Monday, February 20, 2012
Incompatibility- Democracy & Bailouts
Don't know if he was truly sincere or a political bluff to curry favor from the populace, but the European leaders were Horrified! Democracy?? People making such an important decision about their own country?? My God!! Sacre Bleu!!
Germany and France then set up emergency conference calls and meetings, turned the thumb screws pretty hard, and thus bullied & intimidated Papandreou to back off his referendum.
Fast forward to the present. Everyone knows Greece needs more money, the troika want more financial 'blood', and don't trust the Greeks to keep their word and implement the austerity they promise. Some Greek leaders have even publicly stated they agree now and after the April election, will re-negotiate terms.
This has Germany quite nervous and sickened... So what to do? Germany's Finance Minister Schauble has an idea: if Greece wants its money, then postpone elections...
"The German finance minister wants to prevent a “wrong” democratic choice. Similar to this is the suggestion to let the elections go ahead, but to have a grand coalition irrespective of the outcome. The eurozone wants to impose its choice of government on Greece – the eurozone’s first colony... It is one thing for creditors to interfere in the management of a recipient country’s policies. It is another to tell them to suspend elections or to put in policies that insulate the government from the outcome of democratic processes." -- Financial Times
Imagine if China, the 2nd biggest holder of US debt told us to postpone our elections or we wouldn't get any more money... just Imagine the reaction.. I don't even need to type it...
Greece needs to default.. now! Today.. No warnings.. no prior notice... Default and punish those who richly deserve financial pain-- banks, financials and investors.
Actually, the German Finance Minister really wants this as well:
"(Schäuble’s) preference is to force Greece into an immediate default... (the) proposal to postpone elections as a targeted provocation intended to illicit an extreme reaction from Athens. If that was the goal, it seems to be working... The German strategy seems to be to make life so unbearable that the Greeks themselves will want to leave the eurozone" -FT
The Greek people have taken a lot... how much more will they take?