The Dismal and Ideologically Biased Appraisal of an Economist about Greece’s Glimmer of Economic Recovery

By Con George-Kotzabasis-May 22, 2013

The Marxistoid professor of economics Yannis Varoufakis (In his keynote speech in the Subversive Festival of Zagreb, Croatia, on 14th May, 2013, he confessed himself to be an “Erratic Marxist”), whom Marx himself would have placed under the category “vulgar marxist” for following the footsteps of the great man erratically and loosely, in a choleric and ideologically tendentious article on his website, argues, that the “The Greek Success Story” is “The latest Orwellian Turn of the Greek Crisis.” All the favorable indices by which the “international press and the money markets seem to concur,” to quote him, that the country is on the road to recovery, are to the professor a contrived fiction and “vile propaganda” by the Samaras government to deceive and fool investors and to inveigle them to make “cheap investments” in the country with the prospect of high profits.

According to Varoufakis’ argument, among the deceived and the fools are not only investors but also renowned credit rating agencies, such as Standard and Poors, and Finch, which have upgraded the Greek state’s credit worthiness and four Greek banks, a number of serious economic commentators who foresee the reigniting of the Greek economy the following year and a growth of 0,6% in 2014 –some indeed write about a “booming” economy in the near future—and a bevy of the best and brightest of the European Commission that praises Greece for its rapid and effective reforms that enhanced its competitiveness. And to top it all, the ‘trickster’ Samaras was even able to deceive the economically astute and hardheaded Chinese and lure them to make investments in the infrastructure of the country and in real estate.

Only Professor Varoufakis is disabused of this deception and remains realistic about the dire prospects of Greece in the midst of this fictional euphoria that was able to entice cerebrally reputable institutions and people to see in this ‘mirage’ a “Greek Success Story.” It is rare to see such arrogant omniscience, of a second rate economist and Marxistoid to boot, attempting to trump all other economists and institutions that on a factual basis prognosticate an economic recovery of Greece.

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Greece:What to Do with Missed the Mark Politics of Pasok and Democratic Left?

By Con George-Kotzabasis May 3, 2013

The Samaras’ Government, like Atlas on his back, is carrying and attempting to transform and move Greece’s awesome heavy burden of unprecedented economic insolvency, since the ending of the Second-World-War, onto the stage of economic recovery and development. By succeeding in this most difficult enterprise it will also justify the positive, against the negative, economic remedies formulated in the second Memorandum by the European Union (EU), the European Central Bank and the International Monetary Fund, the so called Troika, for the purpose of saving Greece from economic catastrophe, and thus simultaneously enhance the credibility, and indeed, the survival of the EU as an institution of crucial influence and guidance in world affairs.

In this call to national salvation three politically and ideologically disparate parties 0f New Democracy, Pasok, (Panhellenic Socialist Movement) and the Democratic Left (Demar) decided to form a coalition government whose main goal was to keep Greece within the European Union and salvage the country, with the financial help of the latter, from economic bankruptcy that would have devastated the standard of living of the major part of the population and would have brought a proud nation to the status of indigence and economic despair for at least a generation. The two leaders, of Pasok and Demar, Evangelos Venizelos and Fotis Kouvelis, respectively, seeing the prodigious dangers the country was facing, raised their height to these dire circumstances and wisely decided to stand hand in hand with an ideological opponent, that is, the liberal conservative party of New Democracy and its leader Antonis Samaras, for the purpose of saving Greece from this imminent catastrophe. Hence the two leaders of the left put their ideological reputation and the future viability, and, indeed, the existence of their parties at immense risk by their decision to support a government led by Samaras, their erstwhile conservative opponent, and tie themselves and their parties to the fortunes of the latter, that is, whether the Samaras’ government will succeed or not in pulling the country out of the crisis and start the economic development that is so vital in overcoming the terrifying economic difficulties that Greece countenances at the moment.

There are grounds to make one believe that Greece economically and politically might be at a turning point. The Samaras government after succeeding in convincing its European partners, in exceedingly difficult negotiations, to provide the funds Greece needed, to ignite its economy and place the country on the path of development, under less onerous terms of the bailout than the initial ones the Europeans were demanding. This was a great success and a great achievement of the government and demonstrating at the same time its virtuoso skills in the art of negotiations.

The government announced last month that it had beat its budget targets for 2012. Finance Minister Stournaras claimed that the government was close to achieving a primary surplus—the budget surplus before taking into account payments on the debt—this year that would deliver, according to the mutual agreement of the parties, a further package of help from the Euro-zone.  Employment statistics also showed, that within the span of the last two months the number of workers hired exceeded by nearly nine thousand the number of workers dismissed for the first time since the crisis. Furthermore, the recapitalization of the banks was on track and bound to be consummated in the next few weeks and the spigots of liquidity were therefore ready to be opened that would provide the private sector the funds for investment. Last week, the president of the National Bank stated that levels of liquidity are progressively established and 10 billion Euros could flow into the real economy. And already 50% of one thousand of small and large private enterprises announced that they were preparing to start investing within the current year. The internationally renowned telecommunications company Nokia is planning to establish a branch in Athens that would employ hundreds of highly skilled technicians and could become a magnet that would attract other foreign corporate giants to the country and thus by their presence would provide a continuous economic confidence for the country’s future. The Task Force of the European Commission last week issued favourable reports that the Greek economy was about to be re-ignited although it warned the government that small businesses had been dried of funds and their future operations were at risk. Also the credit ratings agency Moody’s estimated that Greece would have a positive rate of growth in 2014, after five years of negative growth.

Thus we see that there are ample encouraging signs that Greece might be at the crucial point of overcoming the crisis. It is most important therefore that the two parties, Pasok and Demar, that support the Samaras government, must first take note of these auspicious indices and that the current measures of the government are putting the country on the axis of economic development, and second, must not jeopardise this favourable situation by rigidly sticking to their parties position on other issues, such as labor relations and on the restructuring of the public sector, which are contrary to the overall current policy of the government and could endanger the economic progress the latter is making in overcoming the crisis.

The coalition partners must become fully aware that their political viability is tied up not with the sacred ideological position these parties hold on a variety of issues, contra the neo-liberal position of New Democracy, and pushing these toward their consummation, at this critical juncture whose primary goal is the salvation of the country, is a most imprudent diversion from the main goal. On the contrary, their political future is tied up with the success of the Samaras government in pulling the country out of the crisis. The electorate will not remember them and will not elect them for being pure to their ideological position but for their pragmatic support of a neo-liberal government that saved Greece from economic oblivion and mass poverty. In the event the Samaras administration fails in this complex immensely difficult and great task would likewise totally discredit and everlastingly condemn and cast to political oblivion both Pasok and Demar for their support of this failed government, no matter how favorable the former have been on other minor issues, in comparison to the major issue, that are dear to the hearts of the many. Their responsibility to the country and to themselves therefore lies in their pragmatic assessment of the policies of the government beyond ideology as to whether they are better placed to extricate the country from the crisis.

It is for this reason that in this process of the Renaissance of Greece, under the wise and strong leadership of Antonis Samaras, the cohesion of these partners in the salvation of the country is of unaccountable importance. Thus for Pasok and Demar not to miss the mark is to realize that the failure or success, in this uniquely historical venture of saving Greece, will determine their political viability in the future and not their ideological hues on secondary issues.

I rest on my oars:your turn now