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Greece and the debt

U nd in two respects: While the euro-zone countries to escape with the transfers for Ireland also themselves , crawl Greeks to Greeks: They are quite alone and overwhelmed with Fordeurngen. Elmar Altvater, here already presented one or the other as the eminence grise of the Marxist political science, wrote in the pages of German and international politics for the November issue a very readable article .



This is really about his "body issue," the submission of the policy by the players on the Finanzmärkten.Er obtained initially from quite far to give a rough outline of the emergence of the financial crisis and overstepped the mark then something, if he responds to the growth imperative and fossil fuels - but hey, this is probably the urgency that the good man and we feel the letter read. However, it is a little further in the text interesting:

"The financial crisis is not just a" lender of last resort. "- This is especially the actively intervening central bank - asking if" normal "borrowers in the" real economy "is not to find, must have a "borrower of last resort" her - and fulfill this function in the current crisis, the countries with the result that of the 16 countries of the euro zone now 13 an excessive deficit procedure of the EU are subjected because of indebtedness "

. Insightful also if Altvater evaluated the role of rating agencies. He compares the ratings and recommendations for Greece and Spain.

"This is the reason for that demotion interesting Greece because of his debts, funding problems due payments and because of the deficit, devalued the national budget Spain, however, lost because of the austerity package the. Zapatero's government, the medium was deteriorating growth prospects. If therefore of Greece more savings and therefore called for a reduction in welfare expenditure, is required of Spain to the contrary, although there are two countries in the same currency area and the same (Maastricht) criteria are subject . "

course, that the rating has awarded agencies in the short pre-crisis high toxic securities with AAA, take a perhaps less honorable role in this whole farce is clear. Their influence is at least equal to that negative effects of longer-term to the development of entire countries, are given for example in the case of the downgrading of Japan, by serious errors.


Timothy Sinclair, who has worked extensively in politics perspective deals with the role of credit rating agencies, lists in his study; how to Ratings : In the rating process, there are major quantitative and qualitative studies that Control of the legal basis, and, on completion of the information classification and evaluation, follow-up observations. What, then, lazy in the business of the ratings?

In particular, the occurrence of the rating agencies and private market players. This is also why, according to Sinclair, that the rating agencies play a disastrous role in the evaluation of states. Because the agencies issue their opinions and advice on credit risk from the viewpoint of private financial actors.

Implicitly this means that it is concealed in large part to issues of power, through scientific analysis. In the end it's all about the fundamental questions that are left out in mainstream media like to: Who does it benefit? And for what?
For the real problem is, you mention as well Egghat on his blog, not to threaten the States to be illiquid, but this is much more threatening the banks themselves.

Altvater us, unlike many other critics also a solution to this situation. seemed most interesting to me here the reference to a text Keynes' from the 20s of last century:

"John Maynard Keynes argued in 1929 in an article on" German Transfer Problem "for it to cancel the debt of Germany to the ill effects, so the social cuts in the debtor country, but also the heightened prevent competition for goods from the creditor countries. "

So a debt of the debtor. asked the same claim Altvater at an previous article in the Swiss WOZ . The ancient Greeks used this technique in order to preserve social peace . For Aristotle, the debt was even more important than the Athenian Constitution:

"That would be reflected in the current financial crisis is a very contemporary way. Insolvent debtors are regulated by debt cancellation of debt (in an ordinary bankruptcy proceedings). The necessary rules can not set the market actors, as they private partial interests track and ran away from each other only over the ear to try. "

Unfortunately Elder voice more likely than a left utopians die away, as that as the voice of the analyst's sharp, he is, is heard.