Greece, Pinatified

Yanis Varoufakis posts Marshall Auerback’s “Greece and the Rape by the Rentiers,” with Varoufakis’ caveat that the best option is for Greece to default.

More on the austerity debacle in Greece
What the (Troika–the European Commission, European Central Bank, and International Monetary Fund) MOU (with the Greek parliament) is really all about:

“It’s a corporate wish list; a mix of punitive belt tightening policies for working people and perks for big oil, big gas, electric, aviation, railroads, communications etc. ‘Fast track licensing’ and baby food have nothing to do with helping Greece reach its budget targets. It’s a joke. … None of this has anything to do with helping Greece. It’s just corporate pillaging gone haywire. Greece is a big pinata that’s just been cracked open and everyone (Euro capital) is pushing and shoving to grab their fistful of candy. All of this is coming soon to a neighborhood near you. If not’s already there, that is” (Mike Whitney, quoted by Chris Floyd).

Bustin’ open the Greeks. Who’s next?

Athens in flames, Michael Dussault (quoted by Naomi Wolf): “’The rebellion has begun,’ the Greek resistance hero and veteran left-winger Manolis Glezos told reporters. Indeed, as students and anarchists fought back waves of riot police assaults on the occupied University Law Department, as hundreds of outraged protesters took over a TV station, and as plumes of smoke and clouds of teargas filled up the Athenian night skies, one thing became overly clear: the social situation in Greece has spun entirely out of control.”

Damned if it shouldn’t be. As Chris Floyd says, what Greeks are facing is down a few levels of hell lower than the imposition of Sharia law.

 There is no (0) possibility that an Anglo-American intervention (which is what a NATO intervention would be) could improve the lives of Syrians in the oil era. However, pro-democracy North Americans can support the Greeks, perhaps Spanish Civil War style? Or what about support in Spain? Right now Spaniards and the Portuguese need help fighting against the conservative state-facilitated anti-labor crusade.

Billy Bragg once composed a little song, RE: serving as a fightin’ tool for Anglo-American capital.

New consensus in Berlin, according to Varoufakis: As soon as Sarkozy wins the French Presidency, Germany will amputate Greece & Portugal (maybe Ireland too) from the EU, and cauterize the wounds by printing money.

Varoufakis thinks the strategy won’t work because:

1) German financiers are underestimating the substantial links between Portuguese banks and Spanish banks, and between Greek banks and German and French banks.
2) Injecting massive liquidity into European banks will Japan1990s-ize them.
3) The problem is in the uneven nature of capitalism, here the geographic core-periphery, that creates systemic trade imbalances, and the lack of a GSRM (global surplus recycling mechanism) in Europe. This problem will not be addressed by the German financier’s solution. So when a couple of countries are amputated, the problem will move over and take up residence in the remaining periphery–Italy, Spain– requiring further amputations.

Richard Koo explains why the Japanese banks failed, and what that means for Europe.

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