Video via The Guardian, showing campaign rally by Syriza leader Alexis Tsipras.
The New York Times has a lengthy, heart rending account of the suffering Greeks are going through as their economy collapses, money disappears, businesses close, and their ability merely to survive faces increasing risks. More here from The Guardian on the collapse of the health care system.
If there had been an equivalent natural catastrophe — a massive tsunami or earthquake — the response to the human suffering on this scale would, one hopes, be entirely different. Whatever else you do, you save the people first.
But this human catastrophe — with echoes in Spain, Portugal, Ireland — was entirely man made by Europe’s financial elites. Even worse, those who caused it were not held accountable, those responsible for preventing or ameliorating its effects are making it worse, and some of the elites are insisting the victims deserve their lot. We hear the same arguments here.
Europe’s political and financial elites have spent the last month trying to influence Sunday’s elections in Greece. But in the last week the message has radically changed: Before, the message pretended Greece could survive; but now Europe has written off Greece and condemned it to suffer and fend for itself. One wonders what the elites think this message conveys to the next inevitable victims of Europe’s failed experiment.
The public version of the month-long unified message, coming from everyone in German Chancellor Merkel’s government to the troika heads of the IMF, the European Union and the European Central Bank (ECB) has been a cross between a big lie and a big distraction: if Greece wants to stay in the Euro, it must elect parties committed to implement the austerity agreements that Greece’s leaders accepted. Keeping the deal, they insisted, is the condition for continued emergency lending to keep the government at least marginally afloat, which mostly means paying its bond holders, whether or not public services continue.
Of course, that is not the choice Greek voters want. They want to stay in the Euro, to be part of the larger European project, but they want whatever conditions Europe imposes to define a credible path that ends the depression and relieves Greek suffering. And why would any peoples want less? But Europe’s leaders have never defined, much less offered such a path.
The logic and moral appeal of the Greek desire is self evident, and it is a measure of the Euro elite’s distorted priorities that instead of acknowledging the real crisis of human suffering, not just in Greece, but in Spain, Portugal, and Ireland, the elites have systematically condemned any Greek leaders who advance this argument. Hence, Alexis Tsipras, who logically says Greece should stay in the Euro and make efforts to pay it’s debts, but should not be forced to strangle it’s own economy and impoverish its people, is called “radical” or “extreme.”
The financial elites of Europe apparently do not understand this logic or simply don’t care. But their incompetence only starts there. Last week, ECB head Mario Draghi dithered while Spain’s conservative government and the leaders of the EU fashioned a bank bailout that collapsed in hours of market opening and threatened Spain’s ability to borrow. Apparently none of them could foresee that if you structure the Spanish banks bailout in a way that increases the debt load of the Spanish government, the market would translate this as increasing the government’s risks and raise borrowing rates accordingly. No one has resigned from this strategic blunder.
Only two weeks ago, Mr. Draghi lectured Europe’s political leaders, telling them the ECB should not rescue the financial system without major progress on financial and fiscal unification agreed by the political side of member nations. Okay, but in the last few days, even though there has been no real progress from the political leadership, the ECB and the EU have leaked word that they are working on a grand scheme to rescue the entire financial system – something Draghi said he wouldn’t do the week before.
The timing of this very public announcement appears driven by both panic over the the failure of the Spanish bailout and it’s feared effect on markets, along with a desire to mislead Greek voters. The latter tells you a lot. There is nothing in the proposed grand scheme — better deposit insurance, centralized banking oversight, and so on – that will help save the Greek economy or boost the economies of other struggling Euro nations. The scheme may temporarily slow down the Euro/bank runs — necessary in any event — that are draining Euros out of several economies, but it’s unlikely to stop the bleeding and not designed to boost the economies.
The people know the system is collapsing — they’re getting their money out anyway they can – and they now suspect it’s too late to save the system; the financial and political leadership are not capable of or willing to do enough to stop it, even if that were defined and possible.
Still, you have to marvel at the cynicism of announcing vague plans to save the system a day or two before the Greek elections. Nothing here will save Greece; they’ve been written off, and the misery will continue in unpredictable ways no matter how they vote. Who’s next?




