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Greeks Will Ultimately Reject Big Government and Communism; So Will We.

30 Jun

Zorba the Debtor [courtesy Google Images]

Zorba the Debtor
[courtesy Google Images]

Since the Syriza political party won control of Greece last January, I’ve had a lot of respect for the Greek people and the new Greek government.  Yes, the government is communist—which I view with contempt.  Still, the Greeks stood up to the world bankers and essentially refused to repay their remaining debts.  That took guts.  Courage.

I admired the Greeks’ stand against the bankers.

•  But, today, I see an article in MarketWatch.com entitled “Greece asks for 3rd bailout in last-minute diplomatic push” which significantly diminished my former respect for Greece.

According to that article,

  “Greece on Tuesday asked for a new bailout amid a last-minute diplomatic push to seal some kind of agreement before the country’s current rescue deal expires and it defaults on a payment to the International Monetary Fund.”

I get the feeling that the Greek government didn’t “ask” for a new bailout so much as “beg” for a new bailout.  I don’t admire professional beggars.

“The Greek government submitted a proposal for a two-year agreement with the eurozone bailout fund in order to cover its financing needs and restructure its debt, according to a statement issued by Prime Minister Alexis Tsipras’s office.”

By “restructure its debt,” they mean persuade the creditors to “voluntarily” cut the amount of money owed by Greece.   If the creditors “voluntarily” agree to reduce the amount owed, then it will be presumed that Greece didn’t actually default on its debt obligation.  That’s a lie, of course

The dreaded “default” will only occur if the creditors insist on being paid in full for the remaining debt.

The creditors—who already agreed two or three years ago, to cut the Greek debt by 53%—are not enthusiastic.   They know that, despite illusions to the contrary, Greece has been insolvent for five years and isn’t likely to repay most of its existing debts or any new debts incurred over the next few years.  Giving money to Greece is like giving money to a crack addict.  Don’t expect to get it back anytime soon.

“While European officials have said that a new aid program would be possible, it would require Tsipras to accept the policy overhauls and budget cuts he has so far rejected. Many officials also don’t trust Tsipras and his government to implement these measures.”

Does anyone seriously believe that Greek Prime Minister Tsipras is doing anything other than trying to string the creditors along in order to get more money?  Does anyone believe that the Greek people (who voted the previous government out for arguing that the Greeks should pay their debts) won’t eject Tsipras if he dares to impose more austerity on the Greeks to pay the bills?

Of course, Tsipras can’t be trusted to do much more than grab the money (if he can) and not pay the resulting debts.

•  I’m losing whatever respect I had for the Greek government.   The Greek Minister of Finance Varoufakis is said to be a master of “game theory” and apparently thought they could “out-game” their creditors.

Well, money is no game.  Neither is politics.  Neither is economics.  The current Greek government has been playing games for five months.  The Greek people have been playing games for five years.  It was great fun while it lasted.  But, now, they’re out of time, the “game” is over, and, apparently, their mastery of “game theory” hasn’t helped them get more loans or avoid a default.

So, now, they’re asking, “pretty please, give us some more money.”

One of the reasons why they’re asking (begging?) the IMF and ECB for more money is probably that Russia is not inclined or able to deliver as much foreign aid as Greece had expected.  So they’re back at the IMF’s door, hat in hand, begging for a few more years of free lunches.

In doing so, the Greek government and people are showing themselves to be parasites and institutionalized welfare-recipients who believe they’re entitled to another free lunch, another welfare check, another subsidy, and should never have to work hard enough to pay their bills.  They’re fools.

The Greeks overplayed their hand.  I don’t criticize them for doing so.  But I do criticize them for “playing” their creditors and the world for five months, and now, at the last minute, trying to play us all one more time.

Greece has been broke for years.  It’s been playing “extend and pretend” for years.  Now, barring the unforeseen, the Greeks will have to stop playing.  Now, they’ll have to accept responsibility and pay the price—economic depression—that all bankrupts must finally pay.

The Greek people are going to learn that if you want something, you must work hard enough to earn it—that you can’t spend your life waiting on yet another handout from the government, the IMF, the ECB, etc.

