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I do not know what
motivated Greek Prime minister George Papandreou to call for a voter
referendum on the Greek bailouts (and no one else does either) with the
exception of Papandreou himself.
However, there are some rather interesting possibilities (as well as a simple
explanation).
The Slog outlines a scenario that Papandreou’s bailout
referendum bombshell was inspired by Merkel in order to
trigger major losses in French banks, causing France to lose its AAA rating,
culminating in a total Merkel victory and German revenge over France.
Wow.
As convoluted and conspiratorial as that sounds, it makes for highly
entertaining reading (and it's also well presented). On the other hand, my
readers know I am a firm believer in "Occam's Razor" which suggests
the simplest explanation (the one making the fewest assumptions) is likely to
be the correct one.
Certainly, one should never rule out stupidity when that is one of the
possibilities. An even simpler explanation is that Papandreou is simply tired
of the beatings, and the meetings, and the riots, and has simply decided to
"walk away" from the mess by handing the decision over to the
voters.
I believe that is the "most likely" explanation even though The
Slog presents a very good case that Papandreou Planned this
Referendum in Advance with help of his interior minister.
However, planning for a referendum and being prepared for one in advance (if
necessary) are two different things. Thus, I suggest (and so would Occam's
Razor) that Papandreou saw a potential need for a referendum down the road,
and that potential need turned into reality.
One final puzzling aspect to this mess is that just three days ago Papandreou
affirmed his commitment to the EU/IMF Troika solution. So what's up with
that? Once again no one knows except Papandreou but I will stick with the
assessment there is a simple explanation that is not readily apparent right
now.
In Praise of Democracy and Choices
With that backdrop, and with the statement I do not like Papandreou
personally, I praise Democracy, and by implication, Papandreou's decision.
Is there any reason Greek voters should not be given a choice? I think not.
They may not make a wise choice but what is the likelihood that political
hacks and political opportunists will?
Iceland Referendum a Winner
Take a good look at Iceland. In repeated attempts, political hacks (with
banker's interests in mind) attempted to sell Icelandic citizens into debt
slavery. A referendum saved the day. Sadly, voters were forced to repeat the
referendum, and once again voters made the correct decision.
Iceland is now in full recovery simply because it told the EU and IMF to go
to hell.
No Easy Way out for Greece
Greece does not have an easy way out.
However, its problems are no doubt far worse than if it told the EU and the
IMF to go to hell two years ago.
Greece should have gone bankrupt long ago. Heck, it should not be in the EU
in the first place, and the EU is primarily to blame even though Greece lied
to get in.
Speaking Against Political Hypocrisy
Peter Tchir at TF Market Advisors (and one of the best
authors on Zero Hedge) also praises democracy. Yesterday he pinged me with this set of comments.
If
a leader in the Middle East finally gave into months of protest and decided
to give the people a real say on an important issue, the Western leaders
would be rejoicing. Obama would have a podium and be uttering his support for
the Courage of the people who stood up and give the Arab spring his full
blessing.
But if a fellow Western leader dares let his people express their wishes more
directly than via "their representatives" they are all shocked and
outraged. In the meantime other Greek politicians are busy taking advantage
to gain power rather than helping their citizens.
Eloquent Praise for
Democracy
Pater Tenebrarum at the Acting Man blog
eloquently discusses democracy in his post Papandreou Calls For Referendum On Bailout
Embattled
Greek prime minister Papandreou has found a way to stick it to the eurocrats in a most elegant manner: instead of continuing
to serve as everyone's favorite whipping boy, he has decided it is time to
let the Greek people themselves speak out on the future of their country. In
a surprise announcement yesterday, he told parliament that Greece is to hold
its first referendum since 1974 and that the population would be asked
whether it wants to accept the conditions of the bailout plan or not.
The eurocracy is at its heart deeply undemocratic
– if it were up to the 'technocrats' leading it, national subsidiarity
would have long ago become a relic of the past and democratic interference
with their plan to erect a socialist super-state would be kept to a bare
minimum.
This can be seen by the fate suffered by previous referendums: when the Irish
and French e.g. said 'no' and 'non' respectively to
the Lisbon treaty, the referendums were simply repeated to get the 'right'
result. As Stalin once sagely remarked, it doesn't matter who votes for what
anyway – what matters is who counts the votes. So far, the eurocrats have always gotten the results that they
wanted, by hook or by crook. Lately this has become a bit more difficult, as
evidenced by recent decisions of the German constitutional court, whose chief
justice Andreas Voßkuhle even went as far as
demanding a referendum for German citizens as well if the government wanted
to cede any more of its fiscal sovereignty to the eurocracy
in Brussels.
Greece is the cradle of Western democracy - it is only fitting that it should
upset the EU applecart by means of actually practicing it.
