In the Thunderous Sky of Greece a Thunderbolt of Creative Destruction is about to Strike the Country

Greece, after its forced exile, four years ago, from the international financial markets, has returned, this week, back to them with aplomb to reap the confidence of the markets of its future economic development. In 2010, Greece, by numerous prominent economists and analysts and top economic journals, such as the Economist, was sentenced to death for its economic maladies that had brought the country into bankruptcy. This dire and calamitous situation however was overturned by the advent of Antonis Samaras as prime minister in June 2012, who, by selecting a constellation of bright stars as ministers, was able to accomplish by his strong and sagacious leadership, in the short space of two years, this reversal of misfortune that had engulfed the country as a result of the ill-fated fiscal policies of past governments. This achievement is unprecedented, as no country in the world was able to transform itself from the brink of economic ruin to economic recovery in such a short time. In the annals of economic history this illustrious outcome will be registered as the economic miracle of Greece.

The following paper was written on April 2012 and is republished for the readers of this blog.

By Con George-Kotzabasis December, 2012

The most respectable German newspaper Handelsblatt, proclaimed Antonis Samaras as the greatest European politician for the year 2012. At the same time the illustrious former Foreign Minister of Germany Hans-Dietrich Genscher, also praised Samaras in glowing terms as the politician, who after admitting his own mistakes and the disastrous economic policies of Greece that brought the latter to the brink of insolvency, brought the country with remarkable celerity and unsurpassable decisiveness on the right course that would rekindle the economy and lead the country toward economic development. Goldman Sachs is predicting that in the next 10 years Greek GDP will increase by 30%. The rating agency Moody’s increased the financial status of Greece by six points.

”Things grow at the right time, i.e. the right moment and the right perseverance. ‘For’, as [the German poet] Holderlin said, ‘the mindful God abhors untimely growth’ “

Martin Heidegger

 

History has shown that at critical moments, in countries of advanced and high culture, men of stupendous ability, imagination, foresight, and fortitude, sprang, like phoenixes from the ashes, to salvage their countries from mortal threats. Themistocles at the battle of Salamis that saved Greece from the barbarian Persian invasion, is one example, the other is Charles Martel, who at the battle of Poitiers stopped the barbarian Muslim invasion from conquering Europe. In our modern contemporaneous times, Greece, on the verge of being devoured and crashed by the ‘hungry fangs’ of default and economic poverty, is just as promptly to be saved by a modern-day Periclean statesman, Antonis Samaras.

In the early 1980’s, with the advent of Andreas Papandreou’s socialist government to power, which proved to be the destructive force that brought Greece to its present catastrophe, that immediately started implementing the serial economic crime of a policy of deficits, the country entered the vicious circle of government spending without economic development. By the early 90’s it was glaringly clear that the debt of the country was reaching astronomical heights that would lead it to the precipice of default and bankruptcy. In 1994, Constantinos Mitsotakis, the former prime minister of Greece, in a prophetic speech in Parliament, predicted that the economically crass and thoughtless policies of Pasok would send Greece as a mendicant to the International Monetary Fund to spare it from pauperism. Andreas Papandreou himself was shocked when at a sober moment glanced at the unfathomable debt that the country was in, as a result of his dirigisme economic policies. It was in his presence when his minister of finance Kostas Simitis remarked, in an accusatory and pungent phrase, that this was “the revenge of the economy.”

The false prosperity that had engulfed Greece turned a sizable part of its population to indulge in the charms and seductions of dolce vita at the expense of government largesse. A whole generation of Greeks had been spoiled and became kaloperasakides (the easy life of prodigally good-timers) under the perpetual munificence of the State. In such a social situation the New Democracy party, though imbued with the precepts of The Austrian School of economics versus Keynesianism, and realising, as its leader Constantinos Mitsotakis did, that the country was approaching in a rapid pace the edge of insolvency, had its hands politically manacled and could not implement decisively and with celerity, and with the necessary degree required, policies of economic restraint that would have prevented the transformation of Greece into a mendicant status, since there did not exist even a small constituency on the political landscape of Greece that would contemplate, least of all accept, policies of austerity. The Greeks had been ‘pathologically’ conditioned to the ‘benefits’ accruing from big government, introduced by Andreas Papandreou, and any attempt to small government by any party in power or any opposition propagating  such an idea, could neither hold or win government. Who would give up the ‘free tans’ in sunny Greece that so profusely and generously the State was providing? And who would give up the cushy and loafing jobs in the public sector that the party boys and girls of Pasok and New Democracy were enjoying and relishing? This is the point from which the economic tragedy of Greece had started and would continue to its tragic end.

Thirty years of frivolous public spending brought debt-to-GDP ratio of 120%. Since October 2009 when the son of Andreas Papandreou, George, became prime minister and implemented measures of severe austerity as directed from Brussels in the first memorandum, debt reached 168% of GDP. With the continued recession of the country for the fifth year, Greece lost 16%–18% of its GDP since 2009.

