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Delusional Greeks Commit Mass Hara-Kiri

Politics / Eurozone Debt Crisis Jul 06, 2015 - 11:27 AM GMT

By: Atlantic_Perspective

Politics Pride and ignorance won over logics and basic common sense. With the banks already closed and food quickly running out in supermarkets, Greece is now just a few days away from plunging into total chaos. Delusional Greeks, led by their delusional government, believe they have the upper hand. A small bankrupt country, dependent on foreign imports, decides to bite the hand that feeds it. The reason: “Ah, this will show Europe! Now they know who they are dealing with”!

Indeed Europe knows. Greeks seem to believe that Europe has a problem, not Greece. Greek banks are closed and that´s a problem for Europe. Food is running out in Greek supermarkets, but somehow that´s a problem for Europe. It´s George Orwell all over again: peace is war, war is peace.

As previously written in The Atlantic Perspective, Greek debt needs to be restructured, or in plain English, pardoned. Mathematically speaking, Greece can´t pay back its debt, at least not all of it. Last week, The Atlantic Perspective presented a solution to the Greek crisis that would also save Europe´s face and probably the EU´s future. You can read about it here.

Europe failed at considering the obvious during the negotiations with the Greeks. But the Greek government was also very incompetent in handling the negotiation, by refusing to cut spending where it could, namely in the military field (Greece has a huge military budget) and on some social benefits incompatible with the country´s current financial situation.

The card that was never played

Europe´s reluctance in conceding a partial debt pardon to Greece, could/should have been countered with a dose of Europe´s own venom: “Ok Europe, we will accept your proposal. We will strictly implement your austerity recipe. But if by year´s end the economic and financial goals are not met, then you accept the obvious: your plan doesn´t work and you will give us an X% pardon on our debt”.

This approach, would make European leaders personally responsible for the results of their own demands, and give Greece a moral and contractual right to write off some of its debt. Europe wanted everything, the Greeks wanted everything. In the end, both lost. Stupidity won.

The clear “NO” vote in Greece represents a failure for all sides. But all over Europe, the average citizen will keep having an average life, whilst in Greece the banks will still be closed and food will keep running out.

Greece is the weakest link, to the point that the basic survival needs of the Greek population are now at risk. Choosing pride over food when the situation is at breaking point, was probably not a smart move.

European leaders will now take days or weeks to reach an agreement on what to do with/for Greece. As meetings take place in Brussels, Greeks will starve and see their country collapse. It´s Argentina all over again, but this time in Europe.

What next?

The Greek crisis will develop into a full blown European political crisis, with France and Italy in favour of helping Greece, while Germany, Holland, Portugal and Spain (among others) will push for a hard line. This will be a hot summer in Europe. Don´t be surprised if Putin takes the opportunity to make a bold move...

Copyright © 2015 by The Atlantic Perspective.

The Atlantic Perspective is an opinion blog, aimed at explaining and providing solutions to some of the world´s most relevant issues.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

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