Posts Tagged ‘Yanis Varoufakis’

The Rights of Humankind

February 20, 2017

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Twelve score and one year ago Thomas Jefferson submitted an innovative set of political principles to a congress of delegates from thirteen American colonies. The gathered assembly, known as Continental Congress, debated the contents and the merits of Jefferson’s proposal. The document began with these words:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness–that to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed. . .

The world has changed a lot since those words were adopted  as the philosophical basis of a new experiment in civil government. Here are just a few of the ways our world has changed since those revolutionary days:

~ Our fledgling national legislature, known at that time as the “Continental” Congress, is now called the Congress of the United States.

~ We Americans now associate the world “Continental” with Europe.

~ On the “Continent” of Europe, citizen-groups are now struggling to form a workable political basis for a European Union.

~~ Whereas, In the year 1776, when our American Continental Congress adopted a plan for a United States of America, we had a nominal consensus for the basis of our Union; and That consensus was based, rhetorically, upon “certain unalienable Rights, . . . Life, Liberty and the pursuit of Happiness; which Rights that had been “endowed” by a “Creator,

~~ In the year 2000,   the European Parliament adopted a Charter of Fundamental Rights of European Union, by which the peoples of Europe are resolved to share a peaceful future based on common values. . . indivisible, universal values of human dignity, freedom, equality and solidarity. . . based on the principles of democracy and the rule of law.

We see, therefore, that the American Union was initiated during an historical period in which faith in a Creator God was still, at least rhetorically, allowed to be a basis for political consensus.

The European Union, however, is coalescing in a post-modern, humanistic age in which their unity can only be expressed in terms of human agreements and motivations, stated above as common values.

As we Americans ultimately divided ourselves into two primary political identities, Democrats and Republicans, with one side being generally associated with  progressivism programs while the other is  based in conservatism,

We notice that in Europe, in what is now a churning crucible of 21st-century economic constraints, the divisions seem to be congealing toward two uniquely Euro polarities. On the Right side, we find the  Austerians, whose values are based on fiscal responsibility and the austerity that is thought to be necessary for maintaining economic and political stability. On the Left side, we find the Socialists, whose values are based on equality that is assured and managed by the State, which should produce solidarity among the people.

As Thomas Jefferson had proposed a declaration based ostensibly on the zeitgeist of the so-called Age of Enlightenment, so has a spokesman stepped forth, in our age, to propose for the Europeans a document that aspires to manifest the zeitgeist of this (perhaps) Age of Equality.

Toward that end, Mr. Yanis Varoufakis, former Finance Minister of the Greek Syriza party, has proposed a five-point plan by which the Europeans would collectively assure the rights of persons as they are understood in this, the 21st-century.

  https://www.socialeurope.eu/2017/01/new-deal-save-europe/

Stated simplistically, those rights are:

~ a collective investment in green/sustainable technology

~ an employment guarantee for every citizen

~ an anti-poverty fund

~ a universal basic dividend (income)

~ an immediate anti-eviction protection.

So we see, now, that in the 200+ years since the inception of American Democratic-Republicanism, the zeitgeist that was then seen as inevitable has changed. In the so-called Age of Enlightenment (c.1776) we were demanding a Government that would Protect our Unalienable Rights, defined broadly as Life, Liberty and the Pursuit of happiness.

The modern zeitgeist, however, as it appears to be evolving in the Europe of Our Age, is demanding: a Government to Protect our Basic Life Necessities.

Instead of Life, Liberty, and the Pursuit of Happiness, citizens of the World now appear to be demanding Life, Security, and the Pursuit of Equality.

EURomeHdq

And that’s the way it is, 2017. We shall see how this develops as the 21st-century unfolds.

Smoke

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The Minotaur is dead; long live the Minimal

May 12, 2015

The surprise ending in this book is that Yanis Varoufakis, the presumed leftist former finance minister of Syriza Greece, says it has to be the United States to lead the way of fixing the world’s financial mess.

He’s been called a Marxist, but Mr. V is not calling for revolution; he’s not advocating, as Marx did, that the workers of the world expropriate the “means of production”, meaning the industrial infrastructure that makes the economic world go around.

He’s not looking to the European Union for truly effective financial leadership. He’s not even looking to China (the most likely candidate) to grab the baton of world demand-driven economic vitality and run with it.

