Pasok Jeopardizes Greek Government by Refusing to Pay Twenty-five Euros

By Con George-Kotzabasis

The present politically negative stand of Pasok to the Samaras government introduction of the payment of twenty-five euros for medical treatment in public hospitals for those who can afford to pay it is utterly unwise and politically reprehensible and condemnable as it could destabilize the coalition government of New Democracy and Pasok. The latter must realize that its political fortune and éclat is tied up solely with the success of the Samaras government in pulling the country out of the crisis and by putting it on the trajectory of economic development and hence to the gradual reduction of unemployment, and not on any ephemeral gains, on the polls. In the event which is most unlikely that the electorate will not render to Pasok the justified plaudits for the economic success of the government, history will pass the ultimate judgment and write in golden letters the prudent participation of Pasok in the formation of the Samaras government as its ultimate contribution toward saving Greece from economic and political catastrophe.

This stupendous success of the Coalition Government will erase all other parties, from Syriza to the Golden Dawn, from the electoral map and will be their Nemesis for their sinister and perfidious populist policies that shamelessly deceived a sizeable part of the people by their totally false promises and completely screwball inapplicable policies. Only New Democracy and Pasok will reap the fruits of this tremendous success that had prevented Greece from falling into the abyss of disaster. It is for this reason that Pasok must immediately cease its adverse stand toward the twenty-five euro payment whose raison d’etre is the restructuring of the medical system so it can render better services to its more indigent patients.

Serious economic analysts both within and outside Greece are forecasting that the country by the end of 2014 will be out of the economic crisis as a result of the painful but necessary austerity measures that the Samaras government had taken, by reducing the public sector that impeded economic growth, by privatizing public corporations, and by making the economy more competitive and entrepreneurial. Hence the prudent policies of the Samaras government would draw foreign investment into the country that in turn would lead to the resurgence of the economy and for the first time in six years 2014 would show, according to economic predictions, a fiscal surplus and a small growth of 0.5 in Gross Domestic Product.

Needless to say political stability is a prerequisite for starting a spree of investment. Pasok by foolishly shaking this stability for electoral interests apparently seems to be unaware that by doing so it hinders and discourages indigenous and international entrepreneurs from making any investments that are so vital for the economic recovery of the country.

It is this great achievement of the government in pulling Greece out of the crisis that Pasok in an unprecedented conduct of political frivolity could jeopardize by refusing to pay a twenty-five euro fee for treatment in a public hospital, which could bring about the collapse of the Samaras government.

Greek Academic Deprecates Bailout of Greece

By Con George-Kotzabasis December 2, 2012

Professor Varoufakis, certainly you may be right but only “figuratively” so, that according the incongruity of the figures you presented, if they are correct, will not lead to a reduction of debt by 40 billion Euros and will not change the fate of Greece in its insolvency. However, outside your numbers, absent in your analysis is the human factor, which obviously you tend nihilistically to underestimate, and indeed, to nullify, in its power to learn from its mistakes and transform things.

Your argument rests on the premise that only you can learn from your errors, as the serial revisions of your ‘Modest Proposal’ have shown since its birth, and that the governing class of the Euro-zone and its technocrats, including the IMF’s, are inherently unable to do so and are fatefully stuck in their continued wrong policies without a ‘smidgeon’ of a chance of contributing toward the resolution of the Greek crisis. The breathing space that Greece has been given by the Troika in this bailout can be used by the decisive, resolute, and imaginative Samaras’ government to create the right conditions by the restructure and privatization of the economy and its efficient operation both in the private and public sphere and hence turn the country into a centripetal force for investment that would rekindle its economy and put Greece on the trajectory of economic development.

Samaras endowed with strong attributes in the intellectual, spiritual, and moral field, has better than a chance to pull Greece out of its present tragic quandary. Indeed, he may turn out to be the Anagennitis (the progenitor) of the Greek Anagennisis (Renaissance), while you will be licking with relish the egg off your face.

