Daily Archives: July 6, 2015


Bail-Out or Sell-Out?

The resignation of the Greek Finance Minister is the clearest possible indication that my last posting was correct and that Greece is ready to climb down in negotiations, in exchange for any sliver of a fig-leaf. The “Troika” is very keen that there will be another bail-out because of course the money goes to the bankers to whom the political elite are beholden. It is increasingly plain that Tsipras does not have the balls for debt repudiation. Yesterday’s choice was meaningless; debt repudiation is the only real alternative.

No bail-out will make any difference, we will be enmired in the same issues again every six months, but with less drama. The Euro will survive because it is the resilient currency of the World’s largest economy. Merkel will continue to manage it cleverly – she has just demonstrated that Germany can determine who is Greece’s finance minister. Greeks will suffer through more austerity, comforted by yesterday’s meaningless shout of defiance, and large corporations and banks will get their hands on Greece’s remaining state assets.

I think the lesson from this is that the 21st Century corporate and banking state is beyond amelioration. Any change needs to be a fundamental challenge to the system. It will seem strange to future generations that a system developed whereby middlemen who facilitated real economic transactions by handling currency, came to dominate the world by creating a mathematical nexus of currency that bore no meaningful relationship to real movements of commodities.

View with comments