Analysis)– It has become an increasingly common sight on Greek streets, even in formerly prosperous neighborhoods. Elderly—and sometimes not so elderly—individuals rummaging through rubbish bins in search of scraps of food to eat. Beggars are now practically a universal sighting in Athens and other large cities.

More and more young Greeks are migrating abroad by the day, contributing to a “brain drain” that has totaled approximately 500,000 individuals since the onset of the crisis. In my neighborhood in central Athens, several parked cars are filled to the brim with a life’s worth of possessions, packed in boxes by individuals who have likely lost their homes and livelihoods and who now call their automobiles home. Everywhere, abandoned cars and motorcycles rust away on curbsides and sidewalks.

In another universe, the Greek coalition government comprised of the “leftist” SYRIZA and the “patriotic” Independent Greeks political parties is celebrating. Greece has, at the recently-concluded Eurogroup summit, once again been “saved.” In this latest agreement, an 8.6 billion euro tranche of “bailout” funds—a loan (not a “handout”) which had already been promised to Greece in previous agreements—was released and a long-delayed review of Greece’s “progress” under the austerity mechanisms was finally completed. Quite a cause for celebration!

Or is it? Out of the 8.6 billion, 7.7 billion euros will initially be disbursed, out of which 6.9 billion will be immediately paid back to Greece’s lenders: the European Central Bank, the International Monetary Fund and bondholders. In exchange for the release of these funds, which will be funneled right back to those who are releasing them, Greece’s government has agreed to achieve a primary budget surplus of 3.5 percent of its GDP annually through 2023, and thereafter to maintain primary budget surpluses of 2 percent annually from 2023 until 2060.

Until 2023, the Greek government has agreed to pay 27 billion euros (15 percent of Greece’s GDP) in debt service alone, and that figure increases to a 36 billion euro annual sum until 2060.

For the uninitiated: what does a primary budget surplus actually mean? It means that the state spends less than it receives in revenue. While this may sound like a fiscally prudent policy direction for Greece or any country to take, what this actually means in plain language is that in an economy that is shrinking, as with Greece, the amount of money being spent by the state each year on investment, social services, salaries, pensions and other vital services will perpetually decrease, furthering the austerity death spiral.

To provide some perspective, the IMF itself considers a primary budget surplus of 1.5 percent “realistic,” while the Central Bank of Greece, 92 percent of whose shareholders are not known, considers 2 percent a “realistic” target. In a study by economists Barry Eichengreen and Ugo Panizza that examined economic performance across 235 countries, it was found that there were only 36 cases in which countries were able to maintain a primary budget surplus of 3 percent of GDP for a five-year period, and only 17 cases where countries maintained a primary budget surplus of 3 percent of GDP across an eight-year period. Germany, often touted for its fiscal prudence, was not one of these countries.

For the SYRIZA-led regime in Greece, this is a cause for celebration. Prime Minister Alexis Tsipras publicly announced that “we got what we wanted” through this deal, which points the way towards Greece’s exit from the “supervision” of its lenders.

The newspaper Avgi, an official party organ of SYRIZA, announced for the upteenth time Greece’s impending “exit” from the economic crisis. And the Greek government is publicly touting the upcoming return of Greece to the international financial markets, ironically celebrating the prospect of Greece once again being able to attain more debt via borrowing, likely at usurious terms.

Unfortunately for Tsipras and his government, German Finance Minister Wolfgang Schäuble acted as a party pooper, putting a damper on the celebrations. Speaking publicly after the Eurogroup deal was reached, Schäuble stated that the agreement, which followed what were claimed by the Greek government to be fierce negotiations, was reached three weeks prior but was delayed because the Greek government requested additional time for PR reasons—in other words, to claim that hard negotiations took place.

Pensions, salaries see cuts as austerity steamrolls ahead

Indeed, if the rhetoric of the SYRIZA-led government is a guide to go by, then the successes have kept on coming. In February, the SYRIZA government reached yet another deal with its lenders to once again release “bailout” loan funds that already had been pledged to Greece from previous austerity agreements.

In this agreement, the government claimed that “not one euro” of new austerity would be enacted, as any austerity measures and cuts (including interventions to the tax system, which were previously claimed by the government to be “red lines” in its “negotiations” with lenders) would be offset by countermeasures in other areas, euphemistically referred to as “neutral fiscal balance” and “zero-sum fiscal interventions.”

In a “read my lips, no new taxes” moment for the Greek government, these declarations of “zero-sum fiscal interventions” and the “end of austerity” had only just barely been uttered when a host of new austerity measures were unveiled. Initially announced at 3.6 billion euros, these austerity measures now total 14.2 billion euros’ worth of cuts.

These include further reductions of 18 percent to already battered pensions, as well as salary cuts, tax increases, a cut in health expenditures, a further reduction of 50 percent to heating oil subsidies (in a country where the majority of households already cannot afford heating oil and have reverted to fireplaces and makeshift furnaces to keep warm), a reduced tax-free threshold and an increase in tax contributions, and the freeing up of home foreclosures and auctions.

Protesting hospital staff sit in front of a wall that they built at the entrance of the Greek Finance Ministry with a banner depicting Greek Prime Minister Alexis Thipras , Deputy Health Minister Pavlos Polakis and Greek Finance Minister Euclid Tsakalotos wearing ties reading in Greek ''Ministry of broken promises" and " We drown in debt and bailouts" in central Athens. (AP/Petros Giannakouris)

Protesting hospital staff sit in front of a wall that they built at the entrance of the Greek Finance Ministry with a banner depicting Greek Prime Minister Alexis Thipras , Deputy Health Minister Pavlos Polakis and Greek Finance Minister Euclid Tsakalotos wearing ties reading in Greek ”Ministry of broken promises” and ” We drown in debt and bailouts” in central Athens. (AP/Petros Giannakouris)

In exchange, “countermeasures” that will be enacted in 2019 will only take place if Greece meets “fiscal targets” up until then, include minor tax cuts (such as a 70-euro reduction to the “unified property tax” which SYRIZA, prior to ascending to power, denounced as “unconstitutional”) and offering school lunches.

The Greek government, along with its bosses in Brussels and Berlin, continue to insist that tax increases will help, despite all economic evidence to the contrary. While revenues from the value-added tax (VAT) were at 16.3 billion euros when the VAT rate was at 19 percent, those revenues declined to 14.4 billion euros when the VAT was increased to 21 percent, and dropped further to 13.7 billion euros when the VAT was increased again to 23 percent. Today, the VAT for most goods and services is at 24 percent amidst an economic depression that has shown no real signs of abating.

While the SYRIZA-led government is congratulating itself for putting an end to austerity, the aforementioned unified property tax, which according to SYRIZA’s pre-election rhetoric was unconstitutional and to be abolished, will remain in effect at least until 2031. One year ago, in June 2016, a 7,500-page omnibus bill ratified by the Greek government without any debate transferred ownership of all of Greece’s public assets (ranging from water utilities to prime beachfront parcels of land) to a fund controlled by the European Stability Mechanism for the next 99 years.

The same bill also reduced the parliament to playing a rubber-stamp role, as it annulled the ability of the Greek parliament to formulate a national budget or to pass tax legislation, with automatic cuts to be activated if fiscal targets agreed upon with the country’s lenders are not met. Foreign experts working on the implementation of the austerity measures and privatizations in Greece were also, as of 2016, granted immunity from prosecution. If all of this seems exaggerated or far-fetched, consider a recent remark by the European Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici, who stated that “[The EU] often decide[s] Greece’s fate, in place of the Greeks.”

Move toward cashlessness benefiting “too big to fail” institutions

As all of this is taking place, Greek businesses—particularly small businesses—are being burdened further, required as of July 27 to install “point of sale” (POS) card readers and to accept payments via credit, debit or prepaid cards. Another law, which came into effect on January 1, pushes consumers towards card payments by setting a minimum threshold of spending at least 10 percent of one’s income via card in order to attain a somewhat higher tax-free threshold.

In a country where capital controls restricting withdrawals from bank accounts and ATMs have been in effect since June 2015, cash is being further withdrawn from the marketplace and is being delivered to a banking system that has already been recapitalized three times and is likely on its way towards a fourth taxpayer-funded “bailout,” keeping with the fine tradition of financial institutions that are said to be “too big to fail.” We are told, of course, that this is for society’s own good, in order to combat “tax evasion” and other terrible things.

As all of this has taken place, 14 profitable Greek regional airports of strategic and economic importance have been privatized—ironically by being sold to Fraport, itself owned by the German public sector. The port of Piraeus, one of the largest in Europe, has been completely privatized; sold for a pittance to Chinese-owned Cosco. Greek water and power utilities, having been transferred to the aforementioned fund controlled by the ESM, are among the next assets slated for privatization.

Foreclosures of homes are slated to be expanded to primary residences, leaving many households at risk of ending up on the streets, while come September, foreclosures are slated to take place electronically, in accordance with the Greek government’s agreements with its lenders. It should be noted that foreclosure auctions that take place in Greek civil courts each Wednesday have become one of the few remaining battlegrounds where citizens are actively, and often quite successfully, pushing back against one of the products of the economic crisis, preventing many foreclosures from occurring. Switching to electronic foreclosures would eliminate this “inconvenience.”

People queue in front of a bank for an ATM as a man lies on the ground begging for change, in Athens. (AP/Thanassis Stavrakis)

People queue in front of a bank for an ATM as a man lies on the ground begging for change, in Athens. (AP/Thanassis Stavrakis)

Other “inconveniences” are also being done away with in swift fashion. In August 2016, police in the city of Katerini arrested a father of three for selling doughnuts without a license, fining him 5,000 euros for the offense. In another case, a vendor selling roasted chestnuts in the city of Thessaloniki was surrounded by 15 police officers and arrested for the high offense of operating without a license. In the meantime, Greek television and radio stations—almost the entirety of which are vehemently pro-EU and pro-austerity and which greatly impact public opinion—operate without valid broadcast licenses.

The SYRIZA government, elected in part on pledges to “nip oligarchs in the bud” (including taking care of the issue of unlicensed broadcasters), has instead allowed oligarchs to shift their money to offshore tax havens, while collectively treating ordinary citizens and small business owners as being guilty of tax evasion. Former finance minister with the center-right New Democracy political party Gikas Hardouvelis was recently acquitted in court for failure to submit a declaration of assets.

In a December 2015 interview, Finance Minister Euclid Tsakalotos stated that the SYRIZA-led government “didn’t have time to go after the rich.” Unlicensed chestnut vendors, apparently, are another matter altogether, as are activists against the environmentally destructive and economically dubious gold mining operations in north Greece’s Skouries that are being conducted by Eldorado Gold with a Greek oligarch, Giorgos Bobolas.

In late May, the physically disabled 77-year-old Thodoros Karavasilikos was issued a 12-month suspended jail sentence for, apparently, physically assaulting 10 riot police officers in a protest against the Skouries mining operations. Furthering this war on the elderly, Dimitris Kammenos, a member of parliament with the “patriotic” Independent Greeks party which is co-governing with SYRIZA, stated in a televised interview in April that 100 euros that were being slashed from pensions were “better off being taken by the state” than to be “given by pensioners to their grandchildren to go out and have coffee.”

Civil unrest on the rise amid economic uncertainty

It can be argued that being a Greek citizen is a great disadvantage in Greece at the present time. In the blighted Athens suburb of Menidi, an 11-year-old Greek child was apparently killed by a stray bullet, said to have been fired from a residence of a Roma family. Civil unrest has followed in the area between the Greek and Roma populations, to which the SYRIZA-led government has somehow responded by proposing that Roma children be allowed to enter Greek universities and the police academy without taking entrance exams.

