In modern "currency wars” Greece has surrendered all arms to the German economy

By Anastassios D. Retzios, PhD

Eventually, Argentina did recover. By 2004, the economy was booming again under a new Peronist president, Néstor Kirchner, who stared down the International Monetary Fund and applied his own brand of economic common sense.Apart from the fact that the default led to a lot of suffering between 2001 to mid-2003.  I will tell you what happened.  The “economic common sense” that Nestor Kirchner used was simply to abandon the dollar!   Many of the ills of Argentina were caused by its utilization of a currency, which was fast appreciating in the ‘90’s, and which made Argentinian goods uncompetitive abroad and at home.This is what happens when you surrender monetary sovereignty.  You no longer have control of the currency and you cannot adjust its value to regain competitiveness.

 This tool was indispensable for Japan, which devalued the yen by 30% in 2012, to recover competitiveness.  It is indispensable for China and Korea, as they are fighting for the foreign and domestic market for their goods.  It is also indispensable for the US, which has devalued the dollar by 50% since 2003, to decrease its trade deficit.  In fact, the avalanche of devaluations is now called “the currency wars” (just check it as a “trending term”).  In this war, Greece has surrendered all arms to bankers in Frankfurt whose main concern is the German economy!!!

But the Greek public hears none of it.  They are only subjected to a campaign of terror by the “Euro-elite” or the “European Greeks” who will fight any “disengagement” from Europe by hook and by crook.  The fear campaign will intensify as this government is trying to reach an “honorable” agreement with the Eurogroup. Mr. Tsipras and Mr. Varoufakis, whatever their mistakes, are presented as hapless clowns who are not “serious” in dealing with our European “friends” who just want a “few reforms”.  These “Euro-elite” liars will never disclose to you what our “friends” really want.  They are the modern “Gennadioi”, the ones who are ready to sell Greece (and their souls) in order to retain their European “credentials”.  They preach surrender for food!!! And they have the mass media to assist them in this campaign.

Unfortunately, they would be signing their own “execution warrants” if they succeed.  Because if Mr. Tsipras and Varoufakis accept the suggested “reforms”, more misery will be heaped on the population.  Wages and pensions would be cut substantially, the VAT will increase, labor protections would be lifted, everybody would be herded to a single retirement fund, protections from seizures would be removed and the state control would pass on to the troika whose functionaries will return to take control of the Greek state and Greek property.  Sellouts of ports, airports, utilities for pennies of the dollar to German, Dutch and other vulture groups will continue apace.  Hundreds of thousands of Greek will lose their jobs.

Despite misinformation, the public will soon become aware.  It would abandon SYRIZA and switch alliance to new parties – as it did with PaSoK and ND- or the parties of extreme solutions.  It is not unthinkable.  In fact, the situation now is very reminiscent of that of the Weimar republic (when a liberal-socialist government was trying to manage a crisis, while the Nazis and the Communists were crabbing the real power in the streets).  If this government is not wildly successful, the Hellenic Republic would head down the same path: the path of extremes.

I say to the Greek “Euro-elite”: Be careful of what you wish.  Because you may just get it!!

Anastassios D. Retzios, PhD

San Ramon, California, USA