Greek crisis: Tsipras returns to Athens to gather support for bailout deal
One week ago the Greek people delivered a searing referendum result. Two/thirds told Angela Merkel to stuff it where the sun don't shine.
OTOH, polls also indicated that the Greeks wanted to remain in the euro. With this type of national schizophrenia to guide him, the often puzzling and self-contradicting Alexis Tsipras went back to his bosses in Brussels and got his hat handed to him.
As of this morning anyway, a badly shorn Greece remains in the Euro with yet another bailout at the cost of $50 billion collateral of hard assets, including one assumes both the Acropolis and the Parthenon.
Many of us winners standing on the sidelines were hoping for a Grexit and a return to a devalued drachma, which would have wiped out the debts of Greece and the paper assets of many Greeks (which is why they desire to remain in the euro). This would be a truly leftist maneuvre that as an added benefit would roil markets from Beijing to New York and put the flimsy German Empire AKA the Eurozone under debilitating pressure to merely survive.
Krugman is one of those who joined me in wishing economic collapse on all parties. The Greeks, he argues, have already suffered a collapse and the deal to which Tsipras agreed this morning will certainly end the immediate banking crisis and restore badly needed cash flow to the average citizen and business but at what long term cost?
He also passes along rumours that Syriza never had a Plan B to return to the drachma in any event and Tsipras was actually hoping the "yes" side would prevail in last week's referendum to give him the cover he needed to capitulate. In fact the resounding "no" vote gave him cover to act like an actual leftist however he chose to be mindful of the short term desire of his countrymen to remain in the euro, the future be damned.
Eh, well, this morning's events take the starch out of another leftist moment of truth, of which there are few enough these days that shouldn't be wasted.
There is still hope. The national Parliament must complete the about face by ratifying the draconian bailout terms by Wednesday. The people's reaction will be the most interesting. Will they be relieved or ready to fight back against the PTB?
As well, several neoliberal parliaments in northern Euro countries who have already voted not to give the Greeks one more centavo (or wtf they call it in Europe) must also capitulate and do an about face and ratify a third bailout for Greece. Indeed, Merkel's Germany must do the same.
And this begs the hypothetical: in his leftist moment of truth, what would Bernie do?
I think I already know the answer.