Civilization is electricity and central heating. So why is that strange entity called the Greek government doing its best to deprive its people of both?

Why oh why is everybody, who matters where formulating economic policy is concerned that is, so completely in denial???

You don’t have to be an economist, or even particularly bright, to realise that if someone owes you money, the worst thing you can do to him is to deprive him of all means of earning any money, that is the money with which he could pay you back!

Is that really quantum physics or just common sense for Pete’s sake?

Here in Greece we have just been saddled with our New Year’s gift! MORE taxes, More UNFAIR taxes, MORE taxation on the destitute!!! Oh, and taxes not on your real income, but on a nexus of factors, such as the size of the house you live in, the size of your car, whether you sneeze in the morning, if you go swimming or anything absurd they have been able to think of.

Result, people earning a dime over 5,000 Euro (that is around 400 Euro a month, below subsistence level) will be obliged to pay income tax! But no! It isn’t even that! Even if you are not earning more that 400 Euro a month, but happen to be living somewhere, even a tiny pokey flat, you will again be obliged to pay income tax merely because you happen to be living somewhere at all! That amounts to a tax on being alive at all! (I better not give them any more ideas. Next they will be imposing a tax on all dead members of your family too!)

Here in Europe they have completely lost it where economic policy is concerned. The only thing to be applied is AUSTERITY! And when that fails, as it is doing continually, then what do you do? Apply MORE AUSTERITY! In other words the proverbial whipping a dead horse!

But you don’t apply austerity in the middle of a slump! You try to stimulate the economy! How can you gather revenue by increasing the unemployed?

In his article in the New York Times Paul Krugman reminds us once again that Keynes was right! That he has always been Right! And that perhaps it’s about time those who make policy realised as much! And Paul Krugman is right! Quite right!

In fact in this article he points out two cases where this policy has failed abysmally and created Depression conditions. These two countries are Greece and Ireland. That is both the bad student and the star student! It doesn’t make a jot of difference. When policy is bad and destructive, however good a student you may be, you will only get bad results!

Dear Frau Merkel and assorted side kicks. Please, in the New Year, do try reading a simple economics primer! Or perhaps just a little history!!!  And, Frau Merkel, there is a lot more to history than Weimar Germany in 1923. And even if you wish to stick to that, try reading the WHOLE story. Why was the Republic plunged into such economic chaos? Inflation… ? Or maybe, just maybe, the root cause was the austere and punishing reparations imposed on the defeated power?

And mind you, the punishing austerity the German people were subjected to, as defeated power, was far less stringent than what is being currently imposed on Greece today. 

And we’re not even being punished for losing a war! Only for succumbing to the financial sirens pushing more and more dirty money into our greedy little hands. Which is what everybody else was doing too!

Europe is going down the tubes because it has willfully thrown over board, and with a vengeance, all the fundamental values it not only stood for but fought for and paid for dearly with ‘blood, sweat and tears’.

In the face of ‘balancing the books’, or put simply, trying to make sure the banks and financial institutions, do not lose their exorbitant, unrealistic profits, the current ‘leadership’ of Europe has been perfectly happy to abolish the basic human rights Europe has held high as its core values.

The right to work, the right to health, the right not to go hungry and, perhaps above all if I dare say so, the right to vote and democratically decide what is best for one’s country, have all been thrown to the wind. And quite happily too, I might add, by those in power.

It was celebrated with delight that Greece was not allowed to hold a referendum and Italy was not allowed to hold elections because, it was understood perfectly well, but not said outright, that recourse to the people would upset the Merkozy aplecart trying to protect the super profits and complete unaccountability of the banks.

And what was the lovely fudge achieved by the brains of Europe? Government by technocrats! Now this may not sound too bad in the current shambles Europe has painted itself into. But what does government by technocrats consist of? Well, these perfectly respectable and, under other circumstances, capable gentlemen have been appointed, not elected, with a limited mandate. A mandate not deriving from the electorate, but from the European directorate. In other words, Germany (we may skip the fiction of ‘and France’).

And what is this totally illegitimate mandate? Drive your countries as deep into recession as you can by raising taxes exorbitantly, raising unemployment as far you possibly can, lowering wages for those lucky enough to be in work at all, to below subsistence levels, oh! And of course, curtail but preferably abolish all social security and benefits as fast as you can.

One had hoped that the Prime Minister and Government of a country would have a different mandate. that of trying to achieve growth and productivity for a better life for all. (At least, that used to be the European ideal). Instead, our governments in Greece and Italy for starters, have become appointed executives accountable only to the higher authorities of the Merkozy directorate with a mandate to impose the complete destitution of the people they purportedly serve.

