Posted tagged ‘kotzabasis’

If Conventional Economic Weapons Can Work “Nuclear Option” is Out

April 8, 2014

The Samaras Government by stupendous, sagacious, and painful efforts, and by using “conventional economic weapons,” is pulling Greece out of its economic crisis. For the first time after four years, Greece this week will be able to borrow funds from the international financial markets.

I’m republishing this short reply that took place early in 2012, for the readers of this blog.

By Con George-Kotzabasis

A reply to Bruce Wilder, suggesting default for Greece and Italy as the remedy for their economic crisis.

In serious discussion it is wise to enter it carrying a sieve in one’s hands to separate the wheat from the chaff.

Your crystal clear “efficient calculating machine” that would implement your proposal of default, would be no other than a wise, brave, imaginative, and humane technocrat. So what exactly you have against technocrats? They are OK if they adopt your plan and only transported to Hades in toto for their ‘mortal sins’, if they don’t! Default was and is always an option. The distinguished economist Deepak Lal and exponent of the Austrian School of economics, long ago suggested such a schema. Lucas Papademos and Mario Monti, Prime Ministers of Greece and Italy respectively, both presumably have this option in their arsenal to be used as a last resort if everything else fails. But before they use this ‘nuclear’ option, they must try, and be given the right by all objective analysts and commentators, to resolve this economic crisis by ‘conventional’ means that could avoid a default which would open a big hole in their countries GDP and throw their people into pauperization for decades to come.

Advertisements

The Gravitational Force that Pulled European Nations into a Black Hole

February 22, 2014

As the superb and strong statesmanship of Antonis Samaras is pulling decisively Greece out of its economic crisis, I’m republishing this piece that was written in the midst of 2012, for the readers of this blog.

Government intervention always wills the good and works the bad.

By Con George-Kotzabasis

The European Union’s sovereign debt crisis was neither an act of fate nor an act of a free self-dependent man but an act of deluded ideology whose sails were blown by the long-lasting winds of government dirigisme, i.e., intervention, and welfare dependency. Once again it was the work, the social engineering, of the bien pensants in the form of a state directory of planning that would put a floor of security for the masses and protect them from falling into abject economic privation that was always, according to their thinking, the omnipresent and inevitable result of the unjust, harsh, and unequal regime of the capitalist competitive free market. The trouble was that this floor was made out of straw and at the first jump of an economic crisis–whose seeds were planted by government intervention,  loose monetary policy and low interest rates–would open a gaping hole through which this security would disappear and drown in a massive pool of unemployment and poverty.

The Eurozone’s one dimensional foundation of monetary union without banking and fiscal union could not sustain the European edifice in the long run with the differentiating regime of taxes, social benefits, and pensions that existed among its constituent states. The proliferation and prodigality of unsustainable Entitlement Economies, which have been the characteristics of the welfare states of Europe especially in the south, could not have been continued without cracking the economic underpinnings of the Eurozone. Also, the European Central Bank’s enabling of low risk premiums on interest rates of government debt, encouraged Greece, Portugal, Spain, Italy, and Ireland to go on an orgy of borrowing and overspending. The inevitable outcome was a stampede of budget deficits that were unsustainable and the eventual loss of all credibility in the financial markets that the afflicted States would be able to pay back their debts and thus the shutting out of the latter from the global financial lending pool.

Since no private person would hazard to lend money to states lassoed in sovereign debt the only alternative left was for the richest countries in the Eurozone, such as Germany, to become the lenders and continue to finance the former for their economic survival. But such help would be given under very severe terms encapsulated in strict Memoranda to the receiving countries with the stipulation that the latter would adopt and implement stringent austerity measures that would decrease substantially government expenditure, would restructure and reform their economies making them more competitive, and privatizing public enterprises, whose inefficiency and lack of a diligent working ethos can only be sustained by a continuous expensive staple of government subsidies.

These austerity measures, however, whose formulators have been the European Commission, the European Central Bank, and the International Monetary Fund, the so called Troika, are forcefully rejected by the people of those countries who for decades have been inured to the social and economic comforts and benefits engendered by the reckless spending of their governments, and are refusing to accept any cuts to these benefits even when some are aware that the latter can no longer be provided since the governments’ coffers are empty and the convenience of funding these benefits by borrowing, as they have done in the past, is no longer available due to their nation’s sovereign debt. Moreover, these austerity measures initially had not being complemented with policies of economic development and thus led to the worsening of the economic conditions of those countries that adopted them, such as Greece, leading to unprecedented massive unemployment by the closure of large and small business enterprises and to the smashing of the middle class which is the cornerstone of free societies.

This situation is dangerously engendering the fragmentation of social cohesion in those countries and giving rise to political parties of the extreme right and left, coming out of the foam of waves of violent demonstrations that imminently threaten democracy. A latest illustration of this danger are the attacks by petrol bombs and other incendiary devices by hooded youths of anarchists and extreme leftists in Greece against the homes of outspoken journalists, offices of the governing coalition of New Democracy, Pasok, and the Democratic Left, and the burning of Bank’s ATMs. And of particular significance are the attacks on journalists, which are a blatant violation of free speech and a sinister attempt to intimidate them from expressing their opinion about events and criticizing politicians of Syriza, the official opposition, of whom obviously the fire carrying mobs are its ardent supporters.