Radical Left Experiments its Policies Using Greeks as Guinea Pigs

The jarring interests of reason and piety [read ideology] Edward Gibbon

By Con George-Kotzabasis

The radical left party of Syriza, led by its green horn, tongue in cheek, know-all adventurist leader Alexis Tsipras, armed with the omniscient Marxist ideology and holding with devotional piety the rosary of communism in both hands, is experimenting its policies using Greeks as guinea pigs. Against all reason and hope, it persists and is determined, if after June 17 it comes to be the new government, one-sidedly to denounce and repudiate the European Memorandum without risking the country’s exit from the Eurozone. Unable to see through the nebulous clouds of their ideology, the materialist Marxists cannot see the reality as embodied in the clear expressions of all European leaders, representing to a high degree the wishes of their constituents respectively, and high technocrats, that such denunciation of the Memorandum would immediately lead to the cessation of all financial help to the stricken country and to the latter’s inevitable return to the drachma and absolute poverty with catastrophic results to the standard of living of the majority of the population. This economic and social break-down of the country would spark a social war of all against all that would crack the foundations of democracy and on whose ruins would be built a fascist state, either of the left or of the right.

Moreover, their hopefulness that the European Union is bluffing and would not dare to turn the financial tap off as such a move would lead to the mutual destruction of Greece and Europe, is a Fata Morgana in view of the fact that all these leaders and technocrats have put their credibility and reputation on the line in regard to the exit, not to mention the other obvious fact that all the Wall Streets, and banks of the world, and evaluative institutions, such as Standard and Poor’s, and Moodies are showing on their financial electronic screens the great possibility of a Greek exit and are making preparations for it. To consider, as Syriza does, that all these political, technocrat, and financial actors are engaging and participating in a grand bluff against Greece, in regard to its exit from Europe, is to be a fugitive from one’s senses; and to ventilate such an idea among the Greek populace, is a gigantic falsehood.

The economic programme of Syriza as presented by its leader Tsipras on May 31, promises a horn of plenty to Greeks with the government’s coffers empty. It promises higher wages, higher pensions, and an extension of unemployment allowances from one to two years, an expansion in the employment of public servants, and full employment in a dateless future, without however indicating where it will find the funds to implement the above measures. Nor does it compute their costs, according to an admission of a prominent economist of Syriza itself. This is unprecedented in the history of electoral campaigns, as pointed out by Antonis Samaras, the leader of New Democracy, when a political party presents its economic policies to the electorate and admitting at the same time that they have not been costed.

This is a populist bag of gifts that only a Santa Claus could deliver to longing and credulous children. Syriza claims falsely that the expenses of these outlays for the above measures will be covered by taxing enterprises, ship-owners, and people on higher incomes, without however specifying the height of these incomes, and by imposing a levy on seven-hundred-thousand households with a net of 2,000 euros. In the present dire recession that the country is in and where enterprises can hardly show even modicum profits in their balance sheets, and where people with higher incomes have been inflicted by a cut of 50% in their salaries(Professor Yanis Varoufakis who teaches economics at Athens University and whose salary was cut by 50%, fled Greece and went to the United States), the claim of Syriza that it will have the funds from these sources to implement its promises, is a swindle of gargantuan magnitude of the Greek people. Moreover, this impossibility of funding its measures from these sources leads to the suspicion, as again pointed out by Samaras, that Syriza has a hidden agenda to impose taxes on ordinary people’s bank deposits and on private property.

Furthermore, Syriza pledges to reverse all previous commitments to privatization and go back to state ownership of all companies that were going to be privatized, and hence continue the increase of bureaucratization, thus bringing back to life all the deadly worms that in the past gnawed and eroded the economic foundations of the country that brought it to its present calamitous state. Also in its foreign policy it commits itself to exit from NATO and seek a new alliance in South America, with such countries like Venezuela and Nicaragua, which, with mathematical precision would lead to the ‘Cubanization’ of Greece as well as leave the country geopolitically defenceless. But this is not surprising since many of Syriza’s higher echelons are strong votaries of Fidel Castro, Che Guevara, and Hugo Chavez; birds of a feather flock together.

