Achievements of Capitalism not Span out of Rolling Dice of a Casino

By Con George-Kotzabasis

I have not read Joseph Stiglitz’s book. But I assume from your short description of it, that he is not contending that capitalism did not raise the standard of living of the masses during its long development nor that it needs poverty to flourish. All my comments, including the one you refer to address specifically these two points and not to the ‘casino’ “financial capitalists,” that Professor Stiglitz speaks of, which were mainly responsible, alongside government dirigisme, for the meltdown. But you are grossly remiss in ‘cheering’ Stiglitz: the achievements of capitalism were not span out of the rolling dice of a casino.

Professor Varoufakis Proposes a Silent Axis between France and Greece Contra Germany

By Con George-Kotzabasis May 10, 2012

It’s interesting that you don’t mention one word about your one night stand with your inamorata Tsipras, the Radical Left leader of Syriza. But it’s obvious that Hollande replaced the latter in your gyrating amours, after the politically and economically inane and embarrassing post-election statements of Tsipras. And it won’t be long before you will be disappointed with President Hollande too with his dealings with Germany and you will be looking for a still more exotic paramour.

You are mired in the past when you still consider that the European leaders continue to push the austerity programme for the southern European countries as the sole measure of getting them out of the economic crisis. In the new economic orchestration of Europe the ‘soloist’ austerity no longer jingles. All the major European leaders, Jose Barroso, Olli Rehn, Chancellor Merkel, Wolfgang Schauble, the top technocrats, Christine Lagarde, Mario Draghi, and Mario Monti, are talking now about economic recovery and growth without which austerity cannot succeed. Thus they have all taken their cue from Antonis Samaras who was the only statesman that sounded this syndrome of austerity and growth two years ago and had quarrelled with Merkel and Sarkozi, for which he had been severely criticised and disparaged by politicians and the media, such as The Economist. All of them however admitted subsequently that Samaras was right. Hence there is already a sounding axis between Greece and the whole of Europe due to the intercession of Antonis Samaras. Moreover, Samaras warned the European leaders that the policies of the first Memorandum would change the political configuration of the country, as they would both give rise to the forces of the extreme left as well as lead to the break-up of social cohesion which in turn would make the country un-governable. These warnings were tragically verified in the elections of May 6. And I pose the question, why Professor Varoufakis you lack the nobility and courage to give credit where credit is due, to Samaras?

You seem to be obsessed with your toy The Modest Proposal that would drag Europe out of its crisis, and not finding any other children to play with it, you have turned into a surly and cantankerous little boy. Since, as its sire along with Stuart Holland, you flagged it more than a year ago you have made so many ‘bastard’ revisions to it, that it has become difficult to identify the ‘true father’. But one thing is for sure, that in your vainglorious pursuit to persuade governments and bankers to adopt it, you will miserably fail. Your Modest Proposal was always a flying kite that would inevitably take its nosedive.

In the Thunderous Sky of Greece a Lightning Bolt of Creative Destruction is about to Strike the Country

By Con George-Kotzabasis April 27, 2012

History has shown that at critical moments, in countries of advanced and high culture, men of stupendous ability, imagination, foresight, and fortitude, sprang, like phoenixes from the ashes, to salvage their countries from mortal threats. Themistocles at the battle of Salamis that saved Greece from the barbarian Persian invasion, is one example, the other is Charles Martel, who at the battle of Poitiers stopped the barbarian Muslim invasion from conquering Europe. In our modern contemporaneous times, Greece, on the verge of being devoured and crashed by the ‘hungry fangs’ of default and economic poverty, is just as promptly to be saved by a modern-day Periclean statesman, Antonis Samaras.