If you’re going to play the welfare game, you need to accept the fact that welfare and government subsidies are Ponzi schemes that must inevitably collapse.  Sooner or later, there’ll be more non-productive people collecting government checks than there are productive people able to fund those checks.  When that happens, welfare- and subsidy-recipient will learn they either have to earn enough to pay for their “free lunches” or accept austerity go hungry.

Most of the welfare schemes, early pensions, and free lunches that the Greek people have voted for are about to disappear.  The Greeks are about to learn that they are personally responsible for their economic fate.  They won’t like the lesson.  The pain will be intense.

But, once they realize that the only way out of their predicament is their own hard work, once they abandon their welfare government, they’ll be OK.  It’ll take a few years, but they will (mostly) survive.

In the meantime, Greece has played the fool.  Now it will pay the fool’s price:  poverty.

•  I could respect Greece if it accepted its fate with some dignity.  It’s like going out and getting stinking drunk on Thursday night and then complaining all day Friday about the lousy whisky causing your hangover.  Look, the whiskey didn’t cause that hangover.  You earned your hangover fair and square by choosing to get drunk.  You should suffer through your hangover with a modicum of dignity.

Greece is about to suffer an economic hangover.  Like whiskey, the creditors played a role in getting Greece drunk.  But in the end, all Greece had to do was “just say no” to taking more loans.  However, they took the “easy money” that’s “easy” to take but hard to repay.  And now they’re going to suffer an hangover.  To me, they should suffer with a little more dignity and learn, rather than reject, their lesson.

Instead, they’re back begging for a hair of the banker that bit them.  They’re back at the IMF’s door with their tin cup, begging for just one more shot of monetary handouts.

•  When the Greeks stood up and challenged their creditors, I admired their courage.

Now they’re back begging.

They inspire my contempt.

•  The lessons in the Greek crisis aren’t merely about borrowing more than you can repay.  They’re not even about creditors being dumb enough to lend to people who can’t and won’t repay.  Fundamentally, the Greek debt crisis is about big governments that grow to irrational sizes by making promises (“unfunded liabilities”) to voters that can’t possibly be kept.

Ultimately, the big loser in the Greek debt crisis will be big government, the left, socialists and communists.  They are all going to be shown to be incapable of keeping their promises—not only to foreign creditors but also to domestic pensioners and welfare- and subsidy-recipients.

When it’s finally undeniable that the left can’t deliver the promised supply of endless free lunches, the Greek people will turn on the left, reject communism, and quite possibly run to fascism.   That “run” could be bloody.

It could also be instructive.

For example, America’s big government is more deeply indebted than the Greeks’.   By some estimates, the US government owes over $200 trillion in “unfunded liabilities” that can’t be paid and won’t be paid.  When American welfare-recipients, subsidy-recipients and retirees find out that—Surprise! You’re not going to get the money and pensions that were promised to by our big government!—they’ll riot.

Therefore, there’s a high probability that we should watch Greece carefully for the next year or so.  Whatever happens in Greece, will probably also happen here.  We could learn from the Greeks’ mistake.

Or, we could get drunk, dance like Zorba, break some plates and holler, “Hoopa!”

 
9 Comments

Posted by on June 30, 2015 in Bankruptcy, Credit, Debt

 

Tags: ,

9 responses to “Greeks Will Ultimately Reject Big Government and Communism; So Will We.

  1. onemeremember

    June 30, 2015 at 6:03 PM

    Hmmm. Well the US has been broke since the civil war and all it’s personal income tax actually goes to the UK and from there to the Roman CC. So, what is different between America and Greece – their dollar is still seen as the default currency. Once that goes, it’ll be bye bye birdy. Also, the US has its own currency. Greece bought the EU lie and now they are paying for it. It’s all a big, sick game, my friend, played by the bankers. Once that is understood, then the rest falls into place.

