Welcome, 77 artists, 40 different points of Attica welcomes you by singing Erotokritos an epic romance written at 1713 by Vitsentzos Kornaros
Monday, January 13, 2014
Opa! St. Demetrios Greek Orthodox Church to celebrate cultural heritage with festival
Alexander The Great Was 'Killed By Toxic Wine,' Scientists Claim
Greek Catholic Church's Priests Warned About Protests
Reilich Gets Acquainted With Greece Town Workers
Greece in search of dignity, as crisis subsides
Alex Rodriguez -- a victim of hubris in a modern-day Greek tragedy
Greece: Golden Dawn Trio Arrested In Crackdown
Soup kitchens for the Greek middle class
Greece profile
Bruised Greek Socialists Face Polls Under New Name
Greece: Battered Greek Socialist party head to polls under new name
Die Welt: Greeks Bring the Upside Down
One in Three Greek Physicians Found With Unjustified Incomes
The next act in the ongoing Greek drama
Papaconstantinou to stand trial as judges rule Lagarde list charges have not expired
Independent Greeks hold emergency talks after a third of MPs miss national council
Winter sales begin in Greece but retail sector expects turnover to drop by 10 pct
Little change in Greek economic sentiment in December, according to IOBE
Immigration study reaches some surprising conclusions
Neil Lennon demands answers from Georgios Samaras over Parkhead future
Greek deflation eases in December, remains near record
Santorini, Greece: Fine vines among the fiery volcanoes
Atromitos Holds Olympiakos To 0-0
Even the return of its best striker, Costas Mitroglou, couldn’t give front-running Olympiakos a victory against Atromitos, as the Greek soccer league champions had to settle for a 0-0 tie at Peristeri. The draw cut the Reds lead over second-placed PAOK was cut to eight points. The upstart Atromitos team, which regularly gives fits to […]
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Hellenic Postbank Scandal Suspects Face Grilling
ATHENS – Moving swiftly, Greek officials on Jan. 13 were due to speed an investigation into a growing scandal involving the failed state Hellenic Postbank after 25 people were arrested on charges of scheming to get loans they wouldn’t repay, costing the institution more than 500 million euros, some $683.14 million. The bank’s former chairman, […]
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Germany Hints More Aid For Greece
ATHENS – With uncertainty remaining over when Greece’s international lenders will return to discuss unresolved reforms and a 1.4 billion – and growing – hole in the 2014 budget, German Finance Minister Wolfgang Schaeuble said his country, the biggest contributor to $325 billion in two bailouts, would be willing to put up more loans, from […]
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Papaconstantinou Prosecution Gets Go-Ahead
Thessaloniki Set to be European Youth Capital for 2014
Canada Hopes To Strike Gold In Grief Stricken Greece
Greece: neo-nazi; three more Golden Dawn MP behind bars
Greek Consumer Prices Decline For Tenth Month
A house in Greece
Greek December consumer prices fall 1.7 pct, deflation eases
Greece plans to test bond market as awaits Troika
Gold mine stirs hope and anger in shattered Greece
Greece stresses its role as EU's energy hub
Three more Greek neo-Nazis sent to jail
Europe's left has seen how capitalism can bite back
Social democrats wrongly thought the reforms they won were won for good. In Greece, the lesson has been learned by Syriza
For most of the 20th century, the word "reform" was commonly associated with securing state protections against the chaotic effects of capitalist market competition. Today, it is most commonly used to refer to the undoing of those protections.
This is not merely a matter of the appropriation of the term by those in the EU and international lending agencies who are using it as code for demands that Greece, for instance, make further cuts in public sector jobs and services. It is also the way the word has become increasingly used by the parties of the centre left. Thus, the newly elected leader of Italy's Democratic party (the successor to what was western Europe's largest communist party), Matteo Renzi, has called for the government to be even more determined in implementing its economic reform package. The package involves reducing public expenditure and changing regulations to make labour markets more flexible and attract foreign investment.
