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Revolution Blog

Greece and the EU: going off the rails on a crazy train

Published on 2012-02-16
(With apologies to Ozzie Osbourne)

The EU bailout of Greece seems to have gone off the tracks again:

http://finance.yahoo.com/news/setback-greece-bailout-meeting-canceled-190042881.html(external link)

Really, it's not surprising that the Athens government is unable to deliver what's being demanded, or perhaps unwilling to demand it of the public. Because what's being demanded is actually more severe than what was demanded of Germany post WWII. As Ambrose Evans-Pritchard recently noted:

"The US, Canada, Britain, France, Greece, and other signatories at the London Debt Agreement of 1953 granted Chancellor Konrad Adenauer a 50pc haircut on all German debt, worth 70pc in relief with stretched maturities. There was a five-year moratorium on interest payments. The express purpose was to give Germany enough oxygen to rebuild its economy, and to help hold the line against Soviet overreach ...

"Greece has less strategic relevance, and must comply with tougher terms ... Some 60,000 small firms and family businesses have gone bankrupt since the summer, the chief reason why VAT revenues dropped 18.7pc in January. The violence of the slump is overwhelming the effects of fiscal retrenchment. So much Sisyphean effort for so little gain.

"The policy cannot command democratic consent over time. The once dominant Pasok party has collapsed to 8pc in the polls. Support is splintering to the far Left and far Right, just like Weimar Germany under the Bruning deflation.

"The next Greek parliament will be packed with "anti-Memorandum" fire-breathers, and any attempt by Greek elites to prevent elections taking place must push street protests towards revolution. In a sign of things to come, the Hellenic Police Federation has called for the arrest of Troika officials on Greek soil for attacks on "democracy and national sovereignty"."

Regarding the police union, he's referring to this:

http://www.reuters.com/article/2012/02/10/us-greece-police-idUSTRE8190UC20120210(external link)

The point is that the tremendous trouble is leading to resurgent nationalism, even among the security forces. So who will the eurozone bankers and bureaucrats look to in order to enforce their diktats? Some 80% of the continued bailout money will go to banks, not to Greece or to Greeks — and the Greeks know it. The resulting reality is grim:

http://www.zerohedge.com/news/pictures-greek-soup-kitchen(external link)

In sum, the absurdity of European integration is becoming increasingly apparent:

http://cfrankdavis.wordpress.com/2012/02/11/the-disintegrating-european-union/(external link)

Events are marching toward the Untied States of Europe, not a United States of Europe. Centralization is encountering significant entropy. This is unquestionably a good thing for human liberty.