46 Comments

Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About FDL News Desk
I hope that this either radicalizes Tsirpas more (why stay in the Euro? why pay the debts at all? It’s the bankers’ game and if they won’t act for Greece, why should Greece act for them?) or gives the Communists enough of a plurality that they’ll accept SYRIZA support to form a government. (The Communists refuse to be a minor party in a non-communist government, but maybe they’ll take “allies” as silent partners, for numerical reasons.)
OT: every time I see that goddamn “Obama for America” ad infesting the site, it makes me so f’ing angry. [/rage]
The beatings will continue until morale improves.
It doesn’t take a tinfoil hat to ask how DSK ended up where he is.
I believe that the ads are chosen by google via a word search of the blog. Since O is mentioned so often (mostly in negative term, IMHO) that is why you see them. I remember after the shootings in AZ there were gun ads running. Creepy.
Austerity kills – yeah, that’s the objective.
Our rulers have decided that there are too many of us … more than they have a need for … and they have set out to systematically decrease the ranks of the 99% riffraff. Maybe this wasn’t part of any grand plan, but it has evolved into this due to their insatiable greed and the lack of checks and balances upon it. They’ve pressed the economic and environmental systems to their limits and now their solution is to cull the human population that draws from those resources rather than risk disturbing the power order that they currently stand atop of.
What happens when they have more labor than they need? Do you think that they want to actually support people that they have no need for? Do you think that they want a large, desperate mass of people with a lot of time on their hands? I don’t think so becoz to keep the desperate masses placated, they’d have to shovel out some money to them thru social programs which would likely have to be funded with higher taxes on the only ones that can afford it: them.
They’re not going to publicly announce a global human population culling initiative of course; what they’ll do instead is cut back on social services … it’s called austerity … and let the physically and economically weak die off. It’s bloodless, it leaves no finger prints, and it doesn’t set off revolution alarm bells. It’s just the system … and the accountability for it is nebulous, which is just the way they want it.
Z
I feel bad for the Greeks.
But seriously, how stupid can you be?
Staying in the Euro? The mere concept that some Greeks are even considering this is insane, delusional, and psychotic.
Do these folks not know what the F is going on? Consequential reasoning halfwits?
If they say in the Euro, they are FUBARed. Everything will get privatized.
And the only ones helped will be the 1%/financial system. All the rest will still be forgotten and left to fend for themselves. And these delusional halfwits still want to be in the Euro? These folks are as brain damaged as Americans. Well these people want it, then so be it. Majority rule baby. Ain’t Democracy grand?
Appears you can tell a story and then just let people starve and then they believe it is their fault. People all over the world it seems are willing to vote against themselves. It will be the same this time, I fear.
Yes, democracy is grand. idiots regularly vote against themselves even to the point of starvation..
There was a time I would say that was not true. But no more. I read the other day about the people starving in India. When they die of malnutrition they don’t say that. They call it malaria or something else, a disease they got from a compromised immune system. It’s happening all over the world.
While I agree with the piece, I feel it necessary to frame it a little.
What did the Greeks think would happen when their publicly funded retirement age is 54 years old? That model was destined to blow up the minute it was instituted. It was a time bomb. Period.
Please don’t mistake me for unsympathetic, or that I think they should rot for that. But they and their own leaders who sold them this pile of stinking fish as a fiscally sound plan bear quite a bit of responsibility for their current state.
What would happen if Portugal,Ireland, Italy, Greece and Spain got together as a bloc, and jointly repudiated their debt and left the euro?
Retirement age has nothing to do with austerity .This scam is about banksters here ,there and everywhere externalizing trillions onto taxpayers and then exploiting the consequent budget shortfalls by imposing austerity as the casus belli to further the class warfare via stealing all hard-asset valuables while privatizing the commons into monopoly vehicles for toll-booth extortion .
The System invests in death and at the root of The System are the banks and their bond holders (more details here). Did you know that the nuclear “point source” called TEPCO which is still spewing radioactivity into the atmosphere and that is being protected by the Japanese government is invested in by the following bond holders?