In pointing out how many European countries are now "furiously dismantling workplace protections in a bid to reduce the cost of labour", a recent New York Times article actually located the roots of this in the "efforts to improve competitiveness" by the social democratic government in Germany in the early noughties. This was done in a way that "further eroded worker protections, fuelling a boom in low-paid, short-term 'mini-jobs' that today account for more than a fifth of German employment".
There is an old debate on the left about reform v revolution. But it has become outmoded, not only because of the extremely limited prospects and forces for revolutionary change. The current meaning of the word "reform" contrasts sharply with the way it was used by Europe's social democrats around a century ago. Whether or not the incremental reforms that went under the rubric of gradualism would achieve social transformation without subjecting society to the pain of revolution, they were designed to promote social solidarity against the market.
Perhaps the greatest illusion of 20th-century social democrats was their belief that once reforms were won they would be won for good. In fact, we can now see how far the old reforms were subject to erosion by expanding capitalist competition on a global scale. They have been so undermined by the logic of competitiveness that it now seems very difficult to see how state protections against markets could be secured in our time without additional measures that would be seen as revolutionary.
The idea that doing anything to undermine private investment is unacceptable has become incredibly powerful. It is precisely this that makes social democratic politicians so timid in our time. And there can be little doubt that to sustain reforms in the old progressive meaning of the word, today a government would need to implement extensive controls to prevent an outflow of capital, and probably have to socialise financial institutions in order to get the necessary room for manoeuvre.
Syriza in Greece is the one left party that has achieved great electoral success in the European crisis by rejecting the way reform has come to be redefined. A central plank in its political programme, moreover, involves bringing "the banking system under public ownership and control, through the radical conversion of its functioning … ". Indeed, what makes European elites most uncomfortable with Greece taking its allotted turn in occupying the EU presidency for the next six months is that a new political crisis leading to a general election might, with Syriza currently leading in the polls, make its leader, Alexis Tsipras, the prime minister of Greece.
What was especially impressive about the political programme of "radical reform" that Syriza passed at its congress last July was that it concluded with these words: "The state we are in today calls for something more than a complete programme formed democratically and collectively. It calls for the creation and expression of the widest possible, militant and catalytic political movement … Only such a movement can lead a government of the left, and only such movement can safeguard the course of such a government."
Yet the party's leaders cannot but be aware that unless a shift in the balance of forces in other countries occurs to allow a Syriza government the space to implement progressive reforms, the people of Greece would suffer even further by being economically penalised and isolated. This is no doubt why, when Tsipras was nominated last month by the small contingent of "far left" parties in the European parliament to replace José Manuel Barroso next May as president of the European commission, he spoke in terms of the "historic opportunity" that now exists for a left alternative to the current capitalist "European model".
This brings us back to the other side of the reform v revolution debate of a century ago, reminding us of what happened when the hope that a revolution on the periphery of Europe would trigger revolutions in the stronger capitalist countries was not realised.
The left used to beat itself up, sometimes quite literally, with debates over reform v revolution, parliamentarianism v extra-parliamentarianism, party v movement – as if one ruled out the other. The question for the 21st century is not reform v revolution, but rather what kinds of reforms, with what kinds of popular movements behind them engaging in the kinds of mobilisations that can inspire similar developments elsewhere, can prove revolutionary enough to withstand the pressures of capitalism.
EuropeEuropean UnionFinancial crisisGreeceEconomicsLeo Panitchtheguardian.com © 2014 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds2014: Building a strong Greece and resetting Europe
Greek tragedy befalls satirical site
The Egyptian Stock Market Is Breathtaking
Think the US market has been on a nice run? Try Egypt.
Here's a 1-year chart of the CASE-30 index, via Bloomberg. The index is up a breathtaking 55% just since last summer.