A protester reacts next to a flare outside the the Interior Ministry as thousands of striking municipal workers demonstrate in central Athens, June 22, 2017. Union officials want the left-led government to grant full-time, permanent state jobs to municipal workers employed on short-term contracts that have expired or are about to expire. (AP/Petros Giannakouris)

A protester reacts next to a flare outside the the Interior Ministry as thousands of striking municipal workers demonstrate in central Athens, June 22, 2017. Union officials want the left-led government to grant full-time, permanent state jobs to municipal workers employed on short-term contracts that have expired or are about to expire. (AP/Petros Giannakouris)

While migrants in Greece are receiving 400 euro monthly subsidies (greater than many salaries and pensions in present-day Greece) and free housing, thanks to assistance from the EU and numerous “well-meaning” non-governmental organizations, the same sensitivity has not been displayed to victims of a recent earthquake that severely impacted the island of Lesvos, one of the primary entry points for migrants. Instead, Kyriakos Mitsotakis, the leader of the center-right New Democracy, the main opposition party in Greece which is favored to win the next national elections whenever they take place, promised those whose homes were destroyed by the quake a two-year waiver of the unified property tax, should his party be elected.

Tourism, however, is said to be saving the day. Greece is said to be receiving record numbers of visitors, and the Eleftherios Venizelos International Airport in Athens is receiving a record number of passengers. These statistics are often repeated by the government and by Tourism Minister Elena Kountoura of the Independent Greeks political party, the minority partner in Greece’s coalition government. What is not said is who these tourists are, or what their real impact on the economy is.

Many of these tourists are visiting the country on package travel deals booked with overseas travel agencies, flying to and from Greece on foreign-owned charter airlines and staying in hotels which themselves are often owned by foreigners. Many of these hotels offer “all-inclusive” hospitality packages, often offering the very lowest-quality imported food and drink products in order to slash costs. While foreigners get to enjoy Greek resorts and sunshine at bargain rates, austerity-hit Greeks, battered by the crisis, cannot afford to—nor are they offered the same low rates provided to foreign visitors.

Most tourists on “all-inclusive” deals rarely venture away from their hotels, and businesses in tourist regions, ranging from convenience stores to restaurants, are seeing business suffer while their tax burden continues to increase. In a recent visit to Rhodes, one of Greece’s pre-eminent tourist destinations, I observed that the Old Town of Rhodes, perhaps the top tourist destination on the island, was almost deserted at 10:30 p.m. on a Friday night in a country that “stays up all night.” Tourists remained largely locked away in their all-inclusive resorts.

Greece’s “boom times” for tourism are evident by the country’s lack of a national air carrier, which has been the case ever since the previously state-owned Olympic Airlines was dismantled at the behest of the EU and purportedly for violating the European Commission’s competition rules. The privately-owned near-monopoly that has replaced it, Aegean Airlines, has somehow managed not to run afoul of such rules.

While Greece, one of Europe’s top destinations, does not possess any wide-body aircraft, countries such as Serbia and Rwanda do and are running nonstop flights to the United States. Aegean Airlines may not have long-haul flights, but it has delivered much-vaunted “foreign investment”—often touted as the cure-all for Greece’s economic ills, despite a major privatization push since the 1990s, which did not stop the crisis—as 25 percent of the airline is reportedly being purchased by Hainan Airlines of China.

Tourism Minister Elena Kountoura, apropos of nothing, recently brought us back to 2015 and to the referendum which took place that year, where 62 percent of voters rejected an EU-proposed austerity plan—only for the result to be overturned within days, as the SYRIZA-led government turned around and agreed to an even harsher austerity package, known as the third memorandum agreement, than the one voters had rejected.

The SYRIZA-led government has since agreed to a fourth memorandum agreement, but according to Kountoura, the negotiation that occurred in 2015 that led to the third memorandum—chock-full of austerity measures and the privatization of profitable assets—prevented 16 billion euros’ worth of austerity measures from being enacted.

No end in sight for bleak austerity

Unfortunately, two years after the “triumphant” referendum and rejection of austerity—which was promptly overturned and replaced with even harsher austerity—there seems to be no light at the end of the tunnel for the beleaguered nation. Nor does a political “savior” appear to exist. The aforementioned New Democracy party is part and parcel of the corrupt political duopoly, along with PASOK, which ruled Greece for 40 years after the fall of the military junta in 1974, and is vehemently pro-EU and pro-austerity (as long as they are the ones implementing the austerity and pro-Europe policies, instead of SYRIZA).

In previous elections, political “renegade” Vasilis Leventis and his Centrists’ Union political party were elected to parliament—likely as a protest vote. Leventis is famous for his supposed crusades against corruption and the two-party system, and for wishing cancer upon former Prime Ministers Kostantinos Mitsotakis (father of the current New Democracy leader) and Andreas Papandreou (father of George Papandreou, prime minister when Greece was led into the IMF-EU “bailout” and austerity regime) on live television in 1993.

A motorcyclist looks on as he drives next to a pile of garbage in Piraeus, near Athens, on Monday, June 26, 2017. Municipality workers have been on strike for almost a week , hindering trash collection across the country. (AP/Petros Giannakouris)

A motorcyclist looks on as he drives next to a pile of garbage in Piraeus, near Athens, on Monday, June 26, 2017. Municipality workers have been on strike for almost a week , hindering trash collection across the country. (AP/Petros Giannakouris)

Today, Leventis is calling for the installation of a “government of technocrats” (much like the non-elected government led by banker Loucas Papademos in late 2011 and 2012, which passed the second memorandum agreement with no popular mandate) and who has also stated recently that Greece “does not deserve to have its debt restructured.”

In reality, the entirety of parliament—despite the eight political parties which comprise it and which create the facade of political pluralism—can be described as being pro-austerity, pro-euro, and pro-EU. The same can be said of smaller political parties, currently outside of parliament and vying to gain public support.

These include parties founded by Panagiotis Lafazanis and Zoe Konstantopoulou—who as part of the first SYRIZA government of January-September 2015 voted in favor of numerous pro-memorandum and pro-austerity pieces of legislation and in favor of the pro-Europe corrupt former government minister Prokopis Pavlopoulos as president of the Hellenic Republic, who recently stated that Greece will remain in the EU “indefinitely and irrevocably.”

Two years after saying “no” to austerity, this is the state of affairs in Greece today. Poverty, fear, unemployment and a continued brain drain, as well as corruption, lies, and above all, an undying attachment to the EU and the Eurozone, at least on the part of the almost complete entirety of the country’s political class. That’s life today in a modern-day EU debt colony.

Jun 222017
 

By Michael Nevradakis, 99GetSmart

Originally published at MintPressNews:

A man makes a transaction at an automated teller machine (ATM) of a Piraeus Bank  branch in Athens, Greece. (AP/Yorgos Karahalis)

A man makes a transaction at an automated teller machine (ATM) of a Piraeus Bank branch in Athens, Greece. (AP/Yorgos Karahalis)

ATHENS (Analysis)– Day by day, we’re moving towards a brave new world where every transaction is tracked, every purchase is recorded, the habits and preferences of everyone noted and analyzed. What I am describing is the “cashless society,” where plastic and electronic money are king, while banknotes and coins are abolished.

“Progress” is, after all, deemed to be a great thing. In a recent discussion, I observed on an online message board regarding gentrification in my former neighborhood of residence in Queens, New York, the closure of yet another longtime local business was met by one user with a virtual shrug: “Who needs stores when you have Amazon?”

This last quote is, of course, indicative of the brick-and-mortar store, at least in its familiar form. In December 2016, Amazon launched a checkout-free convenience store in Seattle — largely free of employees, but also free of cash transactions, as purchases are automatically charged to one’s Amazon account. “Progress” is therefore cast as the abolition of currency, and the elimination of even more jobs, all in the name of technological progress and the “convenience” of saving a few minutes of waiting at the checkout counter.

Still insist on being old-fashioned and stuck behind the times, preferring to visit brick-and-mortar stores and paying in cash? You may very well be a terrorist! Pay for your coffee or your visit to an internet cafe with cash? Potential terrorist, according to the FBI. Indeed, insisting on paying with cash is, according to the United States Department of Homeland Security, “suspicious and weird.”

The European Union, ever a force for positive change and progress, also seems to agree. The non-elected European Commission’s “Inception Impact Assessment” warns that the anonymity of cash transactions facilitates “money laundering” and “terrorist financing activities.” This point of view is shared by such economists as the thoroughly discredited proponent of austerity Kenneth Rogoff, Lawrence Summer (a famed deregulator, as well as eulogizer of the “godfather” of austerity Milton Friedman), and supposed anti-austerity crusader Joseph Stiglitz, who told fawning participants at the World Economic Forum in Davos earlier this year that the United States should do away with all currency.

Logically, of course, the next step is to punish law-abiding citizens for the actions of a very small criminal population and for the failures of law enforcement to curb such activities. The EU plans to accomplish this through the exploration of upper limits on cash payments, while it has already taken the step of abolishing the 500-euro banknote.

The International Monetary Fund (IMF), which day after day is busy “saving” economically suffering countries such as Greece, also happens to agree with this brave new worldview. In a working paper titled “The Macroeconomics of De-Cashing,” which the IMF claims does not necessarily represent its official views, the fund nevertheless provides a blueprint with which governments around the world could begin to phase out cash. This process would commence with “initial and largely uncontested steps” (such as the phasing out of large-denomination bills or the placement of upper limits on cash transactions). This process would then be furthered largely by the private sector, providing cashless payment options for people’s “convenience,” rather than risk popular objections to policy-led decashing. The IMF, which certainly has a sterling track record of sticking up for the poor and vulnerable in society, comforts us by saying that these policies should be implemented in ways that would augment “economic and social benefits.”

The IMF’s Greek experiment in austerity

These suggestions, which of course the IMF does not necessarily officially agree with, have already begun to be implemented to a significant extent in the IMF debt colony known officially as Greece, where the IMF has been implementing “socially fair and just” austerity policies since 2010, which have resulted, during this period, in a GDP decline of over 25 percent, unemployment levels exceeding 28 percent, repeated cuts to what are now poverty-level salaries and pensions, and a “brain drain” of over 500,000 people — largely young and university-educated — migrating out of Greece.

Protesters against new austerity measures hold a placard depicting Labour Minister George Katrougalos as the movie character Edward Scissorhands during a protest outside Zappeion Hall in Athens, Friday, Sept. 16, 2016. The placard reads in Greek"Katrougalos Scissorhands".

Protesters against new austerity measures hold a placard depicting Labour Minister George Katrougalos as the movie character Edward Scissorhands during a protest outside Zappeion Hall in Athens, Friday, Sept. 16, 2016. The placard reads in Greek”Katrougalos Scissorhands”.

Indeed, it could be said that Greece is being used as a guinea pig not just for a grand neoliberal experiment in both austerity, but de-cashing as well. The examples are many, and they have found fertile ground in a country whose populace remains shell-shocked by eight years of economic depression. A new law that came into effect on January 1 incentivizes going cashless by setting a minimum threshold of spending at least 10 percent of one’s income via credit, debit, or prepaid card in order to attain a somewhat higher tax-free threshold.

