Thread: Greece Debt Bailout Signals New Stage in Global Economic Cri

Greece Emergency Debt Bailout Signals New Stage in Global Economic Crisis

Economics / Global Debt Crisis
Apr 14, 2010 - 04:13 AM
By: Global_Research

Stefan Steinberg writes: The economic crisis precipitated by the crash of Lehman Brothers in 2008 is entering a new stage, as European states hastily organise their first-ever bailout of a member of the European Union. The frantic efforts at the weekend to cobble together a European rescue package for Greece in collaboration with the International Monetary Fund came after intense pressure from rating agencies and intensified speculation by traders betting that the Greek government would default on its debt obligations.

The European emergency plan for Greece represents a substantial reversal of the deal agreed at the EU summit just two weeks ago. At their meeting in Brussels at the end of March, European heads of state agreed to a proposal pushed by the German government aimed at avoiding a bailout of the Greek economy. At the summit, the German delegation, led by Chancellor Angela Merkel, offered a guarantee to the Greek government on condition that it pay punitive rates of interest for the repayment of its debt, while making clear that any assistance would be given only as a “last resort.â€

These developments underline the urgency for the progressive unification of Europe through the united, revolutionary mobilization of the working class, based on a socialist program for the nationalisation of the banks and major industries under the democratic control of the working class.

In other words, the Dictatorship of the Proletariat. Communism. How well has that worked? The best solution is probably also the most painful. Let the euro fail and let the EU fail. Germany has it right. Assert your sovereignty, manage your own affairs, help when you can but do not put yourself in a position to be dragged under by those with less self discipline.

The United States should be learning from this, but don't count on it. After all, the guys that said we should avoid foreign entanglements would be labeled right wing extremists and terrorists today.