Bank of Tokyo-Mitsubishi UJF (JP)
Barclays (GB)
BNP Paribas (FR)
Citi (US)
Credit Agricole (FR)
Credit Suisse (CH)
Deutsche Bank (DE)
HSBC (GB)
ING Group (NL)
Intesa Sanpaolo (IT)
JP Morgan Chase (US)
Merrill Lynch (US)
Natixis (FR)
RBS (GB)
Societe Generale (FR)
Sumitomo Mitsui Banking (JP)
UBS (CH)
WestLB (DE)
I suggest that “Whatever else y0u do, you save the people first.”
A chance to see how sinister the elites are:
under no circumstances are they going to allow Greece to default or leave the EU, they’ll press enter on a computer terminal at the ECB and print more electronic money before they let that happen.
But as part of electioneering and scare tactics, they equate a Syriza victory with a phoney catastrophe.
Question of the decade: are Greek voters that stupid?
If they are, they deserve EVERYTHING that comes to them, if not, they deserve all the best.
Just a helpful suggestion, if application you use to type your diaries allows macros, I think one based on this sentence might save you some keystrokes in future diairies.
For example:
The financial elites of ___________ do not understand the logic of __________ and simply don’t care.
It seems to me that basic set of words works for all elites, not just European, and covers all issues, not just the current EU one.
And I am absolutely certain that they don’t care in the slightest bit about the plight of “the people” because they don’t even view “the people” AS people.
Germany voted in 2007 to raise the retirement age from 65 to 67 over the next several years.
Greece retirement age is 54.
And Greece expects Germany to pony up?
oldfatguy @ #15:
of course, people aren’t people –
that’s because “corporations are people, my friend …”
did not know that. That will work against them no matter what they do. They are losing too much productivitiy. I also understand that the Greek elites avoid taxes. That too will work against them.
Greek elites AND the rest of the citizen’s are notorious for not paying taxes. It is a huge factor contributing to the mess they are in now. This avoidance of taxes has been going on for decades.
Amen,OFG.This was a G-20 creation to which other financial elites conformed in conjunction with free-trade agreements .I’m glad you raised the point,since American denial creates astute observers of others’ problems in a manner that fails to see they are reflections of our own failings .
There’s a pretty article and video on nakedcapitalism on this subject:
http://www.nakedcapitalism.com/2012/06/austerity-kills-how-the-eurocrisis-is-being-used-to-break-the-social-contract.html
Z
Be careful about comparing retirement ages. The earlier age is for partial benefits only. The age for full benefits is 65, I believe, not out of line with other European nations.
And right now, Greek unemployment is over 22%, so it’s not clear what you accomplish by raising retirement now. Some economists would recommend early retirement during periods of high unemployment. If there are no jobs, all you would do is increase unemployment insurance by raising the age.
Thanks. I had just read that.
Curious as to where you get your information on the Greek retirement age being age 54?
There are two problems in the Eurozone – one is the rape of the other Eurozone members by Germany that has kept its economy moving via stimulus (paying 50% of salaries to prevent actual layoffs a few years ago) and selling in a currency undervalued relative to the economy – causing other countries to go bankrupt in the Eurozone as they can not sell against Germany. The other is as always the banks which need large infusions of Equity Capital the amount needed is massive since the banks are so large – too big to fail – indeed Total Bank Assets in most of the countries is twice as large as the respective National GDPs – check out Spain, Italy, France and Germany.
By the way the Greek retirement age for unreduced retirement is 65. Italy has an age 60, the rest of the EU have age 65 like Greece, except for a few that are moving to 67 and 68. Even Greek government workers gave up their special retirement age back in the early 1990′s. There has been corruption of the system with the waiver of early retirement reductions that is allowed for those in back breaking hazardous occupations being applied to non-hazardous occupations like hair dressing – but that ended a few years ago. You must stop watching Fox – Google is your friend.
You are thinking of Italy and black market economy – not Greece.
But the upper middle class do bribe the tax folks so as to pay only a third of what they owe, with the rich using laws (indeed the type of laws the GOP want the US to move to) to avoid taxes by hiding nearly all income from being called “made in Greece” and thus taxable.
