Greek tragedy on China's horizon
- By Jonathan Jones
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China.org.cn, July 14, 2011
When covering present-day Greece, it's hard to decide what to write about first. Financial meltdown, political capitulation and police tear gas attacks have rocked the country, looming over the shadow of a mountain of debt. US$450 billion of debt may seem small compared to the US's burden, but for a nation the size of Greece it is colossal.
Powerful European leaders, banks and fund managers have joined the chorus of voices supporting the IMF's bailout plans, drowning out local dissenters in the stricken country.
In this case, though, a "bailout" is a misnomer. It implies it is a rescue mission, a way to steady the ship and lead it into calmer waters. In reality, the plan keeps Greece afloat by extending the country's exorbitant loans just long enough to take it to the breakers yard.
The mainstream media have accepted or complied with the political consensus. They have agreed without serious investigation into the facts, figures and conclusions presented to them. As a result they are no longer trusted by the majority of people in Greece. This places yet another barrier in the way of creating national unity.
The Greeks are being fed the line that they must endure as Argentina did after defaulting so that their nation could rebound and prosper in the way Britain did during the 1980s under Prime Minister Margaret Thatcher. Both are poor examples to use.
It is true that Argentina defaulted on loans but they were all but crucified at the hands of the IMF in order to maintain a fragile toe hold in the international community. When the deal was finally done, the banks walked away with obscene profits while the Argentinean people were left to suffer in poverty for over a decade.
If using Argentina as a blueprint to follow is unwise, then proposing the 1980s UK model as a guiding light is bordering on insanity. Thatcher's policies looked set to ruin the country until she encountered two almost simultaneous strokes of luck.
Firstly, oil and gas revenues from newly discovered fields in the North Sea began generating huge amounts of money that bankrolled Thatcher's plans to plug the alarming holes that were appearing in the balance sheets. The second was the Falklands War, ironically against Argentina, which led to a wave of patriotism that bought her much needed time with a despondent population.
Unless there is some underwater drilling in the Aegean Sea we are unaware of or Greece is considering a military campaign against some distant opposition, adopting a Thatcher-esque plan in this crisis is tantamount to national suicide.
Even if the media and politicians are hiding behind glib sound bites the Greek people can see austerity heading towards their country like a runaway juggernaut and they are understandably distraught.
But why should all this matter to China?
