Wednesday, November 2, 2011

Greek Lifeboats


I am not Inv2 (and it’s about time I did a bit more work around the place). I’ve been meaning to chuck some thoughts down about the Euro crisis and over at No Minister, Gravedodger has come up with the inspiration particle required.
GD has a dig at the Greeks and their “cowardly” government, who have put to a referendum whether to climb into a lifeboat offered by the Eurozone. I’d like to take issue with his assessment by means of extending his analogy…
The Greeks are floundering in the water, some distance from a pretty rocky shoreline and are being offered “refuge” in a badly leaking lifeboat carrying a bunch of fat French and German bankers and politicians, on the condition that they do the bailing. The course set for this lifeboat is out to sea, in search of some mythical Eu(ro)topia. 
The choice for the Greeks then is clear, learn to swim again now, struggle to that shoreline and resume farming goats and olives or delay the inevitable in attempting to reach the promised land where their brand-new BMW awaits. 
The Greeks invented democracy (or at least gave us the word for it) and it’s good to see them re-asserting its importance in Europe. 
There are no easy choices. There's going to be pain whatever happens, but capitalism has to be allowed to work; those who loaned too much money to people without the ability to pay, have to suck up the loss. 
Those French and German bankers and their politician mates, have to get wet. 

6 comments:

Anonymous said...

Excellent! Nice to see you admit a left leaning. The same arguments can be applied to the shocking path National is taking us down.

James Stephenson said...

Left leaning? Where? The Left are saying "Capitalism has failed" the actual Right are saying "Capitalism hasn't been allowed to work" there's a huge difference there as any cursory read around Libertarian blogs opinion on the Occupy thing will show.

National are indeed taking us down a worrying path, I'm glad to see you're supporting the scrapping of unaffordable bribes such as WFF and interest free student loans.

FAIRFACTS MEDIA said...

The Greeks are to be commended for allowing a vote, which is more than what Cameron will allow the Brits.

Mort said...

well said James, the Greeks need to default and start again. The idiots who lent them money should suffer the consequences of their lunacy.
The Greeks need to become more German like, but a burden of debt will never allow them to develop those tendencies, starting again with a zero balance, and then having the Govt letting the people decide what services they want based on the amount of tax they are prepared to actually pay to the govt. Greece will not be lent to again, so there will be no deficit expenditure.

James Stephenson said...

Bang on FFM. Can you tell that I'm sick of supposedly right-wing politicians saying one thing in opposition and then forgetting about it when in government?

That goes for "Communism by stealth" Key or "Cast iron" Cameron.

James Stephenson said...

Liberty Scott has a much more detailed and considered analysis of the situation here:

http://libertyscott.blogspot.com/2011/11/greece-is-to-collapse-under-weight-of.html