Osbourne is obviously only too aware of the revolutionary implications of a writedown of Greek sovereign debt : it will interfere with the ongoing writedown of private banking debt. It’s a pity that anti-austerity canpaigners don’t show the same awareness and recognise that the entire edifice of Wall Street, City of London finance capital, parasitic and destructive, has to come down if we are to end the downward spiral. Instead they persist with their neo-Keynesian fanatasies and their pretence that there is no systemic crisis. It remains to be see how far Tsipras’ grasp of reality goes and to what extent he can link up with elements within the European political class who recognise that the banking system is bust and has to be put through effective bankruptcy and replaced by a banking system orientated towards developing the real economy. As Obama said

“You cannot keep on squeezing countries that are in the midst of depression,” Obama told CNN.

“At some point, there has to be a growth strategy in order for them to pay off their debts to eliminate some of their deficits,” he added.

 

Greece’s Syriza govt could pose greater risk to global economy than Middle East conflict – Osborn

RT

2nd February, 2015

Greece’s standoff with Eurozone governments and international creditors poses a greater threat to the global economy than conflict in the Middle East, climate change and rising tensions between Russia and the West, UK Chancellor George Osborne says.

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