The Greek election on January 25 was revolutionary. In overwhelming numbers, the Greek people swept into office the Syriza Party. Syriza is an acronym for Coalition of the Radical Left. The party is led by a 40 year old firebrand, Alexis Tsipras. Tsipras will shortly be elected by Parliament as the new Prime Minister.
Greece has been led in recent years by the conservative side of the electorate. The group has failed to extract Greece from its problems with the Eurounion. The people have gone way to the left in selecting the Syriza Party. It is as if Republican tea party members had been elected. Except from the liberal side of the aisle.
Greece has been in the worst economic shape of any Eurounion member. The debt overwhelming. The Eurounion consistently demanded repayment. Austerity was forced on the Greek people. They have had enough. They opted to be led by the extreme left. The Syriza Party would have had no chance of being elected if economic conditions had been stable.
Austerity was imposed by the Eurounion on Greece. Germany leading the Eurounion group. The Eurounion became the banker. In reality, Germany. The cry…..Pay! Pay! Pay!
Greece tried. Unsuccessfully. Since 2010, unemployment has grown to 27 per cent. Fifty per cent of that number being college graduates between 20 and 30. Three million people are living at the poverty line or below.
Parents cannot feed their children. The farmers cannot sell food to the stores because there is no one who can afford to buy what they grow. The stores shut down because no one is buying. A wicked cycle.
Following is a perfect example of what has been occurring in Greece. Many women are desperate for work. They beg the brothels to hire them. They need to earn money to put food on the table for their children. Greek law prohibits married women from working in brothels. Prostitution is legal. These women end up working the streets in desperation.
Things are so bad that those who work the brothels are coming up short. Services that cost 50-70 euros, are now going for 10 euros.
During the campaign, Tsipras promised the world so as to be elected. It was not difficult for him. He promised everything to those who had lost everything.
He promised an end to austerity which he described as a return to democracy. He promised that the rich would pay their fair share of taxes. He promised to write off the national debt, raise the minimum wage, rehire all public workers who had been laid off, reduce taxes, provide free electricity and food to those without, free medical care for the uninsured, return to real property taxpayers all rent increases paid since 2008, reduce taxes overall, and more.
The big thing was his promise to either renegotiate the debt owed the Eurounion to a more favorable level or pay the Eurounion nothing.
Germany is going crazy. A rich Germany loaned much of the money to Greece through the Eurounion. Things have changed. Germany is on the brink of a recession. If Germany is not paid, it could fall over the edge
Italy and Spain are sitting back and smiling. They are in the same position that Greece has been. They are making noises that if Greece gets a better deal or does not pay, why should they.
I keep mentioning Germany because Germans has been running the show. The Germans, as well as the Eurounion, have not been fair to Greece. In 2010, the Eurounion loaned Greece 240 billion euros in bailout money. The money was of no use to Greece. Ninety percent had to be paid back immediately to cover unpaid interest and fines. The Eurounion, and especially Germany, were hard assed bankers as they continue to be to this day.
Lets assume Greece does not pay back the Eurounion and Germany, what happens? Greece will leave the Eurounion and create a new currency. The Eurounion will press for payment. Sue Greece? What Greek court would enforce any judgement. Germany would fall into recession. All this triggering what could be a world wide depression.
Even worse, I can see a situation where Germany would go to war with Greece over the money. Remember, Germany is in bad shape. It might be the only alternative left for Germany. Such a war would include other Eurounion nations and who knows who else. Already Tsiprashas met with Russian and Chinese representatives.
There is also an undercurrent by the Greeks regarding Germany. World War II wounds still fester. The Greek people recall that Germany occupied Greece and treated the Greek people poorly.
That is the story. The world is watching.
What is going to happen?