Beginning July 27, dozens of categories of businesses in Greece will be required to install aptly-acronymized “POS” (point-of-sale) card readers and to accept payments by card. Businesses are also required to post a notice, typically by the entrance or point of sale, stating whether card payments are accepted or not. Another new piece of legislation, in effect as of June 1, requires salaries to be paid via direct electronic transfers to bank accounts. Furthermore, cash transactions of over 500 euros have been outlawed.

In Greece, where in the eyes of the state citizens are guilty even if proven innocent, capital controls have been implemented preventing ATM cash withdrawals of over 840 euros every two weeks. These capital controls, in varying forms, have been in place for two years with no end in sight, choking small businesses that are already suffering.

Citizens have, at various times, been asked to collect every last receipt of their expenditures, in order to prove their income and expenses — otherwise, tax evasion is assumed, just as ownership of a car (even if purchased a decade or two ago) or an apartment (even if inherited) is considered proof of wealth and a “hidden income” that is not being declared. The “heroic” former Finance Minister Yanis Varoufakis had previously proposed a cap of cash transactions at 50 or 70 euros on Greek islands that are popular tourist destinations, while also putting forth an asinine plan to hire tourists to work as “tax snitches,” reporting businesses that “evade taxes” by not providing receipts even for the smallest transactions.

All of these measures, of course, are for the Greeks’ own good and are in the best interest of the country and its economy, combating supposedly rampant “tax evasion” (while letting the biggest tax evaders off the hook), fighting the “black market” (over selling cheese pies without issuing a receipt, apparently), and of course, nipping “terrorism” in the bud.

As with the previous discussion I observed about Amazon being a satisfactory replacement for the endangered brick-and-mortar business, one learns a lot from observing everyday conversations amongst ordinary citizens. A recent conversation I personally overheard while paying a bill at a public utility revealed just how successful the initial and largely uncontested steps enacted in Greece have been.

In the line ahead of me, an elderly man announced that he was paying his water bill by debit card, “in order to build towards the tax-free threshold.” When it was suggested to him that the true purpose of encouraging cashless payments was to track every transaction, even for a stick of gum, and to transfer all money into the banking system, he and one other elderly gentleman threw a fit, claiming “there is no other way to combat tax evasion.”

The irony that they were paying by card to avoid taxation themselves was lost on them—as is the fact that the otherwise fiscally responsible Germany, whose government never misses an opportunity to lecture the “spendthrift” and “irresponsible” Greeks, has the largest black market in Europe (exceeding 100 billion euros annually), ranks first in Europe in financial fraud, is the eighth-largest tax haven worldwide, and one of the top tax-evading countries in Europe.

Also lost on these otherwise elderly gentlemen was a fact not included in the official propaganda campaign: Germans happen to love their cash, as evidenced by the fierce opposition that met a government plan to outlaw cash payments of 5,000 euros or more. In addition, about 80 percent of transactions in Germany are still conducted in cash. The German tabloid Bild went as far as to publish an op-ed titled “Hands off our cash” in response to the proposed measure.

Global powers jumping on cashless bandwagon

Nevertheless, a host of other countries across Europe and worldwide have shunned Germany’s example, instead siding with the IMF and Stiglitz. India, one of the most cash-reliant countries on earth, recently eliminated 86 percent of its currency practically overnight, with the claimed goal, of course, of targeting terrorism and the “black market.” The real objective of this secretly planned measure, however, was to starve the economy of cash and to drive citizens to electronic payments by default.

Indians stand in line to deposit discontinued notes in a bank in Jammu and Kashmir, India,, Dec. 30, 2016. India yanked most of its currency bills from circulation without warning on Nov. 8, delivering a jolt to the country's high-performing economy and leaving countless citizens scrambling for cash. (AP/Channi Anand)

Indians stand in line to deposit discontinued notes in a bank in Jammu and Kashmir, India,, Dec. 30, 2016. India yanked most of its currency bills from circulation without warning on Nov. 8, delivering a jolt to the country’s high-performing economy and leaving countless citizens scrambling for cash. (AP/Channi Anand)

Iceland, a country that stands as an admirable example of standing up to the IMF-global banking cartel in terms of its response to the country’s financial meltdown of 2008, nevertheless has long embraced cashlessness. Practically all transactions, even the most minute, are conducted electronically, while “progressive” tourists extol the benefits of not being inconvenienced by the many seconds it would take to withdraw funds from an ATM or exchange currency upon arrival. Oddly enough, Iceland was already largely cashless prior to its financial collapse in 2008—proving that this move towards “progress” did nothing to prevent an economic meltdown or to stop its perpetrators: the very same banks being entrusted with nearly all of the money supply.

Other examples of cashlessness abound in Europe. Cash transactions in Sweden represent just 3 percent of the national economy, and most banks no longer hold banknotes. Similarly, many Norwegian banks no longer issue cash, while the country’s largest bank, DNB, has called upon the public to cease using cash. Denmark has announced a goal of eliminating banknotes by 2030. Belgium has introduced a 3,000-euro limit on cash transactions and 93 percent of transactions are cashless. In France, the respective percentage is 92 percent, and cash transactions have been limited to 1,000 euros, just as in Spain. Outside of Europe, cash is being eliminated even in countries such as Somalia and Kenya, while South Korea — itself no stranger to IMF intervention in its economy — has, similarly to Greece, implemented preferential tax policies for consumers who make payments using cards.

Aside from policy changes, practical everyday examples also exist in abundance. Just try to purchase an airline ticket with cash, for instance. It remains possible — but is also said to raise red flags. In many cases, renting an automobile or booking a hotel room with cash is simply not possible. The aforementioned Department of Homeland Security manual considers any payment with cash to be “suspicious behavior” — as one clearly has something to hide if they do not wish to be tracked via electronic payment methods. Ownership of gold makes the list of suspicious activities as well.

Just as the irony of Germany being a largely cash-based society while pushing cashless policies in its Greek protectorate is lost on many Greeks, what is lost on seemingly almost everyone is this: something that is new doesn’t necessarily represent progress, nor does something different. Something that is seemingly easier, or more convenient, is not necessarily progress either. But for many, “technological progress,” just like “scientific innovation” in all its forms and without exception, has attained an aura of infallibility, revered with religious-like fervor.

People queue in front of a bank for an ATM as a man lies on the ground begging for change, in Athens. (AP/Thanassis Stavrakis)

People queue in front of a bank for an ATM as a man lies on the ground begging for change, in Athens. (AP/Thanassis Stavrakis)

Combating purported tax evasion is also treated with a religious-like fervor, even while ordinary citizens — such as the two aforementioned gentlemen in Greece — typically seek to minimize their outlays to the tax offices. Moreover, while such measures essentially enact a collective punishment regardless of guilt or innocence, corporations and oligarchs who utilize tax loopholes and offshore havens go unpunished and are wholly unaffected by a switch to a cashless economy in the supposed battle against tax evasion.

This is evident, for instance, in the case of “LuxLeaks,” which revealed the names of dozens of corporations benefiting from favorable tax rulings and tax avoidance schemes in Luxembourg, one of the original founding members of the EU. European Commission President Jean-Claude Juncker, formerly the prime minister of Luxembourg, has faced repeated accusations of impeding EU investigations into corporate tax avoidance scandals during his 18-year term as prime minister. Juncker has defended Luxembourg’s tax arrangements as legal.

At the same time, Juncker has shown no qualms in criticizing Apple’s tax avoidance deal in Ireland as “illegal,” while having been accused himself of helping large multinationals such as Amazon and Pepsi avoid taxes. Moreover, he has openly claimed that Greece’s Ottoman roots are responsible for modern-day tax evasion in the country. He has not hesitated to unabashedly intervene in Greek electoral contests, calling on Greeks to avoid the “wrong outcome” in the January 2015 elections (where the supposedly anti-austerity SYRIZA, which has since proven to be boldly pro-austerity, were elected).

He also urged the Greek electorate to vote “yes” (in favor of more EU-proposed austerity) in the July 2015 referendum — where the overwhelming result in favor of “no” was itself overturned by SYRIZA within a matter of days. In the European Union today, if there’s something that can be counted on, it’s the blatant hypocrisy of its leaders. Nevertheless, proving that old habits of collaborationism die hard in Greece, the rector of the law school of the state-owned Aristotle University in Thessaloniki awarded Juncker with an honorary doctorate for his contribution to European political and legal values.

Cashless policies bode poorly for the future

Where does all this lead though? What does a cashless economy actually mean and why are global elites pushing so fervently for it? Consider the following: in a cashless economy without coins or banknotes, every transaction is tracked. Buying and spending habits are monitored, and it is not unheard of for credit card companies to cancel an individual’s credit or to lower their credit rating based on real or perceived risks ranging from shopping at discount stores to purchasing alcoholic beverages. Indeed, this is understood to be common practice. Other players are entering the game too: in late May, Google announced plans to track credit and debit card transactions.

Claudia Lombana, PayPal's shopping specialist, stamps a guest's passport as he visits the travel section of PayPal's Cashless Utopia in New York (Victoria Will/AP)

Claudia Lombana, PayPal’s shopping specialist, stamps a guest’s passport as he visits the travel section of PayPal’s Cashless Utopia in New York (Victoria Will/AP)

More to the point though, a cashless economy doesn’t just mean that financial institutions, large corporations, or the state itself can monitor all transactions that are occurring. It also means that the entirety of the money supply — itself now existing only in “virtual” form — will belong to the banking system. Not one cent will exist outside of the banking system, as physical currency will simply not be in circulation. The banking system — and others — will be aware not just of every transaction, but will be in possession of all of our society’s money supply, and will even have the ability to receive a percentage of every transaction that is taking place.

So what happens if your spending habits or your choice of travel destinations raises “red flags”? What happens if you run into hard times economically and miss a few payments? What happens if you are deemed to be a political dissident or liability – perhaps an “enemy of the state”? Freezing a bank account or confiscating funds from accounts can take place almost instantaneously. Users of eBay and PayPal, for instance, are quite aware of the ease with which PayPal can confiscate funds from a user’s account based simply on a claim filed against that individual.

Simply forgetting one’s password to an online account can set off an aggravating flurry of calls in order to prove that your money is your own — and that’s without considering the risks of phishing and of online databases being compromised. Many responsible credit card holders found that their credit cards were suddenly canceled in the aftermath of the “Great Recession” simply due to perceived risk. And if you happen to be an individual deemed to be “dangerous,” you can be effectively and easily frozen out of the economy.

Those thinking that the “cashless revolution” will also herald the return of old-style bartering and other communal economic schemes might also wish to reconsider that line of thinking. In the United States, for instance, bartering transactions are considered taxable by the Internal Revenue Service. As more and more economic activity of all sorts takes place online, the tax collector will have an easier time detecting such activity. Thinking of teaching your child to be responsible with finances? That too will have a cost, as even lemonade stands have been targeted for “operating without a permit.” It’s not far-fetched to imagine that particularly overzealous government authorities could also target such activity for “tax evasion.”

In Greece, while oligarchs get to shift their money to offshore tax havens without repercussion and former Finance Minister Gikas Hardouvelis has been acquitted for failure to submit a declaration of assets, where major television and radio stations operate with impunity without a valid license while no new players can enter the marketplace and where ordinary households and small businesses are literally being taxed to death, police in August 2016 arrested a father of three with an unemployed spouse for selling donuts without a license and fined him 5,000 euros. In another incident, an elderly man selling roasted chestnuts in Thessaloniki was surrounded by 15 police officers and arrested for operating without a license.

