How the IMF Broke Greece

by V N Gelis

  • The effective seizure of power in last October‘s general election through a fraudulent electoral program which, even if it was somehow related to the usual statist ―Socialist‖ program, it certainly had nothing to do with the opposite neo/social-liberal program of a drastic shrinkage of the public sector, i.e. the sector which the current Chairman of the ―Socialist‖ International (and Greek Prime Minister!) considers to be Greece‘s ―big patient‖ which led to today's informal bankruptcy. This, at the very moment when even bourgeois international analysts and economists (as well as the markets!) talk about the chronic structural crisis of the Greek economy (which actually constitutes the cause of the systemic bankruptcy and not the public sector which is only a symptom of this crisis).[3]

  • The clear contempt of the will of hundreds of thousands of strikers and demonstrators, but also of the demand for a referendum that could, even retrospectively, give some legitimacy to the barbaric measures. That is, the measures imposed today by the local and the transnational elites, simply in order to prevent the bankruptcy of our creditors (German, French, but also Greek banks e.g. the Eurobank of Latsis which is now struggling to conceal its exposure to the risk of Greek bankruptcy![4]), at the expense of hundreds of thousands among the lower social groups in Greece who are condemned, instead, into bankruptcy!

  • The almost totalitarian use of the TV channels and especially the state owned ones in order to conceal the popular anger at the systemic violence and to obscure (with the help of well known commissars of the system) the real causes of the crisis for which exclusively responsible are the local (political and economic) elites, as well as the transnational elite, who however are not being forced to sacrifice even a single swimming-pool from the tens of thousands of them adorning their Hollywood-type villas! Instead, the low (compared to European levels) salaries and pensions are slashed, thousands of jobs in the public sector are abolished, the hire and fire culture in the private sector is being institutionalised etc. It was, therefore, the ultimate token of impudence for state TV (ERT), which has become an advertising channel for the promotion of the parliamentary Junta and its leader, to denounce the short ―occupation‖ of its studios by unemployed schoolteachers (whom the ―socialists‖ threw to the street in their thousands) as engaging in ―anti-democratic dialogue,‖ when, for instance, on May Day all state channels devoted their evening news bulletins mainly in broadcasting cheap patriotic speeches by the ―socialist‖ prime minister and his entourage, whereas at the same time the major international channels (BBC, Al Jazeera, etc.) devoted the corresponding news bulletins mainly to the riots, which the graphic ERT presented as minor incidents, almost at the end of its bulletin!

  • Police -terrorism that is imposed supposedly for the ―protection‖ of citizens against ―terrorists,‖ anarchists and the like. In reality, police-terrorism has the sole purpose to terrorize the middle classes, who ― perhaps the first time in their lives ― show clear signs of overcoming the class of professional politicians that have deceived them and their party-puppets in the trade unions. The angry scenes outside Parliament on the day of the general strike, with tens of thousands of demonstrators calling parliamentarians as ―thieves‖ and others repeatedly attempting to storm it, made it clear that this was not one more of the usual peaceful (and therefore painless for the elites) marches, and that the people outside Parliament had nothing to do with the carefree world of the elites inside it (and their media). No wonder the real world outside Parliament was met by the virtual world of the elites with tons of dangerous chemicals, so that the demonstrators and everybody else could take the message about who are the real bosses in present ―democracy,‖ who can take any kind of decision against their ―subjects‖ without giving a damn to their expressed will.

  • Τhe biggest crime of the parliamentary Junta, however, is the blatant distortion of truth as regards the ―one way street‖ which supposedly the measures imposed by the transnational and local elites represent. On this the ―socialist‖ government had surpassed even Mrs Thatcher, who has invented the term in order to describe the similar neoliberal measures adopted by her government in the early 1980s, who, however, did not prevent a dialogue on them, something effectively ruled out by the Greek social-fascists presently running Greece. Thus, the Greek PM and his acolytes repeat again and again the blatant lie that the brutal measures imposed by the transnational elite is a oneway street for the ―salvation‖ of Greece and that an alternative solution would involve ―greater pain for all‖. In fact the leader of the Greek parliamentary junta, which runs Greece with the help of a herd of professional politicians (the MPs of his own party who ―together with the few MPS of an ultra-nationalistparty― are the only ones who voted in favour of the predatory measures just in order to secure the economic and social status advantages that their position in the power structure involves) did not have any qualms to declare in Parliament that ―he has not heard of any alternative solution‖ ― something that implies that either he is completely incompetent or a crook attempting once more to deceive the people. This is because, as I have mentioned in several articles in this column in the past few months, several leading international analysts and economists had recently shown[5] that it is precisely the supposedly ―one way street‖ which is catastrophic for Greece and not the alternative solution. In fact, even a few days ago, a professor at the University of London[6] supported a solution similar to the one that I proposed from this column[7], that is to say, the solution Argentina followed, following the devastation created by the IMF-suggested measures, which were effectively identical to the ones being imposed on the Greek people now by the transnational elite. And this is exactly the crime committed today by the ―socialist‖ parliamentary junta in Greece, supposedly for the sake of the ―general interest‖ ― a nauseating lie which ―forgets‖ that one of the basic socialist principles that gives meaning to the very idea of socialism, is that on matters relating to economic interests, only class interests exist. Particularly so when even leading (bourgeois) international analysts stress that: ―Greece is being asked to do what Latin America did in the 1980s. That led to a lost decade, the beneficiaries being foreign creditors.‖[8]

