…the greek tragedy, a vindication of the bolivarian strategy…Posted: 2015-06-26
…the troika of global capitalism will crush any deviation from neoliberal policies…
The prescience of the late Hugo Chávez of Venezuela shines bright at each twist and turn in Greece’s negotiations with the troika of the IMF, the ECB and the EU. Instead of the latter two, for Latin America and the Caribbean, there would be the World Bank, to a lesser extent the Inter-American Development Bank, and the US, with the same bitter prescription – until ‘the rending of the veil’, that is. High oil revenues, an ascending China combined with an unwavering policy of state independence would smooth the transition.
But for that break, countries such as Venezuela, Ecuador, Bolivia, Brazil and Argentina would have been unable to enact their social programmes; and, in the case of Venezuela, enable social assistance programmes for its more vulnerable neighbours, For Greece and its devastated economy, such programmes may have to be sacrificed to the demands of ‘austerity’ – the creditor takes precedence over Greek citizens who elected a government with a specific manifesto. Ironically, it was the ‘Great Financial Crash’, the ‘Great Recession’ that would fell so many economies of Europe, and thereby arrest the decline in relevance of the two Bretton Woods institutions.
Branko Milanovic at AlJazeera posts his incisive analysis, Three depressing lessons from the Greek debt negotiations.
…The daily vicissitudes of the negotiations leave everyone who tries to follow them and draw conclusions wrongfooted — so quickly does one piece of news get contradicted by the next. Moreover, the institutions negotiating with Greece about its debt (the International Monetary Fund, the European Union and the European Central Bank) are becoming a real troika in the sense that each of the actors seems to be playing its own game…
James Galbraith in a post at common dreams sees the Greek crisis, Europe’s Malpractice of Greece. A telling paragraph,
Greece is a special case. She was a weak patient to begin with. Her institutions were not strong. Her industries were not competitive. She binged on those pre-crisis loans. And when the collapse came, Europe and the International Monetary Fund (IMF) prescribed an exceptional dose of the standard drugs – perhaps three times more than was given to anyone else. The results were toxic. Greece has lost over a quarter of her income, she has 29 percent unemployment and her government has no cash reserves.
Given its economic fundamentals, membership in the EU had never seemed a good idea. As a consequence of that ill-advised venture, allowing entry of that attractive, innocuous-looking ‘wooden horse’ (‘Equo ne credite!’???) into Greece, lurking at every turn are the creditors, as their very expensively attired and articulate debt collectors (‘the troika’) stage their pantomime, to inflict collective punishment on the populace.
And, if a reminder were needed of the official attitude to a country like Greece, we have one from Reuters, Creditors, Greece need to talk like adults -IMF’s Lagarde.
We can only arrive at a resolution if there is a dialogue, and for the moment we are short of the dialogue, so the key emergency in my view is to restore the dialogue with adults in the room,” Lagarde told a news conference.
Being hobbled by the Euro has clearly limited the options for Greece, especially with having in place a strategy to minimise adverse effects from a default and Grexit, departure from the Euro. As case study most likely already examined is Argentina. Though Argentina’s default of 2001 failed to avert the drastic social and economic deterioration set in train by dancing to the creditors’ every tune, on hot coals, that decision would set the country on an economic path to recovery, that, since then, has not been unimpressive.
With the corporate MSM drumming the message of the primacy of neoliberalism, Podemos party of Spain is also served notice on daring to be more people-oriented than neoliberal. These peripheral countries now seem to be what the US is wont to call its ‘backyard’, second-class countries, those of Latin America and the Caribbean. To reaffirm the unlikelihood that some dispassionate analysis is being conducted, from 16 June we have US Treasury secretary urges Greece to reach a deal – no urging of any creditors to ‘go easy’ on the victim.
…passage in the us of ‘fast track’, ttip and tisa, and the second class status of the periphery countries becomes entrenched – but with less independence and lower, almost us level, standards of living…