In the early 1980’s, with the advent of Andreas Papandreou’s socialist government in power, which proved to be the destructive force that brought Greece to its present catastrophe, that immediately started implementing the serial economic crime of a policy of deficits, the country entered the vicious circle of government spending without economic development. By the early 90’s it was glaringly clear that the debt of the country was reaching astronomical heights that would lead it to the precipice of default and bankruptcy. In 1994, Constantinos Mitsotakis, the former prime minister of Greece, in a prophetic speech in Parliament, predicted that the economically crass and thoughtless policies of Pasok would send Greece as a mendicant to the International Monetary Fund to spare it from pauperism. Andreas Papandreou himself was shocked when at a sober moment glanced at the unfathomable debt that the country was in, as a result of his dirigisme economic policies. It was in his presence when his minister of finance Kostas Simitis remarked, in an accusatory and pungent phrase, that this was “the revenge of the economy.”

The false prosperity that had engulfed Greece turned a sizable part of its population to indulge in the charms and seductions of dolce vita at the expense of government largesse. A whole generation of Greeks had been spoiled and became kaloperasakides (the easy life of prodigally good-timers) under the perpetual munificence of the State. In such a social situation the New Democracy party, though imbued with the precepts of The Austrian School of economics versus Keynesianism, and realising, as its leader Constantinos Mitsotakis did, that the country was approaching in a rapid pace the edge of insolvency, had its hands politically manacled and could not implement decisively and with celerity, and with the necessary degree required, policies of economic restraint that would have prevented the transformation of Greece into a mendicant status, since there did not exist even a small constituency on the political landscape of Greece that would contemplate, least of all accept, policies of austerity. The Greeks had been ‘pathologically’ conditioned to the ‘benefits’ accruing from big government, introduced by Andreas Papandreou, and any attempt to small government by any party in power or any opposition propagating  such an idea, could neither hold or win government. Who would give up the ‘free tans’ in sunny Greece that so profusely and generously the State was providing? And who would give up the cushy and loafing jobs in the public sector that the party boys and girls of Pasok and New Democracy were enjoying and relishing? This is the point from which the economic tragedy of Greece had started and would continue to its tragic end.

Thirty years of frivolous public spending brought debt-to-GDP ratio of 120%. Since October 2009 when the son of Andreas Papandreou, George, became prime minister and implemented measures of severe austerity as directed from Brussels in the first memorandum, debt reached 168% of GDP. With the continued recession of the country for the fifth year, Greece lost 16%–18% of its GDP since 2009.

From early 2010 the Opposition leader, Antonis Samaras, few months after his election as leader of the New Democracy party, was warning the Papandreou government of the danger that the austerity measures without economic recovery would lead the country into recession. But his was a lone voice in the wilderness. And for his bold and insightful decision to oppose and vote against the first memorandum replete with the leaden heaviness of austerity that would sink the Greek economy as it did, he was vehemently reprimanded both from within and outside the country. The Economist magazine severely criticised him for his stand against the memorandum but only to lament its critique two years later and concede that Samaras was right. Likewise, Chancellor Merkel and many European ministers with whom Samaras had quarrelled and pointed out to them that austerity measures without rekindling the economy would not resolve Greece’s problem but would make it more abstruse and harder to crack. It took two years for the top brains of Europe to realize that the austerity pills that they were forcing into Greece’s mouth to remedy its ills would have the effect of poisoning its body. (In two years of the severe austerity of the Memorandum, as we indicated above, Greece increased its debt to GDP by a great amount and lost a substantial part of its Gross Domestic Product as enterprises closed and unemployment ravaged the country.) And in turn, like The Economist, admitting that Samaras had won the argument, as all Europeans now are calling for economic recovery and development, supplemented by austerity measures that are necessary, as the way to restore a country’s economic strength.

The May 6 Elections of Greece Crucial for the Future of the Country

The impending election that has been called by the interim government of Lucas Papademos for May 6 is of momentous significance for the future course of the country. Greeks will be called to be partisans of the hard climb to the peak of Mt Olympus from where the sun of hope will rise once again over Greece or be partisans to a free fall in a long twilight of despair. The first is the thunderous call of the New Democracy Party under the Gulliverian and imaginative political leadership of Antonis Samaras, and the second is the deathlike mute call of a congeries of small parties from the left and the right led by Lilliputian politicians. These politically ‘pigmyfied’ parties, among which is the Communist Party, have no policies of rescuing Greece from its woes, except policies that would lead to the exiting from the European Union and return to the drachma that would lead in turn to the absolute poverty of the country, deliberately drop the curtain on all hope on Greece as their sole aim is to sordidly profit politically by their investment in hopelessness.

