As we watched the new civil rights epic Selma this weekend, I could not help but see parallels between the struggle against the tyranny of the racial status quo in America in the early 60’s and the struggle against the financial status quo enslaving much of the world today. If you think that comparison seems outrageous, then I would suggest you don’t yet fully appreciate what has happened in the financialization of the free world over the past 20 years.
The newly elected leader of Greece’s far-left Syriza party has pledged to negotiate a better deal with its international creditors. The rape of Greece has been hideous to observe. Through their usual levered tricks and debt flips, bankers made off like bandits while the Greek people foolishly followed into financial distress as harsh as the Great Depression of the 1930’s in America.
Rational math suggests that the Greeks need to default on billions in debt which cannot be repaid, exit the Euro and rebuild their economy on the back of an independent, weaker currency. This also means forcing the elites holding bad bonds to recognize their losses and opens the door to more exits by other EU members who must take similar steps to clear the slate and start on fresh financial footings.
It’s not an end to austerity (ie., living within one’s means) that people need, but rather an end to the debt-financed facade that was sold to them as prosperity. In this sense, the Greeks are at the leading edge of revelations coming soon to many other countries, as the tyranny of debt comes to the close of an epic chapter.
Germany’s International Broadcaster GW offers coverage of the Greek developments here this morning: Syriza leader hails Greek election win as triumph of hope