Eurocrats are Terrified of
Democracy
Tenebrarum certainly hit the nail on the head and
so did Daniel Hannan on The Telegraph with
his post Eurocrats are Terrified of Democracy
Shall
I tell you the truly terrifying thing about the EU? It’s not the
absence of democracy in Brussels, or the ease with which Eurocrats
swat aside referendum results. It’s the way in which the internal
democracy of the member states is subverted in order to sustain the
requirements of membership.
George Papandreou, the luckless Greek leader, is the latest politician to
find himself being chewed up because he stands in
the way of the Brussels machine. On Monday afternoon, Papandreou announced a
referendum on whether to accept the EU’s bail-out terms. He had
evidently had enough of the antics of the opposition party, New Democracy,
which kept insisting that Greece remain in the euro, while opposing all the
austerity measures necessary to that end – an outrageous stance given
that New Democracy ran up the deficit in the first place. Papandreou hoped to
force his opponents off the fence: in favour of the
spending cuts or against euro membership. Perhaps he also hoped to put
pressure on the EU to offer more generous terms.
I wish I could convey the sheer horror that his proposal provoked in
Brussels. The first rule of the Eurocracy is
“no referendums”. Brussels functionaries believe that their work
is too important to be subject to the prejudices of hoi polloi (for once, the
Greek phrase seems apposite). Referendums are always seen as irresponsible;
but, at a time when the euro is teetering on the brink, Papandreou’s
proposal was seen as an act of ingratitude bordering on treason.
Eurocrats are prepared to pay any price rather than
admit that the single currency was a mistake – or, more precisely, to
expect their peoples to pay, since EU officials are exempt from national
taxation. The peripheral countries are to suffer poverty, unemployment and
emigration, the core countries perpetual tax rises, so that supporters of the
euro can save face.
It’s chilling to write these words, but EU leaders are evidently
prepared to vitiate Greek democracy and wreck the Greek economy rather than
allow the euro to break apart. Yet even if they succeed in Greece, they may
find that their efforts are for nothing. Italian bond spreads yesterday were
back at the level that usually triggers bail-outs. We are about to see quite
how far the Brussels apparat will go in defence of its privileges.
Parade of Cowards
In contrast to Hannan, Tchir,
and Tenebrarum, the parade of bureaucratic cowards
terrified of democracy is nearly endless. Here are some prime examples.
·
French President Nicolas Sarkozy said in a rare
televised address on the steps of the Elysee palace
in Paris. "The plan ... is the only way to solve Greece's debt
problem." (Reuters)
·
Daniel Knowles writing for The Telegraph has
this story headline - Peace in Europe lasts just
five days as Greece turns to blackmail
·
Dutch Prime Minister Mark Rutte
said he would try to prevent the referendum plan, saying he would
"attempt to see that it doesn't happen." (AP)
·
Socialist deputy Hara Kefalidou
said "I cannot back a referendum which is a subterfuge by a government
that appears unwilling to govern." (AP)
·
French lawmaker Christian Estrosi
said on France-Info radio that the move was "totally
irresponsible." "I want to tell the Greek government that when you
are in a situation of crisis, and others want to help you, it is insulting to
try to save your skin instead of assuming your responsibilities," Estrosi said. (AP)
·
Nicolas Sarkozy’s spokesman described
Papandreou’s announcement as “irrational and dangerous”
(Telegraph)
·
Constantine Michalos, the
president of the Athens Chamber of Commerce, called the proposal “an
act of political blackmail” (Telegraph)
·
Antonis Samaras, the leader
of New Democracy, vowed – with splendid disregard for his
party’s name – to prevent a referendum “at all costs”
(Telegraph)
Ultimate Irony: Papandreou a Fervent Euro-Enthusiast
Here is one more clip by Daniel Hannan on The
Telegraph worth reading.
Euro-enthusiasts
in Brussels and in Athens are ready to bring down an elected government
rather than allow a referendum. Yet the funny thing is that Papandreou is a
Euro-enthusiast. He fervently wants to remain in the euro, and had been
planning to campaign for a Yes vote. His sin, in the eyes of Brussels, was
not to hold the wrong opinions, but to be too keen on democracy. Leninists
had a term for people who, while they might be committed Bolsheviks, none the
less behaved in a way which endangered the movement. They were called
“objectively counter-revolutionary”. Poor Papandreou finds
himself in this category.
Help?! What Help?
Of all the cowards, the statement by French lawmaker Christian Estrosi is the most galling: "when you are in a
situation of crisis, and others want to help you, it is insulting to try to
save your skin instead of assuming your responsibilities."
Whose Skin Are We Saving?
No eurocrat or politician outside of Greece gives a
rat's ass about helping Greece. The only skin they want to save is their own.
That realization coupled with my earlier proposal that Papandreou was tired
of beatings, meetings, and riots is by far the most likely reason Papandreou
decided to "walk away" from the mess via referendum.
It's a pity he did not do so long ago.
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