Go George Go

For what it is worth, Greek prime minister George Papandreou can count on the support of this blog in his efforts to inject a little democracy into the EU’s attempt to set an all-time record for throwing good money after bad.

As Seumas Milne says in the Guardian today:

It makes no sense. Unless it's understood that it's not the Greek economy that's being rescued, but European and US banks exposed to Greek debt.

Perhaps my economically-literate blogger friend Existential Doubt could offer some elucidation as to exactly where all this money is going and how it’s going to help?

Money has to be continually poured into Greece so Greece can give it to the financiers, who will stop lending money to governments that spend vastly more than they collect in taxes if they ever lose out, resulting in the collapse of social democratic welfare statist civilisation as we know it - which is only possible when states borrow huge amounts of cash with no idea about how to pay it back from financiers. That about right?

So, am I being naive or missing some obvious point if I can't help but see this as simply delaying the inevitable and impoverishing yourself in the process?

As Kenny Rogers would say:

You've got to know when to hold 'em - and know when to fold 'em.

Anyway, that's enough economics. Here's some politics.

Papandreou offers the Greek people a referendum on whether they want to return to the kind of economic and political colonisation by foreign powers that they spent most of last 500 years trying to shake off, and suddenly, he’s an irresponsible, weak lunatic because - god forbid! - if they are given a say in the matter, the people might decide that they would rather that the banks lose some money than be reduced to eating grass to survive for the next 50 years.

You can question the democratic credentials of a prime minister of Greece whose father was prime minister of Greece and whose grandfather was also...errr...prime minister of Greece. But he seems to have remembered that democratic politicians are there, when it comes to a moment like this, to serve the interests of their people first rather than international capital. 

This Treaty marks a new stage in the process of creating an ever closer union among the peoples of Europe, in which decisions are taken as closely as possible to the citizen.

That’s Article A of the Treaty of Rome, which led to the creation of the European Union. I wonder what went wrong...