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Default. Now.

Greece should default on all sovereign debt owed to entities that are not individuals, and all sovereign debt in excess of € 100.000 owed to individuals.

Then Greece should present the ECB with an ultimatum: Either the ECB carries Greek debt at the Frankfurt overnight rate until Greek GDP has recovered to the pre-crisis peak level and the hysterical children in the international money markets have stopped throwing their infantile hissy fit. Or Greece will leave the €, and convert all debt owed by Greek citizens and government agencies to the new currency, without compensating the creditor. Greece could then conduct its economic policy without consulting the markets that have failed so completely.

As an ardent supporter of the European project, it gives me no pleasure to make a recommendation that may result in a breakup of the €-zone. But I can no longer in good conscience watch Greece commit economic suicide for the sake of the failed economic doctrines at the core of current €-zone policy. Enough is enough.

None can dispute that Greece has serious economic problems. But those problems are not caused by the public debt; the problems are what is causing the debt. Attempting to solve Greece's problems by paying down the public debt is akin to bathing a fevered man in cold water to lower his temperature: It does not cure the problems, and it causes new damage in the process.

As citizens of Europe, we all have to endure occasional misguided policies from the European Union. Just as we as citizens of our countries have to endure occasional misguided policies from our national governments. But enough is enough. By imposing devastating austerity policies on Greece, the European Union has signally failed the first duty of any government: To serve and protect its citizens and the common weal. If these policies made economic sense, the matter would be debatable. But they do not. Austerity represents a triumph of dogma over thought - it has never worked to resolve a crisis like the Greek, and it never will work. Not in Asia, not in Latin America, not in Hoover's America, not in Europe.

It is time to say no to this insanity, in the only language that will get through to the financial parasites who propagate it. Enough is enough.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Feb 18th, 2011 at 02:59:51 AM EST

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