tag:blogger.com,1999:blog-8595404115121834255.post1527870134784425370..comments2024-03-28T03:24:05.678-04:00Comments on NAKED KEYNESIANISM: The Greek referendum and the tasks of the LeftMatias Vernengohttp://www.blogger.com/profile/09521604894748538215noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8595404115121834255.post-48792810541444440932015-07-05T05:22:33.236-04:002015-07-05T05:22:33.236-04:00«facilitating debt servicing (by rolling back debt...«facilitating debt servicing (by rolling back debt, leveraging and ‘financial engineering’) and an increase in aid funds (through the fictitious Juncker plan) that would help to jumpstart the moribund after 6 years of austerity Greek economy.»<br /><br />Before SYRIZA took over Greek GDP was at the same level as in around 2000:<br /><br />https://rwer.wordpress.com/2015/07/01/gdp-in-emerging-europe-worse-than-you-think/<br /><br />and GDP per capita was 50% higher than in Bulgaria. Was the greek economy in 2000 "moribund after 6 years of austerity "?<br /><br />Actually to me it looks like that the greek economy was in a pretty bad shape well before "austerity", during the "boom years" because as this graph shows very clearly:<br /><br />https://rwer.wordpress.com/2015/07/03/lose-lose-in-greece/<br /><br />in 1999 to 2008 greek GDP "grew" almost exclusively through booming imports of consumption goods financed by (mostly) german and french creditors, an import boom that reached nearly 20% of GDP.<br /><br />Also note that through the first 3 years of "austerity" 2008-2011 greek imports continued at amazingly high levels, even if they were decreasing.<br /><br />If austerity ended tomorrow, would greek GDP recover to the level of 2008 without another fabulous import boom? I have yet to see a good case that greek GDP could do that. Countries with a a much stronger business base than Greece have not gown their GDP at all since 1999:<br /><br />https://anticap.wordpress.com/2015/07/03/chart-of-the-day-461/<br /><br />«SYRIZA failed not only strategically but also tactically. It did not touch the deep state structure»<br /><br />It is easy to forget that the topic of the negotiations with the "institutions" was that SYRIZA was trying to find some idiots willing to buy from them, with few strings attached, several dozen billion of euro greek bonds. Greek citizens have in Switzerland and in Greece's own banks enough savings to to that, but of course they are not stupid enough to buy their own government's worthless bonds.<br /><br />So SYRIZA's sales pitch was that the german government should force german citizens to buy those worthless greek bonds that SYRIZA cannot sell to their own citizens.<br /><br />Why didn't SYRIZA force greek citizens to fund the greek government with a land tax for example, that would result in rich greek citizens having to wire back some of their swiss money to pay the tax?<br /><br />Because SYRIZA wants to win the next elections, and making greeks pay taxes is a sure way to lose elections in Greece. So they have decided that their best option was to ask the german government to make german citizens fund the greek government, and thus shift the problem of losing elections to the german government.<br /><br />«A victory of the NO would block this course. [ ... ] will bolster popular confidence that the EU and the Greek bourgeoisie are not unbeatable and that another course outside the shackles of the EU is feasible.»<br /><br />Fantastic words. Have you got a few dozen billions of euros with which you are willing to buy greek government bonds with few strings attached? If you haven't, then too bad, talk is cheap.<br /><br />SYRIZA and the referendum and the NO campaign are a brilliant example of what Tony Blair in his social-dem days called "resolutionary socialism".<br /><br />Let's a pass a resolution called "referendum" to condemn people who don't want to buy a few dozen billions of greek bonds that greek citizens themselves don't want to buy! Let's word it harshly! That will teach them! :-)<br />Blissexnoreply@blogger.com