Amidst this blatant hypocrisy, governments and financial institutions love electronic money for another reason, aside from the sheer control that it affords them. Studies, including one conducted by the American Psychological Association, have shown that paying with plastic (or, by extension, other non-physical forms of payment) encourage greater spending, as the psychological sensation of a loss when making a payment is disconnected from the actual act of purchasing or conducting a transaction.

But ultimately, the elephant in the room is whether the banking system even should be entrusted with the entirety of the monetary supply. The past decade has seen the financial collapse of 2008, the crumbling of financial institutions such as Lehman Brothers in the United States and a continent-wide banking crisis in Europe, which was the true objective behind the “bailouts” of countries such as Greece — saving European and American banks exposed to “toxic” bonds from these nations. Italy’s banking system is currently teetering on dangerous ground, while the Greek banking system, already recapitalized three times since the onset of the country’s economic crisis, may need yet another taxpayer-funded recapitalization. Even the virtual elimination of cash in Iceland did not prevent the country’s banking meltdown in 2008.

Should we entrust the entirety of the money supply to these institutions? What happens if the banking system experiences another systemic failure? Who do you trust more: yourself or institutions that have proven to be wholly irresponsible and unaccountable in their actions? The answer to that question should help guide the debate as to whether society should go cashless.

Apr 022017
 

By Michael Nevradakis, 99GetSmart

karousos3-1-300x207The transcript of Dialogos Radio’s interview with economist and analyst Dimitris Karousos. This interview aired on our broadcasts for the week of March 22-28, 2017. Find the podcast of this interview here.

MN: Joining us today on Dialogos Radio and the Dialogos Interview Series is economist and economic analyst Dimitris Karousos, who is a member of the political directorate of Greece’s United Popular Front, and who has enjoyed a long career working for financial institutions within and outside of Greece. Mr. Karousos, thank you very much for joining us today.

DK: Thank you for your kind invitation.

MN: Let’s begin by discussing the recent deal that was reached between the Greek government and its European lenders. The Greek government has engaged in a big PR show, portraying this new agreement as one that will not deliver even one euro’s worth of new austerity measures, as a result of the so-called “equivalent measures” that will be adopted. This begs the question, if the net sum of these new measures is zero, then why enact them? And continuing along this line of thinking, what does the new agreement actually entail and mean for Greece?

DK: As we now find ourselves in Oscar season, it is clear that the Oscar for best director should go to the communications team of the Greek government, as their new dogma which claims that 1+1=0 is one of the most absurd things that the Greek people have heard yet. Indeed, “professor” Tsipras, by claiming that 1+1=0, seems to be reinventing the rules of mathematics. In other words, the government is attempting to claim that for every euro of austerity measures and cuts that will be enacted, there will be one euro in equivalent measures to offset those cuts. This, of course, is a blatant lie, because if there indeed will be no impact, these measures would not be needed.

The Greek government is lying, and this can be demonstrated in three ways. First, the troika—meaning the European Commission, the European Central Bank, and the International Monetary Fund—is not discussing the possibility of cuts in the special property tax and the value added tax, and indeed is not even allowing these issues to be brought to the negotiating table.

Second, the troika, instead of tax cuts, is insisting on the enactment of the so-called Juncker growth package, named after the president of the European Commission Jean-Claude Juncker. This package is essentially the European Union’s Partnership Agreement, known as ESPA, but this is not a true replacement because Greece already qualifies for funds from this agreement regardless. Therefore, somebody needs to explain how low wage earners who are now faced with a lower tax-free threshold and will be forced to pay taxes, or how pensioners who will face further cuts to their pensions, will benefit from the European Union’s Partnership Agreement, which in the first place has nothing to do with this group of people, since it is concerns only entrepreneurs and supposedly offsets these cuts.

Third, whatever “equivalent” measures are agreed upon will only begin to be enforced if and only when Greece has fully and successfully enacted new cuts to wages and pensions, as foreseen in the new austerity package with 3.6 billion euro worth of cuts.

MN: The deal which was recently reached foresees the achievement of a primary budget surplus of at least 3.5% of the Greek GDP in 2019, while we are also hearing that Greece’s primary surplus for the month of January surpassed targets. Is this a good thing, however? Are primary surpluses a positive thing for a country like Greece, with the economy in the state that it is in?

DK: Here, we should first make it clear that no economy which has found itself in a similar condition to that of Greece has been able to recover through the enforcement of strict austerity and the pursuit of surpluses.

The economists Barry Eichengreen and Ugo Panizza, in a study of theirs, examined 235 countries and found that there were only 36 cases of countries which were able to maintain, for a five year period on average, a primary budget surplus of at least 3 percent of GDP, representing 15 percent of the total sample. In the same study, they found that there were only 17 cases of countries which, over an average of eight years, maintained a primary budget surplus of at least 3 percent of GDP, representing just 9 percent of total cases. There were only 12 cases of countries which, over a ten year period, maintained a primary budget surplus of at least 3 percent of GDP. It should be noted that Germany, the strongest economy in Europe, was not one of these countries!

In other words, they are asking Greece to achieve something that not even an economy at the level of Germany’s has been able to ever achieve! It should also be added that Eichengreen and Panizza note that extraordinarily strict fiscal policies—austerity in other words—with the goal of achieving a high primary budget surplus, may in fact achieve the opposite results, leading to recession and to political and social turmoil. These policies, in other words, may lead to the opposite outcome from that which is intended.

MN: With this new agreement which has been reached, do you believe that the risk of a so-called Schauble-style Grexit has been averted, or does it remain a distinct possibility? And continuing on that frame of thought, what would this German-proposed Grexit, which would include the imposition of a dual or parallel currency, mean for Greece?

DK: Not only has the threat of a Schauble-style Grexit and the imposition of a dual or parallel currency not been surpassed, but I believe it remains the plan that will be put into place. I believe that the following will happen: once the Greek government completes the so-called “troika review” of its finances with an agreement for new austerity measures totaling 3.2 to 3.6 billion euros, the troika will break up the next installment of so-called “bailout” funds into sub-installments. Once the German elections have occurred, then a fake “crisis” between Greece and its creditors will be orchestrated, and that is when the Schauble plan, named of course after the German finance minister, will be imposed. This plan would entail Grexit and the imposition of a dual or parallel currency within Greece.

The circulation of a dual or parallel currency will mean an even more rapid internal devaluation and will signify the immediate impoverishment of the Greek populace. There will be one currency used for internal transactions, such as the payment of salaries and pensions, while whatever euros are still in circulation will be collected and used towards the payment of the national debt, which will continue to be denominated in euros.

This would be a terrible development for Greece, as this dual or parallel currency will face constant devaluation versus the euro, as it will not be hard currency and nobody will want it. If you go to the greengrocer or the bakery, for instance, they might accept the dual currency at an exchange rate far lower than the official peg set by the government. The black market for euros will flourish and the economic catastrophe will be total and complete. The introduction of what will essentially be an IOU, or script, will not only completely destroy the Greek economy but it will also discredit the idea of a national, domestic currency in the eyes of the populace.

MN: Something which, of course, is not frequently discussed by analysts, journalists, and by the mass media in general is the difference between a dual or parallel currency on the one hand, and a national domestic currency on the other hand. What is the distinction and why is one better than the other?

DK: The differences are as follows. By definition, a parallel or dual currency means that there is a different currency in use for domestic transactions, from that which is used for external transactions. A national or domestic currency, on the other hand, is a currency that is issued by a nationalized central bank, such as the Bank of Greece, which would be completely state-owned. With a domestic currency, Greece would not be borrowing the currency that it will put into circulation, it will instead mint the currency itself. It is a wealth instrument, not a debt instrument. Furthermore, a national or domestic currency means that the state itself, because it mints its own currency, does not borrow it from any other central bank.

MN: Explain for us the steps which Greece could follow in order to undertake an orderly departure from the Eurozone and return to a true domestic currency. How could the various dangers that we keep hearing about, such as the risk of hyperinflation or a catastrophic devaluation of the new currency or a difficulty in importing goods, be averted?

DK: The political party which I am a part of, the United Popular Front, also known as EPAM, has described, in detail, 15 necessary steps which are required in order for a smooth transition to take place to a new national, domestic currency.

Every step in this process is absolutely necessary, and no steps can be skipped, as it will impact the entire transition to a domestic currency. The most important of these steps are as follows:

First, disputing the legality of the debt and declaring an immediate stoppage of payments.

Second, declaring the immediate cancelation of all of the memorandums and associated legislation which completely altered the legal and political status of the Greek state and imposed the troika-led occupation.

Third, departure from the European Union and the Eurozone.

Fourth, the imposition of a national, domestic currency.

Fifth, the nationalization of the Bank of Greece, the country’s central bank.

Sixth, the imposition of capital controls in order to prevent money from leaving the country.

Seventh, the liquidation of Greece’s four major banks, while these banks remain in operation.

Eighth, enacting measures to ensure that transactions are able to take place smoothly during the period of transition to the new currency.

Ninth, ensuring the adequate supply of goods in the marketplace.

Tenth, protecting consumers and vigorously policing the marketplace and the prices of goods.

Eleventh, immediately restoring wages and pensions to pre-memorandum levels.

Finally, implementation of “seisachtheia,” an ancient Greek precedent which refers to the forgiveness of the debts of households, as well as small- and medium-sized businesses.

MN: Let’s tackle these issues one at a time… How has Greece’s membership in the European Union since 1981 and in the Eurozone since 2002 impacted Greece’s productive and industrial capacity? And, as a second part to this question, is there any possibility of Greece’s agricultural or productive or industrial capacity increasing within the European Union and within the Eurozone?

DK: There is absolutely no chance of recovery for the Greek productive sector and Greek industry as long as the country remains within the European Union and the Eurozone, especially when harsh austerity and the memorandums are being imposed. How can industry recover when taxes and pension fund contributions surpass 60 percent of a corporation’s revenue? How can the Greek economy recover when its biggest industry, tourism, is saddled with the highest tax rate in the Mediterranean region? How can the Greek economy recover when there is so much bureaucracy and political uncertainty?

The end result of all of this is that Greece’s competitiveness has dropped to 86th place worldwide, despite all of the austerity measures, the memorandums, the economic “growth” which repeatedly has been promised, and the constant “fiscal adjustment” policies and “reforms” that have been enacted. Despite all of this, Greece now ranks lower in competitiveness than countries such as Namibia, Tajikistan, Albania, and Guatemala.

MN: You have spoken about the balance of goods and services in Greece and about Greece’s foreign currency reserves. What do these statistics show and what would they mean for Greece in terms of a potential departure from the Eurozone and the EU and return to a domestic currency?

DK: There is no possibility that there will be shortages of imported goods, and this is the case because Greece’s balance of goods and services, after so many years of economic depression and as a result of the internal devaluation that has taken place, is close to being balanced. In very simple terms, this means that Greece, from its exports, tourism, and shipping sectors earns all of the necessary foreign currency which it needs to pay for all of its imports. Therefore, it follows that there will be no shortage of imported goods.

In addition, according to the most recent figures available from the Bank of Greece from the third quarter of 2016, the central bank has in its reserves foreign currency totaling approximately 31.5 billion euros. At the same time, Greece’s banking system has, among its assets, a long-term foreign bond portfolio totaling 55.7 billion euro. Together, this totals almost 87 billion euros, which could be used as foreign currency reserves in the immediate aftermath of the departure from the Eurozone. Therefore, it is easy to understand that there is no chance of there being any shortages in the marketplace and that Greece’s needs would be met for several years to come.

