Greek Democracy Is Failing


Paul Craig Roberts

(RINF) – The Greek debt is unpayable. It is simply too large to be repaid. The austerity that the EU and IMF have imposed on Greece has worsened the problem by driving down the Greek economy, thus making the burden of the debt even heavier. Despite the obvious fact that the EU’s austerity policy is a failure and cannot succeed, the Greek “debt crisis” drama continues.

A solution was possible at the beginning of the “crisis” prior to the economy being driven down by austerity. The debt should have been written down to the amount that the Greek economy could service or pay. This traditional solution was unacceptable to creditors, to the EU, and to the European Central Bank. As I explained in my book, The Failure of Laissez Faire Capitalism (Clarity Press, 2013), Greece’s creditors, the EU and the European Central Bank have agendas unrelated to Greece’s ability to pay. The creditors are determined to establish the principle that they can over-lend to a country and force the country to pay by selling public assets and cutting pensions and social services of citizens. The creditor banks then profit by financing the privatization of public assets to favored customers. The agenda of the EU and the central bank is to terminate the fiscal independence of EU member states by turning tax and budget policy over to the EU itself.

In other words, the Greek “sovereign debt crisis” is being used to create a precedent that will apply to every EU member government. The member states will cease to exist as sovereign states. Sovereignty will rest in the EU. The measures that Germany and France are supporting will in the end terminate their own sovereignty, very little of which actually remains as they do not have their own currency and their foreign policy is subservient to Washington.

Default and a turn to Russia is the only possible way out for Greece. The entire world would benefit from this course of action as Greece’s departure from the EU and NATO would begin the unraveling of NATO, Washington’s principal mechanism for creating conflict with Russia. In the end, all of Europe and the rest of the world would thank Greece for derailing the violence that will result from Washington’s effort to assert hegemony over Russia.

As a Greek default and a turn to the East is the only workable solution for Greece, the EU’s agents inside Greece have launched a huge campaign against a Greek turn to the East.

I fear that the Greek people are too brainwashed to be able to avail themselves of the opportunity to rescue themselves from the clutches of the One Percent, who will drive the Greek population into the ground. The Greek voters did not have sufficient judgment to give their current government a large enough percentage of the vote for the government to have any credibility with the EU and Greece’s creditors. What we are witnessing in Greece is the failure of democracy due to the people themselves.

Dr. Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts’ latest books areThe Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.

  • Rick

    How long before the same happens to the U.S.?

  • mannymoe

    Thank You Dr. Roberts…Always appreciate your point of view and your ability to look behind the curtain and see whom is pulling the ropes…..I am not so sure that the Greeks will not move to Russia and play both sides…E.U. money in the interim can help transition to a new paradigm, hopefully without violence…Iceland gave us a way to transition from the Large Banking Cartels…We can prepare here in the U.S. as We all know there is no possible way to pay off the derivative and War debt….2.3 trillion disappears the day before 911 and then the investigative office in the pentagon is bombed…April Glaspey was there with her baby that day….no plane in the yard…so when you have an system that continues to rape and pillage your currency and your
    people, where WAR is the way business is conducted…I don’t see how this is sustainable.

  • Danny Durham

    I cannot fully agree with you on this ….

    For me it is clear the Troika has no intention to agree to anything and actually wants (or maybe does not care) Greece to default.

    When this Greek tragedy started, the EU had to buy time to prop up their banks, who were not in a position to handle a Greek default/collapse. This was clear from the onset.

    However, in the mean time the EU has tried to strengthen their banking system and is under the impression that they have done so in sufficient manner. They are now confident that a Greek default can be weathered by the rest of the EU.

    They know that the Greek debt cannot be repaid, and that their buddies have moved all bad investments in Greece to the EU governments via bailouts to Greece since the crises. A default of Greece and subsequent losses will not be born by their buddies, but by the EU governments. Think about what percentage of the debt that has gone to the banks and how much has gone to the Greek people ….. and to whom is the new debt owed to …….

    Therefor the Troika has nothing really to loose and therefor they are not willing to bend and accommodate Greece. They can win something (like privatised Greek assets) or loose nothing. Their approach to the Greece recovery did not work the first nor second time nor ….. . Are they thus so stupid that they believe more of the same will bring a different results. Surely not!!

    They MUST have a different reason/objective ….

  • Newton Finn

    Well, I generally agree with PCR, but I think he’s got this one wrong. The Greek Prime Minister just called a special referendum on July 5 for the CITIZENS OF GREECE to decide whether to accept the final offer of the EU financiers. Democracy has been resurrected where it was born. Halleluiah!