Hey, Greece: Just Remember, Austrian Economics Don’t Work

Posted on | June 17, 2012 | 11 Comments

by Smitty

It looks as though the Greek election is another exercise in playing soccer on a long street with a can, kicking that can down another block.

The collapse of the Eurozone has become like the decline of the Warsaw Pact, only more complex and prolonged. Pro-austerity forces have won the latest election in Greece – sort of. Official projections show centre-Right New Democracy slightly ahead of radical socialist Syriza, which gives New Democracy an advantage in parliamentary seats. Syriza has conceded the election. However, reports say that New Democracy’s likely coalition partner, the austerity-minded centre-left Pasok, is unwilling to serve in a government that doesn’t give some role to Syriza. Syriza says no to a “grand coalition,” which means Pasok may be bluffing its way out of having to share the burden of austerity with New Democracy. Talks will begin and New Democracy has three days to form a new government. So the Euro is safe until the next election – in six weeks time?

Stanley veers off target in the conclusion:

Like communism, the Euro was sold to the poor of Europe as a magic bullet that would bring instant and lasting economic growth. One certainly can’t blame them for buying the propaganda, especially considering that several prominent Britons did, too.

Also, many prominent Britons did not. Thus, it may be time for a broad reverse psychology tactic. Tell the Greeks that what they ought to pursue is completely unworkable. Make them curious about common sense. Let them stumble upon it and think workable policies are their own idea. Can’t go any more wrong than the rest of the silliness over there.

Category: Greece

Comments

11 Responses to “Hey, Greece: Just Remember, Austrian Economics Don’t Work”

Dianna Deeley
June 17th, 2012 @ 5:09 pm

Your final para is a great idea, Smitty, but I don’t think the Greeks have time.
ReaganiteRepublican
June 17th, 2012 @ 5:20 pm

Looks like enough of them figured it out by today, anyway
Adobe_Walls
June 17th, 2012 @ 6:05 pm

For Pasok to allow Syriza to veto their participation in the government (I’m betting it’s a bluff) is really bad news for Greece. Going another six weeks without a government is not one of the solutions to their problems. There are three possible courses for Greece, orderly exit from the euro, chaotic exit from the euro or accepting their role as Helots.
DaveO
June 17th, 2012 @ 8:02 pm

I saw we arm the Greeks to the hilt and plant signs pointing eastward with the word (in Greek) “There be FREE gold!”

And then sell the real estate to rich Israelis.
The Osprey
June 17th, 2012 @ 8:40 pm

Charles Johnson says they are meandering towards Gyro-Fascism.
Adjoran
June 18th, 2012 @ 1:13 am

The election may affect the timing of Greek’s return to the drachma, but by months or weeks, not years. They aren’t able to comply with most of the austerity measures they agreed to implement in exchange for the first bailout package over two years ago, and never will be.

Bankers and bondholders and EU officials keep hoping for some White Knight to come along and assume the losses, but no one and no organization has that sort of extra cash these days. Hope springs eternal, since every postponement of the Day of Reckoning saves them from posting the huge losses and admitting the political and economic failures.

The sooner Greece defaults, leaves the euro, reintroduces the drachma and endures the pain of devaluation, the sooner they will have a chance to rebuild their economy. It won’t be pretty for anyone, but it is the only way.
Adjoran
June 18th, 2012 @ 1:16 am

Just so, total bluff. They know Syriza will just be biding their time until the electorate revolts against austerity. Greece cannot cut their government enough because they can’t collect nearly a third of the taxes they levy, have no mechanisms to do it and no plan to build any.
Bob Belvedere
June 18th, 2012 @ 9:34 am

Agreed. But will there be some sort of coup at some point?
Pathfinder's wife
June 18th, 2012 @ 11:42 am

Meh, I’m all out of schadenfreude…especially with the growing realization we may very well soon be in a “Greek conundrum” of our own.

The ol’ Catch 22…it comes with more than just an ouzo chaser. Ain’t life grand?!
AllPatriotsMedia
June 18th, 2012 @ 12:06 pm

[…] – The Greek Election – via TheOtherMcCain.com PLUS – The French Love Socialism. Like, For Realsies – […]
Adobe_Walls
June 18th, 2012 @ 1:16 pm

No coup until it’s time to save the country from the communists if even then. I can’t imagine why anyone would want to head the Greek government under these conditions let alone fight for the opportunity.