The socialist party, Pasok, the main opponent of New Democracy, although on the side of hope, even under the new leadership of Evangelos Venizelos, is totally discredited, as it has been the party that led Greece to its present catastrophe by a bout of unbelievable and unprecedented economic and political mistakes, that Venizelos himself was involved in and responsible, during the last two years that was in government. Moreover, the latest decision of the High Court of Greece to apprehend and charge a former luminary of Pasok and right-hand man of Andreas Papandreou, the founding father of the Panhellenic Socialist Movement, Akes Tsohatzopoulos, his wife and daughter, and some of his relatives, with bribery and corruption and with being the receiver and beneficiary of millions of dollars as paid commissions, during his tenure as minister of defence, from German and Russian companies to which he had authorized major assignments and projects of his department, has indelibly marked Pasok as venally corrupt;  particularly when its present leader Venizelos, at the initial investigations of Tsohatzopoulos, with the stentorian voice of the lawyer, that he is, was defending and exculpating from any knave dealings, and with the usual catch-all alibi of the typical politician,  that the “accusation against Tsohatzopoulos was politically motivated.” Hence, inconceivable political incompetence and culpability, and unfathomable corruption on the part of Pasok, will be two major themes that will dominate the elections and which will ineluctably lead to new lows in the polls for the socialists.

In this critical economic and political setting that the country is in and the looming threat of the breaking of social cohesion, Samaras is asking the Greek people to give New Democracy the “auto-dynamism,” by a majority of votes in the elections, so he can have his hands untied to govern the country with decisiveness and clear uncompromised policies that would put Greece on the trajectory of economic recovery and development. He argues cogently, that in the present political situation of Greece when consensus about the necessary economic policies among parties of how to regenerate the economy of the country is absent, a coalition government–which is the designated position of Pasok and according to the polls at this moment the desire of a majority of the electorate–will be politically impracticable, and more importantly, would not drag out the country from its peril but would further engulf it into profounder depths; as one could not govern effectively a country in a crisis and gradually bring it out of it  by being compelled to make compromises to one’s political partners, but only by a well-defined plan and decisive and prompt action to implement it without compromises, by a leader who has a strong mandate from the electorate.

Samaras believes, and reasonably hopes with the confidence of a statesman, that during the electoral period and closer to election date, there will be a dramatic shift of voters toward polarized positions, once the crucial issues of the country are spelled out clearly and without lies to the people by New Democracy and by foreshadowing the practical economic policies backed by real numbers that would put Greece on the track of economic recovery, there is a great chance that the majority of Greeks will give New Democracy a strong mandate to govern on its own for the benefit of all Greeks and for the salvation of the country.

Samaras contended long ago, that only through a clear strong authorization given to him by a majority of the people he would be able to radically change Greece. For real economic development entails not only good policies and incentives but a transformation in the views and customs of people toward such development. He puts great emphasis on the value of human capital and entrepreneurship as the prerequisites for the economic recovery of the country. That is why he has promised to re-legitimize private enterprise and effort that for many years now has been delegitimized in the country by communist-led unions, to whom profit has been, as always, the devil-incarnate of the capitalist free market.

