[Marxism] [Pen-l] Convert to the Drachma – Piece of Cake. Right… | naked capitalism

Louis Proyect lnp3 at panix.com
Thu Jul 16 15:45:03 MDT 2015

On 7/16/15 2:55 PM, Dayne Goodwin via Marxism wrote:
>   What
> the talk is about is whether Tsipras as the national leader of Syriza
> for several years before Syriza won the January 2015 elections and he
> became Prime Minister should have delegated work on preparing a "plan
> B" within the party and since January also within the government.

In other words, he should have be considering an exit from the eurozone 
when his entire political trajectory has been Europeanist? And for that 
matter, Stathis Kouvelakis, the most prominent "hard" Marxist in the 
Greek parliament and Grexit advocate, writes a book for Verso titled 
"Crisis in the Eurozone" that has less than a page on what that would 
amount to. I've been referred on FB repeatedly to "Grexit made Easy" 
type articles but every one of them is idiotic. Mostly the appeals to 
Grexit sound like Burl Ives's "Big Rock Candy Mountain" but I'll give 
credit to Marty Hart-Landsberg for laying it on the line:

"To be a bit more specific, a break from the Eurozone would require 
nationalization of the banks -- an act that would immediately draw the 
country into a serious legal test with Europe since the banks are 
technically under the control of the European Central Bank.  It would 
require the government to quickly issue new scrip as it prepared a new 
currency, and aggressively engage in an expanded public works program. 
At the same time it was unclear whether the new scrip would be accepted 
and whether the country would have sufficient foreign exchange to 
maintain minimum purchases of key import items such as food and 
medicine.   Moreover, many businesses, holding debts denominated in 
euros, would likely be forced into bankruptcy necessitating government 
takeover.  And, all this would take place in a relatively hostile 
international environment.  No doubt some countries would offer words of 
solidarity, but it appears unlikely that any would or could offer 
meaningful financial or technical assistance.  Still, with proper 
preparation the possibilities for success could have been greatly enhanced."

Unfortunately, he has confidence in the BRICS that seems unwarranted in 
light of China's interest in buying the Port of Piraeus at fire sale prices:

"Strikingly, Varoufakis mentioned that Syriza had established a small 
team to think about what a break would mean shortly after their January 
2015 election, a team that no doubt was kept small because the 
government wanted to keep the planning secret.  But that was a mistake. 
  Planning should have happened on a large scale and in a visible way. 
Discussions should have been held with international legal experts as 
well as with the BRICS countries concerning possible use of their new 
lending and investment facilities."

More information about the Marxism mailing list