He says, at the end of his book, The Global Minotaur, that it has to be the USA to repair the international financial disaster.

The United States was, after all, largely responsible for the post-WWII arrangement (which he calls the Global Minotaur) that propelled, then ultimately toppled in 2008, the economic stability of the world.

The US had accepted the reins of power for internationally reconstructive wealth-generation in the aftermath of World War II. At the 1944 financial summit in Bretton Woods, New Hampshire, the seeds were sown, through a meeting of Allied minds, for worldwide reconstruction and recovery from the devastation of war. This actually worked out quite well for about thirty years for most countries who were involved, until about 1971.

In that year, President Nixon, in an effort to arrest the US’s unraveling surplus, announced that our Treasury would no longer sell gold for dollars. Thus did the USA, the principle player and beneficiary of post-WWII world reconstructive prosperity, set in motion the demise of its own international hegemony.

The worldwide financial tailspin that resulted from America’s abandoning the gold standard set in motion a debilitating chain of destructive financial consequences, beginning in the 1970s.

The wizardry of world-conscious financial minds, however, had constructed a financial framework for “recycling” capital around the world. When those minds had conferred in 1944, much was agreed upon. But there was, at the Bretton Woods conference, a divergence of strategic proposals for effectively restructuring the world’s capitalism. The famous (or infamous, depending on your economic worldview) John Maynard Keynes proposed an international policy that would include automatic mechanisms for recycling surpluses between rich nations and poor nations.

Mr. Keynes, genius that he was, was not able to convince the assembled heads of State and their finance people to accept his plan. Instead, the Bretton Woods conferees devised their dollar-pegged arrangement according to a proposal  from an American, Harry Dexter White. This settlement positioned the United States pretty much in charge of things.

The demand-generating, growth-driven Bretton Woods agreement was humming right along until 1971 when Nixon’s announcement about the gold window amounted to throwing a monkey wrench in the works of world currency valuations.

As burgeoning trade deficit and fiscal deficit began to debilitate American purchasing power, our financial and political heavyweights were nevertheless still adept at reconfiguring the Global Plan for economic development in a way that sustained our yankee advantage. Some exploitive characteristics of the new deficit-driven (instead of surplus-driven) financial machination rendered the whole Bretton Woods arrangement as a beastly, power-obsessed system rigged for devouring foreign assets to enrich US corporations and  “Wall Street.”

Hence, the analogy of the Minotaur, a mythical flesh-eating creature of ancient Greek mythology, was chosen by Mr. Varoufakis as the central force of his narrative.

The imagery works adequately for the purposes of Mr. Varoufakis treatise, because there are some parallels between the mythical, terrible man-bull beast that feasted on young virgins, compared to the US-driven Global Plan for sucking up 60-80% of the world’s capital for a very long time.  With Mr. Harry Dexter White’s plan, tweaked and fortified along the rocky paths of the 1970’s, ’80’s and ’90’s by Mr. Volcker, Mr. Greenspan, and President Reagan, the recycling plan for surpluses morphed into a reversal of the Bretton Woods Agreement. So it still favored American interests with exorbitant privilege that arose from managing the world’s reserve currency. Thus was the good ole USA sitting’ on top of the world, even though our trade and fiscal deficits were expanding in leaps and bounds; the Minotaur was gorging on debt, and so were most Americans.

So after the stagflationary 1970’s, we were able to rig the game of international capital flows so that the lion’s share (the minotaur’s share) of world capital just kept coming back in yankee directions.

Which worked well until about, you know, 2008.

With all the world-friggin’ capital recycling that had been humming along through the ’80s, ’90s, 2000’s, the wizards of wall street managed to concoct up a handful of magical innovative financial instruments to keep themselves gainfully occupied and the stock markets thoroughly inebriated. Dubbed MBSs, CDOs, derivatives, and credit default swaps, these wonder working financial “innovations” kept the profits rolling along to the tune of billions. Until 2008.

By that time, the real industrial-based, home-building, retail-flourishing music of sound economy was screeching to a grinding halt; suddenly myriads of those fancy high-steppin’ financial dancers  found themselves with no musical chair to sit in, and no way to repay all those millions of $$$ they had borrowed to purchase all those perpetual motion money-machine MortgageBackedSecurities, CollateralizedDebtObligations, CreditDefaultSwap-protected HFT electronic and/or sometimes paper fragile financial instruments.