Syriza’s economic and political manifesto is a draft of dangerous irresponsibility and naivety, doctrinal dogmatism and blindness, and swashbuckling political adventurism at its best. With its policies, the fate of Greece’s future generations will be played on the green tables of a casino with Alexis Tsipras playing high stakes poker–which, according to a latest interview he gave on American television, he loves–with other people’s money, and all he has to lose is Greece’s future.

Greece: Democratic Left Lost its Courage before Great Danger

By Con George-Kotzabasis May 12, 2012

At this critical juncture for Greece whose fate is at stake and the formation of a unity government is imperative, the resolution of the latter’s impasse is in the hands of Fotis Kouvelis, the Leader of the Democratic Left, since the foolish, historically ignorant, hubristic, and unimaginative stand both of Syriza and the Communist Party (CP) to neither participate nor support a coalition government that will be condemned and discredited for many years to come for their politically barren obduracy, only Kouvelis who holds the key to the problem of forming a coalition government can prevent the country’s exit from Europe and at the same time as the embodiment of the ANANEOTIKI Aristera (Renewed Left), can salvage the political ideological credibility of the Left in Greece that is threatened to be obliterated by the doltish position of Syriza and CP.

The constant designated desire of a majority of the Greek people before and after the election was for the parties to form a coalition government and to remain in the Eurozone; also an overwhelming majority of people do not want another election. In the face of this bulky 70% wish of the people to have a coalition government and to stay in Europe, Syriza’s hope that by contravening the wish of the electorate it will increase its electoral percentage and be the first party in a second election is unwarranted and is a chimera. On the contrary a party with foresight, imagination, and daring can see that by fulfilling these strong wishes of the majority the chances are greater for such party to increase its votes than to be condemned for its participation in a coalition government with New Democracy and Pasok as Tsipras, the leader of Syriza, attempts to frighten Kouvelis. Especially when the setting up of such government is based on two conditions, (a) remaining in Europe and (b) to the extent possible radically modifies the Memorandum.

When your house is on fire you don’t ask who was responsible for it. The first thing you must do is to put the fire out before it burns your house with all those who are ready to help you. The historical and wise responsibility of Mr. Kouvelis is to cooperate with those parties which strongly want to save Greece from leaving Europe and prevent the absolute poverty that such departure would afflict the country.

The stupid and historical irresponsibility of Syriza must be countervailed by the wise, and historically daring, decision of Fotis Kouvelis to form government with New Democracy and Pasok despite their past misdeeds. It ‘s up to Kouvelis to cut this Gordian knot of Tsipras obstruction to the formation of a unity government and whether in the historical annals of Greece his name will be written in gold letters or in black charcoal.

Regrettably Kouvelis failed to cut the Gordian knot of Tsipras that obstructed a unity government and form a coalition government with New Democracy and Pasok without the participation of Syriza. He proved to be too weak to cross the intransigent and verboten line of Tsipras non-participation and boldly form government with New Democracy and Pasok at this critical time for the country. Intelligence without moral strength is useless in politics. Kouvelis’ repeated ‘rehearsal’ of an Ecumenical government, in which Syriza constantly and invariably refused to be part of it, by obdurately and stupidly sticking to it to the end became a farce. History will not be kind to him for this remarkable dereliction of duty and lack of courage before this great danger of the country when the question for it is to be or not to be, and he will be justifiably and appropriately be condemned for his obdurate refusal and failure of character to play a major part in salvaging Greece from its deadly woes that put at risk not only the economic but also the democratic existence of the country.

Professor Varoufakis Proposes a Silent Axis between France and Greece Contra Germany

By Con George-Kotzabasis May 10, 2012

It’s interesting that you don’t mention one word about your one night stand with your inamorata Tsipras, the Radical Left leader of Syriza. But it’s obvious that Hollande replaced the latter in your gyrating amours, after the politically and economically inane and embarrassing post-election statements of Tsipras. And it won’t be long before you will be disappointed with President Hollande too with his dealings with Germany and you will be looking for a still more exotic paramour.

