Monday, January 26, 2015

Greece can't abandon austerity and stay with the euro. Period.

Alexis Tsipras and his party, Syriza, can talk all they want about ending austerity, but they simply can't do it without their own currency.

When all the cheering and celebration dies down Greece will be left with a choice: they can move forward on the path to self determination, sovereignty and dignity, but only if they bring back the drachma.

Or, they can stick with the euro and naively believe they will be able to end austerity, rehire fired public workers, raise salaries and do all those other things that they promised to do, but can't.

This is the classic problem of the modern day left wing. They talk big about all these progressive ideals--help the middle class, workers, safety nets, education, etc, but they simply don't understand or, don't buy into the economics necessary to do these things.

Same problem everywhere. Here, too, in the U.S. (Although there's some hope with Kelton.)

By the way...so far this morning the euro is trading in the classic, buy the rumor sell the news pattern.

5 comments:

Matt Franko said...

Varoufakis is pulling a Stiglitz:

http://www.bbc.co.uk/programmes/p02hp632

Malmo's Ghost said...

Greece is a pariah as a member in the eurozone and they would continue to be if they leave it. So what's the big deal if they bolt? Pundits are making this way more complicated than need be. Leaving the eurozone is their only viable choice. Take the noose and throw it back at their creditors, otherwise Greece is going to be ground to dust. There are probably enough pro euro folks in the new coalition, however, so my guess is dust they will all be.

Tom Hickey said...

Like the Russians, the Greeks can't see the aces in the hand.

Michael Norman said...

Nor will they ever, Tom.

This will turn into another disaster for anti-plutocrat, anti-neoliberalism political movements, worldwide.

The Greek "experiment" will fail and "left wing" politics will be blamed, bringing on an even more extreme version of neoliberal fascism.

The Just Gatekeeper said...

I was thinking the same things this morning Mike. If these guys dont focus their momentum exclusively on a Grexit (the buzzword term now), then its just a waste of time. They'll just end up like some of the state legislatures over here: lots of posturing with weak delivery.