From early 2010 the Opposition leader, Antonis Samaras, few months after his election as leader of the New Democracy party, was warning the Papandreou government of the danger that the austerity measures without economic recovery would lead the country into recession. But his was a lone voice in the wilderness. And for his bold and insightful decision to oppose and vote against the first memorandum replete with the leaden heaviness of austerity that would sink the Greek economy as it did, he was vehemently reprimanded both from within and outside the country. The Economist magazine severely criticised him for his stand against the memorandum but only to lament its critique two years later and concede that Samaras was right. Likewise, Chancellor Merkel and many European ministers with whom Samaras had quarrelled and pointed out to them that austerity measures without rekindling the economy would not resolve Greece’s problem but would make it more abstruse and harder to crack. It took two years for the top brains of Europe to realize that the austerity pills that they were forcing into Greece’s mouth to remedy its ills would have the effect of poisoning its body. (In two years of the severe austerity of the Memorandum, as we indicated above, Greece increased its debt to GDP by a great amount and lost a substantial part of its Gross Domestic Product as enterprises closed and unemployment ravaged the country.) And in turn, like The Economist, admitting that Samaras had won the argument, as all Europeans now are calling for economic recovery and development, supplemented by austerity measures that are necessary, as the way to restore a country’s economic strength.

The May 6 Elections of Greece Crucial for the Future of the Country

The impending election that has been called by the interim government of Lucas Papademos for May 6 is of momentous significance for the future course of the country. Greeks will be called to be partisans of the hard climb to the peak of Mt Olympus from where the sun of hope will rise once again over Greece or be partisans to a free fall in a long twilight of despair. The first is the thunderous call of the New Democracy Party under the Gulliverian and imaginative political leadership of Antonis Samaras, and the second is the deathlike mute call of a congeries of small parties from the left and the right led by Lilliputian politicians. These politically ‘pigmy’ parties, among which is the Communist Party, have no policies of rescuing Greece from its woes, except policies that would lead to the exiting from the European Union and return to the drachma that would lead in turn to the absolute poverty of the country, deliberately drop the curtain on all hope on Greece as their sole aim is to sordidly profit politically by their investment in hopelessness.

The socialist party, Pasok, the main opponent of New Democracy, although on the side of hope, even under the new leadership of Evangelos Venizelos, is totally discredited, as it has been the party that led Greece to its present catastrophe by a bout of unbelievable and unprecedented economic and political mistakes, that Venizelos himself was involved in and responsible, during the last two years that was in government. Moreover, the latest decision of the High Court of Greece to apprehend and charge a former luminary of Pasok and right-hand man of Andreas Papandreou, the founding father of the Panhellenic Socialist Movement, Akes Tsohatzopoulos, his wife and daughter, and some of his relatives, with bribery and corruption and with being the receiver and beneficiary of millions of dollars as paid commissions, during his tenure as minister of defence, from German and Russian companies to which he had authorized major assignments and projects of his department, has indelibly marked Pasok as venally corrupt;  particularly when its present leader Venizelos, at the initial investigations of Tsohatzopoulos, with the stentorian voice of the lawyer, that he is, was defending and exculpating from any knave dealings, and with the usual catch-all alibi of the typical politician,  that the “accusation against Tsohatzopoulos was politically motivated.” Hence, inconceivable political incompetence and culpability, and unfathomable corruption on the part of Pasok, will be two major themes that will dominate the elections and which will ineluctably lead to new lows in the polls for the socialists.

In this critical economic and political setting that the country is in and the looming threat of the breaking of social cohesion, Samaras is asking the Greek people to give New Democracy the “auto-dynamism,” by a majority of votes in the elections, so he can have his hands untied to govern the country with decisiveness and clear uncompromised policies that would put Greece on the trajectory of economic recovery and development. He argues cogently, that in the present political situation of Greece when consensus about the necessary economic policies among parties of how to regenerate the economy of the country is absent, a coalition government–which is the designated position of Pasok and according to the polls at this moment the desire of a majority of the electorate–will be politically impracticable, and more importantly, would not drag out the country from its peril but would further engulf it into profounder depths; as one could not govern effectively a country in a crisis and gradually bring it out of it  by being compelled to make compromises to one’s political partners, but only by a well-defined plan and decisive and prompt action to implement it without compromises, by a leader who has a strong mandate from the electorate.

Samaras believes, and reasonably hopes with the confidence of a statesman, that during the electoral period and closer to election date, there will be a dramatic shift of voters toward polarized positions, once the crucial issues of the country are spelled out clearly and without lies to the people by New Democracy and by foreshadowing the practical economic policies backed by real numbers that would put Greece on the track of economic recovery, there is a great chance that the majority of Greeks will give New Democracy a strong mandate to govern on its own for the benefit of all Greeks and for the salvation of the country.

Samaras contended long ago, that only through a clear strong authorization given to him by a majority of the people he would be able to radically change Greece. For real economic development entails not only good policies and incentives but a transformation in the views and customs of people toward such development. He puts great emphasis on the value of human capital and entrepreneurship as the prerequisites for the economic recovery of the country. That is why he has promised to re-legitimize private enterprise and effort that for many years now has been delegitimized in the country by communist-led unions, to whom profit has been, as always, the devil-incarnate of the capitalist free market.