You are mired in the past when you still consider that the European leaders continue to push the austerity programme for the southern European countries as the sole measure of getting them out of the economic crisis. In the new economic orchestration of Europe the ‘soloist’ austerity no longer jingles. All the major European leaders, Jose Barroso, Olli Rehn, Chancellor Merkel, Wolfgang Schauble, the top technocrats, Christine Lagarde, Mario Draghi, and Mario Monti, are talking now about economic recovery and growth without which austerity cannot succeed. Thus they have all taken their cue from Antonis Samaras who was the only statesman that sounded this syndrome of austerity and growth two years ago and had quarrelled with Merkel and Sarkozi, for which he had been severely criticised and disparaged by politicians and the media, such as The Economist. All of them however admitted subsequently that Samaras was right. Hence there is already a sounding axis between Greece and the whole of Europe due to the intercession of Antonis Samaras. Moreover, Samaras warned the European leaders that the policies of the first Memorandum would change the political configuration of the country, as they would both give rise to the forces of the extreme left as well as lead to the break-up of social cohesion which in turn would make the country un-governable. These warnings were tragically verified in the elections of May 6. And I pose the question, why Professor Varoufakis you lack the nobility and courage to give credit where credit is due, to Samaras?

You seem to be obsessed with your toy The Modest Proposal that would drag Europe out of its crisis, and not finding any other children to play with it, you have turned into a surly and cantankerous little boy. Since, as its sire along with Stuart Holland, you flagged it more than a year ago you have made so many ‘bastard’ revisions to it, that it has become difficult to identify the ‘true father’. But one thing is for sure, that in your vainglorious pursuit to persuade governments and bankers to adopt it, you will miserably fail. Your Modest Proposal was always a flying kite that would inevitably take its nosedive.

In the Thunderous Sky of Greece a Lightning Bolt of Creative Destruction is about to Strike the Country

By Con George-Kotzabasis April 27, 2012
History has shown that at critical moments, in countries of advanced and high culture, men of stupendous ability, imagination, foresight, and fortitude, sprang, like phoenixes from the ashes, to salvage their countries from mortal threats. Themistocles at the battle of Salamis that saved Greece from the barbarian Persian invasion, is one example, the other is Charles Martel, who at the battle of Poitiers stopped the barbarian Muslim invasion from conquering Europe. In our modern contemporaneous times, Greece, on the verge of being devoured and crashed by the ‘hungry fangs’ of default and economic poverty, is just as promptly to be saved by a modern-day Periclean statesman, Antonis Samaras.

In the early 1980’s, with the advent of Andreas Papandreou’s socialist government in power, which proved to be the destructive force that brought Greece to its present catastrophe, that immediately started implementing the serial economic crime of a policy of deficits, the country entered the vicious circle of government spending without economic development. By the early 90’s it was glaringly clear that the debt of the country was reaching astronomical heights that would lead it to the precipice of default and bankruptcy. In 1994, Constantinos Mitsotakis, the former prime minister of Greece, in a prophetic speech in Parliament, predicted that the economically crass and thoughtless policies of Pasok would send Greece as a mendicant to the International Monetary Fund to spare it from pauperism. Andreas Papandreou himself was shocked when at a sober moment glanced at the unfathomable debt that the country was in, as a result of his dirigisme economic policies. It was in his presence when his minister of finance Kostas Simitis remarked, in an accusatory and pungent phrase, that this was “the revenge of the economy.”

The false prosperity that had engulfed Greece turned a sizable part of its population to indulge in the charms and seductions of dolce vita at the expense of government largesse. A whole generation of Greeks had been spoiled and became kaloperasakides (the easy life of prodigally good-timers) under the perpetual munificence of the State. In such a social situation the New Democracy party, though imbued with the precepts of The Austrian School of economics versus Keynesianism, and realising, as its leader Constantinos Mitsotakis did, that the country was approaching in a rapid pace the edge of insolvency, had its hands politically manacled and could not implement decisively and with celerity, and with the necessary degree required, policies of economic restraint that would have prevented the transformation of Greece into a mendicant status, since there did not exist even a small constituency on the political landscape of Greece that would contemplate, least of all accept, policies of austerity. The Greeks had been ‘pathologically’ conditioned to the ‘benefits’ accruing from big government, introduced by Andreas Papandreou, and any attempt to small government by any party in power or any opposition propagating such an idea, could neither hold or win government. Who would give up the ‘free tans’ in sunny Greece that so profusely and generously the State was providing? And who would give up the cushy and loafing jobs in the public sector that the party boys and girls of Pasok and New Democracy were enjoying and relishing? This is the point from which the economic tragedy of Greece had started and would continue to its tragic end.

