The Real Cause of Greece’s Economic Crisis

Today I came across this 2011 film review. Maybe it explains a bit more about what led to the crisis in Greece. Thanks for reblogging it, Stuart. I am going to reblog it now.

The Most Revolutionary Act


(2011) Katerina Kitidi and Aris Hatzistefanou

Film Review

The 2011 Greek documentary Debtocracy effectively dispels the media myths about lazy Greek workers and and scofflaw Greek taxpayers being responsible for Greece’s present economic crisis.

The film begins with an overview of what its filmmakers (and I) feel has been a basic goal of both globalization and the creation of a single European currency – namely “labor discipline” and the suppression of wages in heavily unionized countries.

They show how sweeping deregulation in the industrialized world in the 1980s allowed manufacturers to eliminate unions by shutting plants down and reopening them as sweatshops in the third world. The subsequent creation of the Euro as a single currency allowed the central European countries (Germany and France) to use the mechanism of debt to weaken strong unions in peripheral Eurozone countries like Greece, Spain and Italy.

Thanks to relatively weak unions following…

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3 thoughts on “The Real Cause of Greece’s Economic Crisis

  1. Thanks for reblogging. From what I read, there is an ongoing effort by Syriza to declare much of their current debt as “odious debt,” given that it was incurred under fraudulent circumstances.

  2. ” . . . . to use the mechanism of debt to weaken strong unions in peripheral Eurozone countries like Greece, Spain and Italy”
    This makes me very angry, Stuart. It seems to be only right to call this kind of debt illegitimate.

    1. I am amazed, Stuart, how much information is available on the internet. This article from 2012 I found most interesting too:

      “March 6 (Bloomberg) — Greece’s secret loan from Goldman Sachs Group Inc. was a costly mistake from the start. . . . . ”

      This looks to me like the Greeks let themselves be manipulated. They probably thought that it was an easy way to have a good life. A few Greeks probably came out of all this a lot richer, whereas the majority of Greeks suffer badly from all this wheeling and dealing!

      Here just one more example from the above article:

      ” . . . . . Bloomberg News filed a lawsuit at the EU’s General Court seeking disclosure of European Central Bank documents on Greece’s use of derivatives to hide loans. Releasing such information could damage the commercial interests of the ECB’s counterparties, hurt banks and markets, and undermine the economic policy of Greece and the EU, the central bank said last May in a response to the suit. A judgment is pending. . . . . “

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