The present high unemployment of more than 20% Samaras contends, will not be reduced by mere lower labour costs which already have been decreased by 15% in the private sector while the tax burden on the latter has increased by 50% and energy costs by 450%. Even if Greeks worked for free no one would hire them with such high taxes and energy costs. Samaras in his Zappeio III speech few days ago declared that he would cut corporate tax to a flat rate of 15%, sharply cut pay-roll tax, lower personal income-tax to 32% maximum, and reduce taxes substantially on fuel and tourism. This would ease rampant tax evasion and would unleash the creativity of the private sector and hence commence the gradual reduction in unemployment. He also announced, that he would increase the lowest pensions to 700 euros per month–that were reduced drastically by the second Memorandum under the austerity measures–and would increase the endowment of families with many children which would not only correct an injustice inflicted upon these two weak sections of society but would also have favourable economic consequence as they  would increase consumer demand, which is so important in rekindling the economy, as both recipients of this government assistance spend their money in consumer goods. He would do these two things without increasing public expenditure and hence worsening the deficit, but by cutting government wastage that is so massive and profligate in the State’s spending. Further, he will provide incentives to private enterprise in areas where Greece has almost unchallengeable comparative advantage, i.e., in the merchant marine sector, ship building, and tourism; and in the production and merchandise of olive oil and other agricultural goods by the local producers themselves, not by foreign ones as is the case presently, whose development in all the above sectors will vitally affect the resurgence of the economy. He also proposes to provide incentives to entrepreneurs to exploit the rich mineral resources of the country and to give priority to find and tap the vast natural gas deposits under the Aegean Sea, by declaring the Greek AOZ (Exclusive Economic Zone) that could transform the export dynamic of Greece. He intends further, to reverse the present dryness of liquidity in the country by proffering amnesty from any legal penalties to those who withdrew their cash holdings from Greek banks during the height of the crisis and deposited them overseas once they bring them back to the country; and also by immediately paying back the 6.5 billion euros that the government owes to domestic enterprises; these two measures would increase the liquidity of the banks and hence their ability to provide loans to the private sector, especially to small businesses, that are the backbone of the country’s economy. Moreover, the re-capitalization of the banks, Samaras argues, will enable them to borrow funds at low interest rates from the European Central Bank, that were set up by it last December, which would be used to put Greece on the track of recovery and economic development.

It is by this method of supply-side economics, as that wunderkind Alders Borg the Swedish Finance Minister illustrated for his own country that Greece’s economy will rise again. The necessary austerity measures stipulated in the new Memorandum that Greece has to implement must be accompanied by the rejuvenated “animal spirits” of private enterprise. Samaras, consistently has been saying for the last two years that “we need a recovery to jump-start the economy,” and in conditions of recession austerity measures cannot stimulate the economy but on the contrary sink it deeper into stagnation.

The vision and plan of Samaras is to plant radical changes on the whole landscape of Greece. In his Zappeio speech he adumbrates constitutional changes that would separate the three branches of government the executive, the legislative, and the judiciary and thus prevent a member of parliament from being a minister, which has been in the past a malignant link of political corruption and has bestowed ‘asylum’ to members of parliament for their malfeasances. He pledges to bring changes to educational institutions that would reclaim the proud heritage of Greece that tragically has been eroded by the cultural relativists of a left coterie of pseudo-intellectuals and led to the disconnection of many young Greeks from their great cultural origins. He also promises to take drastic measures against illegal migrants, whom he calls “unarmed invaders” of Greece that under the soft immigration policies of Pasok they have occupied the main centres of cities, and remove them to provincial hostels until their eventual expulsion.  Another important commitment of Samaras is to transform the bon vivant ethos of many Greeks, which up till now its tab has been picked up by the government, into a creatively productive one. On the new green tree planted by New Democracy, the singing cicadas will be replaced by fecund working bees. As Samaras is fully aware that sustainable economic development cannot be accomplished without transformative changes in the thinking and the mores of the people, especially of the younger generation.

Samaras is “framed in the prodigality of nature,” to quote Shakespeare. He is endowed charismatically both with a high intellect and remarkable moral strength along with the will and determination—all the stuff out of which statesmen are made–to change all things in Greece. But whether this lightning bolt of creative destruction will strike Greece or not depends on the strong mandate that he needs from the people. If Greeks do not fail, at this critical juncture, from fulfilling their historical duty to render to New Democracy a majority of seats in Parliament, then Antonis Samaras, in turn, will consummate the cultural political and economic Renaissance of Greece.

