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bemildred

(90,061 posts)
Mon Jul 6, 2015, 08:55 AM Jul 2015

Greece’s fight is for democracy in Europe. That’s why we must support it

From the cradle of democracy, a lion has roared. It is difficult to overstate the pressure the Greek people have both endured and defied. A country that has already experienced an austerity-induced economic disaster with few precedents among developed nations in peacetime has suffered a sustained campaign of economic and political warfare. The European Central Bank – which has only recently deigned to publish some of the minutes of its meetings – capped liquidity for Greek banks, driving them to the verge of collapse. There were stringent capital controls, and desperate queues outside banks followed. A country desperate to stay within the euro was told it would be ejected, and with calamitous results.

Martin Schulz, the European parliament’s president and a so-called social democrat, whose attitude towards democracy can be generously described as ambiguous, called for the removal of Greece’s elected government in favour of a technocratic government.

It wasn’t bluster. That’s what the EU and the markets previously pulled off in Greece and, yes, in Italy: however much justifiable distaste exists for Silvio Berlusconi, it should have been his own people who removed him. In Greece itself, the oligarch-owned “free media” acted as a political machine (sound familiar?), pumping out relentless propaganda in favour of capitulating to the creditors’ demands. An alliance between Greece’s economic elite and the EU great powers told the Greek people: however tough your lives have been in the last few years, your world will cave in unless you acquiesce. And still the Greek people voted no – not narrowly, but overwhelmingly.

The referendum was, of course, a rejection of an austerity programme that has unleashed what is commonly described in Greece as a humanitarian crisis. Since Lehman Brothers crashed in 2008, austerity has always relied on the displacement of blame from elites to elsewhere. It was Goldman Sachs who helped the then Greek government to cook the country’s books to win entry into the euro. It was German and French banks who profitably and recklessly lent to Greece, just as US banks disastrously showered subprime mortgages on low-paid Americans. It was Germany who benefited from being able to export its consumer goods to peripheral European countries such as Greece.

http://www.theguardian.com/commentisfree/2015/jul/06/greece-democracy-europe-eu

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bemildred

(90,061 posts)
2. Greece Calls Europe's Bluff
Mon Jul 6, 2015, 09:06 AM
Jul 2015

The analysts streaming across my screen last week all had the same opinion - Greece will vote "Yes," accept Europe's terms and stay in the euro. Well, as I write this, the early polls prove, if nothing else, that one should beware of experts bearing consensus opinions. According to the headlines at all the major newspapers, the Greeks have voted OXI to more pension cuts and tax hikes. Certainly, Greece's creditors want to get paid, but the terms of the deal on offer - well, actually the deal expired at the end of June - were unlikely to accomplish that goal. It was a recipe for continued economic pain with little hope for gain. Greece, like much of Europe, needs pro-growth reforms, and neither the current Greek government nor its creditors have produced a plan that even attempts to do that.

The immediate concern for investors is what happens now, and even knowing the outcome of the vote, it is difficult to predict. Germany and the leaders of Europe face a very difficult choice, with nary an appealing option. On the one hand, Greece could default on their euro debts and go back to the drachma. Their creditors, which are mainly European public institutions such as the ESM, would be forced to write down the debts. And since they are public institutions, that means the public would take the hit. Theoretically, at least, European governments would have to issue debt to cover the losses, including recapitalizing the ECB. If you think European QE is having a positive effect, a Greek default would all but neuter it, as it would be used to buy up the bonds issued to cover Greek losses.

http://seekingalpha.com/article/3304355-greece-calls-europes-bluff

bemildred

(90,061 posts)
3. Greek debt crisis: Parliament president censured over controversial remarks
Mon Jul 6, 2015, 09:11 AM
Jul 2015

EU parliament president Martin Schulz is under fire again following Greek debt crisis comments.

Schulz's remarks, speculating on the result of Sunday's Greek bailout referendum infuriated MEPs within the European parliament's leftist groups after he was reported as saying that his trust in the country's prime minister Alexis Tsipras and his left-wing Syriza party had reached "rock bottom".

In an interview published in the German Handelsblatt business daily on Friday, just two days before the yes/no referendum, Schulz said he hoped that a Tsipras defeat would, "be bridged by a [transitional] technocratic government, so that we can continue to negotiate."

