Click here and jump to 29th minute.
The Occupied Times ~ of London honoured me with a request for an interview. It has just been published here. The text of the interview is also copied below. Please support them any which way you can. Money Talk$: Yanis Varoufakis In the wake of the brutal austerity package – cutting 3.3 billion euros of […]
On the Political Economy of Eurozone Bailouts – The curious bargain of Greece’s Hayekian neoliberals
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.
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 […]
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 […]
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.
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
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 […]
Click here for the video.
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.
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 […]
[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]
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
[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 […]
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, […]
On BBC World tv, explaining why the PSI deal (if/when it happens) will be an agreement bereft of a sustainable future
Click here: http://www.bbc.co.uk/news/business-16679370
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, […]
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 […]
Greece’s PSI is Dead on Arrival: An error in search of a rationale but also a failure that may prove a harbinger for the Modest Proposal
A brief history of Greece’s PSI In the beginning there was Wholesale Denial.
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.)
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.