The Samaras Government by stupendous, sagacious, and painful efforts, and by using “conventional economic weapons,” is pulling Greece out of its economic crisis. For the first time after four years, Greece next week will be able to borrow funds on the international financial markets.
I’m republishing this short reply that took place early in 2012, for the readers of this blog.
By Con George-Kotzabasis
A reply to Bruce Wilder, suggesting default for Greece and Italy as the remedy for their economic crisis.
In serious discussion it is wise to enter it carrying a sieve in one’s hands to separate the wheat from the chaff.
Your crystal clear “efficient calculating machine” that would implement your proposal of default, would be no other than a wise, brave, imaginative, and humane technocrat. So what exactly you have against technocrats? They are OK if they adopt your plan and only transported to Hades in toto for their ‘mortal sins’, if they don’t! Default was and is always an option. The distinguished economist Deepak Lal and exponent of the Austrian School of economics, long ago suggested such a schema. Lucas Papademos and Mario Monti, Prime Ministers of Greece and Italy respectively, both presumably have this option in their arsenal to be used as a last resort if everything else fails. But before they use this ‘nuclear’ option, they must try, and be given the right by all objective analysts and commentators, to resolve this economic crisis by ‘conventional’ means that could avoid a default which would open a big hole in their countries GDP and throw their people into pauperization for decades to come.
The author Dilip Hiro is thoroughly confused between Iran without a bomb, obviously his optimal position, and Iran with a bomb when on the one hand he states, and inexpressively hopes, that the National Intelligence Estimate finding is correct that Iran has “ceased working on a nuclear military program,” and on the other, when he believes that we could live with a nuclear Iran. But he doesn’t realize that to live with a nuclear Iran is to live with the widespread proliferation of nuclear weapons in the region, as Egypt, Saudi Arabia, Iraq, Syria, and Libya mount the horse of the nuclear race. This is where the catastrophe of astronomical dimensions lies and not in a pre-emptive attack on Iran.
He is also ‘fatefully’ pessimistic about any positive results issuing by such an attack and focuses his attention, rightly so, on its dire repercussions that could lead to a conflagration of the region. In my opinion however, he underestimates the strategic nous of the planners of such an attack that would target not only the nuclear plants of Iran, such as Natanz, but also the military, civilian and religious leadership of the country with the aim of decimating it. If the latter somehow miraculously escaped its destruction and took retaliatory action against the Americans or on any other countries of the region then such action would be calling for Iran’s total destruction.