He added, "If this transitional government reaches a reasonable agreement with the creditors, then Syriza's time would be over."

https://www.theparliamentmagazine.eu/articles/news/greek-debt-crisis-parliament-president-censured-over-controversial-remarks

DetlefK

(16,423 posts)
4. Propaganda at its finest.
Mon Jul 6, 2015, 09:46 AM
Jul 2015

"A country that has already experienced an austerity-induced economic disaster with few precedents among developed nations in peacetime..."

An economic disaster that started 15 years ago. In Greece. With decisions made by greek politicians.



"A country desperate to stay within the euro was told it would be ejected, and with calamitous results."

Who told Greece that the EU would kick it out? The Grexit was and still is a means of last resort. It's not something that has been worked on from the beginning.



"Martin Schulz, the European parliament’s president and a so-called social democrat, whose attitude towards democracy can be generously described as ambiguous,"

Attacking a politician's beliefs rather than having a look at his career. Classy.
And the head of the biggest democratic institution in Europe dislikes democracy. Again, classy.



"however much justifiable distaste exists for Silvio Berlusconi, it should have been his own people who removed him."

If you use all your fingers and all your toes, you still cannot count how many political parties Italy has in its parliament. Italy is an ungovernable mess of local interests. Italy is unable to change itself because the politicians are pampered elites.



"In Greece itself, the oligarch-owned “free media” acted as a political machine (sound familiar?), pumping out relentless propaganda in favour of capitulating to the creditors’ demands."

Corporations trying to end economic insecurity as fast as possible and to replace it with some kind of plan as soon as possible. Those devils.



"It was German and French banks who profitably and recklessly lent to Greece,"

Reckless? It was Greece that was cooking its books! Greece was reckless in demanding those loans!



"It was Germany who benefited from being able to export its consumer goods to peripheral European countries such as Greece."

And Greece got nothing. Except consumer goods.



"Precious little of the bailouts went to Greece; instead they went to the European banks that had recklessly lent in the first place."

And that means that Greece got rid of some of its foreign debts.
Greece was in no shape whatsoever to invest the loans into a growing economy without some reforms first. Greek corruption is legendary!
And what would have happened after the write-offs of the debt? Would Greece have fought the corruption and everybody would have started paying taxes all of a sudden? NO! Greece would just have started over with fresh loans it would never repay.



"in Spain, too, around half of young people are out of work."

That's because the spanish economy is focused on housing and real estate and there are only so many houses a country needs. A housing-bubble has tanked the spanish economy, not a history of tax-evasion and catastrophic debts.



"this gathering pan-European revolt."

A pan-european revolt (happening in 3 poor countries) against the biggest democratic institution in Europe will restore democracy. Sure.



"Unfortunately the EU elites are not stupid, and realise this. They fear – justifiably – that if Syriza is seen to win concessions, the rebellion will spread. The resignation of Yanis Varoufakis is almost certainly part of an attempt to allow them to save face and do a deal."

AAAAAAAAAAAAH! The author can read minds!!!!
Or maybe Tsipras has come to accept the fact that Varoufakis isn't a good negotiator.



"The EU still wishes to make an example of the country: by forcing Syriza to implement policies that will destroy the government, by making “the economy scream” (to quote Henry Kissinger) until it is ejected from office, or even a disastrous default and removal from the eurozone."

1. Malevolence remains to be proven.
2. What is the difference between a default and the write-offs the author demanded a few lines earlier?
3. The author just said that Greece leaving the Euro is undesirable to the EU, so why would the EU conspire to do exactly that??? I recant: The author is no mind-reader. He's desperately flinging dirt and sees what sticks.

bemildred

(90,061 posts)
9. Ukraine Is More Important Than Greece
Mon Jul 6, 2015, 10:15 AM
Jul 2015
Along that line of thought, the Greek crisis is sucking all the oxygen out of the room for the Ukraine crisis.

For one year, Russia has pursued a long, costly war of aggression against Ukraine. Its objective is obvious: to destabilize Ukraine so that the new democratic regime fails. Therefore, the West should adjust its goals accordingly to offer Ukraine financial support.

The Kremlin has presented one false objective after the other for this aggression. On February 27, 2014, "little green men"—that is, Russian special forces in Russian uniforms but without insignia—occupied the Crimean regional parliament. The next day, they took over the peninsula's two international airports. Within two weeks, these troops had skillfully occupied all of Crimea.

Initially, Moscow presented its occupation as a separatist uprising, but Russian President Vladimir Putin has admitted that his troops participated en masse. The Russian people—for whom Crimea was a lost Soviet holiday paradise—supported this naked, unprovoked aggression. And because it was a complete surprise, conquering Crimea was easy.