  Yet, even now, this crime of the elite could be terminated, through an intensive struggle, led by the scapegoats of the system in the public sector, aiming at a general strike that would paralyse the State mechanism, and with such demands as follows:

  a) An immediate exit from the Euro-zone, so that Greece regains its economic (fiscal and monetary) sovereignty and impose its own conditions on the creditors rather than the other way round, as at present;

  b) A re-introduction of the Drachma instead of the Euro followed by a significant devaluation of it (at least 30%) to cover for the continuous appreciation of Euro in this decade, which particularly harmed the most significant Greek export industry, tourism, whereas it made imports from abroad particularly cheap, at the cost of domestic products that they substituted;

  c) A conversion of all debt denominated in Euros to Drachmas, so that, on the one hand, creditors could not benefit from the devaluation of the currency and, on the other, debt repayment becomes a complete Greek affair;

  d) A renegotiation of debt aiming, first, at a drastic reduction of it (to compensate for the high interest rates already paid for its servicing, as well as for the speculative activities around interest rates in the past and second, at a significant extension of the repayment period;

  e) Strict controls on capital movements, so that the huge capital flight by the elites (Greek and foreign) of the last few months could be stopped immediately;

  f) Socialization of the Banks, so that no speculation against Greek deposits could take place when the above steps are taken, and all deposits to be guaranteed by the state to be made readily available (up to a limit, say €50,000 per year) so that the elites and privileged social groups are prevented from boycotting the new arrangements by creating panic and inflation;

  g) Heavy taxing
(after recording/registration) of the major real-estate and mobile property (yachts, luxury cars etc) and forcing those from the local elite and privileged social groups who have already transferred vast amounts of capital abroad in the last few months to pay these taxes on their property in Greece;

  Of course, this alternative solution does not mean, as the elites and their media say in order to terrorize people, that the State would stop paying salaries and pensions, apart from confiscating their deposits. I dealt with the issue of deposits above but as regards pensions and salaries, it should be made clear that if the state declares default this does not mean that it would cease fulfilling its obligations to everybody else apart from its creditors. The state would simply stop paying the billions it owes to foreign and local creditors, until they are forced to pay the debt ― whose they were the main, if not the exclusive beneficiaries. The above conditions will simply secure the welfare of the people during the transition period to the repayment of the debt and at the same time they would create the preconditions for a self-reliant development that would abolish for ever the need of lending from the market sharks, which has led to the present conversion of Greece into a protectorate of the transnational elite.

  * This article is an edited version of an article first published in the mass circulation Athens daily Eleftherotypia on 8/5/2010

  LEAFLET: CANCEL HERE AND NOW ALL INTEREST PAYMENTS TO FOREIGN BANKSTERS Thieves and abusers of public money, highly-paid workshy subcontractors, kickback receiving middlemen and every type of parasite exists from when the new Greek state was created. These phenomena aren‘t a Greek peculiarity but are part of and a permanent character of the world capitalist jungle we inhabit. Government and Mass Media of Disinformation are highlighting these side events to make us believe that the crisis isn‘t of a structural nature, but a simple problem of …bad management, which by devilish coincidence appeared for the whole of the 192 countries of the planet!

  Humans produce to satisfy their biological and cultural needs. But under capitalism they don‘t determine the products of their labour. They hand them over to the market! After, like a religious person seeks salvation in a picture made by a religious artist, current man depends on his luck from the independent laws of the market which he himself created. The market may make him rich or destroy him. It is above man and his logical control.

  Today there are in Greece more than 150,000 newly build apartments and many of us are homeless. Fields the size of football pitches with thousands of cars whilst we go about on foot. We walk shoeless whilst around us there millions of pairs of shoes. We are hungry and the market refuses our right to produce. Thus by definition our existence.

  The crisis isn‘t due to overconsumption like the parrots of the power assert but due to the overproduction of goods in relation to the consumer possibilities of society which becomes limited due to unemployment and the pressure on wages.

  These aren‘t cyclicalcrises like they were in the 19th Century. Don‘t let anyone believe that slowly or surely the depression will give way to a new boom.