So the Wall Street guys came out of the 2008 financial meltdown with a tarnished reputation because what had been a fairly constant flow of world capital came to, like, a standstill.

At which time, according to Mr. V’s book, Mr. Summers, Mr. Geithner and a few of their cronies cooked up a plan to keep the whole perpetual motion money-making machine cranking along like nothing had really happened, which is what, in some ways, we’re still operating under, a little like smoke and mirrors as they used to say back in the day (the ’80’s-90s.)

Now looking back on it all, the international financial infrastructure for continuous capital and liquidity around the world actually worked reasonably well for one hell of a long time–even when, in the 1970’s the big sugar daddy US of A started to slide into major deficit territory (on both fronts: trade and fiscal).

It was only (in my opinion) at the end  of the big Capital flow run, in the dozen years 1998-2008, that the US-led machine became what might be called predatory. ‘Twas then I saw a long-bearded guy on the street in Seattle with a sign that said Send Banksters to Jail. 

Which is why–the predatory attribute– I suppose, Mr. Varoufakis, used the flesh-feasting Minotaur analogy for his treatise.

But the US-driven plan for world hegemony was no cannabilistic beast. That’s a little bit like overkill, Mr. V, isn’t it?

More like a couch potato with a credit card.

A very good read, though, Yanis–your treatise, The Global Minotaur.

Here’s the book excerpt that I found most interesting. (This pertains to President Reagan’s policies in the 1980’s)

From chapter 7:

“As for the actual ideals underpinning free market fundamentalism, their fate was identical to that of Marxism in Moscow:

they (the ideals of free market fundamentalism, –ed.) became the first victims of its political champions’ rise to power. Indeed, when, in 1981, Ronald Reagan entered the White House, he spoke the language of supply-side economics, balanced budgets, the withering of big government (ironically, an expression first coined by Marx), etc. However, after a few months of toying with such policies, and once unemployment skyrocketed  in 1981, Reagan performed an abrupt U-turn (just as Lenin had done by adopting his New Economic Policy the moment he discovered that socializing the factories did not work as well as planned). Instead of shrinking government and balancing the budget, the president put his foot on the accelerator. The twin deficits (trade and fiscal, –ed.) ballooned and, as a result of his unbridled Keynesian practices, unemployment shrank and the Global Minotaur was on its merry way.”

So, considering Mr. Varoufakis’ book conclusion that the US should lead the way out of our worldwide money Crisis, I’m wondering if he, (ironically) like so many libertarians  on the internet, is looking for another “Reagan”? to take the ball and run with it toward our new goalposts for some kind of demand-generating, surplus-recycling 21st-century game plan for the nations of the world.

Glass Chimera

the Minotaur metaphor from Yanis V.

May 10, 2015

The day after we arrived in Greece for a vacation, they SyrizaNws
held an election there.

The leftist Syriza party won, propelling Alexis Tsipras into the office of Prime Minister. With no delay, Mr. Tsipras appointed Yanis Varoufakis as the new Finance Minister for Greece.

Before that week was over, these two men were visiting national leaders all over Europe. They were abruptly leaping into the Continental fracas of unbalanced financial equilibrium between their bankrupting government and the Euro creditor overlords up north.

Messers T and V immediately let it be known that their negotiating strategy on behalf of the Greek people would be very different from that of their predecessors. Austerity was not working to solve the problem, and would no longer be tolerated by the poor people of Greece. And it was time to acknowledge that fact. Something had to change.

That was about 3 and a half months ago. Now, in May 2015, the then-newly-appointed finance minister Mr. Varoufakis has already been replaced; he is now moving on to other roles in the international order of things (if “order” is an appropriate word for whatever it is that holds our nations together.)

As I write this, on a Sunday morning in May, in the USA, I am 2/3 of the way through reading Mr. Varoufakis’ book The Global Minotaur;

http://www.amazon.com/The-Global-Minotaur-Financial-Controversies/dp/1780324502

I can tell you I am not surprised that his role as a negotiator was so brief. The man is a truth-teller. (of the leftist type; there are truth-tellers on both the “left” and the “right”.)

As a regular ole conservative-leaning working-stiff kind of guy, I’ve done quite a bit of reading on this financial Crisis that has engulfed us since the fall of ’08. Mr. V’s explanation of that 6-year devolving tsunami is the easiest to understand that I have seen.

