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<H1 class=title><A href="http://weknowwhatsup.blogspot.com/"><FONT
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<H2 class=date-header><SPAN>Tuesday, February 21, 2012</SPAN></H2>
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<DIV class="post hentry"><A name=858180698296381806></A>
<H3 class="post-title entry-title">Greek bailout package the finger in the dike
</H3>
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<DIV class=post-header-line-1></DIV></DIV>
<DIV id=post-body-858180698296381806 class="post-body entry-content"><BR>The
next few weeks are crucial for the workers of Greece and throughout the
world. Representatives of the Troika, the IMF, the European Commission and
the EU hammered out a deal early this (Tuesday) morning that will include a
second bailout of $171.9 billion. The Greek parliament, voting under the
protection of thousands of heavily armed riot police agreed to further austerity
measures in order to satisfy the requirements forced on the Greek people by the
international bankers.<BR><BR>Greek workers and youth have already faced severe
pay cuts and attacks on their living standards. Some 150,000 public sector
jobs are expected to be cut over the next two years and part of the latest deal
is for the minimum wage to be cut a further 22%. According to reports, the Greek
government has no more than a week to implement it's prior austerity actions and
include passing legislation that would create what is called a <I>"blocked
account"</I> that would guarantee that the loans/money Greece is receiving from
the IMF and the EU is handed over to moneylenders in interests payments (debt
service) rather than going toward services, wages, pensions and other social
needs. <BR><BR>The Greek government has no popular support and there is a
concern throughout Europe that the pressure and social unrest is so great Greek
politicians will not be able to implement the promised cuts. There is no faith
that in the event of elections politicians and/or parties that supported the
austerity measures could get elected. As Julie Hyland reported on the <A
href="http://www.wsws.org/articles/2012/feb2012/gree-f22.shtml"><FONT
color=#0000ff>WSWS website</FONT></A>,<I> "This assault cannot be achieved by
democratic means. The latest opinion polls show that support for the coalition
parties has plunged to a record low, with New Democracy on 19 percent, PASOK 13
percent and LAOS down to 5 percent." </I>Further assaults on Greek sovereignty
and democratic rights are likely.<BR><BR>What we are witnessing here is the
working class of a small nation state facing a united global offensive on the
part of finance capital. The <A
href="http://online.wsj.com/article/SB10001424052970203358704577234560465582418.html?KEYWORDS=europe+reaches+a+greek+deal"><FONT
color=#0000ff>Wall Street Journal</FONT></A> reported today that Dutch finance
minister Jan Kees De Jager has called for an increased presence in the Greek
government's affairs of the EC and IMF. De Jager wants a <I>"permanent presence
of the Troika in Athens"</I> writes the Journal,<I>"Not every three months but
more permanent."</I> This is, as one BBC commentator said, a
<I>“humiliating and unprecedented intrusion into Greece’s sovereignty.”</I> The
thing is, Greek wages have fallen some 30% but by most accounts the Greeks will
have to face five more years or so of further cuts to please the
moneylenders. There is doubt that such measures can be pulled off in the
face of increasing resistance from the Greek working class; the new
measures are not yet in place and the previous agreed cuts are still not fully
implemented. But Greece has a $14 billion interest payment in a month that the
bailout could cover.<BR>
<TABLE style="TEXT-ALIGN: right; FLOAT: right; MARGIN-LEFT: 1em"
class=tr-caption-container cellSpacing=0 cellPadding=0>
<TBODY>
<TR>
<TD style="TEXT-ALIGN: center"><A
style="MARGIN-BOTTOM: 1em; MARGIN-LEFT: auto; CLEAR: right; MARGIN-RIGHT: auto"
href="http://4.bp.blogspot.com/-9ZVAE2nZiFo/T0SXo2TA2MI/AAAAAAAACek/xSbvxvdn90g/s1600/Spain-protests-February-19,+2012.jpg"
imageanchor="1"><IMG border=0
src="http://4.bp.blogspot.com/-9ZVAE2nZiFo/T0SXo2TA2MI/AAAAAAAACek/xSbvxvdn90g/s320/Spain-protests-February-19,+2012.jpg"
width=320 height=213></A></TD></TR>
<TR>
<TD style="TEXT-ALIGN: center" class=tr-caption>Spain
protests</TD></TR></TBODY></TABLE><BR>The other problem is that it is not
guaranteed that Greek type resistance won't break out in other Eurozone
countries in dire straits like Portugal, Italy or Spain for example. We
are hearing the same arguments in the mass media as to the necessary changes
that have to be made to solve the problem in Greece that we hear with regard to
disputes between individual employers and bosses. Greek workers have