The Germany solution is a massive sales tax that hits the poor and not the rich – but it does collect taxes. The GOP push for a massive sales tax (value added tax) to replace the corporate income tax and allow EU type single country laws that hide the income of the rich is currently on hold for the election after bing pushed last year.
Nice work papau .
papau, I am not above being corrected. I never watch or read fauxnews, for the record.
I believe this is the article from which I recalled the retirement age:
http://www.huffingtonpost.com/diane-francis/greece-is-not-a-country-i_b_871296.html
After performing a little of The Googling, it would appear that the average effective retirement age of Greece is somewhere around 61, with approx 15% of those retirees in hundreds of designated occupations permitted to retire much younger due to their jobs being designated ‘hazardous’, many rather dubiously.
I will accept some admonishment, bu I didn’t just pull this out of my ass.
You’re correct that the average age of retirement in Greece is 61.7. But guess what? In Germany it’s 61.3.
The average Greek worker puts in 2,109 hours of work per year. The average German? 1,419.
Man, if only those lazy Germans would work as hard as the industrious Greeks…
Whatever is happening in Greece, laziness is not the problem. The “lazy” Greek is just the newest iteration of a shifting (racist) stereotype invariably designed to blame the poor for their own poverty. Capitalists like to console themselves with the idea that their enormous wealth is based on hard work and thrift rather than on exploitation. It’s their foundational myth. And it’s delusional. Don’t drink the kool-aid.
Former Goldman Sachs and Bear Stearns executive, Nomi Prins explains all the things I find compelling reasons to abandon the network of US banks (c corps) in the first place. I prefer cooperatives over just another c-corp and each organization is so much smaller (there is the possibility of a b corporate but not in all states). Beyond that, a strategy is for depositors to move their cash out of the target bank then activist hedges come in with “Tying a boycott to a short position” (23:07).
Europe’s version of Walmart is the French supermarket giant, Carrefour. It’s the second largest retailer in the world, and one of the largest private employers in Greece.
They’re abandoning all of their 800 stores in Greece and selling the stake for just ONE single, solitary Euro. It was announced just two days ago timed for the election I suppose.
No doubt they’re risk averse well beyond the value of the stores, themselves. They’re afraid of additional liability during any period of turmoil and unrest, possibly to come. They’re taking a non-cash charge off for essentially their entire investment in Greece. Cut and run, very fast.
The piece doesn’t say what will become of the large workforce there.
http://online.wsj.com/article/SB10001424052702303822204577467833359744926.html
People who are lied to and manipulated in devious fraudulent ways do not deserve what they get.
You are blaming the victims and that is intellectually and morally wrong.
I was listening to some discussion by commentators on NPR and one said this and as she said it you could almost see the sneer on here face. ” The Greeks think its ok to retire at 55 and they expect everyone to be sympathetic to their plight?” They also played a interview with a Greek business owner in Athens who called anyone working for the Gov’t lazy. It when on and on like that for 30 mins. At the end one small mention was made about the banksters role in all this. Sadly, typical for NPR these days.
Yep. And they’re only among the first to have that particular fist hit them in the nose. It can happen here, too.
Good question. What happened in Iceland? Arguably a better result than what’s likely to unfold in Greece. A harsh experience, but a faster recovery.
Yes, you notice how some countries are raising the retirement age while others (such as France) are lowering it? And which countries are strong enough that others are looking to them for a rescue?
Uh, as other commenters have noted, there is a difference between early retirement at reduced benefits and later retirement at full benefits. It appears the average age of retirement is not that different across counties. However, it’s important to note that unemployment affects willingness to retire. since Germany has a very low unemployment rate, and it also encourages job sharing in lieu of layoffs, there is an incentive not to retire early. Hence, its less damaging to have a later age for full retirement.
Greek unemployment is above 22%. The economy is continue to contract. There are virtually no prospects for near term recovery. So why wouldn’t people choose to retire early? It beats starving. Point is, I don’t think yu can draw major conclusions about Greece just looking at the early retirement age alone. The meme that Greeks are just lazy compared to others appears to be a myth, convenient for those who wish to repress them further.
The Greeks, like most countries, allow early retirement for people in hazardous occupations – about 14% of jobs. The average retirement age is 61. And then take into account that Greeks quite famously work longer hours than Germans.
