“The complete abolition of democracy in Europe, the creation of a technocratic monstrosity…a ‘super’ Finance Minister with unlimited power, and with the ability to even reject budgets of sovereign states that are not aligned with the doctrines of extreme neoliberalism. For those countries that refuse to bow to the new authority, the solution will be simple: Harsh punishment. Mandatory austerity, more restrictions on the movement of capital, disciplinary sanctions, fines.”
Alexis Tsipras
Hat tip Indentured Servant
Mexico City, July 25, 2012.
Mr. Alexis Tsipras
SYRIZA Party
Dear Mr. Tsipras:
Greetings! My name is Hugo Salinas Price; I am a Mexican citizen and retired entrepreneur who lives in Mexico City. In 1996, during my retirement, I founded the Mexican Civic Association Pro Silver, of which I am President.
Since 2002 this Association has been lobbying the Mexican Congress for approval of a law to introduce into circulation a silver coin which the population might use as money, in parallel with the Peso – our current money. Later on, I shall mention the fundamental bases for this plan and the reasons for which I consider that this plan might be of great utility for you and for Greece.
This proposal gathered much support on the part of Mexicans and legislators of all political parties in the Mexican Congress, during three successive legislative periods since 2002; several times we were near to its approval, although in the last moments the project was turned down – without ever coming to a vote – due to opposition from the Mexican Central Bank.
During the first days of June this year, while on a trip to Europe, I travelled to Athens with Mr. Max Keiser and his colleague, Ms. Stacy Herbert. The purpose of our visit to Greece, which was unplanned, was to speak with you on a subject which we consider important for your country; unfortunately, it was not possible to meet with you, because you were occupied with affairs regarding national elections at hand.
If we had had the opportunity to speak with you, Max and I would have told you that we thought it quite evident that Greece would have to declare itself in bankruptcy and abandon the Euro system. Max and I spoke with several Greek friends who are well-informed regarding the situation, and they told us that you could not express such an opinion at that time, because of the approaching elections.
However, now I see that you have publicly declared that the return of the Drachma is inevitable, and that is why I write.
This is what I wish to communicate to you:
Mr. Tsipras, the desperate situation of Greece offers you a unique opportunity to do something fundamentally great for Greece and to establish yourself as a great national leader. You are a young man and thanks to this, you have a brilliant opportunity to build a long career as a Statesman – not as a politician, but as a Statesman.
En effect, the return of the Drachma would allow Greece to pull itself together once more. It would definitely not make matters worse, for the present situation is so bad that the Drachma will give Greece an immediate respite.
Thus, the monetary heart of Greece would once again begin to beat and furnish the necessary liquidity to get the economy “moving” again.
However, this measure will inevitably entail monetary inflation through the creation of increasing amounts of Drachma to cover the budget deficits of the Greek government for some time, and the inflation will bring about the constant devaluation of the Drachma.
Continue reading “One Man’s Daring Proposal to Restore Greek Sovereignty”
Most of you, dear Handesblatt readers, will have formed a preconception of what this article is about before you actually read it. I am imploring you not to succumb to such preconceptions. Prejudice was never a good guide, especially during periods when an economic crisis reinforces stereotypes and breeds biggotry, nationalism, even violence.
In 2010, the Greek state ceased to be able to service its debt. Unfortunately, European officials decided to pretend that this problem could be overcome by means of the largest loan in history on condition of fiscal austerity that would, with mathematical precision, shrink the national income from which both new and old loans must be paid. An insolvency problem was thus dealt with as if it were a case of illiquidity.
In other words, Europe adopted the tactics of the least reputable bankers who refuse to acknowledge bad loans, preferring to grant new ones to the insolvent entity so as to pretend that the original loan is performing while extending the bankruptcy into the future. Nothing more than common sense was required to see that the application of the ‘extend and pretend’ tactic would lead my country to a tragic state. That instead of Greece’s stabilization, Europe was creating the circumstances for a self-reinforcing crisis that undermines the foundations of Europe itself.
My party, and I personally, disagreed fiercely with the May 2010 loan agreement not because you, the citizens of Germany, did not give us enough money but because you gave us much, much more than you should have and our government accepted far, far more than it had a right to. Money that would, in any case, neither help the people of Greece (as it was being thrown into the black hole of an unsustainable debt) nor prevent the ballooning of Greek government debt, at great expense to the Greek and German taxpayer.
Continue reading “Alexis Tsipras’ Open letter to the German readers”