MN: There is, of course, also the Greek public debt to contend with. Is this debt sustainable, to begin with? What would you propose regarding dealing with the debt, and what does international law and international legal precedent have to say, with regards to actions Greece could implement regarding its debt?

DK: Very much on purpose, the Greek people have been led to believe that an “unsustainable” debt is one which is very difficult to repay, but which can, at some point and after the enactment of very strict measures, be repaid. This is absolutely false! We have been led to believe this because, first of all, it has been necessary to maintain the hope that Greece, by enforcing these harsh austerity measures, will be able to repay its debt and will, as a result, accept these difficult measures.

In reality, an unsustainable debt is a debt which, no matter what a country does, cannot ever be repaid or even reduced, no matter how many measures are enforced. With mathematical certainty, such a debt will simply increase over time. This is the case in Greece. When Greece received its first so-called “bailout” the public debt was 122 percent of GDP. From 122 percent it increased to 129 percent, then 148 percent, then 170 percent, it has reached 177 percent, and is projected to increase to 188 percent and later 200 percent of GDP if we continue down this path!

The first loan agreement which Greece signed in 2010 and which, it should be stressed, was not ratified by the Greek Parliament, was a product of fraud and coercion. Articles 48 through 52 of the UN’s Vienna Convention on the Law of Treaties allow for the cancelation of a treaty or agreement when it is a product of deceit or threats. This would permit Greece, with a written statement delivered to the UN General Assembly via the UN’s Secretary General, to announce to the international community that it is denouncing its illegal public debt.

In addition, the official report of the United Nations Commission on Human Rights (UNCHR) which was published on its website on the 7th of March 2014, harshly criticizes the Greek government for its methodical and repeated violations of human rights, and specifically the individual, political, economic, social, and cultural rights of Greece’s people.

MN: In our previous interview, in January 2016, we spoke about the recapitalization of the Greek banking system which had just been completed. In what condition does the Greek banking sector find itself in today? Are we headed to yet another recapitalization, and what would such a development mean?

DK: I would argue that the Greek banking system now finds itself in worse shape than in the beginning of 2016, if we take into consideration something which the mass media and most analysts typically neglect to tell us, namely, that the deferred tax accounts for 40 percent of the equity of Alpha Bank, 71 percent of the equity of the National Bank of Greece, 75 percent of the equity of Eurobank, and 58 percent of the equity of Piraeus Bank. This alone means that a new recapitalization is coming.

Moreover, another negative and indeed tragic aspect is that, from the beginning of this year, 1.5 to 1.7 billion euros’ worth of new high-risk loans have been added to the banking system. These loans include mortgages, consumer loans, and business loans, and 80 percent of these loans have been refinanced.

In addition, 2.7 million loans, totaling almost 100 billion euros, are at the risk of default, as payments towards those loans have not been made in over three months. This is a ticking time bomb for the financial system. While this is happening, the deposits of households and individual depositors in Greece have dipped below 100 billion euro for the first time since 2003!

It is therefore clear to me that we will soon see a new recapitalization of the Greek banking system, totaling 7 to 10 billion euros.

MN: How has the British economy performed ever since the referendum result in favor of Brexit this past summer, and how do you believe the British economy will perform if and when the process of exiting the European Union is completed? Do you believe the widely-held fears of adverse economic impacts will be proven to be correct, or do you believe the opposite will be true?

DK: Even though it is surely too soon to draw a definite conclusion, what we can say from now is that in contrast with the various “Cassandras” who foresaw the total collapse of the economy of Great Britain, what we are seeing is that the British economy grew by 0.6 percent in the final quarter of 2016, exceeding expectations.

In fact, the Bank of England once again revised upward its growth projections for the British economy for 2017, raising its projection from 1.4 percent of GDP, initially forecast in November 2016, to a growth rate of almost 2 percent of GDP. The higher projection is largely a result of increased consumer spending, which has occurred despite the fear mongering that the British public faced as a result of the Brexit vote.

Two additional aspects that are important and which should also be noted is the reduction of the public deficit by 400 million Pounds and the increase in average weekly wages of British workers by 2.8 percent on a year-to-year basis.

MN: The new president of the United States, Donald Trump, seems to have taken a position in favor of Brexit and against the Eurozone, displaying an evident preference for reaching bilateral trade agreements with individual countries, rather than large-scale trade deals with the Eurozone as a whole. On a domestic basis, Trump has promised the return of domestic jobs, of factories and corporations and businesses that have left the country. How do you view the economic policies and promises of the Trump administration and what would they mean for the European and global economies?

DK: The turn inward being undertaken by the United States will gradually lead to the repatriation of U.S. dollars. As a result, it is likely that countries whose national debt is in large part denominated in U.S. dollars, as is the case with Turkey, where 65 percent of its debt as a percentage of GDP is in dollars, as well as developing countries whose major public- and privately-owned industries have outstanding loans in U.S. dollars, will face increased difficulties from the upward pressures on the dollar in the international financial markets.

In addition to all of this, we need to take into consideration the ongoing trade battle between the United States and China, and the efforts of the United States to achieve energy autonomy, and in particular, the elimination of dependence on the OPEC nations. This means the replacement of approximately three million barrels of oil per day which are currently imported, replaced by domestic energy sources. It is easy to understand that this will hurt countries like Saudi Arabia and Venezuela in particular.

As for Trump’s domestic economic policy, the jury is still out. We will just have to wait and see.

MN: Well Mr. Karousos, thank you very much for taking the time to speak with us today here on Dialogos Radio and the Dialogos Interview Series, and for your thoughtful analysis.

DK: Thank you very much for having me.

Mar 102017
 

By Michael Nevradakis99GetSmart

mercouris2-300x201This week on Dialogos Radio, we will be featuring, as part of the Dialogos Interview Seriestwo special interviews!

First, we will have the opportunity to speak with journalist, analyst, and longtime lawyer in the Royal Court of the United Kingdom Alexander Mercouris, co-founder of TheDuran.com. Joining us from London, Mercouris will provide his insights for us on a number of current issues, including the latest actions of the Trump administration, the path towards Brexit in Great Britain, anti-Russia hysteria and the establishment media’s agenda, developments in the Ukraine and Syria, and a view on the Greek government’s latest deal with its creditors and what continued austerity means for Greece.bellows

This interview will be followed up by a special feature with young Greek spoken word artist Dylan Wolfram, who will speak to us about his latest spoken word release, titled “Bellows.” In addition to this interview, we will hear two cuts from Wolfram’s recent spoken word project.

Two great interviews, all this week exclusively on Dialogos Radio and the Dialogos Interview Series!

Nov 042016
 

By 99GetSmart

Originally published at MintPressNews:

Bystanders wait to be handed bags of oranges during a free distribution of fruit and vegetables as a protest by farmers and vendors over proposed pension reforms, in Athens on Wednesday, Jan. 27, 2016. Greece’s leftwing government is facing an escalating wave of protests over its proposed pension overhaul that has been demanded by bailout creditors. (AP Photo/Petros Giannakouris)

Bystanders wait to be handed bags of oranges during a free distribution of fruit and vegetables as a protest by farmers and vendors over proposed pension reforms, in Athens on Wednesday, Jan. 27, 2016. Greece’s leftwing government is facing an escalating wave of protests over its proposed pension overhaul that has been demanded by bailout creditors. (AP Photo/Petros Giannakouris)

ATHENS — This has been another eventful year in Greece. Almost one year after it turned its back on the July 2015 referendum result which rejected further austerity, the Syriza-led government has pushed forward a program of even harsher austerity, spending cuts, and privatizations.

Following the British vote to proceed with “Brexit,” or a departure from the European Union, fears that Greece might follow suit led Greece’s lenders to demand even more austerity measures from a country already mired in an economic depression.

In this interview, Dr. Jack Rasmus, a professor of economics and politics at St. Mary’s College of California, analyzes these issues and the many challenges facing the Greek and European economies today.

The author of such books as “Looting Greece” and “Systemic Fragility in the Global Economy,” Dr. Rasmus shares his insights into the consequences of austerity for Greece and other peripheral European economies, and presents his proposed solutions for an end to the crisis and austerity.

MintPress News (MPN): In September, Greek Prime Minister Alexis Tsipras gave his annual “state of the nation” address, where he boasted that the Greek economy has turned the corner, that unemployment is going down, that salaries will be increased, and that the country is returning to growth. Is this what Greece’s economic indicators actually show?

Protesters march to the Greek Parliament in Athens on Tuesday Nov. 6, 2012. Greece’s unions are holding their third general strike in six weeks to press dissenters in the country’s troubled coalition government not to back a major new austerity program that will doom Greeks to further hardship in a sixth year of recession. Two days of demonstrations are planned to start Tuesday, continuing until lawmakers vote late Wednesday on the bill to slash euro13.5 billion ($17.3 billion) from budget spending over two years. (AP Photo/Dimitri Messinis)

Protesters march to the Greek Parliament in Athens on Tuesday Nov. 6, 2012. Greece’s unions are holding their third general strike in six weeks to press dissenters in the country’s troubled coalition government not to back a major new austerity program that will doom Greeks to further hardship in a sixth year of recession. Two days of demonstrations are planned to start Tuesday, continuing until lawmakers vote late Wednesday on the bill to slash euro13.5 billion ($17.3 billion) from budget spending over two years. (AP Photo/Dimitri Messinis)

Dr. Jack Rasmus (JR): No, not quite. Greece’s debt is still the same as it was in 2011, roughly 180 percent of GDP. Unemployment has come down by only 3 to 4 percent, so instead of 27 percent, it’s about 23 to 24 percent. That’s depression-level unemployment. All the other indicators in the economy are flat or declining, so I don’t see anywhere that Greece is really “recovering,” and neither, really, is the entire eurozone economy. It’s been bouncing along the bottom.

As I said in my book “Systemic Fragility,” it’s a case of chronic stagnation. [The eurozone] might grow a little, 0.5 percent or 1 percent above GDP, mostly as a result of Germany’s growth, then it flattens out or goes below. Most of the periphery economies in Europe are stagnant or in a recession, as they have been for quite some time.

As far as raising wages, Greece cannot raise, at least in the public sector, any wages without the approval of the troika [Greece’s three major lenders: the European Commission, European Central Bank, and the International Monetary Fund]. It’s a real stretch to say that Greece is recovering. It’s kind of moving sideways, in the condition of still chronic economic depression.

MPN: One of the perceptions that has been prevalent in global public opinion with regard to the economic crisis in Greece is that the country has been “bailed out” with billions upon billions of euros in free money. Is this really the case, and where has the so-called “bailout” money to Greece actually gone?

JR: Countries don’t get bailed out. Governments, banks, businesses, and sometimes, though not so frequently, households get bailed out. So the question is, who got bailed out here, in the debt restructuring deals of 2010, 2012, 2015, and this past spring? The banks got bailed out several times. Foreign investors and speculators in Greek bonds and other securities clearly got bailed out in 2012. If you look at where the money has gone, there’s $400 billion in debt in Greece still, that they have to pay off, with an economy that is less than half that size, so it’s impossible.

Where has all this money gone? Recent studies by the European School of Management and Technology documenting the 2010 and 2012 bailouts indicate that 95 percent of all the loans to “bail out” the Greek government, which then bailed out the Greek banks — 95 percent of that went back to Northern Europe, mostly to the German and Northern European banks that had loaned so much money to Greece. [Bailout funds also went] to the troika, particularly the European Commission, that then distributed it to the banking system and investors in turn. The EC is the big player here, and to some extent the European Central Bank, and to a minor extent now the International Monetary Fund. So, 95 percent of all the money loaned to Greece went right back to [Europe] and less than 5 percent of that went back into the Greek economy. Greece has been subsidizing the financial system elsewhere in Europe.

