When George Papandreou announced its will to submit the European “help“ program to the approbation of the Greek people, I don’t know whether he wanted to scare people, but man, he really achieved something. From Wall Street to the Bundestag, through the Élysée Palace, they are all in a state of advanced panic. There’s a joke that’s been circulating since: for next Hallowe’en, disguise yourself as a referendum.
Yes, these guys are afraid. Afraid of the people. They are afraid because it is now clear that their interests are not the same as the interests of the people. And what do you do when you are afraid? Well, you find yourself some way out, often by lying.
And indeed, Mrs Merkel and Mr Sarkozy have been repeating over and over something that has been then repeated over and over by most so-called journalists: that Greeks can only choose between two endings:
- they pay their debts to banks and rich people, and stay in the Euro zone;
- they don’t pay their debts to banks and rich people, and find themselves another currency.
That’s it: Mrs Merkel and Mr Sarkozy are outrageous liars.
There is another option for Greek people:
3. they don’t pay their debts to banks and rich people, and they stay in the Euro zone.It’s as simple as that: nothing in European treaties can force a country to leave the Euro zone. And nothing in these treaties can force a country to honor their bonds. Greece is a sovereign state and, as such, can choose not to honor its sovereign debt. And choose to stay in the Euro zone: why would they want to go out? What does it have to do with the currency those bonds have been emitted in? If California were to cease payment of its public debt (something not likely to happen at all, hmm?), would it have to abandon the Dollar?
But here is a thing that has been forbidden for a long time in European treaties: for a country to help financially another one to pay its debts. This rule was introduced by Jacques Delors (a man who knows what being European means) precisely in order to avoid the contagion we are facing currently because of stupid “help” plans all across Europe. Yes: the whole idea of Merkozy’s grand plan to “save Euro” while “helping Greece” (a weird kind of help, starving people, really) is illegal. So in addition to being liars, Mrs Merkel and Mr Sarkozy are delinquents.
So let Greece cease payment of its debt. A few banks will sink: so what? This will create less unemployment than letting our whole economy sink. European States will guarantee citizens’ savings up to 30 k€, that’s one of the other clever European rules (some countries guarantee more). Other people, rich people only, will lose their savings. Will that prevent you from sleeping? Not me. But that could prevent from sleeping a number of friends of Mrs Merkel’s and Mr Sarkozy’s.
And wouldn’t that be a good reason for lying and violating European treaties?