• The brits are smart. They will become the Singapore of Europe and the rest will go down in French Socialism

    • They may, instead, become the Macau of Europe while the rest of us turn into some version of the Philippines…

  • Listing:
    According to your calculations, I see that all this leads to a nice dick. You are a resident of the Balkans as well as I, so I will not blame the juicy stuff calling spade a spade.
    As far as I can understand that you would now like Marxists supposed to give us instructions what to do after the crash. Case Lombardians banks from the 14 century, these well known. What he says prof. Wulff from the USA. With him you have to see exchanged views on not only economic but also social and political issues, they may default.
    So it would, and asked you to do as a friend. This all has to lose and only something new to be done, but you can not do anything until this big beast dies in order to define Gui Debord or Fredy Perelman.
    You have to show people the path after the fall. After a great shock. What then.

    • Davor, I think Yanis is trying to tell everyone what to do to avoid a crash, not tell us what to do “after the crash”.

      Your idea that we need to know a “path after the fall” is compelling and important. So, I’m thinking about the Modest Proposal now as an “after the fall” possibility and conclude it would be extremely more difficult to implement after than now. “After the fall” wreckage could be so extreme that we will live in it for most of our lifetimes.

      The neo-liberal infection of Europe was a huge project of United States’ financiers and economists, The Economist magazine and other publications, and I watched it unfold year after year at Davos and other forums, with the Europeans in rapt attention to the US moguls who were selling their poison system to anyone who would listen. There were many buyers in both the public sector as well as the private. In hindsight, it seems possible that Davos was intended from its conception to be a vehicle to sell neo-liberal poison to Europe.

    • That the eurozone’s institutions (ECB plus EFSF) have debts that are no more than 3% of its collective GDP. The member-states have a great deal more, of course. But the eurozone has very little debt. In contrast, in the USA, both the states and the federal governments have gigantic debts. The aim, therefore, ought to be simple: To shift a large part of the member-states’ debts to the eurozone (i.e. to centralise it) since doing so woud shrink substantially the interest mountain facing the member states. Of course, the task must be achieved (a) without federal moves and Treaty changes and (b) with restraints on the member-states that will prevent them from thinking that they can run up more debts ad infinitum. This is the purpose of our Modest Proposal.

    • The aim, therefore, ought to be simple: To shift a large part of the member-states’ debts to the eurozone (i.e. to centralise it) since doing so woud shrink substantially the interest mountain facing the member states.

      In other words, effective debt management, yes?

    • If no debt goes away, what is the point? If I owe EUR 1 million my wife nothing, then we move EUR 500k to the level “couple” we both still owe 1 million.

    • Pedro, the whole point of our proposal is not to shift the debt around. It is to reduce it by 30% in total over the next two decades by centralizing it in a manner that reduces average interest rates without, at the same time, increasing the low interest rates paid by the surplus countries. This was, from the beginning, the aim of our Modest Proposal.

    • Understood, but no one will trust the politicians that there will be no further socialization of debt. So any proposal in this direction will cause an uprise in countries that would have to pay for this.

  • Mr Varoufakis , you must find a way to distinguish your proposal from Eurobond cliche .
    For most people , Eurobonds immediately refer to more debt . It has a bad reputation .

    What you say , may be academically precise but it won’t become widely trusted unless it is separated from Eurobond=more borrowing cliche .

    Watch the reaction of this journalist . She may have some economic knowledge . Surely higher understanding of political and economic situation than the average european citizen . Still , she does not want to hear anything about Eurobonds in her show . There is a reason for that . It’s highly unpopular .

    Your proposal’s publicity key should be that it’s going to REDUCE debt and RESTORE links between investment capital and debt .

    Forgive my authoritative expressing , but the increasing popularity amongst simple citizens will surely lead things towards it .

    P.S. The allures of this journalist don’t promote public understanding 🙂

  • HI David:

    Thanks for answer 🙂

    Look what the another people thinks about same problems.

    For all these reasons, I think it should happen that the vehement reaction of the educated people who feel and see what happens. I am a little man who comes from a European future. I survived galloping inflation and a hyper-inflation, civil war, refugees passed and here I’m still alive. What terrifies me is the idiocy of the political elites of Western Europe. How is it possible that Yanis could not receive his or her term at the European Parliament and nicely explain the well-paid pigs, where to go. He is not alone. There are plenty of experts around him who support him. If we knew what all could be yielded from the mud in which we think many people would invest money in a shelter that would dig 150 meters below ground level. The most tragic of all is: When they finally realize where we will be late for any positive reaction. European slaughterhouses will open wide its doors. Say what will be the Balkans at a time when nationalist passions spicy religion burned. Let us be God for help, but he seems busy with another project in another galaxy.