Hic Rhodus hic Salta

Leaders Span by the Roll of the Dice

 By Con George Kotzabasis

The folowing is an extract from my book Unveiling The War Against Terror. The article was written on September 24, 2003 
                                                   

There was always a lurking suspicion that Gareth Evans’ projection on the firmament of Australian politics as Foreign Minister was not propelled by the force of egregious merit but by the force of the “roll of the dice”, as played in the numbers game of the “witless men” of the Labor Party. This suspicion was confirmed by the former Minister himself, by his intellectually tasteless and insipid, not to say brutal and banal, Hawke Lecture, mocking and deriding American Foreign Policy in the bombastiloquent, colorful, and jesting terms of a court jester. Obviously, your Chairman was more concerned with entertaining and beguiling his audience than enlightening it, although one must admit, that enlightenment cannot burst forth from an ‘eclipsed star’.

His “hors d’ oeuvres”,  to quote him, was the most eclectically bitter anti-Americanism one could taste. It was either the reaction of a prima donna who had been shunned, or of a political guru whose advice and pearls of wisdom were not allowed to trespass the corridors of power. After a litany of syndromes of medical and clinical psychology, which are so alluring and beloved by the progressive intelligentsia, after an array of run-of-the-mill accusations against the Bush Administration, such as “current enemies used to be friends” etc., which seem to reveal more the caliber of his diplomatic and political acumen, than the fault lines of the Administration’s foreign policy, and after his crude and brutish metaphors, such as “the top dog on the global block” (one can only ask about such a literary creation, was it an outcome of a syndrome of deprived imagination?), oblivious of the fact or shuffling it away, that it was this “dog” who saved the world from the twin miasma of Nazism and Communism, and that it will be the same dog who has the means and will to defeat global terrorism. At the end of this drivel, although he concedes that all these accusations might be “unfair”, he nonetheless does not abstain from the ignominious temptation to make a ‘big fair’ out of them.

The English essayist Chesterton observed, “where is the best place to hide a leaf? In a tree.” Mr. Evans, apparently observes, where is the best place to hide a truth? Paint it in the colors of failure. The truth about global terrorism is that you cannot defeat it without also fighting the rogue states that directly and indirectly support it. It is therefore preeminently a two front war. And Iraq was a quintessential part of this strategy. Furthermore, only one nation in the world has the technological and military power, and will, to defeat global terrorism. The free nations of the world depend on America’s triumph in this deadly contest with the terrorists. And as in all critical contests, there have to be tradeoffs between independence and dependence. Your Chairman would have known this, since he reads Isaiah Berlin.

This is the truth that the liberal intelligentsia is so abhorrent of and runs away from. All the accusations against the Howard Government’s erosion of Australia’s independence are, therefore, grossly erroneous and lack historical insight. As for his criticism of pre-emption, your Chairman completely disregards the fine distinction between pre-emption as an option,  which is applicable to a world that is under discontinuous threats, and pre-emption as a doctrine, which is applicable to a world that is under continuous threats, as presently posed by the terrorists. And as for his hypocritical statement of standing with America, “but when we were needed on the big issues, we were always there”, one is tempted to ask, is global terrorism not a big issue?

Lastly, all his expatiations about international rules and laws that bring order in an anarchic world are totally inutile. Only when peoples and nations abide by these rules and laws, can the latter be effective. The trouble is that neither the terrorists nor the rogue states are prepared to submit to such a legalistic regime. Recent examples of this are Rwanda, Serbia, Kosovo, and Iraq.

All the colorful bubbles that your Chairman presented in the guise of serious arguments in his lecture, will not survive the Aeolian winds that erupted on September 11.Your Chairman, for his own reasons, is a fugitive from reality. History has shown, that in hard times only the “hard men” can prevail. The wets and the wimps are cast aside. Alas, one can only summon the squatter diplomat, Gareth Evans, to “remove his belongings” from the domain of Talleyrand.