Thirty years of frivolous public spending brought debt-to-GDP ratio of 120%. Since October 2009 when the son of Andreas Papandreou, George, became prime minister and implemented measures of severe austerity as directed from Brussels in the first memorandum, debt reached 168% of GDP. With the continued recession of the country for the fifth year, Greece lost 16%–18% of its GDP since 2009.
From early 2010 the Opposition leader, Antonis Samaras, few months after his election as leader of the New Democracy party, was warning the Papandreou government of the danger that the austerity measures without economic recovery would lead the country into recession. But his was a lone voice in the wilderness. And for his bold and insightful decision to oppose and vote against the first memorandum replete with the leaden heaviness of austerity that would sink the Greek economy as it did, he was vehemently reprimanded both from within and outside the country. The Economist magazine severely criticised him for his stand against the memorandum but only to lament its critique two years later and concede that Samaras was right. Likewise, Chancellor Merkel and many European ministers with whom Samaras had quarrelled and pointed out to them that austerity measures without rekindling the economy would not resolve Greece’s problem but would make it more abstruse and harder to crack. It took two years for the top brains of Europe to realize that the austerity pills that they were forcing into Greece’s mouth to remedy its ills would have the effect of poisoning its body. (In two years of the severe austerity of the Memorandum, as we indicated above, Greece increased its debt to GDP by a great amount and lost a substantial part of its Gross Domestic Product as enterprises closed and unemployment ravaged the country.) And in turn, like The Economist, admitting that Samaras had won the argument, as all Europeans now are calling for economic recovery and development, supplemented by austerity measures that are necessary, as the way to restore a country’s economic strength.

The May 6 Elections of Greece Crucial for the Future of the Country

The impending election that has been called by the interim government of Lucas Papademos for May 6 is of momentous significance for the future course of the country. Greeks will be called to be partisans of the hard climb to the peak of Mt Olympus from where the sun of hope will rise once again over Greece or be partisans to a free fall in a long twilight of despair. The first is the thunderous call of the New Democracy Party under the Gulliverian and imaginative political leadership of Antonis Samaras, and the second is the deathlike mute call of a congeries of small parties from the left and the right led by Lilliputian politicians. These politically ‘pigmy’ parties, among which is the Communist Party, have no policies of rescuing Greece from its woes, except policies that would lead to the exiting from the European Union and return to the drachma that would lead in turn to the absolute poverty of the country, deliberately drop the curtain on all hope on Greece as their sole aim is to sordidly profit politically by their investment in hopelessness.

The socialist party, Pasok, the main opponent of New Democracy, although on the side of hope, even under the new leadership of Evangelos Venizelos, is totally discredited, as it has been the party that led Greece to its present catastrophe by a bout of unbelievable and unprecedented economic and political mistakes, that Venizelos himself was involved in and responsible, during the last two years that was in government. Moreover, the latest decision of the High Court of Greece to apprehend and charge a former luminary of Pasok and right-hand man of Andreas Papandreou, the founding father of the Panhellenic Socialist Movement, Akes Tsohatzopoulos, his wife and daughter, and some of his relatives, with bribery and corruption and with being the receiver and beneficiary of millions of dollars as paid commissions, during his tenure as minister of defence, from German and Russian companies to which he had authorized major assignments and projects of his department, has indelibly marked Pasok as venally corrupt; particularly when its present leader Venizelos, at the initial investigations of Tsohatzopoulos, with the stentorian voice of the lawyer, that he is, was defending and exculpating from any knave dealings, and with the usual catch-all alibi of the typical politician, that the “accusation against Tsohatzopoulos was politically motivated.” Hence, inconceivable political incompetence and culpability, and unfathomable corruption on the part of Pasok, will be two major themes that will dominate the elections and which will ineluctably lead to new lows in the polls for the socialists.