Interpreting the rest of Moscow's war on Ukraine is more complex. Russian leaders discussed three major strategies. One was an early leaked plan from the National Security Council, reportedly connected with Putin's Chief of Staff Sergei Ivanov, about taking ten eastern and southern Ukrainian regions—including Kyiv—to unify the Soviet military-industrial complex. That would have required a march on Kyiv in the spring of 2014, which did not happen.

http://www.atlanticcouncil.org/blogs/new-atlanticist/ukraine-is-more-important-than-greece

KoKo

(84,711 posts)
8. NULAND’S NEMESIS – Will Greece, Or Won't Greece be Destroyed to Save Her from Russia, like Ukraine?
Mon Jul 6, 2015, 10:12 AM
Jul 2015

Last edited Thu Jul 9, 2015, 10:31 AM - Edit history (1)

(Well, this is an "other view" on the Greek Vote--he seems to feel Petersen Institute and Brookings are involved and gives some background going back to the Papandreous Govt. Interesting read if one considers the past history--although maybe a bit of a stretch?)

----------------

By John Helmer, Moscow

A putsch in Athens to save allied Greece from enemy Russia is in preparation by the US and Germany, with backing from the non-taxpayers of Greece – the Greek oligarchs, Anglo-Greek shipowners, and the Greek Church. At the highest and lowest level of Greek government, and from Thessaloniki to Milvorni, all Greeks understand what is happening. Yesterday they voted overwhelmingly to resist. According to a high political figure in Athens, a 40-year veteran, “what is actually happening is a slow process of regime change.”

Until Sunday afternoon it was a close-run thing. The Yes and No votes were equally balanced, and the margin between them razor thin. At the start of the morning, Rupert Murdoch’s London Times claimed “Greek security forces have drawn up a secret plan to deploy the army alongside special riot police to contain possible civil unrest after today’s referendum on the country’s future in Europe. Codenamed Nemesis, it makes provision for troops to patrol large cities if there is widespread and prolonged public disorder. Details of the plan emerged as polls showed the ‘yes’ and ‘no’ camps neck and neck.” Greek officers don’t speak to the Murdoch press; British and US government agents do.

“It was neck to neck until 3 pm,” reports the political veteran in Athens, “then the young started voting. “

Can the outcome — the 61% to 39% referendum vote, with a 22% margin for ??? (No) which the New York Times calls “shocking” and a “victory [that] settled little” – defeat Operation Nemesis? Will the new Axis – the Americans and the Germans – attack again, as the Germans did after the first Greek ??? of October 28, 1940, defeated the Italian invasion?

The Kremlin understands too. So when the State Department’s Victoria Nuland visited Athens to issue an ultimatum against breaking the anti-Russian sanctions regime, and the Anglo-American think-tanks followed with warnings the Russian Navy is about to sail into Piraeus, the object of the game has been clear. The line for Operation Nemesis has been that Greece must be saved, not from itself or from its creditors, but from the enemy in Moscow. The Russian line has been to do nothing to give credence to that propaganda; to wait and to watch.

As the head of State’s Bureau of European and Eurasian affairs, Nuland is the official in charge of warmaking in Europe. Her record in the Ukraine has been documented here. Almost unnoticed, she was in Athens on March 17 to deliver two ultimatums. The communique released by the US Embassy in Athens was headlined, “we want to see prosperity and growth in Greece.”



-----------snip

The Brookings Institution and the Peterson Institute – both funded by the Ukrainian oligarch Victor Pinchuk to beat the anti-Russian drum in Ukraine — stopped short of forecasting the Greek referendum result, but condemned the government in Athens for offering it. On July 1, Carlo Bastasin, an Italian journalist on the Brookings stipend, claimed to have eyewitness evidence for “Greek leaders’ conduct as unscrupulous”, and for the Greek government’s “plans [as] more recessionary and austerity-driven than the European ones.” The reporter’s sources lacked names.

On the Peterson Institute’s executive committee Greek strategy is directed by Andreas Dracopoulos. He is a member of the family of the Greek shipowner Stavros Niarchos, whose foundation money Dracopoulos is in charge of awarding. When Dracopoulos has been asked what the Niarchos money is doing for the domestic crisis, he has mentioned food vouchers for the poor and beds for the homeless. He didn’t mention paying tax. Dracopoulos has been knighted by a previous Greek government as Grand Commander of the Order of the Phoenix; that was for the Niarchos Foundation’s philanthropy. Dracopoulos is pictured above with Archbishop Demetrios, primate of the American Diocese of the Greek Church, a traditional foe of governments in Athens the diocese considers left wing, or worse.