Coincidentally or not (probably not, actually), the bottom almost perfectly coincides with the Egyptian army toppling Morsi last summer, proving once again that moments of extreme chaos can make for tremendous buying opportunities.
It's a good time to be checking in on the Egyptian market, since we're basically exactly three years since Mubarak toppled, and the Egyptian market crashed. Lo and behold, with the recent rally, stocks are finally within range of where they were when Mubarak was in power.
Meanwhile, if you're looking for a fun comparison, here's a look at the Egyptian market vs. the Greek market (another country that's been through a lot the last few years).
Despite very different circumstances and forces, the trajectories are kind of uncanny. For what it's worth, we've been writing about the similarities between Greek and Egyptian financial markets since early 2012 and it's pleasing to see that the connection has hung together.
What does it mean? Well it could just be totally spurious. But it could also mean that attempts to ascribe market movements to a story on the ground risks losing the big picture. There's a whole world of capital flows, with investment money moving in and out of borders and national markets all the time. As both countries have been in deep turmoil, it's not surprising that attitudes towards both markets have ebbed and flowed at the same time, as the global appetite for risk undulates.
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Greek Golden Dawn leader remanded in jail
Rehab World
UK - Cambridge - Perhaps we should call 2013 the year of Winehouse economics. As the late English chanteuse Amy Winehouse sang: “They tried to make me go to rehab, but I said ‘No, no, no.’” In 2013, the singers were the world’s most important central banks, led by the Federal Reserve.
In the summer, both the Fed and the People’s Bank of China signaled their intention to normalize monetary policy. Fed Chairman Ben Bernanke talked openly of “tapering” the Fed’s policy of open-ended bond purchases, also known as quantitative easing (QE). PBOC Governor Zhou Xiaochuan actually did try to rein in his country’s runaway credit growth. But when markets in both countries reacted more violently than expected – with bond yields soaring in the United States and inter-bank lending rates spiking in China – the monetary authorities backed off.
It is a problem many a pop singer has encountered: After years of stimulus, rehab is just not that easy.
True, there remain strong intellectual justifications for continued economic stimulus of one sort or another. In November, the man who once seemed poised to succeed Bernanke, Larry Summers, suggested that the US economy might be in the grip of “secular stagnation.” Other economists continue to fret that in Europe, if not in America, the benign disinflation of recent decades could yet turn into malign deflation.
And yet there are indications that the world economy as a whole is perking up. The International Monetary Fund forecasts that annual global growth will accelerate from 2.9% this year to 3.6% in 2014, and will be 4% or higher for the next four years – above the average growth rates recorded in the 1980’s, 1990’s, and 2000’s.
The mismatch between advanced-economy under-performance and resurgent growth in the rest of the world raises (at least) seven questions, especially for the major central banks themselves. Each of these institutions has some kind of national mandate. Yet, in our interconnected world, their decisions inevitably have global consequences.
Question 1: What exactly will the Fed do under its new boss, Janet Yellen? She certainly sounds as if she favors ongoing medication over cold turkey. The tapering of QE has to happen sooner or later, but Yellen’s genuine concern about the state of the US labor market suggests that she will promise lower interest rates for longer than might seem warranted by other indicators. The challenge will be to make this new regime of “forward guidance” work if other indicators suggest that recovery is underway (just ask Mark Carney, Governor of the Bank of England).
The US is on the mend in more ways than one. Shale gas and oil have brought an energy bonanza. Silicon Valley is thriving. The stock market is hitting record highs. And, amazingly, a deeply polarized US Congress has just struck a two-year fiscal deal that will boost spending slightly in the short run, while reducing the deficit in the long run.
There is a strong possibility that markets will react to this and other good news by ignoring forward guidance, focusing on the tapering of QE and nudging up long-term rates. And one short-run consequence of this might be the kind of sharp stock-market correction that we saw in 1980 and 1987. Wall Street likes to test a new Fed chairman.
