Angela is determined, and the birth of Economic Democracy now looks less certain. Rather than giving the Greek 99% a choice of whether or not to take further austerity measures upon themselves, the Central Bankers insist that they will decide.
Very short-sighted for at least 2 very big reasons.
First, the Greeks are not averse to demonstrating, striking, and rioting when authority rears its ugly head. Stopping the slow growing Greek economy dead in its tracks is NOT the way to get their debt paid down.
Secondly, but more important in the long run, Greece’s rescue is the prototype for Italy. Unlike Greece, however, which accounts for a tiny portion of Euro GDP, Italy is the third largest economy in Europe.
There is not enough money to bail out Italy when it starts to collapse under the weight of costly debt, as large, proportionately, as Greece’s.
Angela’s only hope is to find an orderly out for Greece and let them deal with their creditors in drachmas. Then she can start to focus upon Italy, which has been the real issue from the outset.
She can start by shoring up the capital of the banks which hold Italian debt, but only if they have arrived at a deal, on their own, with Greece.
But just in case she is forced to monetize the garbage debt by buying it with Euros, [to rescue depositors money] she should locate those infamous wheel-barrows German’s used 50 years ago to shop for a loaf of bread.
Yup, it sounds like a joke, but it’s not. It’s what happens when bankers fight off regulation and fail to impose adequate risk control measures themselves.
Now the world’s bankers are quite amazingly fighting for less regulation while simultaneously demanding government bailouts to save them from their bad decisions.
Is this what they mean by FREE MARKET? They are free to do as they please, and free to impose the consequences of their acts upon others.