Sunday, July 5, 2015

What Greece Must Do Immediately as to make today a great day for all of Europe.

Immediately, Greece must shift the focus from so called, and insultingly called, “Grexit” to defining the forum and the authority of the forum to discuss the Greece debt.   The debt is by common sense never to be paid back and is in fact a fiction, it is a trade imbalance and then an emergency intervention as the world entered into the ‘Great Recession”.  Much of it if not most will be forgiven – call it by any name one wishes.  But the forum to date is clearly inadequate for the negotiating of this so called debt.  A forum must be found or designed that has legitimate authority to define review and then deliberate and then end this crisis.

Greece upon itself is similar  to Rhode Island  in the 1780s for the USA, especially the first Secretary of the Treasury, Alexander Hamilton.  It was almost  an island like Cyprus,  of smugglers, tax avoiders, and bankruptcy schemes.  But Rhode Island went down in the end being integral in empowering Hamilton and showing the nation the need for centralized treasury and more importantly centralized federal oversight and policing (creating the US Coast Guard , for one).  So Rhode Island characters were in the end more useful to the nation than the most stalwart rich North Carolina planter.  And it should not be lost, that to build the USA, the first step was Hamilton forgot all the state debt and aggregated it into US Treasury debt.

Greece must swing the focus on federalism, yes they have serious problems, and those problems overwhelm the existing civic power of Greece.  A EZ federal tax authority is required.  Greece debt must be swapped, just as Argentinian and other countries debt was wrapped around US Treasury corpus in the late 1980s by another Secretary of the Treasury, James Brady.  And then duties Greece now has for policing the common border of the EZ, especially against the most serious problem of refugees, must be delegated to a all EZ naval and para-military force.  The same with Greece obligation to NATO.  In short, it is impossible for Greece to do its duty to the EU and to NATO without federal institutions where it is only a small part of just as Arkansas implicit share of the US Navy or the IRS.

Greece must force the discussion to rejuvenation and repair of the system which was and is still completely flawed, and to assume an equitable duty in that repair and then ongoing capability.

To do so that requires a European federal republic, while Europe seems strangely complicit in allowing Germany  assume the title of running the entire European Treasury, I think they will realize the advantage in that  when the Greek remedy and then ongoing prosperity requires a para-military if not military capability and Europe wide policing, starting with taxation.

Europe has been avoiding this requirement, burying their heads in sand and letting the USA provide the  hard power, so that they can carry on eating at either the corporatist or German trough like pigs.  Even those countries most damaged by German intra-EZ mercantilism, support Germany “super votes” and allow them to run the EC – I guess because it provides sinecures (board membership on GAZPPROM) and fine meals Comme Chez Soi in Brussels.  Or their leading industries get to go along like volunteer  financial shock troops alongside German business as they loot and conquer.

But a popular and indisputable direct democracy, not just of the Marxist Syriza, but a super majority of all Greeks, has shown the falsehood to all of this by voting as a united people OXI.

Greece must now swing hard to defining the platform, even ignoring the debt itself for the time being.
Greece must do the following:

      1) Organize a pan-EZ block of all people with the same problem of German intra-EZ mercantilism but with no mechanism to re-balance the results of mercantilism – no power to force terms, no transfer payments, and most importantly no currency to devalue to regain competitive terms a la Ricardo.  The only re-balancing provided to regain competitive export ability, which Germany insists upon, is mass shock unemployment .   Formal alliance with Podemos, is required and Rojay must go.  It is not out fo the question to split the EC super votes and bring Hollande in the alliance as well as Renzi – if not that go to the traditional left of Italy and France.

       2)  Immediately sue the ECB, the IMF and Germany for various cases – there will be no scarcity in finding cases that will be certified – to be tried in the ECJ.  The ECJ is federalists as in there is not weights for justices given to Germany and England and France and even Spain or Italy.  It will take and must take by the Treaties a pan-EZ view where every country has the same weight.  Europe needs a balance of powers and an arbitrator for defining the following, the ECJ muct be activated.

   3) Greece must insist that a counterparty to the ECB be defined and is the peer of the ECJ and the ECB – a pan-EZ “treasury”, a “Resolution Trust Corporation “ (RTC) like structure that solves the imbalance debt crisis with the same mandate as that granted the US savings and loan crisis RTC.  It would be federalist and have a board that is not super weighted as per GDP but federalist.  And – most importantly – it would issue debt that would be used to the Brady Bond like schemes.  Just as Monnet’s European Coal and Steel later became the EU, this RTC would become the Department of Treasury for the emerging EZ federal republic.

    4) Greece should refuse to negotiate at all until the above is created, but then once the above is created to recognize their authority and accept their dictum.   This surrender of Greece sovereign power to the Euro RTC would be precedent then to show the power  of the EZ federal institutions.   This corporatist and trade bloc power structure of the currently  confederate union must be broken.  Those institutions which support the maintain of this power – most importantly the Karlsruhe, mist be subsumed in trans-EZ matters to the ECJ and the Euro RTC.

      5) An “edge” must be created.  A trans-Europe anti-austerity directorate must be well funded and then set loose across Europe.  If Germany does not back down if the above are not forthcoming, French taxi drivers protesting against Uber will be made to look like light weights.  A “résistance”  must be created.

    6) I think all the above are not only required, but can be accomplished with Greek leadership.  Greece must do all the above.  I think the majority of Europe, those who would be the direct representational voters if they were allowed democracy,  are behind Greece.

    7) To allow all this to take place in the end , the USA must get off of Europe's back.  The USA must risk the emergence of a hard power country, the republic of the EZ - already every bit the match in aggregate to the USA economic power.  The USA must evacuate Europe and end the post WW II occupation.

No comments:

Post a Comment