The present high unemployment of more than 20% Samaras contends, will not be reduced by mere lower labour costs which already have been decreased by 15% in the private sector while the tax burden on the latter has increased by 50% and energy costs by 450%. Even if Greeks worked for free no one would hire them with such high taxes and energy costs. Samaras in his Zappeio III speech few days ago declared that he would cut corporate tax to a flat rate of 15%, sharply cut pay-roll tax, lower personal income-tax to 32% maximum, and reduce taxes substantially on fuel and tourism. This would make harder rampant tax evasion and would unleash the creativity of the private sector and hence commence the gradual reduction in unemployment. He also announced, that he would increase the lowest pensions to 700 euros per month–that were reduced drastically by the second Memorandum under the austerity measures–and would increase the endowment of families with many children which would not only correct an injustice inflicted upon these two weak sections of society but would also have favourable economic consequence as they  would increase consumer demand, which is so important in rekindling the economy, as both recipients of this government assistance spend their money in consumer goods. He would do these two things without increasing public expenditure and hence worsening the deficit, but by cutting government wastage that is so massive and profligate in the State’s spending. Further, he will provide incentives to private enterprise in areas where Greece has almost unchallengeable comparative advantage, i.e., in the merchant marine sector, ship building, and tourism; and in the production and merchandise of olive oil and other agricultural goods by the local producers themselves, not by foreign ones as is the case presently, whose development in all the above sectors will vitally affect the resurgence of the economy. He also proposes to provide incentives to entrepreneurs to exploit the rich mineral resources of the country and to give priority to find and tap the vast natural gas deposits under the Aegean Sea, by declaring the Greek AOZ (Exclusive Economic Zone) that could transform the export dynamic of Greece. He intends further, to reverse the present dryness of liquidity in the country by proffering amnesty from any legal penalties to those who withdrew their cash holdings from Greek banks during the height of the crisis and deposited them overseas once they bring them back to the country; and also by immediately paying back the 6.5 billion euros that the government owes to domestic enterprises; these two measures would increase the liquidity of the banks and hence their ability to provide loans to the private sector, especially to small businesses, that are the backbone of the country’s economy. Moreover, the re-capitalization of the banks, Samaras argues, will enable them to borrow funds at low interest rates from the European Central Bank, that were set up by it last December, which would be used to put Greece on the track of recovery and economic development.

It is by this method of supply-side economics, as that wunderkind Alders Borg the Swedish Finance Minister illustrated for his own country that Greece’s economy will rise again. The necessary austerity measures stipulated in the new Memorandum that Greece has to implement must be accompanied by the rejuvenated “animal spirits” of private enterprise. Samaras, consistently has been saying for the last two years that “we need a recovery to jump-start the economy,” and in conditions of recession austerity measures cannot stimulate the economy but on the contrary sink it deeper into stagnation.

The vision and plan of Samaras is to plant radical changes on the whole landscape of Greece. In his Zappeio speech he adumbrates constitutional changes that would separate the three branches of government the executive, the legislative, and the judiciary and thus prevent a member of parliament from being a minister, which has been in the past a malignant link of political corruption and has bestowed ‘asylum’ to members of parliament for their malfeasances. He pledges to bring changes to educational institutions that would reclaim the proud heritage of Greece that tragically has been eroded by the cultural relativists of a left coterie of pseudo-intellectuals and led to the disconnection of many young Greeks from their great cultural origins. He also promises to take drastic measures against illegal migrants, whom he calls “unarmed invaders” of Greece that under the soft immigration policies of Pasok they have occupied the main centres of cities, and remove them to provincial hostels until their eventual expulsion.  Another important commitment of Samaras is to transform the bon vivant ethos of many Greeks, which up till now its tab has been picked up by the government, into a creatively productive one. On the new green tree planted by New Democracy, the singing cicadas will be replaced by fecund working bees. As Samaras is fully aware that sustainable economic development cannot be accomplished without transformative changes in the thinking and the mores of the people, especially of the younger generation.

Samaras is “framed in the prodigality of nature,” to quote Shakespeare. He is endowed charismatically both with a high intellect and remarkable moral strength along with the will and determination—all the stuff out of which statesmen are made–to change all things in Greece. But whether this lightning bolt of creative destruction will strike Greece or not depends on the strong mandate that he needs from the people. If Greeks do not fail, at this critical juncture, from fulfilling their historical duty to render to New Democracy a majority of seats in Parliament, then Antonis Samaras, in turn, will consummate the cultural, political, and economic Renaissance of Greece.

Hic Rhodus hic Salta

In the Thunderous Sky of Greece a Lightning Bolt of Creative Destruction is about to Strike the Country

The most respectable German newspaper Handelsblatt, proclaimed Antonis Samaras as the greatest European politician for the year 2012. At the same time the illustrious former Foreign Minister of Germany Hans-Dietrich Genscher, also praised Samaras in glowing terms as the politician, who after admitting his own mistakes and the disastrous economic policies of Greece that brought the latter to the brink of insolvency, brought the country with remarkable celerity and unsurpassable decisiveness on the right course that would rekindle the economy and lead the country toward economic development. Goldman Sachs is predicting that in the next 10 years Greek GDP will increase by 30%.

It’s for this reason that I’m republishing the following essay which was written on April 27, 2012, for the readers of this blog. 

By Con George-Kotzabasis April 27, 2012

History has shown that at critical moments, in countries of advanced and high culture, men of stupendous ability, imagination, foresight, and fortitude, sprang, like phoenixes from the ashes, to salvage their countries from mortal threats. Themistocles at the battle of Salamis that saved Greece from the barbarian Persian invasion, is one example, the other is Charles Martel, who at the battle of Poitiers stopped the barbarian Muslim invasion from conquering Europe. In our modern contemporaneous times, Greece, on the verge of being devoured and crashed by the ‘hungry fangs’ of default and economic poverty, is just as promptly to be saved by a modern-day Periclean statesman, Antonis Samaras.

