Marxistoid Economists Consider Bankrupt Left as Saviour of Greece

Fair is foul, and foul is fair, /Hover through the fog and filthy air (Witches of Macbeth chanting their cursing ditty)

By Con George-Kotzabasis— July 04, 2013

In their article published in the New York Times  on June 23, under the title “Only the Left Can Save Greece”, the two politically ‘pinkish’ economists teaching at the University of Texas at Austin, James Galbraith (the son of the famous John Galbraith) and Yannis Varoufakis, argue that neither America nor Europe should fear an ascension to power of the Left wing party of Syriza in Greece on the contrary, they should applaud it, as a government of the left would reverse the defective policies of the European Union that have been so destructive to the Greek polity and to its people as well as to many other European countries.

The two economists were shocked at the closure of the Hellenic Broadcasting Corporation (ERT) and denounced the Samaras government for its authoritarian and undemocratic action, of depriving Greeks of a public service of information and entertainment that was invaluable to them. The government however closed the public broadcaster temporarily and planned to replace this cesspool of administrative corruption, opacity, and cronyism, for which each Greek household had to pay a levy of 50 Euros per year, with a new public broadcaster not run by the government but by personnel chosen on meritocratic criteria and professionalism that would upgrade the service provided to Greek viewers and at a cheaper price.  Galbraith and Varoufakis, in their support of this corrupt and inefficiently run public entity  and demand of its reopening, found a kindred political ally in the leader of the Marxist party of Syriza, Alexis Tsipras, who had committed himself to re-open with all its personnel intact if he became prime minister. Tsipras’ crocodile tears for the public broadcaster, which in the recent past had condemned as being the mouthpiece of the extreme right, exposed his blatant political opportunism in this U-turn from hate to love for ERT. But they found him also to be an invaluable ally to their economic proposals of how to lift Greece out of the crisis. .

Galbraith’s and Varoufakis’ solution to the crisis springs from the growing of a hundred blooming flowers in the luxuriantly prodigal Keynesian garden. Their package of Keynesian remedies consist of “a kind of European equivalent of America’s post-crisis Troubled Asset Relief program; an investment and job program; and a European initiative to meet the social and human crisis by  strengthening  unemployment insurance, basic pensions, deposit insurance, and the expansion of core public institutions like education and health.” Notice, that all of these remedies are to be financed by  government and taxes from private enterprises. How then government can finance all these things when its coffers are empty and depend on European loans to pay for primal services such as schools, hospitals, and public servants, and when private enterprise has no incentive to function or remain in an unstructured economy that has been for many years inimical to it? And the two economists do not make  a pip about the necessity of private foreign and domestic investments that are the only economically sustainable and viable investments that can initiate growth and economic development that are the sine qua non that will pull Greece out of the crisis. And that these investments can only be made under the incentive  of structural economic reforms that are favorable to private enterprise, and strict fiscal policies that perforce can only be accomplished by hard measures which are inevitably painful to the general populace.

Since neither the political color nor the gray matter of Galbraith and Varoufakis were able to convince serious politicians and economists in the Euro zone, or Greece, of the correctness of their Keynesian mirage as a solvent to the European and Greek crisis, they found in the fiasco leadership of Syriza, of Tsipras, the intellectual salvation of their by now withered flowers of their Keynesian remedy. (This speaks volumes about the value of their proposals in that they found their support and cerebral salvation in the intellectual and moral bankruptcy of the Greek left.) Tsipras bereft of any tenable economic policies, and rationalizing this vacuity in policy making by populist rhetorical denunciations of the policies of the Samaras government, eagerly embraced the policies of Galbraith and Varoufakis, which ideologically are cognate to his own as a ne plus ultra government interventionist himself, thus giving to his own policies some sort of academic prestige from this ‘south of the border’ economists that he is unable to get from more serious experts in the profession. (But beggars cannot choose.)

Indeed, the policies of Tsipras have their source in a variegated coterie of Marxists getting their inspiration from the flashing pan of Marxism, as the rising sun of the latter has long ago disappeared from the astral constellation of the universe, never to rise again. Tsipras, as a true believer of the great man, Karl Marx, attended the Marxist organised Subversive Festival of Zagreb in Croatia last March, which was likewise attended by both Galbraith and Varoufakis. Indeed, the former announced with pride his attendance of the Festival, in a lecture he gave to socialists in the German Parliament last week, where the gladiators of the great imperator Karl Marx had gathered together from all over the world and rushed into the arena of the Amphitheatre of Zagreb, with nets in one hand and swords in the other, to fight and slay the wild animals of capitalism, which their predecessors in the socialist camp, even better armed with technological weapons, had failed to slay. Moreover, Tsipras was an aficionado of Chavez and had visited Venezuela last year with the hope of getting financial help  from its president with an implied commitment of making Greece a protectorate of Venezuela, if not the European Venezuela. And yet Galbraith and Varoufakis in their political naiveté write in their article in the New York Times that the Americans have nothing to fear from a Syriza government.