Surely a Prime Minister and Government should be bound to draw up plans, contingency plans for what to do when everything is going wrong. To have as their prime objective the protection of their people and as their goal full employment and a welfare net in place. (Again this is what used to be the European ideal.)

Our current appointed Prime Ministers are well off the mark of what their duty should be. They are not allowed to contemplate anything other than adherence to the destructive directives from the Merkozy center. Even if they are perfectly capable (and I have no doubt that these particular individuals are) of drawing up alternative, contingency plans, it is simply not in their mandate and therefore inconceivable.

Instead of providing protection to their people and providing them with the means to fight back when attacked, as is the basic responsibility of every government, our current technocrats and ‘politicians’ are doing the damndest to destroy their own economies and ruin the lives of the very people they are supposed to be protecting.

Am I going senile or is there something very wrong in what is going on here?

On a day like this we may turn to the ultimate Bible story. Guided by the star, the three Magi turned up at the stable in Bethlehem and presented the little baby Jesus with presents of gold, frankincense and myrrh. Nonetheless, the receiver of this generosity was eventually crucified.

Another magnificent trio of miracle workers, today’s Troika (or financial wizards from the IMF the ECB and the EU), just like the three Magi of old have been bestowing gifts not on a baby but on an aged and decrepit entity this time,  called Greece, in the way of billions upon billions of hard Euros. Nevertheless it is unlikely that crucifixion will be avoided this time either.

And a very Merry Christmas to all of you all the same!

Before being made into a song, the words, ‘the end of the world as we know it’ were spoken grimly as Europe entered possibly its worst war. No war is ever good, but the Second World War  was particularly vicious and disruptive. Anyhow, those who spoke the words then were right.

As they are again now. We are approaching, or have entered rather, the end of the world as we know it.

And about time too! After all, what have we made of our world? What will we miss about it when it all changes? How what used to be known as European values have been totally annihilated? How Greed (yes, with a capital G) has not only been glorified but has become our guiding light in everything? How that other great lady’s dictum of ‘there is no such thing as society’ was quickly snapped up and made into the norm? How narrow selfishness has prevailed in that we no longer even dare give a damn about anyone but our own little narcissistic selves?

And the list can grow and grow. Add your own particular dislikes and you’ll see.

So? Take cheer! The new year is nearly here! And lets be done with this world as we know it which is rotten to the core. Lets try and remember some of the values some of us older ones were brought up on (and which we failed to pass on?) and above all that we are human beings and that every other human being in the world is worth our respect, at the very least.

Merry Christmas everybody, and lets try to vaguely remember what the Christmas spirit used to stand for.  Or perhaps even read something like Charles Dickens’ Christmas Carol.

I would like to go back to my post of 8th December and my ‘Fat Lady’ metaphor. That is how the Merkozy idea of a successful economic policy as akin to trying to push a fat lady through the key hole instead of just opening the door for her.

I hate to be a wet blanket, but despite (or perhaps because of) the ECB’s recent generosity in throwing cheap money at the banks (not states, remember, but banks so they can profit from it and NOT peoples. God forbid!) I very much fear that The Frau is still in absolute denial, to use Professor Varoufakis description.

Her avowed aim appears to be to plunge the whole continent, eventually into starvation. First Greece, then Ireland and Portugal and now Italy, Spain and so on. Well of course! You may say. How else will she get this corpulent lady through the key hole without starving her? Indeed.

However, the Americans have a great expression. It aint over till the Fat Lady sings. The fat lady presumably being a booming voiced soprano.

Have you noticed, how all these bank and financial institution buildings are usually always made with glass exteriors (take the ECB building in Frankfurt as a random example)? Yes. Well.

The Fat Lady of Europe has not sung yet. But she will. Perhaps even quite soon. And when she does, it will be glass shattering.

Well… yes? Hmmm… The new wizard wheeze or another doe doe?

It’s just that I’m a bit thick and I don’t quite understand the logic of it all. First of all we were told that the countries of the EU would fund the IMF to the tune of 200 billion Euro so that the IMF could then lend that back to the countries of the EU needing help. Okay. Of course that couldn’t be achieved so it was notched down to a European funding of the IMF of 150 billion Euros which the IMF would then use to refinance countries of the EU…

Then of course the great liquidity fix! Hurray! They’ve done it at last! The ECB would lend unlimited amounts to the European Banks for a three year period at an interest rate of 1% ! And indeed the said banks snapped this offer up for an amount of approximately half a trillion. Well why wouldn’t they? So okay! Everything is fine! No more sovereign debt crisis and we can all enjoy Christmas!

