We should all congratulate and thank Greece. It has set itself up as a beacon of hope and democracy against the unelected suprastate that would crush it and further enslave it to the failed model of ‘austerity’.
The economic competency of the Germans and the French, the European Central Bank, the European Commission and the International Monetary Fund has been shown, by far better economists than I, to have been about the level of a bunch of schoolchildren. Greece was forced into unnecessary recession and at the same time expected to make huge loan repayments in order to serve the political ends of Germany and France. The consequence has been an even greater Depression than that which afflicted the USA in the 1930s, with over 25% unemployment and hardship that no-one else in Europe would put up with.
And that is why it has been so important for the lenders to break tiny Greece. Because when they come for you, they don’t want you to think that there’s any way out. They don’t want you to realise that states are sovereign and can just tear up debts. At the moment their targets are Italy and Spain; they dread the consequences if these two states were to tear up their loans and tell their lenders to raffle themselves — which they are perfectly entitled to do. But make no mistake, these people, Merkel, Hollande, Juncker and Lagarde are out to destroy democracy and the sovereignty of the people, and concentrate power in the hands of oligarchs, bureaucrats, and completely unaccountable quangos and corporations.
Iceland proved them wrong and they have been very quiet about that. But they won’t be able to keep quiet about Greece.
The Greek economy is actually in surplus, by about 2%, if we discount the loan repayments. It is not Greece’s economy or its economic management that is at fault, but the slavish insistence of the European anti-democratic hegemony on ‘austerity’.
Well, it looks like Greece has given these economic bullies a kick in the testicles that they will remember.
It should now declare that all the debt is suspended. It should declare a repayment holiday with no interest increment. It should invite China to invest hugely in its infrastructure and tourism economy. It should print drachmas and float them. And it should continue to tell the anti-democratic hegemony that governs Europe that its day is done.
And then we should all do the same.