Monday, July 6, 2015

THE DANGER OF REFERENDA

The Greeks have, by an emphatic margin, just voted 'No' to reject proposals by the European Commission, European Central Bank and the IMF for further loans to keep their economy afloat in return for further reforms designed to return their economy to an even keel.

The referendum was a crock.   Putting aside the fact the proposals had been withdrawn once Greece defaulted on its loan payment obligations I am surprised that only 60% voted 'Oxi'.    Put it another way.    Self interest was guaranteed to ensure the 'sheeple' would shy away from voting 'Ne' to pension reform; taking a scythe to a bloated civil service and revamping of the taxation system to ensure everyone paid their fair share of tax.

The result ... nothing much changes.   Tsipras can claim he has a mandate to reject the proposals.   Problem is ... there are no proposals and it is difficult to see financial institutions lining up throw good money after bad when genuine reform is off the table.

And hanging over all of that is the 3.5b euro debt owed to the ECB due for repayment in just 14 days time. Greece defaulted on the 1.6b euro owed to the IMF 5 days ago.   What chance over zip, zero, payment of the 3.5b now?

Of course some well meaning 'idiots' who believe the crisis is all a big con might argue that this country should be doing its bit to help banish the money lenders from the temple by stumping up with dosh from the 'Cullen' fund to help the Greek people through the crisis of their own making ... but not too many methinks.


2 comments:

Ray said...

It's a simple truth "turkeys don't vote for Christmas"

gravedodger said...

Sometimes a more courageous person moves to do something badly needed and risks consequences from those who put them there.

Roger Douglas saw what had to be done and the bloody socialists still don't get it.