<I>"Become more competitive"</I> says the WSJ. Olli Rehn, an EU official
assails Greece for <I>"living beyond its means"</I> and must suffer wage cuts in
order to make Greek workers more "competitive" to restore economic growth. The
idea that we have to compete has to be rejkected in our own minds if we are
serious about repelling the capitalist offensive.<BR><BR>As most of us are now
aware, homelessness, hunger and poverty are becoming extremely severe in Greece
with some urban residents retreating to the countryside and the hills in order
to hopefully live off the land. As the video we put on the blog a few days ago
revealed, others are heading in to the woods to gather firewood to heat their
homes. Yet amid this scenario, Greek Prime Minister Lucas Papademos and
finance minister Evangelos Venizelos applauded the increased austerity measures
for <I>"avoiding a nightmare scenario"</I>. These comments should not be
misconstrued. Greece is already a nightmare scenario for workers and
youth. The nightmare scenario these politicians are referring to is a
collapse of capitalism in the face of a generalized assault by the Greek and
European working class on their interests.<BR><BR>The Greeks aren't alone with
regard to an invasion of their sovereignty. Ireland's President Enda Kenny
was in New York earlier this month pleading with investors to throw some money
Ireland's way. He had Bill Clinton with him who urged the moneymen present to
<I>"Invest in Ireland...where property is a steal."</I> The crisis has been very
good on the whole for huge sections of the capitalist class. Wasn't it Rahm
Immanuel who said that a good crisis shouldn't go to waste. That property was
someone's home. The Irish have had an austerity program of their own imposed on
them by global finance capital that has reduced Labor costs by 12% in the past
two years and has seen through this crisis the largest emigration of citizens
since the 19th century according to <A
href="https://resourcecenter.businessweek.com/page.asp?prmID=207&prmPID=7321"><FONT
color=#0000ff>Business Week.</FONT></A><BR><BR>Ireland up to this point has not
seen the resistance to the cuts that Greece has but there is no rosy picture on
the horizon. In the event that the working class does not offer a
democratic socialist alternative to the madness of the market, capitalism will
emerge from this crisis as it has in the past, but it does not emerge in its
previous form. The situation is very volatile and those of us that have
determined the present period to be one which demands a certain amount of
unconditional analysis are correct to recognize that we do not have pat answers.
The perspectives for Greece cannot rule out the ascendancy of reaction and the
return of nationalist sentiments.<BR><BR>There is no doubt in my opinion that
socialists and anti-capitalists of all stripes find ourselves in the most
favorable objective situation for some time. But endless protests or even
general strikes cannot guarantee success or the defeat of reaction if the
question of state power does not enter the scene, one side or the other must
prevail. The Russian revolutionary Leon Trotsky explained a long time ago
that the crisis of the working class is a crisis of leadership. We have
seen this to be true time and time again, from Spain to Chile and in the present
situation.<BR><BR>In the aftermath of a historic rise of the Arab masses we have
the pro-capitalist free market Muslim Brotherhood in a commanding position in
Egypt, though it opposed the uprising initially and played no real part in it,
and rival militias battling each other for territory and influence in Libya in
the face of a weak and impotent state apparatus. There has been no unified
leadership or organization to emerge as yet that can pull all these movements
together in a united global working class offensive in the streets, workplaces
and communities and political sphere.<BR><BR>There is more to come including in
the US where workers and the middle class are facing an offensive intent on
driving us back to the days before the rise of the CIO. Greece nor any
other nation can drive back this assault independently. The building of this
global workers' movement is crucial if we are to prevent defeat; united we stand
divided we fall has real meaning when we put it like that.</DIV>
<DIV
class="post-body entry-content"> </DIV></DIV></DIV></DIV></DIV></DIV></DIV></DIV></DIV></DIV></DIV></DIV></DIV></DIV></DIV></FONT></DIV>
<DIV style="FONT: 10pt arial">"Capitalism teaches the people the moral
conceptions of cannibalism are the strong devouring the weak; its theory of the
world of men and women is that of a glorified pig-trough where the biggest swine
gets the most swill." -James Connolly 1910.<BR></DIV>
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