This will be the tragic legacy of European big government and its ill-considered, indeed, destructive intervention in the processes of the free market that for at least two centuries have delivered prosperity and an unprecedented increase in the standard of living of the masses; as the socialist politicians from Francois Mitterand to Jaques Delors–the architects and enforcers of the European Monetary Union that forced Germany to succumb and pay the price of the unity of west and east Germany as demanded by France–and their present disciples of  etatisme are in the process of killing the goose that laid the golden egg, i.e., the unimpeded free market, and by doing so unconsciously and unwillingly are generating and  unleashing the brutal forces of fascism and leftist directorates of totalitarianism on the landscape of Europe.

To avoid this slide to the hell of totalitarianism only the rise of statesmen who “can act beneath heaven as if they were placed above it” is consummated. The fiscal and balance of payments crisis can only be remedied by substantial cuts in government spending and the euthanasia of big government, and by the privatization of debt ridden public enterprises–that are the last strongholds of obtuse and doctrinaire unions– and by the freeing of private enterprise to pursue profit by competition and entrepreneurial creativity and dynamism, respectively. These ‘bitter’ remedies can only be administered by statesmen of the calibre of Lee Kuan Yeu and Antonis Samaras. The latter, indeed, might not only be the progenitor of the Greek Renaissance but also the paradigmatic leader of other European politicians to imitate for their own European Renaissance. The Newtonian apple that will stop the European ‘discord’ that currently threatens the demise of the EU will fall to the gravitational force of such statesmanship.

Hic Rhodus hic salta

 

The Danger of Tyros Handling War Strategy

January 23, 2014

I’m republishing this short piece that was written on October, 2007, for the readers of this blog.

A short reply by Con George-Kotzabasis to:

Clinton’s Statement on Kyl-Lieberman Resolution Washington Note, September 30, 2007

Like the two eminent commentators of the New York Times Paul Krugman and Frank Rich, respectable in their own professions as an economist and art critic respectably, and a bevy of politicians like Nancy Pelosi and Harry Reid, not so respectable because of their populist stunt, all of them being novices par excellence in the affairs of war who have attempted to pass judgment on the war in Iraq and cashier its victory despite evidence to the contrary, we now have another “tired less” tyro joining them in war strategy. The scholar and blogger Steven Clemons of the Washington Note. Clemons indirectly rebukes Senator Clinton for her support and vote of the Kyl-Lieberman resolution that designates the Iranian Revolutionary Guard as a terrorist organization, fearing that this will allow Bush to manipulate this resolution and use it to attack Iran.

He calls therefore on Senator Clinton to exercise “leadership in passing an explicit Senate resolution forbidding Bush from taking action against Iran without clear advice and consent from Congress”. But such action is not a declaration of war against Iran needing the authorization of Congress. It’s a strategic force de frappe on the part of the US against Iran in which the elements of secrecy and surprise are pivotal and decisive in the success of such an attack. Therefore Clemons’ call is strategically oxymoronic.

–>

Pasok Jeopardizes Greek Government by Refusing to Pay Twenty-five Euros

January 7, 2014

By Con George-Kotzabasis

The present politically negative stand of Pasok to the Samaras government introduction of the payment of twenty-five euros for medical treatment in public hospitals for those who can afford to pay it is utterly unwise and politically reprehensible and condemnable as it could destabilize the coalition government of New Democracy and Pasok. The latter must realize that its political fortune and éclat is tied up solely with the success of the Samaras government in pulling the country out of the crisis and by putting it on the trajectory of economic development and hence to the gradual reduction of unemployment, and not on any ephemeral gains, on the polls. In the event which is most unlikely that the electorate will not render to Pasok the justified plaudits for the economic success of the government, history will pass the ultimate judgment and write in golden letters the prudent participation of Pasok in the formation of the Samaras government as its ultimate contribution toward saving Greece from economic and political catastrophe.

This stupendous success of the Coalition Government will erase all other parties, from Syriza to the Golden Dawn, from the electoral map and will be their Nemesis for their sinister and perfidious populist policies that shamelessly deceived a sizeable part of the people by their totally false promises and completely screwball inapplicable policies. Only New Democracy and Pasok will reap the fruits of this tremendous success that had prevented Greece from falling into the abyss of disaster. It is for this reason that Pasok must immediately cease its adverse stand toward the twenty-five euro payment whose raison d’etre is the restructuring of the medical system so it can render better services to its more indigent patients.

Serious economic analysts both within and outside Greece are forecasting that the country by the end of 2014 will be out of the economic crisis as a result of the painful but necessary austerity measures that the Samaras government had taken, by reducing the public sector that impeded economic growth, by privatizing public corporations, and by making the economy more competitive and entrepreneurial. Hence the prudent policies of the Samaras government would draw foreign investment into the country that in turn would lead to the resurgence of the economy and for the first time in six years 2014 would show, according to economic predictions, a fiscal surplus and a small growth of 0.5 in Gross Domestic Product.

