Wednesday, November 2, 2011

Greece Flexing It's Historical Muscle

So pretend you are Greek. You have this 3500 year history from the Minoan and Mycenaeans to classical Greece with people like Herodotus and the legendary Spartans. Not to speak of the beginnings of so-called democracy.

Now you are being bullied by lesser national entities, nations and peoples that kinda contributed to history, but not merely as much as you; at least in the intellectual, commercial and philisophical realms.

So in late 2011, you have Germany and France wanting to sit down with your democratically elected leader and dictate to him terms for control of your financial and national future. Who do they think they are, you say.

The European Union is a mish-mash of nation states. With race and history clouding the ability to create a coherent union, especially fiscal. From the outset, giving each country the ablility to borrow funds without fiscal control from the EU leadership, was doomed to failure. Greece was one country that saw an opportuinity to get drunk on debt and to heck with the consequences. In some ways, Greece was allowed to fail through the shear mismanagement and compromise shown in the terms of the creation of the European Union.

No single nation state wanted to let a supra-entity that lived in Brussels to have control over their people But  Brussels may have always intended to desire more control, and maybe saw debt as being the method to do it. And Greece, and others fell into the trap.

So now the Union is wanting more fiscal control over Greece's economy in order to pull it back from the brink of default. But the Greeks have awakened and are thumbing their noses at Sarkozy and Merkel et al. This is not going to end well. The debtor is a slave to the lender. Greece has no choice but to pay up and impoverish itself for some time to come. It could do an 'Iceland' and refuse to pay, but this will have dire consequences for all of Europe and indeed the world. Banks could forgive all Greece's debt, but again, dire consequences for us all would follow.

This next play in the history of Europe will be fascinating to watch. Will the European Union dream die or will there be a way out? Greece is using it's historical and philsophical ideals and going all democratic on us and asking it's people if they want the EU to control them. That's within their rights, but this course of action may just end up being Sparta against the Persians; and we know how that ended.

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