     
  2. TJ

    June 30, 2015 at 7:01 PM

    The fiat fractional money con/shell game… you can never be THEIR slave w/o debt… so they lend you debit to create more debt… The IMF and the Central bank are the root of all the problems… trace it back through history… EVERY president that opposed the Central Bank was shot or an attempt.

    It was laughable when the government said JP and others were “too big to fail”…. BS it would have proven any loans are ledgering FRAUD…

     
  3. tricia freemom7

    June 30, 2015 at 10:24 PM

    “Money”, politics & economics ARE indeed a “game” long-played in fiat currencies harming the people, who are actual Creditors (creators) of real value via work/ energy, not debtors as most have been led to believe. Time to transform this system from one of planned lack mentality to abundance for ALL, as Creator’s Gracious Provision models well. The greed of the few is OVER, & Abundance for ALL manifesting, by Grace & Love… In Joy- keep looking up :D

     
  4. Bertha Kitt

    July 1, 2015 at 12:09 AM

    This video is really worth watching & LISTENING to,

    America Embraces Godfather Jesuit Pope Francis – YouTube
    Jun 3, 2015 … America Embraces Godfather Jesuit Pope Francis … Doug Batchelor – the truth
    about Pope Francis and the Jesuit Order – Duration: 48:07. by …
    http://www.youtube.com/watch?v=FZU-iSV_td4 – 210k

     
  5. Roger

    July 1, 2015 at 2:14 AM

    From the Guardian, 29 June 2015:

    Only a small fraction of the €240bn total bailout money Greece received in 2010 and 2012 found its way into the government’s coffers to soften the blow of the 2008 financial crash and fund reform programmes.

    Most of the money went to the banks that lent Greece funds before the crash.

    Less than 10% of the bailout money was left to be used by the government for reforming its economy and safeguarding weaker members of society.

    Greek government debt is still about €320bn, 78% of it owed to the troika. As the Jubilee Debt Campaign says: “The bailouts have been for the European financial sector, while passing the debt from being owed to the private sector to the public sector.”

    (end quote)

    Greece is in an impossible position financially. Since what can’t be paid won’t be paid, the Greek people have to decide what form the non-payment of their debt will take. Part of that decision will be made in an important referendum scheduled for July 5th.

    One option the Greek people have is to surrender Greece to the killer austerity and dismembering privatization desired by the international bankers (represented by the “troika” in the Guardian article). Another option is to not allow the Money Power to cannibalize Greece, but rather put the interests of the Greek people first.

    There’s even talk from the (widely popular) Greek government about exiting the Eurozone and joining Russia and China in the BRICS – an emergency measure to preserve Greece as a nation.

    It will be interesting to see how this plays out. The stakes are high for everyone. This includes the mammon-worshiping anarchistic Money Power, which fears the potential example being shown to other nations also on the menu for its hungry maw.

     
    • Henry

      July 1, 2015 at 2:05 PM

      Tsipras has a Putin-sized (80 percent) approval rating as Prime Minister of Greece. Tsipras is rejecting banker-imposed austerity because the people of Greece reject banker-imposed austerity. Rejecting banker-imposed austerity is why the people of Greece hired Tsipras to represent them in the first place.

      On one side, we have a nation’s people asserting their national interests through the institutions of representative government. On the other side, we have a tiny cabal of international billionaires asserting their covetous interests through the institutions of banking.

      So it’s obvious why the billionaires and their public relations help in the media (both mainstream and astroturf) agitate for anarchism in general, hate Tsipras in particular, and are presenting such a twisted view of current events in Greece.

       
      • Roger

        July 1, 2015 at 6:11 PM

        > …their public relations help in the media (both mainstream and astroturf)…

        “My people are destroyed for lack of knowledge.”

        The lawless Money Power’s anarchist media labors to weaken the nations by causing them to fall short in every sense of “knowledge” in the above sentence from Hosea.

         
  6. Allen Curtis

    July 2, 2015 at 1:10 AM

    Roger,
    @ The lawless Money Power’s anarchist media labors to weaken the nations by causing them to fall short in every sense of “knowledge” in the above sentence from Hosea.

    Can you imagine where we would be if we did not know things like this? WOW !!

     

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