In the early 1980’s, with the advent of Andreas Papandreou’s socialist government in power, which proved to be the destructive force that brought Greece to its present catastrophe, that immediately started implementing the serial economic crime of a policy of deficits, the country entered the vicious circle of government spending without economic development. By the early 90’s it was glaringly clear that the debt of the country was reaching astronomical heights that would lead it to the precipice of default and bankruptcy. In 1994, Constantinos Mitsotakis, the former prime minister of Greece, in a prophetic speech in Parliament, predicted that the economically crass and thoughtless policies of Pasok would send Greece as a mendicant to the International Monetary Fund to spare it from pauperism. Andreas Papandreou himself was shocked when at a sober moment glanced at the unfathomable debt that the country was in, as a result of his dirigisme economic policies. It was in his presence when his minister of finance Kostas Simitis remarked, in an accusatory and pungent phrase, that this was “the revenge of the economy.”

The false prosperity that had engulfed Greece turned a sizable part of its population to indulge in the charms and seductions of dolce vita at the expense of government largesse. A whole generation of Greeks had been spoiled and became kaloperasakides (the easy life of prodigally good-timers) under the perpetual munificence of the State. In such a social situation the New Democracy party, though imbued with the precepts of The Austrian School of economics versus Keynesianism, and realising, as its leader Constantinos Mitsotakis did, that the country was approaching in a rapid pace the edge of insolvency, had its hands politically manacled and could not implement decisively and with celerity, and with the necessary degree required, policies of economic restraint that would have prevented the transformation of Greece into a mendicant status, since there did not exist even a small constituency on the political landscape of Greece that would contemplate, least of all accept, policies of austerity. The Greeks had been ‘pathologically’ conditioned to the ‘benefits’ accruing from big government, introduced by Andreas Papandreou, and any attempt to small government by any party in power or any opposition propagating  such an idea, could neither hold or win government. Who would give up the ‘free tans’ in sunny Greece that so profusely and generously the State was providing? And who would give up the cushy and loafing jobs in the public sector that the party boys and girls of Pasok and New Democracy were enjoying and relishing? This is the point from which the economic tragedy of Greece had started and would continue to its tragic end.

Thirty years of frivolous public spending brought debt-to-GDP ratio of 120%. Since October 2009 when the son of Andreas Papandreou, George, became prime minister and implemented measures of severe austerity as directed from Brussels in the first memorandum, debt reached 168% of GDP. With the continued recession of the country for the fifth year, Greece lost 16%–18% of its GDP since 2009.

From early 2010 the Opposition leader, Antonis Samaras, few months after his election as leader of the New Democracy party, was warning the Papandreou government of the danger that the austerity measures without economic recovery would lead the country into recession. But his was a lone voice in the wilderness. And for his bold and insightful decision to oppose and vote against the first memorandum replete with the leaden heaviness of austerity that would sink the Greek economy as it did, he was vehemently reprimanded both from within and outside the country. The Economist magazine severely criticised him for his stand against the memorandum but only to lament its critique two years later and concede that Samaras was right. Likewise, Chancellor Merkel and many European ministers with whom Samaras had quarrelled and pointed out to them that austerity measures without rekindling the economy would not resolve Greece’s problem but would make it more abstruse and harder to crack. It took two years for the top brains of Europe to realize that the austerity pills that they were forcing into Greece’s mouth to remedy its ills would have the effect of poisoning its body. (In two years of the severe austerity of the Memorandum, as we indicated above, Greece increased its debt to GDP by a great amount and lost a substantial part of its Gross Domestic Product as enterprises closed and unemployment ravaged the country.) And in turn, like The Economist, admitting that Samaras had won the argument, as all Europeans now are calling for economic recovery and development, supplemented by austerity measures that are necessary, as the way to restore a country’s economic strength.

The May 6 Elections of Greece Crucial for the Future of the Country

The impending election that has been called by the interim government of Lucas Papademos for May 6 is of momentous significance for the future course of the country. Greeks will be called to be partisans of the hard climb to the peak of Mt Olympus from where the sun of hope will rise once again over Greece or be partisans to a free fall in a long twilight of despair. The first is the thunderous call of the New Democracy Party under the Gulliverian and imaginative political leadership of Antonis Samaras, and the second is the deathlike mute call of a congeries of small parties from the left and the right led by Lilliputian politicians. These politically ‘pigmy’ parties, among which is the Communist Party, have no policies of rescuing Greece from its woes, except policies that would lead to the exiting from the European Union and return to the drachma that would lead in turn to the absolute poverty of the country, deliberately drop the curtain on all hope on Greece as their sole aim is to sordidly profit politically by their investment in hopelessness.