Question 2: How will other central banks react to a changing monetary policy regime in Washington? In Frankfurt, the European Central Bank knows that the eurozone periphery is not ready for higher interest rates yet, even if Spain, Ireland, and Greece are showing signs of economic life. Unemployment on the eurozone periphery remains appallingly high. Moreover, the biggest political risk in Europe is still populism – and next year’s European parliamentary elections will give the likes of France’s far-right leader, Marine Le Pen, a golden opportunity.
Question 3: Will the populists do well enough to disrupt the complex process of establishing a banking union, a prerequisite for the sustainable recovery of Europe’s financial system? Probably not. Indeed, populist success may even encourage Social Democrats and Christian Democrats to form a “grand coalition” in the European Parliament – which would represent another step in the European Union’s quiet Germanization.
Meanwhile, in Japan, there is even less enthusiasm for monetary rehab: the Abe government clearly expects more, not less, stimulus from the Bank of Japan. Without it, hopes that “Abenomics” will get Japan’s annual inflation rate up to 2% will surely be dashed.
Question 4: Will Japan be able to maintain QE while the US tapers? Probably, but the extent to which it serves the cause of sustained growth and higher inflation depends on the so-called “third arrow” of structural reform, which has yet to hit real targets.
The contrast with Japan’s neighbor and strategic rival, China, is striking. There is at least some evidence that the PBOC has already resumed monetary tightening in an effort to impose a controlled credit crunch on the country’s shadow banking sector. That brings me to the final three questions:
Question 5: Can China really sustain growth while simultaneously deflating a credit bubble and implementing the structural reforms announced after the Communist Party Central Committee’s Third Plenum?
Question 6: How will China’s vast new middle class react if the answer to question 5 is “No”?
Question 7: Will the leadership in Beijing respond to domestic discontent with more of the foreign-policy saber rattling that we have seen this year?
I do not pretend to know the answers to these last questions. But they may prove to be the key to how well – or badly – a “Rehab World” turns out.
Copyright: Project Syndicate, 2013.
Arms Scandal Left Greek Defenseless
Corruption is not a victimless crime, and it’s costly. When politicians or civil servants steal from the state, the cost is passed on to taxpayers one way or another, who wind up footing the bill for the thieves luxurious lifestyle. Witness the growing scandal in the Greek Defense Ministry, which should be renamed the ATM […]
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Breaking Down Greece’s Walls of Pity
The following words are not the complaints of a Diaspora Hellene who is clueless about the realities in Greece. They are intended as a mild wake-up call because five years after the onset of the great crisis, not a minute has been devoted to a review and repositioning of relations between the Diaspora and the […]
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Skiing…in Greece!
It is not widely known, but it is a fact that skiing holidays in Greece are much less expensive than in other areas of Europe. Perhaps the more famous European ski resorts attract more celebrities, but the mountains of Greece offer stunning, idyllic scenery, their own particular charm, and proximity to other attractions, historical sites, […]
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Who We Want To Fight In Mideast
The appalling bloodshed in the Middle East has led many generally well-meaning Americans to demand that we “do something” about it. Many, and not just Republicans and neoconservatives, have condemned President Barack Obama for his inaction while thousands die and our allies come under threat. The press, ranging from the “liberal” Washington Post to the […]
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AGORA: Gay Talk Beyond Duck Dynasty
From time to time an issue emerges and inspires various minds to converge, often at odds with one another, to discuss it. Hopefully, collective enlightenment will result from such conversations. The Ancient Greeks did that in the Agora, the original marketplace of ideas, and we, their modern-day descendants, aspire to continue that tradition. We respect […]
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Doors of Pella Publishing to Close
After half a century of seminal and important work, Leandro Papathanasiou, the great man of Greek-American publishing, will close the doors of Pella Publishing. Almost singlehandedly, he published The Charioteer, a critically-praised cultural annual, as well as the Journal of the Hellenic Diaspora, an academic publication focused on Modern Greek studies with a special emphasis […]
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