The archive is catalogued by 'Politics', 'Economics', 'Mockery', 'In other news' and 'On other things' 


"Who controls the food supply controls the people; who controls the energy can control whole continents; who controls money can control the world" - Henry Kissinger

and yet...

"Sooner or later everyone sits down to a banquet of consequences" – Robert Louis Stevenson

Greece is bust, and it took a socialist to admit it

In response to an FT article by Martin Wolf on 3rd February 2015, entitled 'A deal to bring modernity to Greece'

"The EU is supposed to be a union of democracies, not an empire. It should negotiate in good faith". 

Yes it should Mr Wolf. Amen to that.

It should also negotiate on the basis of the truth - which is that Greece is insolvent. It isn't suffering a short term, intermediate term or any other term liquidity crisis - it is bust.

You express puzzlement at Mr Varoufakis expressing his plans in London, 'a capital of a nation of bystanders'. It makes sense to me. His strategy, if telling the truth is a strategy, is to let us know that the guy on the balcony wobbling around pretending to be a picture of elegance has got no clothes on...he's his birthday the buff…starkers…and if I may segue into another metaphor...this bird is an ex parrot!  He went on Newsnight and announced that Greece is insolvent - we should be honoured he came here to tell the truth, he must think we might notice and not try to hush him up - we shouldn't be puzzled, we should be pleased.

Where else would you expect Mr Varoufakis to let his cat out of the bag than in a country that has, in the main, an aversion to being told what to do, and a Chancellor, who on the face of it at least, preaches that the world can no longer kick the can down the road, extending and pretending our way towards a sovereign debt crisis and monetary meltdown. 

The only thing that might puzzle me, though not really, is that it took a socialist to say it! Capitalism, if capitalism we were practising, would have no qualms about saying 'we can't afford to keep doing this'. We have not had capitalism for a long time. We have had crony capitalism and socialism for the rich.

The situation in Greece is the result of a decade of pretence - the pretence that you can print your way to growth, and that that real life will work according to the hubris of a few academics and the results spewed out of a spreadsheet.

Frankenstein Mk3 - NIRP

People are not afraid of falling prices - governments and central bankers are