In this critical economic and political setting that the country is in and the looming threat of the breaking of social cohesion, Samaras is asking the Greek people to give New Democracy the “auto-dynamism,” by a majority of votes in the elections, so he can have his hands untied to govern the country with decisiveness and clear uncompromised policies that would put Greece on the trajectory of economic recovery and development. He argues cogently, that in the present political situation of Greece when consensus about the necessary economic policies among parties of how to regenerate the economy of the country is absent, a coalition government–which is the designated position of Pasok and according to the polls at this moment the desire of a majority of the electorate–will be politically impracticable, and more importantly, would not drag out the country from its peril but would further engulf it into profounder depths; as one could not govern effectively a country in a crisis and gradually bring it out of it by being compelled to make compromises to one’s political partners, but only by a well-defined plan and decisive and prompt action to implement it without compromises, by a leader who has a strong mandate from the electorate.

Samaras believes, and reasonably hopes with the confidence of a statesman, that during the electoral period and closer to election date, there will be a dramatic shift of voters toward polarized positions, once the crucial issues of the country are spelled out clearly and without lies to the people by New Democracy and by foreshadowing the practical economic policies backed by real numbers that would put Greece on the track of economic recovery, there is a great chance that the majority of Greeks will give New Democracy a strong mandate to govern on its own for the benefit of all Greeks and for the salvation of the country.

Samaras contended long ago, that only through a clear strong authorization given to him by a majority of the people he would be able to radically change Greece. For real economic development entails not only good policies and incentives but a transformation in the views and customs of people toward such development. He puts great emphasis on the value of human capital and entrepreneurship as the prerequisites for the economic recovery of the country. That is why he has promised to re-legitimize private enterprise and effort that for many years now has been delegitimized in the country by communist-led unions, to whom profit has been, as always, the devil-incarnate of the capitalist free market.

The present high unemployment of more than 20% Samaras contends, will not be reduced by mere lower labour costs which already have been decreased by 15% in the private sector while the tax burden on the latter has increased by 50% and energy costs by 450%. Even if Greeks worked for free no one would hire them with such high taxes and energy costs. Samaras in his Zappeio III speech few days ago declared that he would cut corporate tax to a flat rate of 15%, sharply cut pay-roll tax, lower personal income-tax to 32% maximum, and reduce taxes substantially on fuel and tourism. This would harden rampant tax evasion and would unleash the creativity of the private sector and hence commence the gradual reduction in unemployment. He also announced, that he would increase the lowest pensions to 700 euros per month–that were reduced drastically by the second Memorandum under the austerity measures–and would increase the endowment of families with many children which would not only correct an injustice inflicted upon these two weak sections of society but would also have favourable economic consequence as they would increase consumer demand, which is so important in rekindling the economy, as both recipients of this government assistance spend their money in consumer goods. He would do these two things without increasing public expenditure and hence worsening the deficit, but by cutting government wastage that is so massive and profligate in the State’s spending. Further, he will provide incentives to private enterprise in areas where Greece has almost unchallengeable comparative advantage, i.e., in the merchant marine sector, ship building, and tourism; and in the production and merchandise of olive oil and other agricultural goods by the local producers themselves, not by foreign ones as is the case presently, whose development in all the above sectors will vitally affect the resurgence of the economy. He also proposes to provide incentives to entrepreneurs to exploit the rich mineral resources of the country and to give priority to find and tap the vast natural gas deposits under the Aegean Sea, by declaring the Greek AOZ (Exclusive Economic Zone) that could transform the export dynamic of Greece. He intends further, to reverse the present dryness of liquidity in the country by proffering amnesty from any legal penalties to those who withdrew their cash holdings from Greek banks during the height of the crisis and deposited them overseas once they bring them back to the country; and also by immediately paying back the 6.5 billion euros that the government owes to domestic enterprises; these two measures would increase the liquidity of the banks and hence their ability to provide loans to the private sector, especially to small businesses, that are the backbone of the country’s economy. Moreover, the re-capitalization of the banks, Samaras argues, will enable them to borrow funds at low interest rates from the European Central Bank, that were set up by it last December, which would be used to put Greece on the track of recovery and economic development.

