So the central goal of Greece’s new government should be escape from the looming EU/ECB disaster, not a re-set of the terms of its fetters and servitude. If the new government of Greece really means to liberate its people, it would repudiate its debt to the IMF entirely – for it is the despicable arrogance of the IMF apparatchiks that have brought Greece’s economy to its lamentable state.I expect them to do the opposite, and actually double down on the foolishness. Stockman agrees.
if Syriza want to rid itself of the Greek oligarchy and the plague of crony capitalism, it needs to shrink the vast expanse of the Greek State which not withstanding “austerity” still totals nearly 60% of GDP. This means drastically reducing its essentially useless military; means-testing its extensive public pensions and other social welfare benefits; and eliminating the vast array of its costly domestic subsidies and mercantilist economic arrangements.
Moreover, Greece must finance its revamped state with honest taxes on the people based on a distribution of burdens that its politics can embrace; and, if it must incur fiscal deficits, it needs to rely on honest borrowings in the capital markets, not monetization by the central bank.
For a government steeped in leftist doctrine that’s a tall order, to put it mildly.
