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22 June, 2017

Alexis Tsipras essentially admits that the Greek experiment is not over


A tired and disappointed prime minister spoke yesterday to the members of his cabinet about the latest developments after the recent eurogroup (another one), concerning the Greek debt issue. The Greek PM, Alexis Tsipras, was restricted on usual generalities, without giving a specific schedule about what Greece's creditors have promised to do about Greece's debt relief. The explanation is simple: they gave him nothing.

Despite the usual rhetoric containing cliches like growth, jobs, investments, fight against corruption and bureaucracy, sometimes, at some point, even politicians reveal directly or indirectly, deliberately or not, some of the real picture behind the curtain.

So, it would be useful to focus on a couple of points that may give us some of the real picture. The first one comes right in the beginning of his speech, where Tsipras essentially admitted that after the latest developments we should not expect the end of the crisis, which is translated that the brutal neoliberal experiment in Greece is not over yet:

            The decision of eurogroup, gives for the first time after seven years, a clear horizon for the exit from the memorandums, from the recession, and from the crisis of the economy. [...] It does not consist the end of the crisis ...

The second one comes little later when the disappointed Tsipras pretends that the exit to the markets for Greece is not a primary target:

           And I estimate that, during the next period, the downward course of the interest rates will be continued, so that very soon to be able to make the first test exit to the markets ... openly, with viable and sustainable terms. Yet, if you like, this is a short-term target for us, and probably, not our primary target ...


Obviously, Tsipras realized that the neoliberal priesthood will not allow Greece to return to the markets with a viable interest rate because that would give a significant independence to the country, in order to avoid tight scrutiny and form its own policies.

As described previously, some Greek government officials expressed recently their optimism that Greece could return to the money markets during the summer with a viable interest rate, but our guess is that it won't happen, because this would give a certain degree of independence to Greece from the ECB and Draghi's liquidity injections. The neoliberal priesthood knows that there is still a danger of a possible sudden interruption, and even reversal, of the Greek experiment, in case that Tsipras administration find an opportunity to make independent moves, away from the creditors' tight scrutiny, towards social policies and public investments. Then, their new 'model' for the whole eurozone, as they dream, could have been 'blown up'.

Tsipras will be forced to take only further measures against the Greek society under tight scrutiny, like every other eurozone country under similar programs. The Brussels-Berlin axis will use him and throw him to the dustbin, hoping to replace him with a more secure puppet, like the neoliberal leader of New Democracy, Kyriakos Mitsotakis.

There is only one solution for Greece to be liberated from the European Financial Dictatorship and return to the path of hope: return to national currency, or, Grexit if you prefer. This Grexit should be done with Greece's terms, in order to be able to survive from the subsequent financial war that will be launched by the global financial mafia.

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