Yanis’ strategy is centered on what we call these days a narrative. That is to say, a kind of story. He converts the whole unfolding circus of events into a story based upon the ancient Greek mythical tale of a terrible flesh-devouring beast, the Minotaur. If this sounds far-fetched, it is.

My conservative brethren these days disdain the narrative approach to elucidating current events; they prefer, as Sgt. Friday used to say back in the day. . . just the facts, ma’am.

As if such a thing–separating facts from fluffy hype–were possible in this day and time of cyber bewilderment. Even statistics, raw numbers, are near-nonsense nowadays; they’re almost useless for making sense of contemporary fiscal/financial conundrums.

One has to survive by intuition in the 21st century.

There’s “spin” imposed on everything! Consider the unemployment figures that the BLS cranks out every month. Talking heads await those stupid numbers on the first Friday of every month, so they can have something to talk about, forming projections and predictions about future events based on stuff that already happened last month. Looking for the “trend.”

To hell with the trend! What’s the truth?

Unemployment rate, or Labor participation rate?–you tell me which one really tells the tale.

It’s like the CPI, Consumer Price Index. They leave fuel and food costs out of the equation, when those two factors comprise the biggest impact on every “middle class” household budget. Go figure.

But I digress.

Here’s this lefty, Mr. Varoufakis, an economist. He writes a very interesting book, using the Minotaur analogy narrative, and helps me understand what the hell has been happening in the world of money, which is to say the real world.

And though he claims to be some kind of neo-Marxist, I don’t care. If some conservative can do a better job of explaining why the free market has been buried under a landfill of toxic assets and leveraged finance-babel, let him/her do so.

I’ve blown my wad here in ranting, which is something I hate to see in other blatherers online, so I’ll not weary you with more of this grievance;

I’ll not explain the Greek’s minotaurial metaphor. Except to say it involves  the global recycling of economic surpluses since the post-WWII Bretton Woods financial arrangement that slanted everything in the world toward American advantage.

But now, since 1971, when Nixon shut down the gold window, all of that US-favoring international baggage has been lost in an airport somewhere between Brussels and Beijing and so the great recycling flow of surpluses has reversed. So that now it morphs into recycling deficits instead of surpluses and the winners will someday be losers and vice versa and so austerity is for the birds and now Mr. V thinks the Bretton Woods potentates should have listened to Mr. Keynes in 1944 instead of Harry Dexter White.

Or something like that. More about this later, probably next week after I finish the book. I suppose I’ll have to jump over to Hayek or Schumpeter or Mr. Volcker for some right-leaning controlled financial disintegration explanations after this tragi-comedic death-toggle with Greek mythology.

 

Glass Chimera

A Tale of #GreekDebt

February 13, 2015

A New swelling of national Debt, in a country as old as the hills

compels northern EU partners to halt Greece’s spending thrills.

So they bind up Hellenic budgets with a cord called Austerity;

It’s the only way, they say, to get back to Euro-prosperity.

A few years down the road, and Greece is really hurting;

the Greeks are sighing, even crying: this Austerity’s not working.

We need our jobs back; we’re tired of all these layoffs,

Just give us something Greek to do besides supplying EU payoffs.

GkAgoraModel

Now along comes a liberator, a homegrown politician,  Alexis Agonistes.

He’s got homegrown renown and resolve unbound, to set free the Economy of Greece.

Chosen by the Austere-stretched people of that ancient Hellenic polity,

Alexis steps up to the mike to strike, and dispose of austerity.

With his fearless finance guy, Yanis the Untamed, standing at his side,

bold Alexis tells all the Eurocrats it’s time to let the Greek debt slide.

Growth is what we need, says he, invoking the holy grail of the economic world.

Just release this Troika bondage, and scrap these EU rules. Let Greek flags fly unfurled!

FlagsAcrop

You’ve worn us out with repayment plans, and schedules without end.

Let us do the hire and fire; we’ll pay you when we can,

‘Cause we’re Syriza ’bout strong labor, wages and good jobs for our nation,

And we will rescue our Hellen from your Troyka domination!

AthenaRRWolf

Now the Germans told the Belgians and the Brits told the French,

Beware Greeks bearing debts; they’ll sink our Euro inch by inch.

But here’s the message from Syriza, and it surely isn’t funny:

Beware the Troikan horse, and Europeans demanding money.

Centars4

Glass Chimera