I rest on my oars: Your turn now

Left is Wrong: Deterrence Will Not Work

By Con George-Kotzabasis April 3, 2012

A reply to: Right is Wrong: Deterrence Will Work by Fareed Zakaria

The Australian March 20, 2012

The American political commentator, Fareed Zakaria argues in the above titled article in The Australian that even if sanctions against Iran fail to prevent the latter from acquiring a nuclear arsenal, it can be deterred from using it by the preponderance of the U.S.A. in the firepower of its own nuclear weapons. Therefore, such a policy, according to Zakaria is better and safer than a policy of preventative military action with all the imponderable dangers that would stem from it. And he ridicules and is scornful of the conservative right, such as The Heritage Foundation and The American Enterprise Institute, for arguing of the ineffectiveness and futility of deterrence against the regime of the Mullahs, and, therefore, proposes a major military strike to prevent Iran from developing a nuclear weapon. In support of his policy of deterrence he quotes the conservative columnist Charles Krauthammer, from an article the latter wrote in The New Republic in the eighties—while making fun of him since Krauthammer now is in favour of a military strike–that “deterrence, like old age, is intolerable until one considers the alternative.” Topping up his argument or should I rather say bottoming it down, Zakaria alleges that a strike against Iran would only delay its nuclear programme by only “a few years while driving up domestic support for the government in Tehran.” And he sedately poses the question that “if deterrence does not work then why are we not preparing preventative war against Russia which still has a fearsome arsenal of nuclear weapons?”

Zakaria completely disregards the fact that Russia today is not a deadly enemy of the West as it was in the past, unlike the Theocracy of Iran which clearly is. Further, as a serious commentator surprisingly he does not make a distinction between attacking a country that is fully armed with nuclear weapons that would open the doors of the MAD house to both combatants as such attack would lead to their Mutual Assured Destruction, and a country that lacks a nuclear stockpile as Iran at this stage is. It was precisely this mutual annihilation hovering like a Damocles Sword over the heads of the two rational superpowers that prevented them from attacking each other during the cold war. And the Cuban crisis was a limpid illustration of how both superpowers withdrew from the brink of this mutual destruction. But in the case of a nuclear armed Iran, one would have to be highly optimistic against the grim fact that the animus of a religious fanatic leadership, whose aim is to set up the new Caliphate of the twelfth imam Mahdi, would be supplanted by the dictates of reason and would desist, either directly or through its terrorist proxies, to launch a nuclear attack.

Moreover, Zakaria is oblivious of two substantial factors that make incomparable the situation existing during the cold war and the present situation of the hot war of multi-franchised ‘anarchic’ terror, in regards to deterrence. One of them is technological and the other is the strategically unidentifiable non-recognizable enemy until the moment he acts. Advanced technological knowhow is being easily accessed through the internet by the masses giving any individual with rudimentary knowledge the ability to construct lethal weapons, and, indeed, nuclear ones once their components are provided by rogue states, and has at the same time opened variable avenues to their portability to the countries against which they can be used. The second factor is the ample supply of Islamist mujahedin martyrs, in their ardent chase of the seventy-two virgins, camouflaged in civilian clothes, has also opened innumerable strategically invisible conduits for the delivery of these lethal weapons that can be used by any Islamist regime against the ‘Great Satan’, America, and its offspring in the West. Iran therefore can use stealthily these terrorists as ‘rocket launchers’ laden with nuclear weapons against any Western country it wishes to attack without identifying itself as the culprit that would immediately trigger a counterattack by the West. In such a situation therefore deterrence is totally a futile and ineffective strategy, and most dangerous to boot, in preventing an Islamist regime to launch a nuclear attack on America or on any other Western country. How can anyone deter fanatics from becoming nuclear weapon carriers in their pursuit of God-given paradisiac boudoirs? How can anyone deter the Islamist theocracy of Iran, with its virile libido dominandi to be the dominant power in the region and the paramount leader of Islam, from recruiting terrorists, with the cult of death as their banner, and ‘donning’ them with a panoply of nuclear weapons to be used against the infidels of the West? Or use them directly against Israel and thus fulfil its Godly agenda in annihilating the Jews? Zakaria by not seeing, and even not contemplating, this changed war milieu that exists presently in comparison to the cold war, makes his strategy of deterrence against Iran a folly of unprecedented magnitude in the annals of strategic thinking.