It is by this method of supply-side economics, as that wunderkind Alders Borg the Swedish Finance Minister illustrated for his own country that Greece’s economy will rise again. The necessary austerity measures stipulated in the new Memorandum that Greece has to implement must be accompanied by the rejuvenated “animal spirits” of private enterprise. Samaras, consistently has been saying for the last two years that “we need a recovery to jump-start the economy,” and in conditions of recession austerity measures cannot stimulate the economy but on the contrary sink it deeper into stagnation.

The vision and plan of Samaras is to plant radical changes on the whole landscape of Greece. In his Zappeio speech he adumbrates constitutional changes that would separate the three branches of government the executive, the legislative, and the judiciary and thus prevent a member of parliament from being a minister, which has been in the past a malignant link of political corruption and has bestowed ‘asylum’ to members of parliament for their malfeasances. He pledges to bring changes to educational institutions that would reclaim the proud heritage of Greece that tragically has been eroded by the cultural relativists of a left coterie of pseudo-intellectuals and led to the disconnection of many young Greeks from their great cultural origins. He also promises to take drastic measures against illegal migrants, whom he calls “unarmed invaders” of Greece that under the soft immigration policies of Pasok they have occupied the main centres of cities, and remove them to provincial hostels until their eventual expulsion. Another important commitment of Samaras is to transform the bon vivant ethos of many Greeks, which up till now its tab has been picked up by the government, into a creatively productive one. On the new green tree planted by New Democracy, the singing cicadas will be replaced by fecund working bees. As Samaras is fully aware that sustainable economic development cannot be accomplished without transformative changes in the thinking and the mores of the people, especially of the younger generation.

Samaras is “framed in the prodigality of nature,” to quote Shakespeare. He is endowed charismatically both with a high intellect and remarkable moral strength along with the will and determination—all the stuff out of which statesmen are made–to change all things in Greece. But whether this lightning bolt of creative destruction will strike Greece or not depends on the strong mandate that he needs from the people. If Greeks do not fail, at this critical juncture, from fulfilling their historical duty to render to New Democracy a majority of seats in Parliament, then Antonis Samaras, in turn, will consummate the cultural political and economic Renaissance of Greece.

Hic Rhodus hic Salta

Radical Leftists are all Millenarian

By Con George-Kotzabasis

Historically and by definition all from the left are millenarians who being terrified with their capitalist nightmares are countervailing them with their millenarian dreams. And if you don’t dream Marxist ‘dialectical’ nightmares but only Kant’s dream of “Eternal Peace,” der Ewige Friede, then that still makes you a millenarian.

All men/women of reason abhor war. But sometimes war is necessary to prevent a greater catastrophe. And it is through war and strife against the enemies of humanity and freedom that mankind can achieve relative stability and peace. “Nothing for nothing,” to quote the economic historian David Landes. I, like him, “prefer truth to goodthink.”

Is the European Central Bank the Shy Bride of Lender of Last Resort?

By Con George-Kotzabasis—December 1, 2011

It goes without saying, that merely a new European treaty, as proposed by Chancellor Merkel and President Sarkozy, no matter how strong its teeth, will not resolve the crisis. But the solving of the crisis might lie in a fecund combination of new rules to be observed strictly, and new bold economic measures, including the ECB as lender of last resort. And Mario Draghi’s hesitation might only be a ruse. His guise of being the shy bride of decisive intervention might only be a pretension, and he may surprisingly shock everybody by sprightly stepping boldly and marrying the groom of lender of last resort. This unexpected nimble move from shyness to boldness will be a powerful incentive to rally the markets behind the Eurozone. And one might not dismiss lightly that “magic” and a Deus ex machina might have a role in this tragic play.

P.S. Since the above was written, Mario Draghi lowered the discount rate of the ECB to 1% and distributed to European banks nearly 500 billion euros to lend to their customers. This is equivalent of using the instrument of lender of last resort by the ECB although doing this by roundabout means and not in a formal manner. And apparently this bold and imaginative initiative of the ECB has stabilized the European markets.

