Tuesday, April 21, 2015

Greece and Italy Are the Founders of Western Civilization - Why Is the EU Tormenting Them?

The past few days, I've been trying to make sense of the European Union's reaction to two important crises -- one inside the EU tself and the other pounding at its shores. Of course, the first is Greece, toward which the EU seems to be more a tormentor than a protector. The second is the wave of boat migrants that threatens to overwhelm Italy while the EU looks on from afar in seeming indifference both to its member state's plight and to the drowning migrants. My thoughts led me to consider the nature of the two countries being mistreated and ignored by the EU -- Greece, the "cradle of western civilization," and Italy, the birthplace of the Roman Empire that became Europe and the home of the Catholic Church and Renaissance that created the humanist values on which the modern western world is built. ~~~~~ Greece is being fleeced by inflexible ideologues and politicians who know she cannot survive their actions. Why? I don't know. But, Germany's leaders, in particular Chancellor Merkel's Finance Minister Schaeuble, seem to delight in bullying Greece. I don't often support the left, but Greece's socialist Prime Minister Alexis Tsipras is absolutely right to say "Enough." The EU position reminds me of a Mafia loanshark operation with Schaeuble and the IMF's Lagarde as the enforcers. In late breaking news yesterday, to keep Greece afloat, Tsipras has ordered local Greek government units to move their funds to the central bank. With negotiations over bailout aid deadlocked, Tsipras needs the cash for salaries, pensions and a repayment to the IMF. Greek bonds fell after the move, pushing three-year yields to a crippling 28.7%, the highest since the nation’s debt restructuring in 2012. The move shows that the Greek government's insolvency has become a liquidity problem as the country tries to make its May payment of over €700 million to the IMF. When Tsipras's finance minister, Yanis Varoufakis, ruled out agreeing to the demands of Eurozone creditors -- that Greece continue its destructive austerity program in order to repay its Eurozone debt on schedule -- he said : “We are not prepared to carry on pretending and extending trying to enforce an unenforceable program which for five years now has steadfastly refused to produce any tangible benefits....a problem of insolvency for five years has been dealt with as a problem of liquidity." Well, the insolvency has become a liquidity problem because of the EU and IMF refusal to make bridge funds available to Greece, which is about to be swamped. One has to ask why Germany and the IMF refuse to compromise by stretching out loan repayments and forgiving some of the interest due. The only answer seems to be that they are indifferent to or want to see Greece fail. ~~~~~ And Saturday's capsized boat off Libya, followed by several more - with a death toll reaching 1,500 in 2015 - highlights another Mafia, from Africa and the Middle East and apparently largely Moslem, who are human traffickers operating in Libya and fleecing their victims before putting them on death boats, heading out into international waters, sending distress signals and then leaving the boats, sometimes with hundreds of migrants locked in holds. Each trafficker makes up to €80,000 per boatload. Where is humanity hiding? Not in the EU, whose leaders want to concentrate on keeping boats from leaving Libya by cracking down on traffickers. A noble goal, but it does nothing to save the lives of drowning victims who were fleeing disastrous conditions of war, persecution and starvation at home. Only Italy, helped by Malta, are out in the Mediterranean Sea close to Libya looking for survivors. Italy describes the EU Triton program as inadequate because it only patrols close to the Italian shoreline and has a budget only 1/3 that of Italy's effort. The European Union's foreign minister, Federica Mogherini, added migration as a last-minute emergency issue to an EU foreign ministers' meeting on Monday in Luxembourg. "Europe can do more and Europe must do more," Martin Schulz, president of the European Parliament, said Sunday. "It is a shame and a confession of failure how many countries run away from responsibility and how little money we provide for rescue missions." Some 8,500 boat refugees have been saved and taken to Italy since April 1. Last year, 170,000 refugees from Africa and the Middle East entered Europe through Italy, according to the UN. Some estimates suggest the number may triple this year, as political and economic stability in their home countries worsens. The European Council will meet on Thursday to discuss the problem, but its president says there are no short term solutions available. ~~~~~ The question is this. Is the EU deliberately encouraging the continuation of conditions that could destroy Greece and substantially weaken Italy? The perceived symbolic center of the EU is in the Northern tier. The Southern perimeter countries were sought originally as Eurozone members to grow the Eurozone faster and to have greater impact earlier. Perhaps now, as the entire Euro experiment falters because the North and the South are not compatible in a common currency based on Germany's high tech manufacturing economy, Germany is asking : “What have you done for us lately?” If we turn the question around, Chancellor Merkel has done very little except in a negative way for Greece, Italy, Spain and Ireland. They have become trading chips for what she and her EU seek. Power. Stability. Influence. Commercial Success. Here are some points to consider. ~~~~~ The EU needs dependable non-Russian sources for energy. Reaching an agreement or partnership with the Moslem world could provide a level of energy security worth the sacrifice of Greece and/or Italy, and it could also provide a guaranteed market of 1.4 billion people for German manufacturers. What quid pro quo could this partnership be based on? A strategic look at the Mediterranean Sea shows that the collapse of Greece, Spain, and Italy would give the entire Mediterranean coastline to the Moslems, with Iran and ISIS and other jihadist terror groups vying for control of all shipping lines - from the Suez, Black Sea, and Adriatic Sea into the Mediterranean and then through the Straits of Gibraltar into the Atlantic. Israel would be completely cut off from the West. The Suez Canal would be lost. Only France would have Mediterranean coastal access. So, if control of the Mediterranean is part of Iran's and the jihadists' aims and if Germany wants to buy them off in return for security for Northern "Fortress Europe," the sacrifice of the Southern perimeter might seem enticing. But, dear readers, Chancellor Merkel surely realizes that no deal agreed upon today with Iran or the jihadist world will be worth anything tomorrow. So, my guess is that the above scenario must be at least partially subliminal in the German and northern EU psyche. ~~~~~ Another component in the EU's indifference to Greece and Italy is undoubtedly religious and cultural. Greece, Italy and Spain have deeply Catholic Christian cultures. Northern Europe has long considered itself "post-Christian." While Greece, Italy and Spain fight off EU efforts to obliterate national identity by striving to preserve the Catholic and cultural aspects of their daily lives, Northern Europe is broadly indifferent to forced religious and cultural homogeneity. It may be that German and Northern EU antipathy to the problems of Greece and Italy, and eventually Spain, is deeply rooted in Europe's intellectual disdain for Christianity. That would make the inflexible attitude of the EU's Northern power centers toward the Southern perimeter recognizable -- it is the sense of European cartesian elites that Christian philosophy and theology are inferior. All Christians will recognize this attitude. In America it is the smug assurance of science that religion is inferior because it does not show up in a microscope -- not yet -- but the God particle research may soon put cracks in that argument. In Europe, the smugness is based on the sense that cartesian logic demands the denial of God, putting Greece, Italy and Spain on a lesser intellectual level. But the EU should not forget that without Christianity and its all-encompassing God of love, they would probably be much like the world of Islam -- unable to break out of their (teutonic and celtic) xenophobic tribal prejudices and fears in order to develop as they have under Christianity. Whatever the reasons, Chancellor Merkel and her EU need to prove that Europe is capable of united action to save the Mediterranean for the West and to demonstrate that the EU is part of western civilization by compassionately helping its patriarchs - Greece and Italy.

