Mitchell’s laws: The more budgets are cut and taxes increased, the weaker an economy becomes. Until the 99% understand the need for deficits, the 1% will rule. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Austerity = poverty and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
Yes, that’s what the headline read: “A win ‘for all Europe.’” Not a win for the Greek people, of course. They will continue to suffer — worse. The words “all Europe” are a synonym for “European banks and rich people.”
Greek vote: A win “for all Europe.”
By Anthee Carassava and Henry Chu, Los Angeles Times, June 17, 2012, 11:56 p.m.
ATHENS — The conservative New Democracy party eked out a slim victory in Sunday’s parliamentary elections over Syriza, the radical-left group that vowed to ditch Athens’ multibillion-dollar rescue deals and the harsh austerity measures they entailed. European officials had warned that such a move would result in Greece’s expulsion from the Eurozone.
Translation: Syriza is “radical,” because it doesn’t want Greek citizens to continue suffering “harsh austerity measures,” and because they think a return to Greek Monetary Sovereignty would be a bad thing.
Time is of the essence as recession and social deterioration worsen in debt-ridden Greece. Gripped by political instability since an inconclusive election last month and burdened with an increasingly dysfunctional government, the country is in danger of slipping further behind in meeting the deficit-cutting targets demanded by its creditors, spurring speculation it may yet have to seek its third bailout in three years.
Translation: We don’t care about Greece and the Greek people. All we care about is whether Greek will pay its creditors, mainly the banks.
Antonis Samaras, the New Democracy leader and potential new prime minister, urged his rivals to join him in a new government dedicated to promoting economic recovery.
Translation: Economic recovery is defined as Greece borrowing more, and Greek citizens having less.
He said that Greeks had voted “to stay anchored with the euro, remain an integral part of the Eurozone, honor the country’s commitments and foster growth. This is a victory for all Europe.”
“Anchored” is the operative word, as in trying to swim while tied to the anchor of monetary non-sovereignty and debts in a foreign currency (the euro).
The results also confirmed the stridently anti-austerity Syriza as Greece’s main opposition party, consolidating its breakthrough second-place finish in last month’s voting, which shocked many Greeks and other Europeans as well. The party’s leader, 37-year-old Alexis Tsipras, now has an official platform from which to keep up his populist hammering at the bailout agreements and to strengthen his power base among young people and others fed up with cronyism and corruption in Greek politics.
Translation: Being anti-austerity is “strident” and “populist,” while wanting the Greek people to continue falling deeper and deeper into debt, unemployment and depression is economically “stable.”
Locked out of the financial markets, Athens has had to accede to brutal spending cuts in exchange for foreign loans to stay afloat, including a $145-billion bailout package in 2010 and a second rescue deal last year that was worth $170 billion. The country is into its fifth consecutive year of recession, a breathtaking economic contraction marked by galloping rates of unemployment, poverty and homelessness.
Translation: Greece can’t pay its debts. So it gets to be more indebted to eurozone loan sharks. This increasing pauperism amazingly causes recession and economic contraction, unemployment, poverty and homelessness. Who’da thunk it?
European capitals greeted Samaras’ victory with relief and a hint that they might be willing to bend a little, perhaps by offering Greece more time to meet its spending and loan-repayment targets. Within weeks, Athens is supposed to detail about $14 billion in further budget cuts.
Translation: After five years of recession, Greece has cut away all the fat and all the meat and drained all the blood, and now must slice off pieces of the bone. But we’ll give them more time.
In a joint statement, Eurozone officials said they remained “convinced that continued fiscal and structural reforms are Greece’s best guarantee to overcome the current economic and social challenges.” But Foreign Minister Guido Westerwelle of Germany, Europe’s de facto paymaster, told German radio that, though “there cannot be substantial changes to the agreements,” he could “well imagine talking again about timelines.”
Translation: So long as Greece finds some way to pay its debts to the banks, we really don’t give a damn how they do it.
The White House issued a statement expressing hope that Sunday’s results would “lead quickly to the formation of a new government that can make timely progress on the economic challenges facing the Greek people.”
Translation: We believe in magic. It’s the same magic that somehow will grow the U.S. economy if we cut our federal deficit spending.
And then there was this article:
Germany to cut Greece slack after vote backs bailout
Stephen Brown and Annika Breidthardt, Reuters, 9:25 a.m. CDT, June 18, 2012
BERLIN (Reuters) – Germany may cut Greece some slack after its voters backed a pro-bailout party in weekend elections, with officials saying Athens might get more time to meet its savings goals, though longer-term economic reforms were still set in stone.
German officials, seeing the conservative New Democracy’s win as a vote to keep Greece in the euro zone and respect the terms of the European Union and International Monetary Fund bailout, struck a conspicuously softer line.
However, a Berlin government spokesman made clear there was no question on going back on key economic reforms to slim down the public payroll, close loss-making public enterprises, privatize state assets and crack down on fraud and tax evasion.
Translation: “Slim down the public payroll” means fire lots of people, which should help cure unemployment. “Close loss-making public enterprises” mean cut government stimulus spending, since all government enterprises are “loss-making.” “Privatize state assets” means selling state assets to the wealthy, for two cents on the dollar. “Cracking down on fraud and tax evasion,” means to extract more money from a private sector already starving. And Greek people, if youse rats don’t do what you’re told, we’ll bust your kneecaps.
Sounds like a great formula for economic recovery.
The question is: Why would the Greek people vote for a government that has announced it will continue austerity, only worse, while making sure the banks are taken care of? Answer: For the same reason the American people continue to back the Tea/Republicans. Economic ignorance, created by the brainwashing paid for by the upper 1% income.
It’s a mad, mad, mad, mad world.
Rodger Malcolm Mitchell
No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption + Net exports