Obama as Community Organizer was Enforcer of Easy Loans to Non-Credit Worthy Borrowers

By Con George-Kotzabasis

On the crucial measures that could have prevented the “easy” loans that fomented the present economic crisis (Easy come easy go) that were provided under the Community Reinvestment Act the Democrats in Congress voted against them. Obama as community organizer was threatening of suing banks if the latter were unwilling to provide these loans to non-credit-worthy customers. And regrettably many Americans are losing their houses and their jobs now–because of the allure of these easy loans.

In Greece Political Midgets on High Wire Act

By Con George-Kotzabasis—November 02, 2011-11-02

Political midgets, a la Papandreou, have chosen to take the risk of the high wire act by this proposal of the referendum. Hoping that the people will vote for the lesser of two evils, i.e., accepting the debt deal as formulated in Brussels last week and rejecting default and departure from the euro zone. At a time when strong leadership is a prerequisite for diminishing the crisis that Greece is facing, Papandreou abdicates his own and passes it to the people through this future referendum. It’s as if the polloi had somehow a better knowledge and understanding of the critical dimensions of the economic situation and could provide a better solution to the crisis than the expertise of the economically and politically savvy.

Once again politicians, who are more concerned of holding power than of the future of their own country, are ready to prostrate themselves before and pay homage to the idol of the Demos. Papandreou facing in Parliament a no-confidence vote and the ousting of his government promptly announced a referendum that would decide the future of the country, hoping that this would allay the anger and opposition of the people against the austerity measures, imposed by the EU, and at the same time put an end to the disarray within his own government that itself stems from the revolt of the people. It’s clever politicking to avoid defeat and save for him the prime ministership. But he is doing this at the expense of the future well being of the country, as it would take years for Greece to recover from the shock of a default if the electorate voted for it, which is highly likely. This is no less than the revisiting of the ‘sinful’ genius of his pere who himself was the preeminent progenitor of the economic ills that Greece is presently plagued with. The fils merely continues , like father like son, the ‘sins’ of his sire in a more acute form and projects them into the future.

World Bank president, Robert Zoellick said that “if voters reject the plan, it’s going to be a mess.” Economists claim that the immediate effects of a default would probably be a 20 percent to 30 percent drop in domestic demand and a fall of 5 to 10 percent of domestic product. Evangelos Venizelos, the Finance Minister, and his deputy broke ranks and opposed the referendum, saying it would jeopardize Greek membership in the euro zone. Ilias Nicolakopoulos, professor of political science and close to the governing socialist party, stated that a “referendum would put the country in danger of blowing everything up.” In contrast, Henry Ergas writing in The Australian, on November 3, 2011, “Greek Vote a Banana Republic Moment,” praises Papandreou for having the “balls” to propose the referendum, and compares him to the gutsy warning of Paul Keating’s “Banana Republic.” He says, that “to call a referendum on the austerity program is hardly irrational. But he adds the caveat, “true, it is a gamble, and a risky one.” Nonetheless, “the best hope of what comes next must lie in securing a genuine popular mandate.”

Regrettably, however, Papandreou’s proposal of a referendum does not rise from his “balls” but from his impotence. Unable to lead and convince the country, as a weak leader, to accept the inevitable “scenario, Greece must face a lengthy period of austerity and structural reform,” Papandreou passes this leadership to the impassioned people to decide whether to accept or not this scenario. Professor Ergas’ quote of Sophocles, “truth is always the strongest argument,” though generally accurate, is misplaced in the context of a long corrupt electorate that the fiscal profligacy of past governments accustomed it to indulge in ‘free suntans’ in sunny Greece. In such circumstances, the only truth that this pampered electorate will accept is the continuation of these free suntans at public expense. And that is why they will vote NO to austerity measures and thus turn the referendum into an ogre for the future economy of Greece.

Fortunately the proposed referendum like the balloon it was fizzled out within twenty four hours. Under external and internal pressure Papandreou reneged his proposal and withdrew it. Tonight (November 4, 2011), he places his fate on the lap of the god, parliament, on a confidence vote. Even if he survives by the smallest margin his prime ministership is foreclosed.

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