7 comments:

  1. In June of 2012 the EU was leading Spain and Italy into an uncontrollable quagmire of false financial security… “European leaders agreed early Friday to use the Continent’s bailout funds to recapitalize struggling banks directly, according to the European Council president, Herman Van Rompuy… The decision, by leaders of the 17-nation euro zone, would allow help to banks without adding directly to the sovereign debt of countries, which has been a problem for Spain and potentially for Italy.” Foreign banks with Spanish operations impacted as well.”

    This plan was to work only once the EU a Regional Supervisor was established to REGULATE banks - itself a major agreement that could see European regulators overrides the authority of national governments. This agreement represented a significant gain for indebted southern European nations in crisis, a major concession from hard-line block of nations led by Germany who have dragged their feet on taking fresh action.

    This is the action plan of Germany and its East German leader Ms. Merkel. What is her aim? We can only hope it’s not what is so prevalent today with the addition of Greece to the absorption of power and control over the southern tier of the EU equation.

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    1. What is the difference between the wish to dominate Europe by military force with WWI and WW II and the same desire of Chancellor Merkel in the creation of her EU and Euro money today? If there is one central figure in this scenario it is Chancellor Merkel and her objectives are really clear enough for anyone that wants to see them.

      The more countries that fall into the EU the more monies that Merkel has to lend to flagging counties in the EU, and therefore the more centralized governmental control the EU (ie: Chancellor Merkel) will have. At some point the German control of the EU will allow for the pure political/economic destruction of unwanted countries like Greece, Italy, Spain, Ireland, etc.