The socialist party, Pasok, the main opponent of New Democracy, although on the side of hope, even under the new leadership of Evangelos Venizelos, is totally discredited, as it has been the party that led Greece to its present catastrophe by a bout of unbelievable and unprecedented economic and political mistakes, that Venizelos himself was involved in and responsible, during the last two years that was in government. Moreover, the latest decision of the High Court of Greece to apprehend and charge a former luminary of Pasok and right-hand man of Andreas Papandreou, the founding father of the Panhellenic Socialist Movement, Akes Tsohatzopoulos, his wife and daughter, and some of his relatives, with bribery and corruption and with being the receiver and beneficiary of millions of dollars as paid commissions, during his tenure as minister of defence, from German and Russian companies to which he had authorized major assignments and projects of his department, has indelibly marked Pasok as venally corrupt;  particularly when its present leader Venizelos, at the initial investigations of Tsohatzopoulos, with the stentorian voice of the lawyer, that he is, was defending and exculpating from any knave dealings, and with the usual catch-all alibi of the typical politician,  that the “accusation against Tsohatzopoulos was politically motivated.” Hence, inconceivable political incompetence and culpability, and unfathomable corruption on the part of Pasok, will be two major themes that will dominate the elections and which will ineluctably lead to new lows in the polls for the socialists.

In this critical economic and political setting that the country is in and the looming threat of the breaking of social cohesion, Samaras is asking the Greek people to give New Democracy the “auto-dynamism,” by a majority of votes in the elections, so he can have his hands untied to govern the country with decisiveness and clear uncompromised policies that would put Greece on the trajectory of economic recovery and development. He argues cogently, that in the present political situation of Greece when consensus about the necessary economic policies among parties of how to regenerate the economy of the country is absent, a coalition government–which is the designated position of Pasok and according to the polls at this moment the desire of a majority of the electorate–will be politically impracticable, and more importantly, would not drag out the country from its peril but would further engulf it into profounder depths; as one could not govern effectively a country in a crisis and gradually bring it out of it  by being compelled to make compromises to one’s political partners, but only by a well-defined plan and decisive and prompt action to implement it without compromises, by a leader who has a strong mandate from the electorate.

Samaras believes, and reasonably hopes with the confidence of a statesman, that during the electoral period and closer to election date, there will be a dramatic shift of voters toward polarized positions, once the crucial issues of the country are spelled out clearly and without lies to the people by New Democracy and by foreshadowing the practical economic policies backed by real numbers that would put Greece on the track of economic recovery, there is a great chance that the majority of Greeks will give New Democracy a strong mandate to govern on its own for the benefit of all Greeks and for the salvation of the country.

Samaras contended long ago, that only through a clear strong authorization given to him by a majority of the people he would be able to radically change Greece. For real economic development entails not only good policies and incentives but a transformation in the views and customs of people toward such development. He puts great emphasis on the value of human capital and entrepreneurship as the prerequisites for the economic recovery of the country. That is why he has promised to re-legitimize private enterprise and effort that for many years now has been delegitimized in the country by communist-led unions, to whom profit has been, as always, the devil-incarnate of the capitalist free market.

The present high unemployment of more than 20% Samaras contends, will not be reduced by mere lower labour costs which already have been decreased by 15% in the private sector while the tax burden on the latter has increased by 50% and energy costs by 450%. Even if Greeks worked for free no one would hire them with such high taxes and energy costs. Samaras in his Zappeio III speech few days ago declared that he would cut corporate tax to a flat rate of 15%, sharply cut pay-roll tax, lower personal income-tax to 32% maximum, and reduce taxes substantially on fuel and tourism. This would harden rampant tax evasion and would unleash the creativity of the private sector and hence commence the gradual reduction in unemployment. He also announced, that he would increase the lowest pensions to 700 euros per month–that were reduced drastically by the second Memorandum under the austerity measures–and would increase the endowment of families with many children which would not only correct an injustice inflicted upon these two weak sections of society but would also have favourable economic consequence as they  would increase consumer demand, which is so important in rekindling the economy, as both recipients of this government assistance spend their money in consumer goods. He would do these two things without increasing public expenditure and hence worsening the deficit, but by cutting government wastage that is so massive and profligate in the State’s spending. Further, he will provide incentives to private enterprise in areas where Greece has almost unchallengeable comparative advantage, i.e., in the merchant marine sector, ship building, and tourism; and in the production and merchandise of olive oil and other agricultural goods by the local producers themselves, not by foreign ones as is the case presently, whose development in all the above sectors will vitally affect the resurgence of the economy. He also proposes to provide incentives to entrepreneurs to exploit the rich mineral resources of the country and to give priority to find and tap the vast natural gas deposits under the Aegean Sea, by declaring the Greek AOZ (Exclusive Economic Zone) that could transform the export dynamic of Greece. He intends further, to reverse the present dryness of liquidity in the country by proffering amnesty from any legal penalties to those who withdrew their cash holdings from Greek banks during the height of the crisis and deposited them overseas once they bring them back to the country; and also by immediately paying back the 6.5 billion euros that the government owes to domestic enterprises; these two measures would increase the liquidity of the banks and hence their ability to provide loans to the private sector, especially to small businesses, that are the backbone of the country’s economy. Moreover, the re-capitalization of the banks, Samaras argues, will enable them to borrow funds at low interest rates from the European Central Bank, that were set up by it last December, which would be used to put Greece on the track of recovery and economic development.

It is by this method of supply-side economics, as that wunderkind Alders Borg the Swedish Finance Minister illustrated for his own country that Greece’s economy will rise again. The necessary austerity measures stipulated in the new Memorandum that Greece has to implement must be accompanied by the rejuvenated “animal spirits” of private enterprise. Samaras, consistently has been saying for the last two years that “we need a recovery to jump-start the economy,” and in conditions of recession austerity measures cannot stimulate the economy but on the contrary sink it deeper into stagnation.

