Greece’s terrible choice: receivership or liquidation | The Australian

This an outstanding article and video interview, published in the Australian. Check it out!

via Greece’s terrible choice: receivership or liquidation | The Australian.

The headline is stark but realistic. Either Greece allows receivership, effectively foreign control or it’s liquidation.

Germany is now playing hard-ball and humiliating Greece, which they hope will be a powerful signal for other Southern European countries to stay in line. France meanwhile has been playing a strong-hand supporting Greece.

The context is that Germany’s domestic politics is weary with Greece. Angela Merke, Germany’s Chancellor, has been papering over the cracks in the Eurozone for years. She prefers incremental rather than strategic decisions. But she faces two political crises. Firstly, there’s domestic opinion in Germany. Secondly, there’s the US, France and Italy that are worried by the geo-strategic implications of a Grexit – Putin is ready to give Greece help with energy.

Perhaps, the greatest crisis is that the hard-left government in Greece has not been honest with the Greek people – it has been arrogant and mislead the Greek people about the strength of their negotiating hand.  This could well lead to an early change of government. Once the ECB turns off the emergency liquidity tap to Greek banks, rapid implosion is expected to follow.

Thoughts?

One response

  1. Greece will eventually get some money and it will have to make painful reforms.

    It remains to be seen who will govern Greece and what will be the geo-strategic implications. Russia is waiting in the wings and ready to intervene to Europe’s cost.

    As Dr Alf knows, changing the nature of a people is very difficult but the last lot of bailout money and EU “structural funds” did not just go to the French and Greek banks. Some of it stuck to people’s fingers, particularly the fingers of the plutocrats, and leading families within Greece. That money needs to be recovered from the crooks and scoundrels involved, and the culprits need to be caught, brought to book and put in jail for a very long time indeed. If some of the guilty includes past and current politicians, their families or even people linked to the civil service, then they too need to be behind bars and their assets sequestered.

    Forensic accountants employed by the creditors need to be deployed to track down the money and once found the so-called European “arrest warrant” needs to be used to get the criminals who may be living outside of Greece into the hands of the police. Where these people live outside of Europe, then Interpol should be brought in.

    What must not be allowed to happen is that the guilty, once again, go scot-free.

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