The Greek-American community has avoided a public statement on the referendum. Instead on July 1, the American Hellenic Educational Progressive Association (AHEPA), as the national lobby group is known, announced: “We also call on the Obama Administration to step-up its engagement to ensure the parties achieve a proper solution.” If the Greek-Americans, Dracopoulos, and the Church meant Operation Nemesis, they weren’t saying no on July 5. Ahead of the vote, AHEPA issued its second announcement: “Regardless of the outcome of the referendum held in Greece on July 5, 2015, what is crucial to the Greek American community is that U.S.-Greece relations remain strong and certain and Greece’s geostrategic importance and contributions to the security interests of the U.S. and NATO is valued and appreciated.”


Continued at:

http://johnhelmer.net/?p=13712

bemildred

(90,061 posts)
10. Will we let Ukraine die?
Mon Jul 6, 2015, 10:16 AM
Jul 2015

A Ukrainian military unit last week released footage from a drone showing a large new Russian military base in eastern Ukraine, equipped with T-72 tanks, barracks, communications equipment and even a parade ground. International observers reported “increased intensity” of fighting in the region, in violation of a cease-fire.

Russia meanwhile suspended gas deliveries to Ukraine, thwarting its attempt to stockpile supplies for next winter. In Washington, a committee of Ukrainian bond-holders, led by several U.S. hedge funds, resisted an International Monetary Fund-backed plan to reduce the government’s debt burden so that it can avoid a default.

Ukraine’s democratically elected and fervently pro-Western government faced all these trials essentially alone. German Chancellor Angela Merkel and her European Union partners are preoccupied with the crisis in Greece; Barack Obama is intently focused on completing a nuclear bargain with Iran. Western governments have taken no new action either to prevent a new Russian military offensive this summer or to provide Ukraine’s government with the funds it needs to survive through another year.

Will this be remembered as the summer when the West let Ukraine die? It’s beginning to look like it.

https://www.washingtonpost.com/opinions/the-dangerous-neglect-of-ukraine/2015/07/05/37d08050-20cf-11e5-84d5-eb37ee8eaa61_story.html

KoKo

(84,711 posts)
12. Fascinating the other stuff from WaPo having to do with this latest "Opinion"
Mon Jul 6, 2015, 11:38 AM
Jul 2015

Looking at the links below the article--its interesting how WaPo Opinion along with Brookings, Atlantic Council, etc. wants U.S. to send weapons to Ukraine and yet Brookings has a split with another article arguing against antagonizing Russia further and suggesting that other alternatives should be found. There must be a royal "tug-of-war" battle going on behind the scenes--on what to do about Putin and for now the "cooler heads" are prevailing...and yet the WaPo "Opinon Group" keeps up the McCain/War Hawks View.

More snips from your link:

Will we let Ukraine die?

https://www.washingtonpost.com/opinions/the-dangerous-neglect-of-ukraine/2015/07/05/37d08050-20cf-11e5-84d5-eb37ee8eaa61_story.html

A Ukrainian military unit last week released footage from a drone showing a large new Russian military base in eastern Ukraine, equipped with T-72 tanks, barracks, communications equipment and even a parade ground. International observers reported “increased intensity” of fighting in the region, in violation of a cease-fire.


----------------snip

Analysts Pierre Vaux and Catherine Fitzpatrick of the Interpreter Web site have identified two new Russian bases near the front lines in recent months, including the one filmed by a drone. They are positioned so as to support an offensive against the government-held city of Mariupol, which is the strategic key to southeastern Ukraine. “The time for such an attack may be drawing nearer,” Vaux reported last week in an article for the Daily Beast. Similar warnings have been sounded by other experts, including an Atlantic Council mission led by former NATO commander Wesley Clark.

----------------snip

Yet the European Union, which has committed $222 billion to bailing out Greece, has offered Ukraine $5.5 billion. The United States, which provided $20?billion to save Mexico from default and $18 billion for reconstruction in Iraq, has approved $3 billion in loan guarantees for Ukraine.

The paltry sums have placed the Kiev government at the mercy of foreign creditors holding $19 billion of its private debt — including the Russian government, which holds a $3 billion eurobond. Outside of Moscow, the biggest bondholders are U.S. hedge funds, including bottom-feeder Franklin Templeton. To meet the IMF’s plan, the government must extract $15 billion in relief from them over four years. But Franklin Templeton and its partners have refused to accept a reduction in principal, despite prodding from the IMF and the U.S. Treasury.