But wait a minute. Why is it all so tortuously complicated? And what will the outcome be? With this wallop of cheap funds what are the precarious banks going to do? Well anything, from throwing the cash back at the roulette table of structured multi layered derivatives and so on. (And losing it all again as tends to happen to addicted gamblers). Or else, wait, they can lend the states’ in debt at interest rates of 4% to 5% and make a pretty little profit on that, while perpetuating the sovereign debt crisis. Or they might just use it to shore up their tottering balance sheets and not lend anything to anyone. A dead end…. huh?

Wouldn’t it have been simpler and more effective for the ECB to lend to sovereign states directly at 1% instead? Or, in any case why the rigmarole of sending funds to the IMF in the hope that they will come back again? Or… Why give the banks cheap money and not states who could then use these funds to nationalise (and hence recapitalise and REGULATE the banks?) Or…. But no, no, no! None of that is feasible!

Anyway, it’s the banks that need saving, dumbo, not states which can just collapse as far as anyone who really matters cares! And the sooner that happens, the better. What a killing to be made when it does! (The sound of financiers’ hands being rubbed vigorously together). And then you keep forgetting! The ECB must under no circumstances EVER lend to states! You should know that! But… why?

It’s against ze rules, silly! Rules engraved on stone tablets!

So are we back to square one again? Apparently there is optimism that the Euro will be saved after all. At least for a select few. But then there is always optimism in the EU after every new announcement of measures designed to solve the crisis which they never do. Why should this be different?

Too little too late again? Or a last heroic stand? Or a first timid step to real measures? Or…. Does anybody know? Probably not. Does anybody care? I leave the answer to that one to you.

We’re sitting on a time bomb. All of us. It’s one of those booby trap bombs that will go off if you stop sitting on it, or else when time is up. And time is nearly up. Here in Greece we can actually feel the ticking going up through our b…. body! But although the rest of Europe may not actually be sitting right on top of it like we are here in Greece, when it does go off the blast won’t spare anyone. Not even Germany.

Meanwhile the bomb disposal unit charged with neutralizing it, is made up of a group of headstrong idiots some of whom are drunk and stumbling. The others haven’t a clue what to do but are too proud to admit it since they have been making a great show of knowing it all. Yes that kind of idiot. Always the worst.

And every time they do something in the vain hope that this time it will work, it only gets more precarious. The ticking only grows louder and the bomb disposal unit is seized by greater and greater panic.

However, there is a little switch to the side of the device. A little switch which, bomb experts have repeatedly told them is what they should use. It’s really quite simple. They tell them. All you have to do is flick the switch and turn it off. Then the bomb will have been neutralized and you can go about setting the surrounding mess in order without fear of being blown to high heaven.

What? Of all the cheek! How dare you try telling us what to do! We know best! And anyway, we can’t just turn off the switch like that! It would be against Union Rules and you know we can never go against Union Rules. Not even if it means blowing everything and everyone up to high heaven.

In 1974 the Colonels’ junta in Greece collapsed. After seven years of dictatorship by the military, Greece returned to Democracy under the leadership of the respected conservative politician Constantine Karamanlis. The situation was fragile, even dangerous in that the junta had collapsed through its ill fated adventure in Cyprus which had ended with the invasion of the island by the Turkish army.

Owing to these developments, Karamanlis had withdrawn Greece from the military branch of NATO since the Turkish army was supposedly an ally in NATO. Greece was in a precarious position.

It was for this reason that he realized Greece would have to strengthen it position in the world, and first and foremost safeguard its democracy so as not to be prey to any new military coups and all that these entailed. The answer was his bid to enter the European Community as it then was. The reasons pushing him for this bid were not, or not primarily, economic ones. He knew Greece was not really ready for such a step, but he claimed he would throw the country into the deep end and we would, of necessity learn to swim.

But it remains true that the reason of paramount importance for Greece’s entrance into the EEC was to ensure the stability of the political system so that Democracy would no longer be threatened. And that, we must stress was successfully achieved.

Until the Merkozy directorate appeared on the scene like the wicked witch of the north.

The New Order imposed on Europe by The Frau and le petit Nicholas has done its best (and succeeded to quite an extent) to abolish democracy in the EU, and rule by fiat. Not only was Greece forbidden from holding a referendum unless the electorate was asked the question The Frau wanted and not what the Greek government wanted, and if it were to be held at all it would be when she wanted and not when the Greek government had proposed.

