So what is happening in Greece?
More importantly will it have any effect on Australia?
Well, the only thing that has changed is that Greece has a new leader, Alixis Tsipras.
It is still the economic zombie, the walking dead – that it always was – because it is essentially a socialist state with ‘benefits’ funding exceeding tax revenue.
Tsipras hopes to utilise the typical communist/socialist economic remedy. Renege.
It’s what Castro would advise.
The communists were the first national state to try this when they did so in Russia. Following the revolution, the Communist government refused to honour any borrowings made by the former Czarist regime, even though much was spent on infrastructure. They kept the infrastructure and repudiated the debt. (Recently they have been looking to repay a tiny fraction of that debt because when they refused to pay then all the Czar’s money, sitting in French and English banks, was frozen – and they would like it back.)
Communist China pulled the same stunt in China in 1949, and Communist Cuba did the same in 1960. An exception to the rule – Mississippi – tried it on in 1840. They still can’t raise money in London today, 145 years later; lenders have long memories.
Will it work? Already Tsipras has been saying well, maybe, perhaps, what if, in a kind of slide away from outright repudiation.
The consequences of repudiation or ‘default’, as they are trying to dress it up, will make things even worse for the Greeks. The serial defaulters of the South American states have found that out to their dismay. They are bad credit risks so interest rates are higher, and when interest rates of borrowing go higher… you know the rest.
So what will Tsipras do?
He will default. He has no choice. And not because he made election promises but because that is the way he is.
His election promises were all couched in red rhetoric. All populist stuff.
He has been called, in praise mind you, “Greece’s Che” after Che Guevara, Cuba’s maniacal murdering marxist.
And should anyone think that is just loose talk, one of his children is named “Ernesto”, after Ernesto ‘Che’ Guevaro. And “Ernesto” is no Greek common name.
The Turkish lefties – Greece’s neighbours – who are, sadly for them, out of power in Turkey – are cheering each other on and hoping that Tsipras will inspire them to strive for power. After all, he is defying the West – is he not? Isn’t that what lefties do?
And what else do lefties do? Well among other things they are fierce atheists. And that is what Tsipras is. He openly challenges the Greek Orthodox church. Now that he is in he will likely move against them politically.
People may be atheists without being communists, but communists who are not atheists are as rare as healthy slugs in a salt mine.
So what effect will all this have in Australia?
IF he defaults, other basket cases may see that as a short term answer. Spain is big on socialism right now and they are nearly as bad as Greece. And the knock on effect will start destabilising the Euro. After the Euro – the European Union.
And that is good news for Australia.
After that there is the question now facing Australia. In elections are they going left or right? Well, Australians will have the means of comparison. How are left governments faring here and there. How is Tsipras faring? Should Australia go back to Carbon Taxes and all the mad spending on ‘renewables that have bankrupted Spain? Is Shorten the Australian analogue of Tsiparas?