The vision and plan of Samaras is to plant radical changes on the whole landscape of Greece. In his Zappeio speech he adumbrates constitutional changes that would separate the three branches of government the executive, the legislative, and the judiciary and thus prevent a member of parliament from being a minister, which has been in the past a malignant link of political corruption and has bestowed ‘asylum’ to members of parliament for their malfeasances. He pledges to bring changes to educational institutions that would reclaim the proud heritage of Greece that tragically has been eroded by the cultural relativists of a left coterie of pseudo-intellectuals and led to the disconnection of many young Greeks from their great cultural origins. He also promises to take drastic measures against illegal migrants, whom he calls “unarmed invaders” of Greece that under the soft immigration policies of Pasok they have occupied the main centres of cities, and remove them to provincial hostels until their eventual expulsion.  Another important commitment of Samaras is to transform the bon vivant ethos of many Greeks, which up till now its tab has been picked up by the government, into a creatively productive one. On the new green tree planted by New Democracy, the singing cicadas will be replaced by fecund working bees. As Samaras is fully aware that sustainable economic development cannot be accomplished without transformative changes in the thinking and the mores of the people, especially of the younger generation.

Samaras is “framed in the prodigality of nature,” to quote Shakespeare. He is endowed charismatically both with a high intellect and remarkable moral strength along with the will and determination—all the stuff out of which statesmen are made–to change all things in Greece. But whether this lightning bolt of creative destruction will strike Greece or not depends on the strong mandate that he needs from the people. If Greeks do not fail, at this critical juncture, from fulfilling their historical duty to render to New Democracy a majority of seats in Parliament, then Antonis Samaras, in turn, will consummate the cultural political and economic Renaissance of Greece.

Hic Rhodus hic Salta

In Greece Political Midgets on a High Wire Act

By Con George-Kotzabasis—November 02, 2011-11-02

Political midgets, a la Papandreou, have chosen to take the risk of the high wire act by this proposal of the referendum. Hoping that the people will vote for the lesser of two evils, i.e., accepting the debt deal as formulated in Brussels last week and rejecting default and departure from the euro zone. At a time when strong leadership is a prerequisite for diminishing the crisis that Greece is facing, Papandreou abdicates his own and passes it to the people through this future referendum. It’s as if the polloi had somehow a better knowledge and understanding of the critical dimensions of the economic situation and could provide a better solution to the crisis than the expertise of the economically and politically savvy.

Once again politicians, who are more concerned of holding power than of the future of their own country, are ready to prostrate themselves before and pay homage to the idol of the Demos. Papandreou facing in Parliament a no-confidence vote and the ousting of his government promptly announced a referendum that would decide the future of the country, hoping that this would allay the anger and opposition of the people against the austerity measures, imposed by the EU, and at the same time put an end to the disarray within his own government that itself stems from the revolt of the people. It’s clever politicking to avoid defeat and save for him the prime ministership. But he is doing this at the expense of the future well being of the country, as it would take years for Greece to recover from the shock of a default if the electorate voted for it, which is highly likely. This is no less than the revisiting of the ‘sinful’ genius of his pere who himself was the preeminent progenitor of the economic ills that Greece is presently plagued with. The fils merely continues , like father like son, the ‘sins’ of his sire in a more acute form and projects them into the future.

World Bank president, Robert Zoellick said that “if voters reject the plan, it’s going to be a mess.” Economists claim that the immediate effects of a default would probably be a 20 percent to 30 percent drop in domestic demand and a fall of 5 to 10 percent of domestic product. Evangelos Venizelos, the Finance Minister, and his deputy broke ranks and opposed the referendum, saying it would jeopardize Greek membership in the euro zone. Ilias Nicolakopoulos, professor of political science and close to the governing socialist party, stated that a “referendum would put the country in danger of blowing everything up.” In contrast, Henry Ergas writing in The Australian, on November 3, 2011, “Greek Vote a Banana Republic Moment,” praises Papandreou for having the “balls” to propose the referendum, and compares him to the gutsy warning of Paul Keating’s “Banana Republic.” He says, that “to call a referendum on the austerity program is hardly irrational. But he adds the caveat, “true, it is a gamble, and a risky one.” Nonetheless, “the best hope of what comes next must lie in securing a genuine popular mandate.”

Regrettably, however, Papandreou’s proposal of a referendum does not rise from his “balls” but from his impotence. Unable to lead and convince the country, as a weak leader, to accept the inevitable “scenario, Greece must face a lengthy period of austerity and structural reform,” Papandreou passes this leadership to the impassioned people to decide whether to accept or not this scenario. Professor Ergas’ quote of Sophocles, “truth is always the strongest argument,” though generally accurate, is misplaced in the context of a long corrupt electorate that the fiscal profligacy of past governments accustomed it to indulge in ‘free suntans’ in sunny Greece. In such circumstances, the only truth that this pampered electorate will accept is the continuation of these free suntans at public expense. And that is why they will vote NO to austerity measures and thus turn the referendum into an ogre for the future economy of Greece.

Fortunately the proposed referendum like the balloon it was fizzled out within twenty four hours. Under external and internal pressure Papandreou reneged his proposal and withdrew it. Tonight (November 4, 2011), he places his fate on the lap of the god, parliament, on a confidence vote. Even if he survives by the smallest margin his prime ministership is foreclosed.      