      Oil and water do not mix. And the economic gurus of the EU via Germany look at economic viability as gigantic manufacturing and high technology industries. Not “specialized cottage” type industries.

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  2. Most all problems have solutions. But solutions have to be found by those with good intentions. And maybe the ‘discoverers’ from the EU are looking in all the wrong places – wrong places as far as Greece is concerned.

    Solution to Greece's problems can't be found in the political left, right, conservative, liberal, or any other kind of politics, because Greece's problems don't have to do with internal Greek partisan politics.

    The problems with the Greek economy are in the math not in the ‘pie-in-the-sky’ alternatives of Syriza. He doesn’t speak to solutions, no government austerity only more and more spending and more government jobs. His is really a path to deeper trickle down disaster. President Syriza rejects what many Greeks perceive as a foreign, German-led attempt to undermine their nation.

    Syriza is satisfied to wave his owned perceived magic wand, and let the borrowered money pour into the economy. Never mind that it can't be done: If Greece breaks its budgetary promises then Europe will stop lending, Greek banks will fail, and the country will be forced into a rapid exit from the euro, which is just what Merkel wants. In the long term, this outcome might well be better for Greece. In the short term, there would be massive chaos.

    Greece has to choose between the hardships of monetary austerity and the chaos of exiting the euro. Until Greeks are persuaded that there are no good alternatives, no magic wands, and the government of (extreme leftist) Syriza politics remains in place - chronically instability will be the course of the day.

    Expect more emergencies, more resignations, maybe even more attacks on corporate headquarters. Until the Greeks are convinced that austerity is the right policy—or until they are determined to take the consequences of leaving the euro— Greece’s leadership crisis under Syriza has not been averted but merely postponed.

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    1. SYRIZA is a thing a group not a he or his. Sorry for my typo

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  3. Greece cannot simply be allowed to fail, to not exist anymore. As neither can Italy, Spain, or the Middle East countries that we are witnessing being overrun by the Muslim jihad radicles. These Muslim fanatics have destroyed so much history in Iraq already.

    Syriza seems to be unable to see past the end of his nose as most socialists can’t. So if it takes the West to step up and financially aide Greece so be it. Aide in the form of NO INTEREST loans with little or no help in being repaid. Any EU type high interest loans to Greece is just another Albatross around their neck. They need a fresh start – one without Syriza as their free spending leader. That should be the West’s only condition – and that is not ‘Empire Building’

    For Greece to be gone one day when we wake up in the west would be paramount to art galleries of Paris to all be burned down, or the ceiling of the Sistine Chapel being sprayed painted pink.

    “Right is right even if nobody does it. Wrong is wrong even if everybody is wrong about it.”
    – G.K. Chesterton

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  4. Bloomberg reports, that “as Greece struggles to find cash to stay afloat, local authorities say they oppose a government decision to use their reserves for short-term financing.”

    It took the radical leftist government 2 months since coming to power to do what No other Greek administration has done before. And the punchline is that the use of confiscated proceeds is unclear: the government says it is to pay pensions and wages, but recall that the same government recently confiscated pensions to repay the IMF, so according to the chain of logic, the government first raided pensions, and now municipalities, just to repay the dreaded Troika (Russian for 3).

    “The government’s decision to seize our reserves not only raises legal and constitutional issues, but also a moral one,” said George Papanikolaou, mayor of Glyfada, the third-largest municipality in the metropolitan region of Attica after Athens and Piraeus. “We have a responsibility to serve our citizens,” Papanikolaou said by phone on Monday. Glyfada has about 16 million euros in cash reserves, he said.

    Papanikolaou is unhappy because as recently as tomorrow, he will find there is precisely zero euros in his public bank account, as all the money has now been forcibly sequestered by the government in order to repay future IMF obligations. Sadly for Greece, this is the only option left as the money has now fully run out: Greek Prime Minister Alexis Tsipras ordered local governments and central government entities to move their cash balances to the central bank for investment in short-term state debt.

    And as everyone realizes what just happened, expect the riot cam and the Greek Pay-Per-Riot channel, which has been on hiatus since the summer of 2012, to be fully reactivated.

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  5. De Oppressor LiberApril 21, 2015 at 8:16 PM

    Why don't we all take a deep breath and say ...Greece is insolvent/bankrupt. Maybe not tiday in the purest of definitions. But they will be next week or in two weeks, maybe a month.

    So I think the first step to fixing that problem is admitting what the exact problem is.

    At this point it doesn't matter who or what is to blame.

    What matters is that Greece matters to us. If Greece were left go of, that would be a very slippery slope.

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