With Europe behind it, Greece is being pushed into further peril

There is not the remotest prospect of that Athens can raise the money set out in the bailout terms, even with the enforced sale of national assets

Keynes never existed. The General Theory of Employment, Interest and Money was never written. Economic history ended on the day Franklin Roosevelt replaced Herbert Hoover as president of the United States.

That’s the gist of the deal that keeps Greece in the euro, an agreement that will deepen the country’s recession, makes its debt position less sustainable and virtually guarantees that its problems come bubbling back to the surface before too long.

At the insistence of Berlin, this sort of flexibility is not going to be open to Greece. Angela Merkel and Wolfgang Schäuble, her finance minister, have got everything they were seeking before Alexis Tsipras called the Greek referendum – and more. Continue reading

Greece Begins The Great Pivot Toward Russia

One shouldn’t be shocked to see Communist leaders doing Communist things.

Ten days ago, before the smashing success of Greece’s anti-austerity party, Syriza, we noted that Russia gave Greece a modest proposal: turn your back on Europe, whom you despise so much anyway, and we will assist your farmers by lifting the food import ban. And, sure enough, Greece’s new premier Tsipras did hint with his initial actions that Greece may indeed pivot quite aggressively away from Europe and toward Russia in general and the Eurasian Economic Union in particular (as a tangent recall “Russia’s “Startling” Proposal To Europe: Dump The US, Join The Eurasian Economic Union“). Continue reading