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Tuesday, 21 February 2012

Katabasis and Euro hubris

Katabasis - the journey downwards - features in Greek myth perhaps more than in the shared ur-stories of any other ancient culture. Not only Orpheus but every other hero it seems had to descend to the underworld before redemption, rescue, rebirth or resurrection. So it's somehow not entirely inappropriate that the latest EU postponement of Greece's exit from the Eurozone takes that nation further down in a spiral of shrinking GDP, shrinking tax-take, shrinking savings, growing social commitments and unsustainable growing debt. The very EU measures imposed on Greece will ensure the need for yet another bailout, and another, until the coffers of the entire Eurozone are empty. And for why? Euro-hubris.

Merkel's fear, and it's a real one, is that keeping Greece in will eventually see Portugal, Italy and even France tumble like dominoes with no reserves left to slow the process. If I were Polly, I'd flog the Tuscan villa now for whatever I could get.


Anonymous said...

But the plan is designed on a long term basis - 2020. I just can't see it lasting one year before the Greeks completely freak out and cause the plan to fail themselves. More strikes, less work, lower (much lower) tax take, declining standards. This isn't just going down hill; it's falling off a cliff! Moreover, it's the Pollies of this world that are the cause of the problem, so I just hope that she keeps her Tuscan villa long enough so that it's value falls to a point where I can buy it with my credit card.

Coney Island

Weekend Yachtsman said...

If I were Polly I'd move to the Tuscan villa, pull down the shutters, and wait for the end.

What nicer place to be when it all goes pear-shaped?

Weekend Yachtsman said...

Actually, doesn't she have TWO Tuscan villas?

Greg Tingey said...

It will fail (if not before) about 5 minutes after the Greek election in April (?)

Then the fun starts.

lailapa said...

World War III - The First Private War in History

Those who won all battles shall lose the war.

Bilderberg Group and the crimes against humanity.

This is how things work in all countries. Whatever used to belong to their peoples, today it belongs to the multinational companies of the Club. Peoples were betrayed by their given leaderships and they lost everything. Capitals and markets were handed to the Club bosses. If you understand what is going on in Greece, you can understand what is going on in Britain, France, and Germany etc..

The English Physician said...

So the Deutsches Wirtschafts Reich is propped up for a bit longer. Greek children born today will inherit vast debts so Germany can continue to benefit from an artificially under-valued currency. Our industry does not compete against Germany on equal terms: we are no longer in a Common Market.

anon 2 said...

Right, English Physician. Not only does our industry not compete: our industries do what foreign regulators tell them; furthermore, we no longer own most of our major industries.

Anonymous said...

anon2 & English Physician
Both wrong
We still make quite a lot, and it is also noticeable that even mass-manufacturing (Cars) is doing MUCH BETTER now the owners are not British - with the same workforce & unions you'll note - interesting that, isnt it?