In the US, Republicans like to call accurate descriptions of their plans to destroy our old-age health care system the “Mediscare.” Putting aside the accuracy part, I guess we can call EU leaders’ apparently somewhat successful effort to influence the Greek elections the “Euroscare.” EU leaders, and primarily Germany, have been doing everything they can to publicly position the choice in the second round of Greek elections as a referendum on the country staying in the euro. The euro is still popular in Greece, and mindful of that, the German leadership has basically associated a win for the far-left Syriza party as synonymous with a Eurozone exit. More important, financial entities – from individual firms to central banks – have whispered out loud about their preparations for a Grexit (shorthand for a Greek exit from the euro), which has probably had a greater impact.
Syriza has said repeatedly that they don’t want to exit the euro, and that they simply want to renegotiate the terms of the bailout deal. This is actually also the position of the legacy parties in Greece, though they have no credibility on that front, having negotiated and signed the deal themselves.
Anyway, this is all working out in favor of the legacy parties. Greeks, spooked by the prospect of a Grexit and the negative consequences already felt by a stalemate in the first round of elections, are starting to abandon Syriza.
Three weeks before Greece has another election, opinion polls published Sunday indicated the election will result in no single party gaining a majority in parliament, but two parties that favor implementing Greece’s bailout programs could be able to form a coalition government.
The four surveys show that Greek voters, tired of more than two years of austerity that have seen salaries and pensions cut and new taxes imposed, nonetheless want Greece to keep the euro and not revert to its own currency, the drachma [...]
The polls indicate that pro-bailout New Democracy party and anti-bailout Syriza would probably finish first and second again, but that New Democracy would win more seats in parliament than during the May 6 national election, allowing it to team up with Socialist PASOK in a governing coalition.
Syriza was previously in the lead, before outside actors put their thumb on the scale. These polls probably didn’t take into account Christine Lagarde’s comments blaming Greeks for their own problems, which just seemed unnecessarily cruel (it’s true that Greece has a major tax collection problem, but defunding the government structures that would collect the tax is no solution). We’ll see if Syriza can try to capitalize on the remarks.
The result of this would be some fig leaf of a “renegotiation” of the bailout deal, followed by the imposition of more austerity. But that’s nowhere near a solution, as Greece’s economy would be guaranteed to stay mired in depression. In fact, despite the Euroscare, this would represent a worst-case scenario, with the Greek people doomed to suffering with no hope of escape.
This can be seen by the persistent rise in borrowing costs for both Spain and Italy today. The bond increases are keying off the $23 billion bailout of Bankia, the fourth-largest bank in Spain, but also the general financial and economic crisis in those countries. Spanish Prime Minister Mariano Rajoy insisted that the Spanish banking sector would not need a bailout, but those words are ringing hollow. Spain did use the European Central Bank in an indirect way for the Bankia bailout, by doing a debt-for-equity swap with Bankia and then depositing the bonds at the ECB for cash. The ECB won’t print money to alleviate the situation in Europe, and this is the closest alternative.
However, I don’t see it as sustainable, and of court that money-printing is only going to rescue banks, rather than to rescue people. So the result is a kind of status quo, which is completely mindless at this stage. And it won’t save the euro, either.





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Even if the Euroelites arrange for Syriza to be defeated, the Euro train has left the station:
Capital flight hits the Eurozone.
But this is good news for the NYT travel section, which will be able to run
lots of articles about how affordable three star restaurants have become.
Bad news.
Too bad people are intent on defeating their own best interests if you scare them enough with the right propaganda. I figure that Greece may cease to exist if the IMF has it’s way with them.
Strange, interesting times
love Greece,love the Greek people…kick the Eurotrash out!
not surprising that they are confused, and frightened.
didn’t an extreme right party win some votes in their election?
Having been invaded by the Nazis, and living through a military dictatorship, probably the last thing they want is another one, “left” or “right”.
what a mess.
This is exactly what the soulless monster plutoganda industrial complex wants – for ALL of us.
One perceives the
public/private partnershipsasset stripping is not yet complete.When the asset stripping is more or less complete then we will see policies to provide jobs, to pay the rents set up by the asset striping.
Until the Greeks decide to take their fate into their own hands they are bound to suffer at the hands of the troika. For the immediate future it looks like they are all going to muddle through. Actually, none of the EZ can afford anything else. There is allegedly 400 trillion of credit default swaps floating around over there. That would be a disaster should one of them leave the euro, and I would expect some of it will blowback on us. How did these idiots get into this pact?
yup,my best friend in Miami just gota raise as manager of a store 10 bux an hr.
The 1% and those who have corrupted our entire Democratic and Republican government…
Are corrupting the political process of virtually every other country on earth.
The corruptors of our government have exported their corruption… everywhere.
I don’t see how it works. Greece does more austerity, the economy sinks even lower, tax revenues plummet and the government deficit is suppose to fall, too? I need to take a course in Austerity ‘rithmetic.
Well, there are polls, and there are “polls.”
Without knowing a lot about the purveyors and polling methods, it’s hard to account for spin and agendas which are unrelated to simply defining accurately what the public thinks.
Hasn’t there already been enough feint from the PTB for us to be cautious?
Also, Syriza would be the new kid on the block if it wins all.
I wonder, should they detail what they’ll do about the underground economy and black markets? Should Syriza reassure the public that Syriza won’t line miscreants along a wall to be shot? Or stay mum?
Gee. What’s the proper term to use when describing the “Democrats” plan to destroy the “safety net” provisions of the “New Deal”?
The sooner the Greek people admit that the IMF/World Bank, etc. are nothing more than destructive entities that are determined to subject them to economic slavery and reject them, as did Argentina, the sooner they can regain their sovereignty.
Thanks David for staying on top of this. The EU media is following the Rich/corporate/German plan with their scare Greece euro exit will be Greek disaster PR.
Alternative PR of course is the destruction of the Euro and northern EU because of the several trillion cost of a Greek exit and the fact that Germany sells into the EU only because its currency – the euro – is not as strong as it should be based on basic economics relative to the other countries currencies. Forcing that export relationship to continue is a must do for Germany.
But Spain may be able to do what little Greece can not seem to do – force eurobonds and transfers from Germany to the weaker economies – just like the coastal north of the US gives cash to the welfare states of the Midwest and south as the Midwest and south scream about hating welfare. At least Germany is unlikely to hear that bit of irony coming from Greece or Spain if they do loosen up.
Wondering how Spain forces Germany to do anything, and if they can why haven’t they done so already.
Awhile ago I read in WSJ that a major part of the problem in Spain is toxic real estate, and a lot of that is in Portugal.
Knut@10 ,You do that austerity is about asset seizures,right ?
Bingo !
DF
I answered your last inane question on the thread we were on on Friday.
Hope you get a chance to read it.
Regarding several comments ,we are no different than Greek people,e.g.,the masses were against bankster bail-outs but feared collapsing their system and its intent to impose societal immiseration .
More to the point, the poll that shows them “slipping” is part of the propaganda campaign. Much like in the US, where Romney is shown to be on par with Obama, when Obama will win.
Without the people-want-to-vote-for-the-winner effect, the GOP et al. disintegrate.
Hey inde ,when you use such petty ,immature and nasty framing of my question ,I can only assume your response is confrontational .I prefer to take the high road and apologize for bruising your ego .I’m moving on now ,hope you have the capacity to do the same .