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On the Political Economy of Eurozone Bailouts – The curious bargain of Greece’s Hayekian neoliberals

, 28/02/2012

Following the Crash of 1929, an epic debate began between liberals who believed in capitalism’s automatic stabilisers and John Maynard Keynes who did not. Today, in Bailoutistan (Greece and the other fallen eurozone countries), this debate has taken an interesting, sad, twist.

Winston Churchill on Greece's Bailout Mark 2 (almost)

, 24/02/2012

In my previous post I described Europe’s latest Agreement on how to deal with the Greek debt problem, and the looming Euro Crisis, as a form of Crisis Appeasement. A New Munich that will haunt us Europeans for a long while. Today I cannot resist the temptation to couch my views on Greece’s Bailout Mk2 […]

Crisis Appeasement: The new Greek Bailout as a ‘Euro in Our Time’ moment

, 22/02/2012

According to the official narrative, the euro was saved (again) by preventing a ‘disorderly’ Greek default and against the background of Mario Draghi’s Central Bank ‘activism’. So much for the official narrative. For in my estimation, the sight of our leaders proclaiming such victory against the Crisis has a strong whiff of the moment Neville […]

Greek default does NOT equal Greek exit

, 18/02/2012

Perhaps the greatest enemy of the eurozone, at this particular juncture, is an erroneous assumption: that a Greek default is inextricably linked to a Greek exit from the eurozone. The problem with this assumption is twofold: First, it prevents Europe from escaping a trap of its own making. Secondly, it is false.

On Bloomberg, arguing that the Greece's Bailout Mk2 is unsustainable

, 14/02/2012

Feb. 13 (Bloomberg) — Yanis Varoufakis, a professor at the University of Athens, and Miranda Xafa, president of EF Consulting, talk about the outlook for Greece after lawmakers approved the austerity package demanded to secure a financial lifeline. They speak with Owen Thomas on Bloomberg Television’s “Countdown.” (Source: Bloomberg) CLICK HERE  

Greece and the Rape by the Rentiers, by Marshall Auerback(*)

, 11/02/2012

A must-read piece for readers of this blog and beyond. My only caveat concerns the last sentence: Defaulting within the eurozone is the optimal strategy, as it allows Europe one last chance to rejig the euro. Most likely, Europe will not take this chance and then the euro will disintegrate anyway. Greece has no reason […]

On ABC Radio National's Breakfast program – discussing Greece

, 10/02/2012

This is an interview on ABC Radio National’s Breakfast program. One of the rare occasions when I was afforded sufficient ‘room’ to unfold arguments.

Greece should default within the eurozone: On CNBC

, 08/02/2012

While Greece’s political leadership was continuing with its  game of  charades (Will they sign? Will they not?), the country is being led down the garden path, once again. The debt-deflationary downward spiral will be given another impetus. Here I tell CNBC that Sisyphus’ optimal strategy is to stop pushing the rock up the hill. And […]

Is Greece still viable? (Is Europe?): my piece in Deutsche Welle.de

, 05/02/2012

[The following piece was commissioned by DW.de. Click here for the article as it appeared on Deutsche Welle’s website.] “Perhaps it is historically true that no order of society ever perishes save by its own hand.” [John Maynard Keynes][1]

Reporting the Eurozone’s Crisis: Lessons from the Greek Front (*)

, 04/02/2012

Over the past two years, the economic crisis that has engulfed Greece has also thrust me in front of the microphones and note pads of the myriad journalists who descended upon Athens to report on the unfolding drama. In this sense, I have not only been witnessing the evolution of Greece’s (and the eurozone’s) meltdown […]

Crying over spilt milk: My CNN.com piece on Greek sovereignty and the unholy alliance between German and Greek leaders

, 31/01/2012

[The following story was commissioned by CNN.com. Click here for the complete article.] STORY HIGHLIGHTS German and Greek politicians are at odds over who should control Greece’s budget Greek political economist Yanis Varoufakis says both are guilty of failing to grasp the real problem Varoufakis says both countries mislead voters in agreeing an unsustainable rescue […]

Pointless fury: Why both German and Greek politicians are wrong to be angry

, 30/01/2012

So, some German politicians put on paper that which they have been thinking of a while:  Greece has become an unbearable burden and, if they are to resign themselves to continue putting their money in that particular black hole, they might as well have a say in the way it is managed on the ground. Predictably, […]

Two interviews on the futile PSI negotiations

, 19/01/2012

  For the second interview click here: Europe as the world’s laughing stock

Why, for Greece’s and Europe’s sake, the PSI ought to fail

, 17/01/2012

Headlines the world over ‘agonise’, on behalf of Greece and Europe, on whether the PSI+ negotiations will come to a conclusion. The presumption is that, if they succeed, Greece will be reprieved and Europe (with France and the EFSF having recently been downgraded) will buy some much needed extra time to put, at long last, […]

On Sky TV discussing the PSI+ negotiations, interviewed by Jeff Randall

, 17/01/2012

PSI talks to resume in Athens over the haircut imposed on banks by the EU in October 2011. Back then, Mrs Merkel and MR Sarkozy forced the hand of the IIF’s head, Mr Dallara, to accept the notion of a  ‘voluntary’ 50% haircut on the face value of Greek government bonds (except those not owned […]

The race to lend Greece: A short story by Klaus Kastner

, 18/12/2011

In this remarkable short story, Klaus Kastner (Kleingut) offers a fictionalised account of how Europe’s banks channelled billions to their Greek counter parties. It makes for excellent cross reading with my recent take on the Ant and the Grasshopper fable. [Click here for Klaus’ original post.)

NEVER BAILED OUT: Europe's ants and grasshoppers revisited

, 15/12/2011

A new take on Aesop’s tale, tailor-made for our ‘European Moment in History’, at a time when Europe’s collapse is being guaranteed by the dominance of the wrong narrative. What follows is an attempt at an alternative take; one that is more in tune with a decent future for Europe.

No plan for either Europe or Greece: Guest post by Jerry Goldstein

, 13/12/2011

In the interests of fostering dialogue on the issues that matter, I welcome today’s blog entry from long time contributor (and regular critic of my scribblings) Jerry Goldstein. Jerry has a strong background in banking but, and this is highly pertinent, spends most of his time in Athens.

Of Debts and Denial: The Crisis in the context of the post-2008 world – Presentation at the LSE on Tuesday 6th December

, 02/12/2011

In London next Tuesday? Perhaps you may want to come along to this talk. I shall be using the occassion to make the basic claims that: The eurozone, in its original/present form, could never survive the shock of the Crash of 2008, Greece was just as much of a problem for the eurozone as Germany […]

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