A report out Tuesday indicates that it is more likely than not that Greece will exit the eurozone – GRexit. In fact, the guardian reports that there has to be a deal by tonight or there is no deal. The Italians, however, reported that a deal is likely.
Over 61% of the Greek people voted ‘No’ on Sunday’s referendum, rejecting the demands by international creditors for more austerity measures in exchange for a bailout of its bankrupt economy and sided with their leftist and incompetent Prime Minister Alexis Tsipras. The EU’s demands were allegedly harsh and all austerity.
The people want self-determination but they chose to seek it with a radical and chaotic Socialist leadership.
The Greek people are able to withdraw $67 per day from ATMs. There are rumors that the government is filling the ATMs up with money taken from the peoples’ safety deposit boxes. Their money is to be replaced with IOUs in euros though they may soon be out of the euro completely. The Greek government said they can’t do that as long as capital controls are in place.
By Friday, the government will be using IOUs in lieu of money.
This is really tragic.
The Greek newspapers and the jubilant people see the vote as a great victory. Many of the Greek people don’t believe the EU will let them part ways. The leftist government wants the rest of the world to pay their debt. That’s the ultimate promise of socialism.
The Greek government showed up to talks on Tuesday without any proposals. That famed negotiator, Barack Obama, is now intervening and urging everyone to come to an agreement.
Daniel Hannan, a member of the British Parliament, said the EU has been brutal to Greece, bullying them and calling for the toppling of the government.
The Greek leftist leaders, however, have acted inappropriately also, threatening the EU with sending jihadists to Germany, foisting blame for any suffering in their country on the EU, and they insist on WWII reparations or they will confiscate German property.
The EU must decide whether or not to continue the EURO 88 billion of emergency loans to keep the ruined banks afloat.Greece’s banks have money to last until Friday when they will begin printing IOU money – their new currency for a while.
Tsipras’ Syriza Party draws inspiration from the progressive anti-neoliberal changes in Latin America and retains close relations with many left forces in that region and the São Paulo Forum, a network of radical leftists including Venezuela, El Salvador and so on. They build common leftist agendas.
The South American leftists see the Greeks and Tsipras as victors.
Alexis Tsipras making the communist fist after he was elected.
Argentine President Cristina Kirchner, whose country also defaulted under insurmountable debt, called the vote a victory.
Bolivia’s Communist president Evo Morales said, “I congratulate the great Greek people for the triumph of their ‘no’ vote over debt which is defeat on European imperialism.”
Cuban communist Raul Castro who keeps his people in bondage said, “I extend severe congratulation for the ‘No’ victory in the Greek referendum.”
The Washington Post described it this way last week, the Greeks drank too much of the bailout but the EU served it.
WaPo wrote the problems are partly due to Greece’s “public sector which is bloated and marred by corruption, and many analysts say that the country cooked its books to hide the real amount of debt from the rest of Europe”. However, the blame also rests with the design of the EU because Greece can’t inflate and devalue its currency to make their goods more valuable.
Creditors poured more money into bad leaving Greece with more insurmountable debt they couldn’t pay. They’ve been delaying the inevitable.
The EU has set up a monetary union without a banking, political and fiscal union which some insist must happen. The various member countries have different tax and spend policies. Greece is not able to compete against the stronger members of the single currency, living standards eroded, the weaker borrowed to fill the gap.
Perhaps Big Government doesn’t work and the EU should never have formed in the first place.
It’s complete chaos.
The Syriza party, under Alexis Tsipras, now the Prime Minister, became the second largest party in the Greek Parliament in 2012. They’re neo-Marxists who spread a populist message while toning down their Marxist verbiage.
They are a coalition originally comprised of independent politicians including democratic socialists, left-wing populist and green left groups, as well as Maoist, Trotskyist, eurocommunist but also eurosceptic composants (anti-EU), according to Wikipedia.
Fringe people, similar to our Occupiers, who were seen burning Greek buildings, hold one-sixth of the seats in Parliament.
Business Insider reported in May 2012 that 16% of the new parliament was comprised of communists (Syriza) and (7%) Nazis (Golden Dawn Party). One-sixth of the government, 48 seats out of 300, were fringe people like the ones we saw throwing fire bombs at ancient buildings. The conservative New Democracy Party and the rival center-left PASOK Party had secured a one seat majority. Pasok tried to borrow their country into prosperity and have fallen out of favor.
Golden Dawn supporters
The Nazis have been called the extreme right but the only difference between them and the Communists in charge is the word Nationalist.
Financial Times reported that Tsipras, 40 years of age, was a member of the pro-Moscow Communist youth movement. He was a militant in the KNE, the youth wing of the Greek Communist Party (KKE).
In the not-so-distant past he has expressed hatred for the euro and the international bailout, calling for a return to the Drachma though he insists he now wants to stay in the European Union because it is the will of the people.
He has threatened a new wealth tax and wants to ramp up public spending for the poor, increasing the size of the welfare state.
Other plans include raising the minimum wage and he is planning for the socialization of the banking system, to make it function as a public service, rather than for capitalist profit.
He is an ardent proponent of Marxist-style equality and social justice.
Syriza is non-interventionist in foreign policy, anti-Nato, anti-US influence and anti-free market. It’s climate change-conscious and defines itself as Socialist though they’ve gone way past Socialist.
Mr Tsipras has terrified the Greek elite with threats to impose a new wealth tax.
Vladimir Putin in a recent appearance with Alexis Tsipras. Tsipras has visited The Kremlin twice in recent months to send the message that they could seek other creditors, such as from the BRICS (Brazil, Russia, India, China, South Africa). President Obama could always jump in with U.S. tax money if he decided to do so unilaterally.
The Greeks and Tsipras are jubilant over the decision and are gambling that the EU will now work out a better deal with the Tsipras government.
Whether the Greeks can continue using the euro is a question and 74% of the Greek people want to continue the euro. If they attempt to go to the Drachma or IOU money, what possible value could the banks give it? Who will trust the Greek currency after they defaulted?
What is most unfortunate about this is that Greece was starting to show signs of recovery – posting a primary surplus – before interest payments on its mountain of debt – and returning to the capital markets that cut off funding at the start of the crisis. Then they voted for the Communist though the alternatives aren’t good.
Greece has insurmountable debt. They can’t go it alone.
In the end, Greece chose the radical Socialist over the Democrats who failed them, the Nazis and the fringe people.
Updated on July 7, 2015 to reflect the latest information.
The Guardian, the Telegraph, the National Review online, were used as sources for this post.