Which is Scylla and which Charbydis?

In Greece the people are listening to final arguments about whether they should continue to use the Euro as their currency or abandon the austerity in the hope that in doing so they will abandon the poverty that has afflicted Greece since austerity measures were introduced. It is presented as a choice between good and evil by some or a choice that makes no difference by others. It is more likely a choice between Scylla and Charybdis.  Odysseus chose Scylla as being the least bad option. He lost some men to the sea monster but did not lose the whole ship to the whirlpool of Charybdis.

The problem for the modern Odysseus is that no one knows whether staying in the euro is Scylla or Charybdis. My feeling is that Scylla is leaving the euro: it will cause harm and problems but fewer problems than staying in the euro, but in the nature of things, we shall never know which route was the least dangerous.

Huffing and Puffing to Blow the Euro House Down

When politicians do not know what to do, they hold a summit in the hope that the noise will be mistaken for action and the publicity of the event will mask the lack of ideas generated by it. The present meetings and statements about the crisis that is affecting Greece and the Euro is a case in point. There are no ideas except that the Greeks must make huge sacrifices to repay their debts.

Forgive them their debts

Greece is in distress. It is in great difficulty, with no money, no government and very little hope. It has taken much in the past ten years, taken from nations that were willing to lend to it, and directed its economic policy to suit the demands of those pursuing a dream of European unification. It has gorged on the money it borrowed, without being able to create wealth from its debts.

Standing Up to your Equals

The European Union at its best has many qualities, but at its worst has all the traits of an Empire, an Empire of nations. “Being a nation means standing up to your equals. Being an Empire means kicking your inferiors.”

Time to write off debts

The pattern is now becoming obvious. First banks make loans available to nations at cheap rates of interest. The nations borrow more than they can prudently afford to repay. They expect to repay the loans out of economic growth. Gradually and one by one the nations find it difficult to repay the loans. Other nations associated with them try to help them out, but the help usually involves the other nations borrowing money too.

There is no Greek Financial Crisis

There are many crises in the world today; there are wars in Afghanistan and Libya, there is unrest in Syria and insurgency in Iraq and many people are losing their lives, but the crisis that is dominating the news today is what is called the Greek Crisis. Greece has as a sovereign nation borrowed money and it cannot afford to repay it. Greece is being urged to accept severe austerity measures to enable it to repay the money that it cannot afford to borrow. It must, it is being told, sell national assets, work harder for less money and pay more taxes to enable it to repay what it cannot repay. I do not know whether to solution is that which is being put forward by the European Union and the International Monetary Fund. I do know, however, that the crisis is not one about Greece, but one about banking and the way we organise our international lending and borrowing.

Goldman Sachs – your dedicated financial advisor

The world is slowly beginning to understand that if you allow a key industry or service to be controlled by a handful of enterprises, they will compete against the public interest rather than compete against each other. In the United Kingdom there are a handful of energy companies selling precisely the same products at virtually the same prices. The differences between them do not make a market.