 

       

 

Obama Passes Test of Political Inexperience and Weakness

The following piece was written and first published on September 2009. It’s republished here as Americans are realizing that they have elected a dud as president.

By Con George-Kotzabasis

 Obama is like someone who has inherited great wealth (read political power) only to squander it in senseless profligate excesses. He appeased the Russians, as I predicted he would, with the withdrawal of the missiles installation from Czechoslovakia and Poland at the expense of close allies; he tried to browbeat Israel with his no settlement pronunciamento to no avail, as he and his close advisers, including Clinton, astonishingly misread the position of the majority of Israelis on the issue and paying the high price of increasing Palestinian expectations and inadvertently making it a condition for its leadership, that never existed before, for direct talks with Israel; he tried in his Cairo speech to reach a rapprochement with Muslims by praising with intellectual blindness the great achievements of Islam prior to the Renaissance while sweeping under the carpet the great failure of Islam with unprecedented wealth in its hands in our era, without receiving any conciliatory gestures from those who were so gloriously exalted; and presently he is opening negotiations with the illegitimate government of Iran with no explicit and clear restrictions on its nuclear program at the expense of the democratic forces of the country with their great potential to oust the Khamenei-Ahmadinejad regime, if the Obama administration had taken the prudent stand of not accepting its legitimacy and isolating it from the international community.

In short, Obama, the tyro in foreign affairs and the weakling that I said he was a year ago, is squandering America’s power and prestige in his doltish idiotic diplomacy and he is transforming, slowly but surely, the strength of America into weakness at a time when only the power of the U.S. wisely expended can protect Western civilization from the suicidal and deadly sallies of irreconcilable implacable enemies. Who was it in the Bush administration who said that “weakness is provocative?” Former Secretary of Defense, Donald Rumsfeld.

American who Considers that Obama will be a Strong Leader

By Con George-Kotzabasis

Sweetness, you bring up many points and allow me to deal with some of them. First, let us assume you are right that on the issue of Obama saying ‘present’ at Congress sessions was strategy not indecision. But what about his savvy political decision to have Hillary as deputy that was vetoed by Michelle who hated her and Obama caving before his wife’s decision? You will say this is rumour. But let us see if this rumour can be verified by some facts. The worse mummy’s boy is the one without a mother. Obama was abandoned by both his parents when he was a little boy and was brought up by his grandparents. All his life he was searching for his lost father whom he finally found in his pastor Jeremiah, and more importantly, for his runaway mother whom he found when he married strong Michelle. (And that is probably the reason why he never abandoned her, like so many other African-Americans do with their wives.) It is Michelle that is wearing both pair of pants: Her own and her husband’s.

Secondly, on the war, his decision to oppose the war was not based on wisdom but on ignorance. Ignorant of the content of the briefings as a junior Senator that other Democrat Senators more senior became aware of and for that reason supported the impending war. On the issue of the Surge and Woodward’s assessment, the Surge was part of a new strategy under General Petraeus linked to the ‘groundbreaking new covert techniques…’ that were primary in defeating the insurgency, according to Woodward. And the Surge may have facilitated these new techniques to achieve their goal. Further Obama only six months ago had pledged to the American people that he would withdraw the troops from Iraq. And he would do this while the bravery and professionalism of the US army were winning the war in Iraq. Thus depriving the soldiers their glorious victory and, most dangerous of all, conceding to their enemies that the U.S. was defeated in the war in Iraq, as that would be the logical conclusion of Obama’s withdrawal. Surely, as a reasonable person, you would not consider these decisions of Obama arising from his strength of character.

Thirdly, what I meant to say was that Obama by ‘cutting his sails to the winds of populism’ went along with the uninformed masses who had made their decision on the issue of the war not by the power of their brain but by the beats of their heart, and it was on those “beats” that Obama also positioned himself on the same issue. Unlike McCain who supported the Surge at the peak of the unpopularity of the war. This shows clearly which of the two leaders is endowed with a strong character. 

Kevin Rudd Escalating his Political Dilettantism

By Con George-Kotzabasis

In our times when rogue states bristling in their apocalyptic beards, like Iran, could produce stealthily nuclear weapons, to set up an International Commission for nuclear disarmament, as Prime Minister Rudd proposes to do, is the ultimate stupidity that any one could suggest. And in the aftermath of 9/11, the magnitude of such stupidity takes astronomical dimensions. Just imagine that countries such as America, Britain, France, and especially, Israel, which could be the targets of a nuclear attack by an Islamist state or by proxies of the latter, would even consider their nuclear disarmament.

Rudd’s proposal limpidly illustrates that Australia does not have a statesman at the helm but a political dilettante and a populist to boot who is more concerned to ingratiate himself with the celestial wishes of its liberal minded constituency than to deal with geopolitical realities.

Moreover, what is rather surprising and amusing is to see that Gareth Evans is willing to underwrite such political buffoonery by accepting the chair of the International Commission for nuclear disarmament. It seems that his Tasmanian “Biggles” days are not over.

Your opinion…

DEMOCRATS’ SEARCH FOR POLITICAL SOLUTION IN IRAQ A SEARCH IN ABYSS OF DEFEAT

The following article that was written few months ago illustrates how wrong the critics of the war in Iraq have been.