One should also keep in mind that Greeks spend less than Germans, as a percentage of GDP, on on public social expenditures (21% vs Germany’s 25%).
The Greeks need external help only because european monetary policy is controlled by, and for, the German economy. Right now the recession in the european periphery demands loose monetary policy that the ECB is unwilling to execute.
It also makes very little sense to pick on the Greeks or any country with a lower than average retirement age because lack of productivity is not the problem. With tremendous leaps in productivity since the end of WW2 and demand that has already been depressed for some years, why is the fact that people are spending less of their lives at work so problematic? Many industries are already capable of producing a surplus of goods and services relative to demand without hiring anyone- so why do we need working people to put in full time until they’re nearly 70? Who would this benefit? What kind of end does this hope to achieve?
One could go further and question why so many of us are adamant about keeping an economic system that relies upon unending increases in consumption to maintain a good standard of living for a large swath of the population. You would think that lower consumption of energy & raw materials would be desirable. You might expect that factories churning out less short lifespan consumer garbage would be a good thing. But apparently these are our worst fears? I don’t agree with the capitalist line of thinking one bit.
We cannot truly hope to combat a crisis created by capitalism by arguing that the economic right are simply being bad capitalists: it’s lunacy to even accept many of the premises upon which that house was built!
There must be a lot of cherry picking when numbers for comparison are offered between Greece’s and Germany’s respective workforces, benefits, productiveness, burdens, etc. What is a reader to do?
It would be helpful for someone to compile the various claims, sources, etc., which seem wildly out of sync with each other. Respective retirement ages would be just one example — I’ve seen various assertions differing by five years or more within both of the two countries. It would be OK to cite self serving agendas among purveyors of bogus data. Yet it would be more useful to point out why some claims are bogus by the numbers, discussing how they were arrived at and why they are wrong or irrelevant, rather than merely citing the source, itself.
For a long time I’ve thought planned obsolescence is most of the problem. A lot of jobs are dependent on that process as well as profit for the 1%. That makes allies out of oft thought enemies. It’s the genius of our system I’m afraid.
The mergers and consolidations in the corporate world have made the process easier and even more damaging than it used to be. And now it’s done with gov’t help.
I’m trying to recall the technical term describing “deep pockets”
Amen to that.
Hi maa8722,
The data for hours worked per year can be found at the OECD link here:
http://stats.oecd.org/Index.aspx?DatasetCode=ANHRS
The OECD’s “Pensions at a Glance” has statistics regarding retirement ages:
http://www.oecd-ilibrary.org/finance-and-investment/pensions-at-a-glance-2011_pension_glance-2011-en
Yes, that’s a large part of what I am trying to get at. But how can we begin to walk away from planned obsolescence without turning much of the public against the admirable goals which would drive such a move?
The reformist mind would surely want to assign some economic value to conservation but the flaws with this are obvious. Steps like fines and sanctions for companies which produce goods- particularly big ticket items like vehicles and electronics- which are not designed to facilitate repairs and piecemeal upgrades by the consumer might have slightly less potential for abuse but are both imperfect and politically unlikely.
The obvious angle to approach this from is probably consumer action but how many people are you going to get to boycott manufacturers for making products that don’t last and aren’t meant to? It’s getting to the point where there are certain products that no manufacturer makes to a particularly high standard, particularly consumer electronics. What’s worse is that most of these are designed to be closed off so that the average owner couldn’t open up the case to replace a failed part or even to see what makes it tick without destroying the whole damned thing. And unfortunately I don’t see most people raising much of a stink as long as there’s a flashier one coming out next year and they can still afford it. We need to increase people’s consciousness on things like this but many of them will not be very receptive to such efforts until they simply cannot afford to be uneducated consumers.
Wish I could put this all more succinctly but I’m in a bit of a hurry at the moment…
And in a robust economy, those numbers work. Clearly , Greece wasn’t, and isn’t that.
I will grant that the forces at work don’t help Greece at all. The same bankers and countries (read IMF and World Bank operators) who are responsible for stripping third world nations of their resources in exchange for loans guarantees, are the same ones who have acted in similar ways in Greece.