A supporter of the communist-affiliated union PAME takes part in an anti-austerity rally in front of the parliament in Athens, Monday, Oct. 17, 2016.

A supporter of the communist-affiliated union PAME takes part in an anti-austerity rally in front of the parliament in Athens, Monday, Oct. 17, 2016.

MPN: What do you believe needs to be done about the Greek debt?

JR: You might ask what needs to be done about debt throughout the eurozone, because it’s not just Greece. Greece is perhaps the most serious case, but other places in the periphery of Europe are still heavily indebted. You cannot sustain, with austerity measures designed to pay the interest and principal on debt, a $400-plus billion debt based on an economy that’s less than $200 billion. Even the IMF has come to that conclusion and is maneuvering with the other troika members on that particular point.

Is [the debt] legitimate? Well, you have to understand the origins of this debt. It was originally private sector debt that was created as a result of the formation of the eurozone in 1999, the ECB as part of that creation, and other elements of the eurozone agreements, particularly the Lisbon Strategy that Germany adopted. Germany and other Northern European businesses and bankers pumped money and capital into the periphery, including Greece, from 2005 onward. Germany had a strong competitive advantage in exports, so a lot of the money and capital was pumped into the periphery, including Greece, in order to purchase German and other exports. So the money went in and circulated around, leaving a pile of private sector debt in Greece, Italy, and other places.

Then we had the crash of 2008-2009 and the debt could not be repaid, and the troika stepped in to [offer] the governments of Greece and other countries money in order to continue to bail out the private sector and enable the repayment of the private debt. So it starts out as private debt, because of this great imbalance in exports within the eurozone, and then that gets converted to government debt, and then the big crash of 2008-2009 adds even more debt, and then you have the recession of 2011-2013 in the eurozone and the 2012 bailout, which piled on more debt in order to pay the old debt, and then in 2015 the same thing. So the troika’s piling more debt on Greece in order for Greece to pay the previous debt, and that’s totally unsustainable. They’re going to have to expunge some of that debt.

Of course, the Germans, Wolfgang Schauble [the German finance minister] and the coalition in the north, does not want to allow that. And they don’t really want to change the eurozone, because the eurozone, while very imbalanced for the periphery, has benefited Germany significantly. [The Germans] dominate the finance ministers’ council in the EC and they dominate the ECB, and they’re just keeping the situation the way it is because it’s profitable for them.

Demonstrators hold a poster against the austerity policy of Germany prior to a special session of the parliament Bundestag on negotiations with Greece for a new bailout in Berlin, Germany, Friday, July 17, 2015. (AP Photo/Markus Schreiber)

Demonstrators hold a poster against the austerity policy of Germany prior to a special session of the parliament Bundestag on negotiations with Greece for a new bailout in Berlin, Germany, Friday, July 17, 2015. (AP Photo/Markus Schreiber)

MPN: Why must Greek banks be nationalized, in your view?

JR: Look at the debt negotiations of 2010, 2012, and 2015. What happened was the ECB, which pretty much controls the Greek central bank — the ECB is just a council of central banks dominated by the Bundesbank [the German central bank] and its allies, so they have control — and what you saw in the negotiations is that in 2015, the ECB put the screws to the Greek economy, and Syriza collapsed and agreed each time the screws were tightened, bringing the economy to a halt. They couldn’t deal with the squeeze on the economy by the ECB. This brought the economy to a halt, squeezing it and of course not releasing loans that [the troika] had agreed to provide Greece under previous agreements. There was an economic squeeze that Syriza did not have a strategy to deal with, and eventually it capitulated.

You’ve got to nationalize, make the Greek central bank and the banking systems independent of the ECB. Gain control over your economy once again, and that is one of several key steps to prevent the squeeze every time you attempt to renegotiate the debt or restructure the debt. Without an independent, Greek, people-controlled banking system, the eurozone and the troika will squeeze and bring Greece to its knees every time. We’ve seen that three times. You’ve got to nationalize the banking system, including the central bank, or if you want to just leave the central bank as part of the ECB structure, go ahead, but create an independent central bank authority elsewhere in the Greek government.

In the U.S. during the Great Depression, the U.S. central bank had screwed up badly, and [President Franklin Delano] Roosevelt took over and had his Treasury Department take over and run the economy. Greece would have to set up a parallel central bank in its finance sector, and isolate and bypass the influence of the ECB through the Greek central bank. You would have to create a parallel currency as part of this and impose serious controls on bank withdrawals and capital flows outside the country, which Syriza did not really do, because the ECB and the troika opposed it. When you have all the capital, bank withdrawals and capital flight is another way of squeezing the country economically.

FILE – In this Sunday, Oct. 18, 2015 file photo, a man walks past street art depicting Greek Prime Minister Alexis Tsipras and German Chancellor Angela Merkel in Athens, Greece. Tsipras’ decision to sign off on a bailout led to many in his left-wing Syriza party to quit in protest.

FILE – In this Sunday, Oct. 18, 2015 file photo, a man walks past street art depicting Greek Prime Minister Alexis Tsipras and German Chancellor Angela Merkel in Athens, Greece. Tsipras’ decision to sign off on a bailout led to many in his left-wing Syriza party to quit in protest.

MPN: The current government in Greece has been continuing a policy of massive privatizations of Greek public assets, with profitable airports and harbors having been privatized in the past year, in addition to the recent selloff of the Greek national railroad for a total of €45 million ($49 million). What are the short- and long-term impacts of the privatization of such public assets?

JR: The short-term is that when you privatize them, under the aegis of the troika, if you sell below market prices, which a lot of these assets are being sold at, that’s profit on the sale for the investors who are buying up these assets. But once the assets are in private hands, where does the revenue go? Does it go back into Greece or does it go back into the pockets of the investors and the corporations and the banks outside Greece that are buying it up? Well, it goes out. It’s a form of capital flight. Money that is needed in Greece flows out of Greece.

This is a new form of financial imperialism, wealth extraction in other words, that is being structured and managed on a state-to-state basis. It’s not 19th century British imperialism where they set up a factory in India, paid them low wages, and brought the textiles back to London to re-sell at a higher price. It’s not that kind of production imperialism. This is financial imperialism imposed on Greece, and it’s a new form that’s emerging everywhere, where you indebt the country and then you force the country to engage in austerity in order to pay the principal and interest on the debt, and you extract the income from the country. Privatizations are another form of that.

You privatize public goods, you get them at fire-sale prices, and then the income flows from those assets flow back to the coffers of the private companies or the banks, outside of Greece.

The other consequence is when you privatize, they come in and they cut costs, which means they lay off people in mass numbers, they put a hold on wages, they get rid of benefits, and they do everything else to maximize their revenue.

Finally, longer term, it means that Greece has less control over its own economy if it can’t control its infrastructure and everything is owned by foreigners. Then you can’t influence it as much, and if you’re part of the eurozone, you’re legally prohibited from what you can do to make sure that these foreign-owned infrastructure companies are behaving in terms of the benefit for the public sector, for the rest of Greece.

MPN: You have argued in your book, “Systemic Fragility in the Global Economy,” that there are nine major trends which account for the economic troubles that are seen on a global scale. What are some of these trends?

JR: Everywhere, and particularly since 2008, we see central banks and monetary policy to be ascendant, and that means creating money, pumping it into the economy to bail out the financial systems, the financial institutions, the banks and the shadow banks, meaning speculators, hedge funds, private equity firms, asset management companies, and so forth. We’ve seen bailouts of tens of trillions of dollars since 2008. All of that liquidity injection into the economy has driven interest rates down to zero or even, in Europe and Japan and elsewhere, negative rates, and that fuels debt. With rates that cheap, corporations and businesses float new corporate bonds, and they use the money not to invest necessarily, they use it to buy back the stock and drive up the stock prices and pay out dividends, or they sit on it, they hoard it, or they send it to emerging markets. That’s a problem everywhere, and that’s the result of massive liquidity injections, which have really been escalating since the 1980s, when controls on international capital flows were eliminated everywhere.

After the 1970s, when the Bretton Woods system collapsed and central banks took over, the combination of those has led to the financialization of the global economy in the 21st century, where profits are far greater for investing and speculating in financial securities than they are in investing in real assets and real things that create real jobs and real income and real consumption. We’re becoming dependent on debt more and more. The economy is increasingly credit- and debt-driven, and that’s the result of this massive liquidity injection, and it also leads to a shift from real asset investment — investing in real things that create jobs that people need — toward financial asset investment. That means that real investment collapses over time and productivity collapses over time as well, and we see that happening everywhere.

That’s a major point that I argued about in my book, “Systemic Fragility,” this financialization of the global economy based on liquidity and debt and squeezing out. It’s diverting money and capital from real investment into financial speculation. What’s going on in Greece is a concrete expression of this, the reliance on financial means and financial manipulation. The periphery in the eurozone is at a great disadvantage to Germany and others, and they’re being manipulated financially. All the payments on interest and the debt flow back to the north. This is all flowing through the EC to the private sector, and it’s a nice constant money capital flow from interest payments and privatization and speculation on government bonds and securities and stocks in these countries as the volatility occurs.

It’s a reflection, in Greece, of what’s happening on a broader scale elsewhere in the global economy, and that’s why we haven’t seen much of a recovery in the global economy. Global trade is stagnant and real investment everywhere is drifting toward zero, productivity is negative almost everywhere, even in the U.S., and we’re seeing growth rates of barely 1 percent, 1.5 percent, at best, when it should be double that. We see these growing, non-performing bank loans, almost $2 trillion in Europe, the worst in Italy with about $400 billion. We see the same thing in Japan and in China. We’re becoming more systemically fragile financially because of this shift to financial speculation.

In this July 5, 2012 file photo President of the European Central Bank Mario Draghi speaks during a news conference in Frankfurt, central Germany. (AP Photo/dapd, Mario Vedder, File)

In this July 5, 2012 file photo President of the European Central Bank Mario Draghi speaks during a news conference in Frankfurt, central Germany. (AP Photo/dapd, Mario Vedder, File)

MintPress: What is your outlook for the eurozone economy and the difficulties that it is currently facing?

JR: The European banking system has never fully recovered from the 2008-2009 crash. The ECB is pumping money into the banking system in various ways, long-term refinancing options and all the bailout funds and qualitative easing and negative interest rates and so forth. They’re desperately pumping money into the banking system, but the banks aren’t really lending, at least to those businesses that would reinvest in real assets to create jobs. It’s far more profitable to make money now. Investors make more money from financial speculation than they do from investing long-term and expecting to get a return over 10 to 20 years for investment in a real company that creates real things.

We can see the strains now with the non-performing loans, in particular in Italy. Of course, we know the situation with the non-performing bank loans in Greece. Portugal is in bad shape as well in terms of non-performing loans, and now we see even institutions like [Germany’s] Deutsche Bank and others beginning to feel this strain, and the further impact on the European banking system of the “Brexit” [the departure of Great Britain from the European Union].

The problem is that the private banks are either hoarding the cash, they won’t invest in real growth, or they’re sending their money offshore to emerging markets, or they’re using it, as in the U.S., to buy back stock and pay out dividends and loaning money to companies to do just that. The global economy has changed dramatically in ways that make it much more fragile than ever before. A lot of debt has been building up everywhere: Over $50 trillion in additional debt has occurred since 2009, and when the next recession comes, how are they going to pay that debt?