By Con George-Kotzabasis

The Democrats after seductively saying “I do” to the war bride of President Bush in their nuptial bliss to her four years ago, are wishing now that their bliss has been transmogrified into the difficulties and ugliness of war to dump and replace the old ugly hag of war with the beautiful “maiden” named “political solution”. Now that the war is showing its true changeless nature and its ugly features, the “teddy boy” Democrats, too timorous and panic-stricken to face its monstrous mien are scrambling before it and running to hide under the maiden’s bed sheets. Having lost once their hearts and minds to the goddess of war Minerva, presently they are losing their hearts and minds to retreat and ignominious defeat since they consider that a military solution in Iraq is impossible. Hence their current vehement opposition to President Bush’s new strategy in Iraq.

Politically buoyed by the unpopularity of the war and the massive opposition to it by Americans, that led the Democrats to capture both houses of Congress in the November elections, they have chosen to turn themselves into populist leaders, in these dangerous times that have been forged by the fire and ashes of September 11, and hence they have become turncoats to their historical, political, and moral responsibilities to the future of America. Instead of leading from the front they are leading from the “tail”, pushed by the populist wind.

While President Bush is seizing the chances of winning the war by their “forelock”, to paraphrase Friedrich Nietzsche, with his quantified and qualified Surge, i.e., new rules of engagement, the devastating use of the means of war against the insurgents, and tackling the “forays” of Iran and Syria in Iraq, the Democrats are deflating their surge of honor and political and strategic nous into the fizzling balloon of populism. The fierce indomitable adventurous spirit of Moby-Dick’s captain Ahab, who would “strike the sun if it insulted him”, that is the spirit of America, is transformed by the Democrats and the besotted with defeatism “speakeasy” media, into a romantic misadventure. Their romance with a political solution in Iraq is no more than a political misadventure at the expense of the vital interests of America and its people.

America is at War

America in the aftermath of September 11 is not involved in a skirmish with the holy warriors of Islam, but in a global war against them. The attack on the twin towers in New York by the suicidal fanatic recruits of Islam, has however redefined the meaning of war. The decisive existential battles of the West against the fundamentalists of Islam are not to be fought behind Maginot Lines and by panzer divisions against clear-cut enemy lines whose combatants are easily identified, but among civilian populations where the terrorists live, are nurtured and hide and are indistinguishable from, and from where they launch their cowardly stealthy murderous attacks against civilians and on the military forces that try to protect them.

Moreover, these suicide bombers with belts of death around their bi-gender waists clad in civilian clothes, are “identified” mostly only after perpetrating their murderous actions and not before. Also, this foreground of the terrorists has a concomitant lethal background of fifth columnists that reside as citizens and blend with their more moderate co-religionists in the countries that are waging war against global terror. Lastly, the overt supplying of arms and finance by rogue states, such as Iran and Syria, and covertly by the so called cultural fronts of other nations, such as Saudi Arabia, is a crucial element in fuelling the deadly actions of the global jihadists as well as “oiling” the world-wide Wahhabi Madrassas and Mosques that are the breeding grounds and cradles of Muslim Saudi “bastard” fanaticism. Taking also in consideration that in the near future these war-martyrs of Islam would be possibly armed with weapons of mass destruction, and, indeed, with nuclear weapons, which they would unhesitatingly use against the infidels of the West, since in their warped minds this is decreed by their Allah, this would be the ultimate greatest danger to the survival of Western civilization.

It’s all the above factors that have redefined the meaning of war and its combatants. The war that is waged by the jihadists against America, the sole superpower, and the “infidel” West, is the most “economical” war that one could ever fight, i.e., with box cutters and Saudi “subsidized” tickets on air flights. The “wealth” of fanaticism needs only to be armed with the poorest of war means to subdue and slay the wealthiest military power on earth, America. The holy warriors, making the most of their shadowy existence, have only to be armed economically with the most nondescript but lethal weapons, to bring about havoc, fear, and immeasurable destruction among civilians in the major cities of the West. Their arming with weapons of mass destruction and nuclear ones will bring the Islamist Armageddon in the metropolises of Western civilization.

This is the tragic reality that the latter will be facing especially because many of its political elites, academia, and media are afflicted by a poverty of thought, imagination, and historical sense, that is making them deaf to the reverberating hoofing sound that is send forth by the galloping Four Horsemen of the Apocalypse with their unsheathed scimitars aiming to behead Western civilization. In America itself, the indigence of cognitive power among many of its politicians and cultural and media elites makes the country powerless, despite its military supremacy, to confront this great danger that would engulf and drown America itself in this Mohammedan made deluge.

The Democrats, especially, lacking Churchillian mettle and wisdom, are morphing themselves into political eunuchs, impotent to mobilize the American people behind a winning military and political strategy, presently attempted by general David Petraeus in Iraq, that will deal a decisive mortal blow to this irreconcilable and tenacious enemy and thus defeat the infamy of global Islamist terror sooner than later. They are totally unaware of the elementary lesson of history that instructs that when one confronts an irreconcilable remorseless enemy, whom no diplomatic demarche, no matter how refined and clever, will ever induce him to negotiate, as is the case of the jihadist and his divinely ordained grievances, it is wise to destroy him while he is still weak and before he becomes stronger.

Hence, the Democrats’ search for a political solution, without the backing and relentless use of military power, is not only most unwise, but also a mortal political sin. The speaker of the House, Nancy Pelosi, and the leader of the Senate Harry Reid, will be immortalized by being quartered in Dante’s Inferno for their political sins.