Commentaries (some of them cheeky or provocative) on economic topics by Ralph Musgrave. This site is dedicated to Abba Lerner. I disagree with several claims made by Lerner, and made by his intellectual descendants, that is advocates of Modern Monetary Theory (MMT). But I regard MMT on balance as being a breath of fresh air for economics.
Sunday, 28 June 2015
Self pitying, deluded, victimhood seeking drivel from Tsipras.
The first para of his speech reads:
"For the past six months the Greek government has been giving battle in conditions of unprecedented economic asphyxiation, to implement your mandate, of Jan. 25. It was a mandate to negotiate with our partners to end austerity and to restore prosperity and social justice to our country."
End of austerity? Well that sounds great. Every simpleton will back the abolition of austerity. But how exactly do you do that ? In particular how does one deal with a particular country’s lack of competitiveness in a common currency area without imposing austerity for a period and with a view to cutting it’s costs and thus improving its competitiveness?
For every hundred people putting on a public display of weeping and wailing about austerity only about one has any interest in think thru workable solutions to the problem. After all, working out practical solutions involves hard work and thought (shock horror).
The reality is that in a common currency area there is no alternative, though a possible alternative is fiscal union. But that ALSO requires generosity on the part of richer or more competitive countries, and if that generosity is not there under the existing regime in the EZ, it probably won’t be there in the case of fiscal union.
Later on he says:
“These proposals clearly violate European social rules and fundamental rights to work..”
Wow. So Tsipras knows how to guarantee everyone the “right to work”? Hilarious. The idea that any politician, especially deluded leftie politicians know how to guarantee everyone the “right to work” is straight out of la-la land. Next:
"To this blackmail-ultimatum, for the acceptance on our part of a strict and humiliating austerity (proposal), and with no end to it in sight nor with the prospect of allowing us to ever stand on our feet economically or socially..."
Tsipras: you’re free to “stand on your own feet” any time you want, you faux cripple, in the form of getting your self your own currency, i.e. returning to the Drachma. But that involves an element of RESPONSIBILITY doesn’t it? And Greeks just HATE responsibility. E.g. Greeks are the world’s worst tax evaders. Plus they’re the world’s experts at cheating creditors, not to mention cheating their way into the Eurozone in the first place.
Irresponsibility is much preferable: that’s irresponsibility in the form of borrowing billions, burning your way through it and then crying wolf when creditors want their money back. But credit where credit is due: borrowing money and not paying it back is VERY PROFITABLE. You get top marks for chutzpah.
For banksters, wheedling billions of dollars of taxpayers’ money out of politicians is child’s play. So in a sense you can’t blame banksters for doing that. Likewise, Greeks can’t be blamed for trying to wheedle billions out of gullible North Europeans.
"Greece is, and will remain an indispensable part of Europe… "
No: Greece has about 3% of the EU’s population. No group of people making up just 3% of the population of Europe are indispensable to Europe. The cities of London and Paris have about the same population as Greece. Neither of those cities are “indispensable” to Europe.
If Islamic State let off a nuclear weapon in London or Paris, something they’d dealy love to do of course, and wiped out the population of those cities, Europe would carry on. And if the entire population of Greece emigrated to central Siberia, there’d be a huge sigh of relief in Northern Europe and Europe would carry on.
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