When times are stable or growing, you can add debt without a great crisis emerging, but when you have a recession or a downturn that’s significant, where are you going to get the money capital to pay the principal and interest on the debt? Then you start seeing defaults and you start seeing financial asset price collapses going on, and now you’re back in 2008-2009. That’s the picture of the global economy.

A farmer tries to protect himself as he clashes with a riot policeman during an anti-government protest at central Syntagma square in Athens, Wednesday, Nov. 18, 2015. Greek farmers protesting over planned tax and pension reforms demanded by the country’s bailout creditors have clashed outside parliament with police, who used tear gas to disperse them. (AP Photo/Yorgos Karahalis)

A farmer tries to protect himself as he clashes with a riot policeman during an anti-government protest at central Syntagma square in Athens, Wednesday, Nov. 18, 2015. Greek farmers protesting over planned tax and pension reforms demanded by the country’s bailout creditors have clashed outside parliament with police, who used tear gas to disperse them. (AP Photo/Yorgos Karahalis)

MPN: What would be the steps for Greece to follow, in your view, in order to escape the spiral of economic depression and austerity?

JR: Syriza made it clear, when it came into power, that it was not in favor of “Grexit” [a Greek departure from the eurozone], and it has always maintained that position. An unprepared, “we’re leaving the eurozone and the euro” kind of decision would cause a collapse of values, particularly among those who have investments in some savings in Greece. To some extent, Syriza was caught between a rock and a hard place here. They couldn’t or didn’t want to advocate an exit, and at least those who had investments didn’t want it because of the potential effect on their investments. The broader Greek populace thinks, still, that to be European you have to be in the eurozone. That’s a big mistake.

I think what Greece and Syriza should have done is to create a parallel currency and to take over its banking system. In other words, make the banking system truly independent, including the Greek central bank, and if that was not possible, bypass the Greek central bank and set up a central banking function in the finance ministry, as the U.S. has done at different times. Create a parallel currency, and policies and programs to get people to convert their euros into the parallel currency. Maybe declare that henceforth all taxes to the Greek government will be paid with the parallel currency, and that means that people would then trade in their euros for the parallel currency to pay their taxes.

Then tell the troika [the EC, the ECB, and the IMF — collectively, Greece’s lenders] that we’re going to pay you in your euros, but if we run out of euros here as a result of the conversion, well, tough luck, we don’t have a way of paying you, let’s negotiate a final deal where you expunge some of it and we pay you off and we go our separate ways. Of course, you would have to create significant capital flow controls, which has always been a problem every time there’s been a crisis; the money flows out of Greece. Take the economy out of the control of the troika without a formal exit.

That could have been done, but for some reason Syriza and its finance advisers either didn’t want to do that or didn’t know how to do that.

MPN: Arguments that have been heard against a parallel currency include the claim that the existence of two currencies would create a situation where there would be “haves” and “have nots” — between those who would hold a stronger, hard currency, compared to those holding a weaker, devalued currency. How do you respond to this?

JR: There are policies and approaches you can take that entice and require people to convert their euros into the new currency. That would raise the demand and therefore the value, the price of the new currency. If you just had the currency and you didn’t have this forced trade-in, then of course you would have “haves” and “have nots,” the new currency would collapse, and pretty soon no one would want to use it. But, for example, saying that taxes could only be paid with the new currency, would force people who had corporations and businesses and so forth to purchase the new currency with the euro. It would undermine the value of the euro in Greece and it would raise the value of the new currency in Greece as well. That might set off a parallel elsewhere in the eurozone with other countries thinking the same thing, which would undermine the value of the euro and put the squeeze on the troika for once. Greece never put the squeeze on the troika, it was just the opposite in all of these negotiations that occurred, they never really hurt the troika in negotiations, and that’s the only way you prevail in negotiations. You’ve got to make it unpleasant for the opposition. Syriza never did that, they played along and made concession after concession.

Syriza thought that their example would strike a spark elsewhere in Europe of other social democratic forces and governments. They thought that they would get the rest of the social democracies behind them and together they would reform the eurozone. That was a fiction, a fantasy thought on the part of Alexis Tsipras and others, but that was the core of their whole strategy. European social democracy is a dying force, and that’s why you see the growth on the fringes, both to the right and the left.

Tsipras and [former Greek finance minister] Yanis Varoufakis’ problem was that they thought they could get all these elements behind them and that together they would have enough weight to force Schauble and other finance ministers to make concessions. Well, Schauble and the other ministers, the “German faction,” as I call it, within the finance ministers’ council in the EC, remained dominant. At every step along the way, whenever Syriza and its few allies tried to make a compromise where some concessions were made to them, the German faction squelched it. We saw that, for example, at the very end, when [Greece held] the referendum in July 2015. Greece held the vote, and the vote said “go back and negotiate a better deal for us,” and what did Tsipras do? He totally caved in to the Schauble faction, and then the Schauble faction said, “The offer we made last week is now off the table, you’re going to have to accept an even worse one.” So they put the screws to Syriza, and Syriza looked to its allies in the EC, and they totally caved in as well. Things just got worse and worse until you had the final [austerity] agreement on August 20, 2015.

It was a step-by-step retreat from [Syriza’s election in] January 2015, because Syriza had the wrong strategy and was not engaged in certain necessary tactics. Of course, the troika itself had a lot of cards to play. It would have been an uphill fight for Syriza. The time where they might have been able to strike some concessions from the troika was 2012, but New Democracy [the center-right party in power at the time in Greece] was totally in the pocket of the troika, so that was impossible.

[This past spring], the IMF and the troika were worried about “Brexit” and what impact that might have on renewing “Grexit.” So they put the screws to Greece again, raised the debt even more, austerity even more, and I think another round of that is coming, because the IMF wants out of the troika deal. We’ll see what happens at the IMF meeting, but they haven’t endorsed even the 2015 agreement because they know it’s unsustainable. I think the IMF is maneuvering to have the EC to buy its portion of the debt, and once that happens, the EC will demand even more austerity from Greece.

President of France Francois Hollande, U.S. President Barack Obama, Britain’s Prime Minister David Cameron and Germany’s Chancellor Angela Merkel attend the Transatlantic Trade and Investment Partnership (TTIP) meeting at the G20 the G-20 leaders summit in Brisbane, Australia, Sunday, Nov. 16, 2014.

President of France Francois Hollande, U.S. President Barack Obama, Britain’s Prime Minister David Cameron and Germany’s Chancellor Angela Merkel attend the Transatlantic Trade and Investment Partnership (TTIP) meeting at the G20 the G-20 leaders summit in Brisbane, Australia, Sunday, Nov. 16, 2014.

MPN: In the event that a parallel currency is implemented and steps are taken to maintain or strengthen its value, could that be a prelude to a switch to a national, domestic currency?

JR: Yes. At some point, one currency will become dominant. You can’t have two equal currencies like that. Another advantage of the new currency is that it will start out at less value than the euro, and that will be used as the trading currency. That will stimulate Greek exports to elsewhere, outside the eurozone.

Part of the problem is that the periphery in Europe is so dependent on exports and imports to Germany and the north, that it can’t really engage in its own independent export strategy without cutting wages. Throughout Europe, you have what’s called “internal devaluation,” when you are stuck with a currency and someone else’s central bank, the ECB and the euro. You can’t really engage in independent monetary policy to stimulate your economy and you can’t engage in lowering your currency in order to gain some advantage in exports. You’re stuck, and only the most powerful country that’s most efficient and has the lowest costs is able to take advantage of global exports, and that’s Germany. The weaker economies of the periphery will always be at a disadvantage to Germany when it comes to trying to push their exports anywhere else outside the eurozone.

That’s the lesson. The lesson is that you’ve got a 1999 agreement in which you have this quasi-central bank, the ECB, and you have [the euro], and that arrangement significantly benefits the most efficient, low-cost producer, which is Germany, at the expense of the periphery. Until you have a true central bank and fiscal union to some extent, that will pump the money into the periphery to help it grow when it doesn’t, you will always have the situation you have in Europe right now.

Compare that to the U.S., where there’s a fiscal union, so that if certain states have economic problems … the federal government can pump money into those specific locations. If you don’t have a true federal government and fiscal union, you can’t do that, and if your central bank is dominated by the largest economy — Germany — even the monetary policy has no effect. And if it’s a single currency, it’s to the advantage of the stronger economy at the disadvantage of the weaker.

The eurozone economy is structured to emphasize the growth of the strongest economies at the expense of the weaker, and that’s not going to change. It’s built into the eurozone. You cannot create a currency union and a customs union without a true banking union and fiscal union. More and more countries in the eurozone are beginning to come to that conclusion, but it was foreordained. Economists knew this from the beginning, and that’s the tragedy. Greece has tied its tail to the eurozone, dominated by Germany, and it can never get out of this situation as long as Germany dominates the institutions, which it does, because the whole arrangement is great for Germany.

A protesters carries a protest sign during a rally prior to the opening of the new European Central Bank (ECB) headquarter in Frankfurt, Germany, Wednesday, March 18, 2015. At least four police cars were set alight and two officers injured Wednesday as authorities confronted violent anti-austerity protesters ahead of the inauguration ceremony for the European Central Bank’s new headquarters (AP Photo/dpa, Arne Dedert)

A protesters carries a protest sign during a rally prior to the opening of the new European Central Bank (ECB) headquarter in Frankfurt, Germany, Wednesday, March 18, 2015. At least four police cars were set alight and two officers injured Wednesday as authorities confronted violent anti-austerity protesters ahead of the inauguration ceremony for the European Central Bank’s new headquarters (AP Photo/dpa, Arne Dedert)

MPN: Tell us about your most recent book, “Looting Greece.”

JR: It’s really a case study of the consequences of financialization and globalization and integration. I argue that there is this phenomenon of the smaller economies being tied into the larger economies through free trade agreements, which lead to currency unions, which lead to banking unions, and then you’ve got a situation like Greece and the euro periphery and the problems associated with that.

The book also takes a historical look at the origins of the Greek debt, that starts in 1999 with the [creation of the] eurozone, the adoption of the euro by Greece in 2002 and the consequences of that, how the debt developed, first in the private sector because of German export domination and then conversion of the private debt in 2008-2009 to the public debt, and then the collapse of 2008-2009, which added to the government debt. Then you had the 2012 agreement where the private sector was bailed out, and that added more debt, and then 2015 and so forth. All this is described in detail in the early chapters, and then most of the book is a step-by-step look at the negotiations between Syriza and the troika, from [Syriza’s January 2015 election] through the spring of 2016, and what were the strategic and tactical errors of Syriza and the strategic and tactical moves by the troika which enabled it to prevail.

At the end, [the book discusses] how this is a form of a new emerging financial and wealth extraction from smaller economies by the larger economies, because of the globalization and integration arrangement that exists, the emergence of financial extraction and financial exploitation, and how central banks are feeding that all. This will lead to my next book, which is about global central banks and the problems they’ve created as we move to another crisis, which I think is coming in the next five years.

Demonstrators dressed as clowns pass by a burning police car Wednesday, March 18, 2015 in Frankfurt, Germany. Blockupy activists try to blockade the new headquarters of the ECB to protest against government austerity and capitalism. (AP Photo/Michael Probst)

Demonstrators dressed as clowns pass by a burning police car Wednesday, March 18, 2015 in Frankfurt, Germany. Blockupy activists try to blockade the new headquarters of the ECB to protest against government austerity and capitalism. (AP Photo/Michael Probst)

 

 

May 312016
 

By Mihalis Nevradakis99GetSmart

commentaryoftheweek-300x220

Greece’s supposedly “leftist” government of so-called “hope” and “change” did it again! It saved Greece once more! Greece can continue living the European nightmare…excuse me, dream, can remain part of the vaunted “European family” and the Eurozone, and the government once again successfully completed “tough” negotiations with its so-called European “Partners,” with a capital P, as Greece’s deferential journalistic class tends to refer to them.