Galbraith and Varoufakis, like the witches of Macbeth cursing the Samaras’ government as foul, undemocratic and authoritarian, slavishly implementing the dictates of the European Union, and as economically incompetent, are predicting its downfall while stirring the pot of their quackish remedies which nobody will ‘buy’ other than Tsipras. Meanwhile, Samaras wisely, assiduously, and decisively is transforming Greece within the short span of one year by an unprecedented series of structural reforms that are increasing competition–Greece is in the 22 position internationally for the first time–reducing the bureaucracy, especially its inefficient part that was an obstacle to investments, and planning to make it more efficient on meritocratic standards, changing the economic milieu by making it friendly to business and investments, and leashing the arbitrary and ruinous power of unions which for many years had prevented foreign investments in the country. Moreover by his virtuoso performance in the negotiations with the European Union and the IMF, Samaras  has blunted some of the austerity measures that have been a major factor in obstructing the re-igniting of the economy and artfully polishing these measures that will put Greece on the track of development. He was able to convince the leaders of the EU to provide Greece with extra funds for employment programs that will materialize by the beginning of 2014, more resources from the European Bank of Investments so they can be ploughed into small and medium sized businesses. He has started building Autobahns that have created 25,000 new jobs and he has enticed the economically hard thinking Chinese government to invest 350,000 million Euros in the port of Piraeus thus making it the entrepot of commerce between south-east Asia and Europe. ( The European Council announced that the port of Piraeus will be named as the capital port of Europe for 2015.) Also the Chinese are interested in making more investments in the infrastructure of the country, especially in its railway network by which they will transport their goods into Europe. But the most important and greatest achievement of the Samaras’ government up to this moment has been the building, through Greece, of the conduit by the Trans Adriatic Pipeline (TAP) that will convey natural gas from Azerbaijan to the heart of Europe. TAP will invest the huge amount of 1.5 billion in Greece and will generate 12,000 jobs by 2014 in the country. This, according to one authority in the energy industry, has been the personal accomplishment of Samaras who in his visit of Azerbaijan and meeting with the Prime Minister of the country three weeks ago, convinced the latter that it would be more efficient and economically cheaper to build the conduit through Greece instead of through Bulgaria and Romania, a project which the international consortium backing it was favorable to win, and lost it only, with the intervention of Samaras. Furthermore, this enormous investment, behind which one of its investors is the global gigantic company BHPBilliton, engenders confidence to other investors that Greece is about to pull itself out of the crisis, and hence, encourages and attracts more investments into the country and thus will increase employment which is one of the major challenges of the government.

The government under the statesmanship of Samaras is determined to pull Greece out of the crisis and not to squander the sacrifices Greeks had to make for the economic, political, and cultural Renaissance of the country. The great, fair achievements of the Samaras government, in an unprecedented short span of time, are depicted and cursed as foul by the two Marxistoid economists, James Galbraith and Yannis Varoufakis. Ignominy, loss of intellectual honor, is of no concern to them.

I rest on my oars:Your turn now 

Advertisements

Egypt:Which Side Will the Dominoes Fall?

In view of the removal of  President Morsi by the army responding to the call of the majority of Egyptians for his ousting, I’m republishing the following essay that was written in February 2011, that foreshadowed and tried to prevent by a proposal of mine the fall of  the country to radical Islam,  for the readers of this blog.

By Con George-Kotzabasis February 08, 2011

Swallowing victory in one gulp may choke one.