  From the last Great Depression inaugurated in New York in 1829 and the human slaughter of WW2 which was masked by 30years subsequently of economic growth, ended up digging further the ditch for capitalism. That is because it was based on the policies of inflationary givebacks, on the basis of an overvalued dollar without gold backing. The result of this is we now have the first combination of depression and inflation. Unemployment with astronomic prices in relation with the crisis of the 1930‘s where unemployment was accompanied with deflation. Let it become common knowledge: we are living through the worst crisis known in the history of capitalism. A crisis from which there is no peaceful exit. Humanity once more is facing the dilemma of ‗socialism or barbarism‘ either radical solutions will be imposed to today‘s impasses or the human species will return to caves after some type of nuclear annihilation. There is no third road. The union and political leaderships won‘t go far repeating in today‘s pre-revolutionary conditions the same reformist slogans which they had 25years ago. Or something which is the same –replacing- concrete programmatic proposals with loud noises and abstract condemnations of capitalism and words in favour of socialism.

  The measures of restricting the buying power of the masses which PASOK and the IMF are taking will lead to a depression in the form of an economic avalanche. They know this but can‘t follow another path. Their tax stripping measures won‘t provide anything. You can‘t get blood out of a stone! The public sector debts will rise to new heights. Every delay in the taking of development measures will cost dearly. The first measure of aid required isn‘t the bailout of the bankster‘s but saviour from them by declaring bankruptcy. Not a penny to foreign thieves. They owe us but we don‘t owe them

  Greece takes out loans so as to pay previous ones. This has occurred from the birth of the Modern Greek state. A loan for Kolokotronis in 1823 was paid back one odd century later in 1832. 5 months ago we paid back another loan of the revolution. To receive the recent loan which we won‘t see a penny (it‘s just an accounting act) we have been obliged to buy 6 French Frigates and 6 German submarines!

  As a people we are paying back to foreign capital $500 billion euros of interest payments alone. Now the international bloodsuckers are arriving to tell us we owe even more. If an end doesn‘t come to this looting every type of development and exit from the crisis will be a joke.

  End the debt payment just like the govt of Iceland did as it got the opinion of its people via a referendum. From 1970 we have had 40 ‗bankruptcies‘ and they have generally aided problematic economies. Russia, Argentina and Venezuela have had such ‗bankruptcies‘ basing their economic development, with fast rhythms in the last few years.

  May 2010

  www.patari.org

  Greeks tried to storm Parliament and subsequently the KKE called them ‘fascist provocateurs’….

  London Solidarity Meeting : Greek General Strikes Another 24hour general strike occurred today and the KKECommunist Party excelled itself in its sectarian divisive action propping up Papandreou‘s government. Instead of marching from Sintagma (Parliament Sq. to Omonia) they marched from Omonia to the Ministry of Labour and then asked its people to disperse walking to Thiseo, the area around the Acropolis which is in the EXACT opposite direction of Parliament... Stalinists see Parliament now like the Dracula sees the cross; they avoid it at all costs as the most impoverished gather there who want the struggle to continue in a militant fashion.

  GSEE-TUC with the Eurostalinists Siriza and the leftists of Antarsya marched to Parliament but ensured they continued past it in a rush refusing to congregate there. Thousands remained outside shouting militant slogans:

  'Thieves Thieves'

  'Scumbags, Traitors, Politicians'

  'Send PM George to Goudi (Prison)'

  'Take your mother and leave the People don’t Want You'

  'Unions which overthrow not Submit',

  'Here and Now Cancel all Foreign Debts',

  'Bread, Education, Freedom, the Junta never died in 1973'

  'Send Jeffrey (PM Georges nickname) to the USA' To the police a section of the demonstrators chanted 'It will become like Argentina', 'Guard those that rob you' , 'Shameless drop down your shields'

  When the demo passed outside the Marfin Bank 'Chrisohoidi,(Minister of the Interior) Provocateur, Murderer' These 24hour token strikes are reaching their historical limits. There is no point in marching 6-8 times to Parliament or from Parliament to fight another day. The leaders of the official left despite the numbers of people involved are working in tandem trying to weaken the resistance and peoples resolve. The economic crisis is becoming clearly a crisis of leadership as the measures aren‘t going away but will get worse as cuts have now been extended to the private sector, not just the public sector workers according to the latest info from the IMF.

  Thu 20, May 2010 @ 23:12 VNGelis said…

  The issue of the Euro-breakdown has now gone mainstream in
one of the banksters daily, the Telegraph

  Whatever Germany does, the euro as we know it is dead

  Angela Merkel's ban on short-selling is just a distraction from the horror to come

  http://www.telegraph.co.uk/finance/comment/jeffrandall/7746806/W hatever-Germany-does-the-euro-as-we-know-it-is-dead.html

  Another interesting article comparing the Tea Party movement in the USA with the Greek labour protests

  "Drop Dead Economics": The Financial Crisis in Greece and the European Union

  http://www.globalresearch.ca/index.php?context=va&aid=19107

  There is also this:

  Public Meeting-Counterfire-Conway Hall Can't Pay Won't Pay-Solidarity with the Greek Protests

  Debate: Weekly Worker on EU, Euro & Return to Drachma

  Weekly Worker 817 Thursday May 13 2010 Europe and the Greek contagion

  The crisis in Greece is bound up with the global capitalist downturn. Instead of a nationalist response there could be an international fightback, writes James Turley