Let’s take a look at this new “success story” of Greece’s government of “hope” and “change.” It is a success story so big that Greece’s already insane value-added tax of 23% will be bumped up to 24% on June 1st. It is a success story so great that the unified property tax which SYRIZA, at one time, called unconstitutional and illegal and which at one time was said to be “temporary,” will now be raised and made permanent. It is a success story so tremendous that Greece’s already paltry pension and social security payments will be slashed further, despite government lies and propaganda to the contrary. Home foreclosures and auctions will resume, without anything but the flimsiest of temporary protections for the poorest homeowners. These foreclosures and auctions will take place electronically instead of in a courthouse, under cover of darkness and without warning. In the meantime, new privatizations are coming, alongside the development of a new super-fund of sorts which will manage essentially all of Greece’s publicly-owned assets and prepare them to be sold off, at bargain basement prices. And unlike most of the people of Greece, the foreign investors who will be snatching up these assets know very well how valuable a land Greece is.

Of course, all of these privatizations, foreclosures, auctions, as well as the bundling and selling of both prime and subprime loans—where have we heard that before?–will be permitted without any transfer tax or any other taxes being levied. Because when we talk about tax evasion, we are supposed to only talk about the “bad,” “lazy,” “spendthrift” Greeks, but never the “good,” “civilized” foreign saviors in suits. And of course, this was agreed to following those aforementioned “tough” negotiations between the Greek government of “hope” and “change” and the lenders. This result had also been predicted, months in advance, by economist, analyst, and member of Greece’s United Popular Front Dimitris Karousos, but was of course ignored by the international media and of course by the trashy, biased English-language editions of Greece’s media outlets.

So what if people’s homes are foreclosed and thousands of households are thrown out onto the streets? So what if heating oil and gas, already insanely taxed, are taxed some more, along with basic goods and staples through direct and indirect taxation? Who cares if the self-employed and small- and mid-sized businesses will be absolutely slaughtered as a result of these new measures that were voted into law and the avalanche of taxes that they will face? Who cares if there is now zero chance of the minimum wage to be restored to the still-low pre-crisis levels, which at one time the SYRIZA government of supposed “hope” and “change” had promised? And of course, all of this does not even take into account the automatic cuts that will be implemented if Greece does not meet the strict fiscal targets imposed by its so-called saviors. Who cares about all of this? We are talking about a success story here! Of course, though, it’s a success story for the lenders—but not for Greece or for the Greek people. But, the European dream is what everyone wanted, right? So here it is, enjoy it!

And since we are talking about what is surely such a huge, unprecedented success, that must explain why the otherwise “revolutionary” and “radical” and “non gullible” and oh so clever Greek people did not take to the streets. After all, Greece remained in Europe, remained in the Euro, people still have cheese from Holland for their sandwiches (if they can afford the 24% tax, that is), so everything is A-OK, right? That must explain why Greece’s notaries called off their strike protesting the new insurance and pension bill, as soon as that very bill was passed, allowing home foreclosures and auctions to resume. That must also explain why Greece’s lawyers, with their own protracted strike, have inconvenienced ordinary Greek people whose cases have, in some cases, been postponed for years—instead of using their legal knowledge to mobilize the population and protest austerity both old and new.

Ah, but I forgot. We had the usual round of stale, old 3 and 4 and 24 hour so-called “work stoppages,” which of course left enough time for Greece’s “labor leaders”–quotations absolutely necessary—to hit up their favorite tavernas to wine and dine. Work stoppages which have been going on for decades and decades and which not once have made the slightest bit of impact other than inconveniencing people’s lives, which might very well be their real objective, instead of any actual change. For instance, we had the workers on the Athens Metro declare a work stoppage beginning at 9 pm on the night the new measures were to be voted into law. This was enough to discourage many people from coming out to protest, not knowing if they’d have a way to return home. With a low turnout of protesters assured, the work stoppage was then lifted at the last minute, just in time for the usual mass exodus from Syntagma Square once the usual dog-and-pony show between the paid agent provocateurs and the riot police which SYRIZA was at one time going to abolish, was underway.

We of course also had the journalists’ strike as well, which of course just coincidentally happened to fall in the days of final debate before the new measures were to be voted upon by Parliament. Of course, the truth here is that even if there was no strike, there would still have been no actual journalism taking place from these so-called journalists and the media outlets they work for. But just try explaining that to grandma and grandpa in the village and to Greece’s suburban neoliberal class, who still actually think they are being informed by the newscasts that they watch.

All of this is okay though, because there is hope! There is light at the end of the tunnel! We have the “savior” Yanis Varoufakis with his stylish pink t-shirts and his so-called “guerilla interviews,” that is, when he isn’t making “spontaneous” (quotations again necessary) appearances at the protests taking place in France or signing autographs in Spain. The same “heroic” Varoufakis who said that the Greek debt would be repaid in perpetuity, who pillaged the Greek public sector’s cash reserves to pay that debt to the IMF, who imposed capital controls, and who agreed to more austerity and who voted for Greece’s corrupt pro-austerity president Prokopis Pavlopoulos. This same “heroic” Varoufakis is now touting the catastrophic idea of a parallel or dual currency system for Greece as a “solution” while millions of minions lap up his every word. He is joined by the “heroic” Zoe Konstantopoulou, who also knew how to vote “yes to everything” when she was part of the SYRIZA government last year and who continued publicly supporting the government even after it sold out the referendum result of July 5th. She, too, is touting the catastrophic parallel or dual currency solution for Greece, as are fascists such as the far-right Giorgos Karatzaferis and “Sir” (quotations necessary once more) Basil Markezinis, son of a junta prime minister, both of whom have been resurrected from the political graveyard recently.

So since Greece has been saved, has remained in Europe and the vaunted Eurozone, and since there are even more “saviors” in the pipeline who will continue to save Greece well into the future, why bother protesting? The couch is nice and comfortable, is it not? And it’s easier to let the television do the thinking for you, lest you hurt your head. The same television which includes public broadcaster ERT, which is now paying private, oligarch-owned network provider DIGEA to transmit its signal digitally. A company owned by the same oligarchs that the oh so leftist SYRIZA government claims it is going to take down. The same government which will supposedly take down these oligarchs by auctioning off a limited number of television licenses to the highest bidder and the deepest pockets, while Greece’s smaller, independent local television stations are dying off, unable to afford to pay DIGEA exorbitant amounts to carry their signal. This is the same government which, unconstitutionally and in violation of European law, has shut down Greece’s National Radio-Television Committee, leaving the broadcasting landscape entirely unregulated. This is the government which claims it is restoring order to the airwaves, and there are still people who slurp up this propaganda.

Of course, television in Greece knows all about telling people horror stories from countries like Venezuela while telling people that the so-called “leftist” Alexis Tsipras wants to turn Greece just like Venezuela. What they won’t say, of course, is that Venezuela is the victim of both international economic warfare through the sharp decline in oil prices, as well as a victim of its own domestic oligarchs and cartels, who are hoarding goods to create severe market shortages in order to undermine the country’s government. What the media in Greece are also not saying is that many of these horror stories also exist in Greece today as well, in a country that is supposedly being “bailed out” and “saved” day after day by its so-called European friends and partners. What these media outlets in Greece know how to say is that Portugal, Ireland, and Cyprus are supposed “success stories” for concluding their own memorandum agreements. What is not said is that the end of the memorandum agreements has not meant the end of harsh austerity, the end of record numbers of home foreclosures and evictions, or the end of mass migration out of these countries.

And while all of this is happening, I hear many in Greece moaning and groaning about why we can’t be more like the French, who we are told are out on the streets in massive numbers to protest their own anti-labor bills. However, few people, if any, think to ask…how were these supposedly spontaneous demonstrations actually organized, with blogs and websites and hashtags and public assemblies? We saw the savior of not just Greece but apparently the whole world Yanis Varoufakis speak to the protesters in France. Who invited him? Who assured his security? Who paid for his travel and lodging? How did this speech get organized in the first place, logistically and otherwise? And how did these supposedly spontaneous demonstrations spontaneously, as we are supposed to believe, spread to 55 cities in Greece and dozens more in Europe, all on the same day and at the same time? Are we supposed to believe that after such a long period of inactivity and hibernation that everyone suddenly decided that they had enough? And in the meantime, what people in Greece are blissfully unaware of is that while they are whining about their own inactivity, the rest of the world mistakenly believes that it the Greeks who are the ones fighting back, while they are the ones staying inactive! Doesn’t anybody have even the slightest curiosity as to how these perceptions are developed and maintained, and by who?

The answer is that no, most people do not question such things. Instead, in Greece, they run off to again vote for criminals and professional liars like those in SYRIZA, while others, through their abstention from the polls, essentially legitimize the victors in this electoral process instead of giving their votes to the dozens of smaller parties and movements which are struggling to exist. Those same people might participate in yet another lame 3 or 4 hour work stoppage, or by maybe taking a walk down to the center of Athens to “protest” by standing around and drinking beer, before running home to catch Greece’s talking heads on TV again. That’s Greece and that’s the majority of the Greek populace today.

Mar 302016
 

By Mihalis Nevradakis99GetSmart

maxresdefault

Dear listeners and friends,

UnknownThis week on Dialogos Radio, the Dialogos Interview Series will feature an interview with Despina Kreatsoulas of the Politismos Museum, an online museum of Greek history and culture. Kreatsoulas will speak to us about the idea behind creating an online museum, about the museum’s features and exhibits, and the future plans of the museum. 

Also this week, we will feature our commentary of the weeksegment, discussing issues pertaining to freedom and independence.

All this and more, this week exclusively on Dialogos Radio! For more details, the full Dialogos Radio broadcast schedule, our podcast, our on-demand archives, our articles and written work, and our online radio station Dialogos Radio 24/7, visit http://dialogosmedia.org/?p=6154.

Best,
Dialogos Radio & Media
 
*******************************
 
Αγαπητοί ακροατές και φίλοι,
 
Αυτή την εβδομάδα στο «Διάλογος», παρουσιάζουμε συνέντευξη με τον Θάνο Χίνη, από το διαδικτυακό μουσείο «Πολιτισμός». Θα μας μιλήσει για το μουσείο και για την ιδέα ίδρυσης ενός μουσείου στο διαδίκτυο, για τα εκθέματα που παρουσιάζονται και που ενδέχεται να παρουσιαστούν, και για τα μελλοντικά σχέδια του μουσείου. 
 
Επίσης θα παρουσιάσουμε τον καθιερωμένο μας σχολιασμό, όπου θα μιλήσουμε για θέματα που αφορούν την ελευθερία, την ανεξαρτησία, και την εθνική κυριαρχία.
 
Για περισσότερες πληροφορίες σχετικά με την μετάδοση, το πρόγραμμα μεταδόσεων, το podcast μας, το αρχείο εκπομπών μας, την αρθρογραφία μας, και το διαδικτυακό μας ραδιόφωνο Διάλογος Radio 24/7, μπείτε στο http://dialogosmedia.org/?p=6158.
 
Φιλικά,
Διάλογος Radio & Media