Egypt, not unexpectedly for those who have read history and can to a certain extent adumbrate its future course, as one of the offsprings (Tunisia was the first one) of the rudimentary Democratic paradigm that was established in Iraq by the U.S. ‘invasion’, has a great potential of strengthening this paradigm and spreading it to the whole Arab region. The dominoes that started falling in Iraq under a democratic banner backed by the military power of the Coalition forces are now falling all over the Arab territories dominated by authoritarian and autocratic governments. The arc that expands from Tunisia to Iran and contains all other Arab countries has the prospect and promise of becoming the arc of Democracy. But Heisenberg’s principle of uncertainty in physics also and equally applies to politics. For one cannot predict, especially in a revolutionary situation, and more so, when it is combined with fledgling and immature political parties that is the present political configuration in Egypt as well as of the rest of the Arab world due to the suppression of political parties by their authoritarian regimes, whether the dominoes will fall on the side of Democracy or on the side of Sharia radical Islam. This is why the outcome of the current turmoil in Egypt is of so paramount geopolitical importance. And that is why the absolute necessity of having a strong arm at the helm that will navigate the presently battered State of Egypt toward the safe port of Democracy is of the utmost importance. Contrariwise, to leave the course of these momentous events in the hands of the spontaneous and totally inexperienced leaders of the uprising against Mubarak is a recipe of irretrievable disaster. For that can bring the great possibility, if not ensure, that the dominoes in the whole Arab region will be loaded to fall on the side of the extremists of Islam. And this is why in turn for the U.S. and its allies in the war against global terror, it is of the uttermost strategic importance to use all their influence and prowess to veer Egypt toward a Democratic outcome.

One is constrained to build with the materials at hand. If the only available materials one has to build a structure in an emergency situation are bricks and mortar he will not seek and search for materials of a stronger fibre, such as steel, by which he could build a more solid structure. Presently in Egypt, the army is the material substance of ‘bricks and mortar’ by which one could build a future Democratic state. It would be extremely foolish therefore to search for a stronger substance that might just be found in civil society or among the protesters of Tahrir Square. That would be politically a wild goose chase at a time when the tectonic plates of the country are moving rapidly toward a structural change in the body politic. The army therefore is the only qualified, disciplined organization that can bring an orderly transitional change on the political landscape of the country. Moreover, the fact that it has the respect of the majority of the Egyptian people and that it has been bred and nourished on secular and nationalist principles, ensures by its politically ‘synthetic nature’ that it will not go against the wishes of the people for freedom and democracy, that it will be a bulwark against the extremists of the Muslim Brotherhood, and that it will be prepared to back the change from autocracy to democracy, if need be, with military force and thus steer the country away from entering the waters of anarchy and ‘permanent’ political instability that could push Egypt to fall into the lap of the supporters of Allahu Akbar.

The task of the army or rather its political representatives will be to find the right people endowed with political adeptness, experience, imagination, and foresight from a wide pool of political representation that would also include members of the old regime who will serve not only for their knowledge in the affairs of state but also as the strong link to the chain of the anchor that will prevent any possibility that the new political navigation of the country will go adrift. The former head of Egyptian Intelligence Omar Suleiman will play a pivotal role in this assembly of political representation which will not exclude members of the Muslim Brotherhood. What is of vital importance however is that this new political process will not be violently discontinued from the old regime. While room will be made to ensconce the new representatives of the people to government positions, this will not happen at the expense of crowding out old government hands. The only person that will definitely be left out will be Hosni Mubarak and some of his conspicuous cronies. And Mubarak himself has already announced that neither he nor his son will be candidates in the presidential elections in September. The call of the Tahrir Square protesters to resign now has by now become an oxymoron by Mubarak’s announcement not to stand as president in the next election. Further it is fraught with danger as according to the Constitution if he resigns now elections for the presidency must be held after sixty days. That means a pot- pourri of candidates for president will come forward without the people having enough time either to evaluate their competence nor their political bona fide and might elect precipitatingly without critical experience and guidance a ‘dunce’ for president, an Alexander Kerensky in the form of Mohamed Al Baradei, that will open the passage to the Islamic Bolsheviks. To avoid this likely danger I’m proposing the following solution that in my opinion would be acceptable to all parties in this political melee.

The Vice President Omar Suleiman as representative of the armed forces, to immediately set up a committee under his chairmanship that will comprise members of the variable new and old political organizations of the country, whose task will be to appoint the members of a ‘shadow government’ whose function in turn will be to put an end to the protests that could instigate a military coup d’état , to make the relevant amendments to the constitution that will guide the country toward democracy, and to prepare it for the presidential elections in September. The members of this shadow government will be a medley of current holders of government that would include the most competent of all, Ahmed Nazif, the former prime minister, who was sacked by Mubarak as a scapegoat, and of the old and new political parties that emerged since the bouleversement against Mubarak. The executive officer of this ‘government in the wings’ will be Vice President Suleiman, who, with the delegated powers given to him by the present no more functional president Mubarak will be the real president during this interim period. Finally, the members of this shadow government will have a tacit agreement that their political parties will support candidates for president in the September elections who were selected by consensus among its members.

The ‘establishment’ of such a shadow government might be the political Archimedean point that would move Egypt out of the crisis and push it toward democracy.

Hic Rhodus hic salta