So that was that. No referendum. The Greek electorate was not allowed to express its opinion on policies destroying its economy. Next, Italy. Here it was Herman Rompuy  (an unelected appointee) who decreed that Italy could not hold elections but would have to have a government of technocrats in order to implement the policies that have already failed elsewhere and plunge the country into recession. The Italians were not allowed to decide on any of this.

The ‘new’ government imposed on Greece after Papandreou’s demise as Prime Minister was again the result of the New Order’s fear of any democratic expression. After the collapse of Papandreou’s government the only democratic solution was to hold elections. But No! No, said the Frau. What if elections (like the referendum) resulted in something she didn’t like? So the failed Papandreou government remained in charge with a small face lift and a new technocrat Prime Minister who is powerless.

As if this were not enough, the leaders of the major parties were obliged to sign pledges that they would adhere to the new rules to be decided for the next loan, no matter what the Greek electorate might have to say in the (distant?) future, therefore binding Greece willy nilly to what the Frau has decided for us. That is even greater recession that will probably lead to the opposite of what it is supposed to avert.

It comes as no surprise to anyone, that this ‘government’ is floundering. Something like 50 Ministers all bickering and jockeying for position with no mandate from anyone…

But again, we are being told that No! You can’t have elections! You have to stick with these guys, otherwise…!

Otherwise? What? You’ll go bankrupt! But with this kind of abysmal governance and the policy imposed by The Frau, we’ll go bankrupt anyway!

And it is not only that we are between a rock and a hard place, it is that we have been denied our democratic rights. We can’t complain we can’t even decide how we want our country to be run or anything. For our own good of course. They know better what has to be done to us than we do.

So what’s the difference? The colonels’ junta said the same. It was for our own good. They knew best. Greece was sick and had to be put into a plaster caste and gagged so as to get well. So what’s so different now in The Frau’s New Order? The means, perhaps. We don’t have our tanks trundling down the main streets of Athens crushing cars under them. We have economic measures devised by Those Who Know Best destroying the Greek economy and crushing everything under them.

This New Order imposed from Germany does have a slightly sickly air of d?j? vue. But since all it is achieving is throwing the EU into greater recession and stifling democracy wherever and however it can, surely it no longer has any legitimacy left, and is only acting like our well known mafia.

Either you cough up for protection or else we bust the joint! But maybe we’ll bust the joint anyway, just to teach you pesky little inferior southerners the lesson you deserve!

Of late, with the pillars of Capitalism crumbling all around us, many of us have gone back to Marx’s Das Kapital and assorted writings to confirm that well yes, Marx had said all along that it would end somehow like this.

So why am I roundly declaring that poor Marx was wrong? Well, in his latest post Yani Varoufakis, has reminded us of a fact we have tended to minimize in all the hot toxic air emanating from the financially blown up bubbles. What Yani Varoufakis has reminded us is that the Germans were probably among the first victims of how this crisis came about. (And not the Greeks). In order to keep increasing profits German industry, as condoned by the German government, had been squeezing and squeezing wages tighter and tighter so that real working income was falling to very low levels despite the high productivity achieved by this workforce.

Now that, you may say is what Marx always said would happen. Capitalists squeezing wages more and more in order to increase profits. Indeed. This lead to the surpluses swishing about around Europe that inflated the bubbles which burst. Again, not something a Marxist analysis would not agree with. So where was he wrong?

Well, Marx had always expected that the Communist Revolution would start in Germany, that is in a highly industrialized country with a large exploited proletariat. But the German proletariat, one squeezed into lower and lower real income levels, probably more than any other in Europe, never so much as muttered resentment, still less organized strikes on any grand and meaningful scale at the injustice of this.

So why was this? Well, later in the day of course the German public was fed on all that… propaganda that it was the lazy Greeks at fault to whom they were giving all these hand outs. Just as most of the Greeks don’t realize how much the German working force has been and is being exploited, so the German public was never told that these funds flowing into Greece by the billions, were not hand outs at all but expensive loans which didn’t even go into the Greek economy but were just being recycled back into the European and particularly German banks.

Marx’s analysis of Capitalism remains unsurpassed. However, though he did realize it was devious, he probably didn’t realize just how resilient it is.

Propaganda (or Communication as it is called today) works, of course. And we can see how well in all the racial stereotyping rearing its ugly head all over Europe (I mean, forget the Germans and the Greeks for a moment and look at the French and English!). However, Propaganda can never be enough in the long haul. If Capitalism is to survive then it will have to display its greatest resilience yet.