Needless to say political stability is a prerequisite for starting a spree of investment. Pasok by foolishly shaking this stability for electoral interests apparently seems to be unaware that by doing so it hinders and discourages indigenous and international entrepreneurs from making any investments that are so vital for the economic recovery of the country.

It is this great achievement of the government in pulling Greece out of the crisis that Pasok in an unprecedented conduct of political frivolity could jeopardize by refusing to pay a twenty-five euro fee for treatment in a public hospital, which could bring about the collapse of the Samaras government.

 

Obama Diminishes Trust of Allies and Increases Confidence of Enemies

December 9, 2013

I’m republishing this piece that was written on October 2011.

By Con George-Kotzabasis

Barack Obama has been elected as president of the most powerful nation in the world that since the end of the Second World War has been the bulwark of freedom against its infernal enemies, i.e., the former Soviet Union and its allies. In the twentieth-first century Western civilization is threatened by a new implacable and irreconcilable enemy, fanatical Islam; and the USA is the only nation in the world that can defeat this foe. But president Obama has already failed both tests of “knowing thy enemy,” and as a sagacious strong respectful leader. He has weakened America both before the eyes of its friends and allies and, most dangerously, its enemies.

The nations of Eastern Europe are rapidly losing their trust toward the US that the latter will protect and defend their interests and security, since Obama’s withdrawal of the missile defence shield from Poland and Czechoslovakia and his concessions to the Russians. And the enemies of America, such as Iran and its multiple terrorist proxies are heartened and have increased their confidence that in Obama they have before them a giant eunuch who is incapable and unwilling to use force, even as a last resort, against them. Since Obama has replaced America’s superpower ‘Jupiterian’ bolt diplomacy with olive branches toward them.

The “dangerous scenarios,” of which you are concerned with, are already in their incubatory stage: a nuclear armed Iran that would start a proliferation of nuclear weapons in the region with all the great dangers that would issue from such proliferation, especially in a region that is replete with the votaries of fanatical Islam. Thus to your question what kind of advice one would give to Obama in such an impending crisis, it would be the most heavily ‘armed advice’ that would fall on his shoulders. But Obama has neither the spine nor the balls to carry such heavy advice on his morally rickety frame, and least of all bring it to fruition as a last resort. Thus any strong advice given to a congenitally weak president would be a barren exercise.

The Mechanistic Thinking of Civil Libertarians

November 20, 2013

I’m republishing this short piece for the readers of this Blog.

A reply by Con George-Kotzabasis to: Keeping Australia Safe By An Improper Exercise Of Power  By Surya Deva

On Line Opinion  July 28, 2007

The mechanistic thinking and unimaginative conclusions of this article are typical of someone who has been trained in legal studies and who carries proudly and aloft the banner of the civil libertarians. The latter as yet cannot see the great distinction between a crime committed and a crime prevented and the distinct ways and means that are needed to apprehend its felons in each case.

Everyone knows when a crime is committed. But no one knows when a crime is going to be committed. And it’s much easier to search and find the suspects of the former, but it’s by far more difficult to identify the suspects of the latter. And while it might be easy to catch a felon who committed a crime and bring him/her to justice with the existing laws, it’s almost impossible to apprehend and bring to justice someone who is preparing to commit a crime with the same laws. It’s like in medicine. While one can cure a known and an occurring disease with the current remedies of medical science, one cannot prevent a relatively unknown deadly disease from spreading with the same remedies and one has to resort to hard and drastic measures to stop it from happening.

Likewise in the age of terror to prevent a terrorist action from occurring, one has to take drastic, if not draconian, measures against it, because the conventional existing laws are totally ineffective to stop it.It’s because of this cerebral inability mechanistic thinking of civil libertarians to see the fundamental distinction between a crime committed and a crime prevented and the different “remedies” that apply in each case, that all their strictures and arguments against the incursions of governments on people’s civil liberties, are trite, irrelevant, and intellectually out of depth. 

Your opinion on this issue… 

President Obama Appeaser of Radical Islam

October 29, 2013

By Con George-Kotzabasis

Barack Obama was, is, and will remain an appeaser of radical Islam, as it is a constituent part of his weak character and more dangerously of his effete leadership. Like a fearful child he avoids his fears by hiding his face under the bed-sheets. This is clearly illustrated by his fudging of the word “jihadist” with its inherent fanatical murderous action –which he fears to admit– by changing it to the less fearsome one of “workplace violence,” his description of the Fort Hood massacre, whose jihadist perpetrator Dr Nidal Hasan was sentenced to death today. It is by such changes and meaningless laughable words within the scenario of terrorism that the commander-in-chief of the most powerful nation purports to fight the existential threat that radical Islam poses to Western civilization. A black comedy ham is the occupier of the White House.