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| Inevitable: A New Round of 'Harsh' Austerity |
Will
Greece become the first 'socialist' nation in the EU to default on it's debt, bringing a Lehman-style crisis to Eurozone financial market? If there is no '2nd Bailout' led by Germany and France, then yes, a default on debt is likely. Such a default would lead to a meltdown, affecting every financial player on the planet. So, what's to stop this incipient meltdown? Why couldn't Greece get a bailout?
Because Greece is socially and politically f*cked up, and it's obvious to anyone who would look. There's internal pressure from the citizens to push back against sensible austerity measures that are necessary for Eurozone nations to approve any further bailouts.
So, what are these austerity measures that cause such anger amongst Greek citizenry?
Austerity measure: "Collect more taxes from those who won't pay what they owe". That's not happening, because there's no government tax collection organ that's feared by anyone; Greeks pay only an estimated 20% of what they owe. There's a Tax Collection 'Union', fer chrissakes, that's as corrupt as any American Union.
Austerity measure: "Shut down the guilds that control employment". There's no 'open market' for employment; Mafia-styled 'guilds' control who can work in what profession. You can't be a pharmacist or a truck driver unless you know someone who can pull a few strings. That measure, required prior to the last bailout, is being implemented, but only superficially.
Austerity measure: "Cut back on early retirement and the overly-generous pensions and benefits given as
satisfacticants to Greek citizens". There's strong, pervasive socialistic and communistic desires ingrained in the average Greek citizen; worse even than the desires inculcated in our own voting-Democratic-Party moochers (but Democrats are getting
our moochers to Greek expectancy levels by 'Community Organizing' them, one dirty socialist at a time). These Greeks expect to be pampered from cradle to grave, with no strings attached that would require them to work or otherwise accept any cutbacks to their goodies. Ask a Greek socialist to retire at age 63 1/2, up from 61 1/2, and
it's like they're being tortured...
Around 5,000 protesters from the Communist group PAME marched into Athens' central Syntagma square -- where demonstrations turned violent earlier this week -- chanting "the measures are killing us!"
French activists also performed with a three-meter puppet depicting a bloodied figure of Lady Justice to rhythmic drumming, in a gesture of solidarity with Greek protesters who have camped in the square for three weeks.
"What has changed with the reshuffle? Nothing," said Costas, a 22-year-old student who has been camping on the square since the beginning of the month. "We are not planning to leave unless they take back the measures."
(Rhythmic drumming? Didn't our own Wisconsin unionists employ that 'solidarity' tactic?)
Austerity measures prior to the last Eurozone bailout called for cuts to public-sector pensions and a few 'easy' changes. This time, there's a problem, because
pushing these austerity measures requires fundamental changes to Greek social and governmental structures.
“The main problem is that he’s only been able to deliver on the parts of the austerity package that are easily enforceable and transparent and irrevocable,” such as cuts to public sector salaries and pensions, said Spyros Economides, a political scientist who co-directs the Hellenic Observatory at the London School of Economics. “Unfortunately, the rest of it is a complete mess.”
“It’s very easy to legislate,” Mr. Economides added. “The problem is to enforce legislation. There’s no enforcement mechanism. It’s all done for the eyes of the public.”
On Sunday, finance ministers from the euro zone will meet in Luxembourg and are expected to approve the next dispersal of aid. But if Mr. Papandreou fails to push through the new austerity measures that Parliament is expected to begin debating next week — with a confidence vote scheduled for Tuesday following a cabinet reshuffle last week — it could jeopardize the second rescue package that Greece needs in order to carry it through next year. A default would send the euro zone and world markets into a tailspin.
France and Germany will likely cave and give another bailout to Greece, to suspend any Eurozone crisis. I'm anxious to see if Papandreou, the socialist, keeps the coalition government intact; if the Greek citizenry force a no-confidence vote and secure a new election, who or what will they choose?
What's their next government choice that's farther left than Pappy ?