-----------

Ukrainian leaders, who see themselves fighting in defense of Western democracy against Putin’s imperialist autocracy, increasingly express bewilderment at their inability to attract support. “If we fail,” Prime Minister Arseniy Yatsenyuk told The Post last month, “this will be a failure for the entire free world.” But the free world, it seems, is otherwise occupied.



From the WaPo links to previous articles:

How aiding the Ukrainian military could push Putin into a regional war
https://www.washingtonpost.com/opinions/giving-weapons-to-ukraine-could-goad-putin-into-a-regional-war/2015/02/05/ec2e9680-abf5-11e4-ad71-7b9eba0f87d6_story.html

AND:

The Post’s View: Raise the stakes for Russia to deter its aggression in Ukraine

The Post’s View: Russia’s invasion of Ukraine should cause much more than a hiccup

Steven Pifer and Strobe Talbott: Ukraine needs America’s help

Borys Lozhkin: More aid to Ukraine would invest in a stronger Europe

Carl Levin and James Inhofe: Give Ukraine the weapons it needs for self-defense

----------------------

bemildred

(90,061 posts)
13. Yes.
Mon Jul 6, 2015, 11:50 AM
Jul 2015

The "No" vote has messed things up, now resources will have to be diverted to dealing with Greece, whatever happens to Greece it will have to be dealt with, and Greece will cost a lot either way, and Ukraine needs a lot too.

I think the "tug-of-war" is in Europe too, and the Greek troubles will bring the differences of interest there into sharp relief.

bemildred

(90,061 posts)
11. Insight - Tensions with Russia could prompt NATO strategy rethink
Mon Jul 6, 2015, 10:22 AM
Jul 2015

---

PANDORA'S BOX

Diplomats worry that rewriting the strategic concept could open a Pandora's box, with some southern NATO allies, which think the alliance concentrates too much on security challenges from the east, wanting a greater focus on new threats from the south, such as the Islamic State group based in Syria and Iraq.

"It would stimulate a fundamental review of European security, of our approach to the south," one NATO official, also speaking on condition of anonymity, said.

Removing the aspiration of a strategic partnership with Russia from the text would be "a big political step and maybe not necessary", the official said.

NATO seems likely to opt for compromise. NATO leaders could order work on a revamp of the strategy document when they meet in Warsaw next July. It would then be ready for approval when they next meet, probably in 2018, diplomats said.

http://uk.reuters.com/article/2015/07/06/uk-ukraine-crisis-nato-insight-idUKKCN0PG18020150706?rpc=401

bemildred

(90,061 posts)
14. The dangerous truth about Europe’s obsession with austerity: Why the Greek anti-bailout vote was so
Mon Jul 6, 2015, 12:02 PM
Jul 2015

While the world fixates on the Greek-Euro drama it is important to keep in mind that it is only just one facet of a deepening global debt crisis which is being largely ignored, even as it continues to threaten the basic viability of dozens of countries.

As the IMF and global creditors press for timely repayment, they often insist on austerity measures that force cuts in government services that further undermine the ability of the debtor nations to function. “In our estimate there are 49 countries that based on World Bank data are in such extreme to moderate debt distress that it impacts their ability to provide the most basic in human services,” says Eric LeCompte, executive director with Jubilee USA, a non-profit that also describes it self as a religious development organization.

Founded in 1997, Jubilee USA has helped struggling nations get $110 billion dollars in international debt relief through multilateral agreements in 1999 and 2005. LeCompte says that debt relief meant that countries could invest money they would have sent to their international creditors into the social well being of their people. “In Africa alone 54 million kids were able to go to school for the first time,” LaCompte says. But that $110 billion dollars was not nearly enough LeCompte says. “Still many of those countries that benefited” from the debt relief “are still heavily indebted.”

The titans of global finance in places like New York, London and Brussels like to condescendingly blame the endemic corruption in these debtor nations as the source of the problem. Yet, in reality it is the very international banking sector itself that makes the corruption possible, by offering dozens of so called “off-shore” tax havens where dictators and their families can stash the money they have stolen from their countries.

http://www.salon.com/2015/07/06/the_dangerous_truth_about_europes_obsession_with_austerity_why_the_greek_anti_bailout_vote_was_so_important/

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