As to his comment, that a strike against Iran would only delay its nuclear programme while lending support to the Mullahcratic regime, he is blind to the great potential that such a surgical strike, whose target will not only be its nuclear facilities but also will have in its scope to effectively destroy the hated leadership of Tehran and the Guardians of the Islamic Revolution, the Quds Force, contrary to his dire prediction, could bring on its heel a regime change by ushering the Opposition in power that would be friendly and amicable to the West and would accept and conform to the requests of the latter to stop all Iran’s activities toward developing nuclear weapons in the future. Another great danger, of which Zakaria appears to be unconcerned, is that the acquisition of nuclear weapons by Iran would start a nuclear race by other nations in the region to acquire them too and hence would augment the probability of a nuclear war either by deliberation or by accident. No deterrence could nullify the calculus of probability based on increasing numbers. The acquisition of nuclear weapons by a greater number of nations would lead with mathematical precision to a first strike by a nuclear device. Zakaria’s proposal of deterrence as an effective strategic instrument against Iran is not worthy of consideration by serious policymakers.

I rest on my oars: your turn now…

 

Bob Carr Sails his Intellectually Floatless Plot in Mountainous McGuinnes’ Sea

With the announcement of Prime Minister Julia Gillard  that  senator-designate Bob Carr will be appointed to the foreign minister portfolio, I’m republishing the following article for the readers of this new blog. The article makes it glaringly clear the second rate foreign minister Australia will have with Bob Carr’s elevation to the Ministership.

By Con George–Kotzabasis

The intellectual lightness of former premier Bob Carr’s critique of Paddy McGuinnes lies in the opening of his article published in The Australian, on January 30, 2008., ” ‘Don’t get too close to that crowd of Quadrant’, instructed Paddy McGuinnes…The year …is fixed in my memory as 1976 or 1977, when I was an employee of the Labor Council of NSW”. ( A period when the latter was employing standover goons from the Sydney underworld to bash and threaten the lives of left-wing members of the Labor Party, and which McGuinnes dubbed as the right-wing thuggish Labor Council of NSW.) As if this statement of McGuinnes in 1976-77, would be the ‘fixed’ Gospel truth about Quadrant from which McGuinnes would never deviate with the passing of time. Carr claims that “Quadrant’s anti-communism was too unfashionable for him.”[McGuinnes] As if the latter was picking his political “fashions” from the ‘cat walks’ and designs of other conservatives and was intellectually incapable of designing his own anti-communism, which he did, and during his journalistic career brilliantly articulated and exhibited.

Carr claims that “McGuinnes contribution was a different one” and “deliciously counterproductive”, which the Labor party relished. He was the Godfather of the three deadly sins that would cast the Howard government into the political abyss of Hades: Climate change denial, support for George W. Bush in Iraq, and loss of workers’ rights. “For ten years, whatever Howard did or said he would be supported by a group of columnists…none more bottled-up angry with Labor than McGuinnes”. This was Howard’s “Praetorian Guard”. And “when the electorate wanted Howard to ratify Kyoto and wind back the commitment in Iraq, the symbiotic link with Praetorians made it impossible for the emperor to shift”. It was this attachment of Howard to the orthodoxies of the Praetorians “that did him in”. Carr caps his argument by saying that “McGuinnes and his allies had won their man for their program, but their program had lost Australians”. And “McGuinnes was haunted by ghosts… Women from the Push days, his Labor Party buddies from the past, above all the imaginary leftists who seemed to occupy a large part of his mental space”.

Well let us deal with Carr’s argument about Paddy and Howard’s Praetorian Guard that “did him in”. The three issues that presumably ousted the Howard government, i.e., climate change, the war in Iraq, and WorkChoices were present during  Kim Beazley’s tenure as opposition leader without in any way increasing his polls against Howard , So there must have been other factors that brought the Coalition government down that Carr hardly even attempts to probe. And all the pre-election polls had shown that at least the two issues of climate change and the war, scarcely made any ripples in the calm lake waters that the electorate was paddling its canoe. The issues that led to the defeat of the former government did not emanate from the “program” of McGuinnes and his allies, but from a number of tactical mistakes made by the Coalition prior and during their lackluster electoral campaign and its inability to cut Rudd’s populist wings that would make the pigeon land, in the guise of an eagle, on the Lodge.

On the two pivotal issues of security and economic management, on which the Coalition had no peers in the political spectrum and was politically unassailable, the Howard government failed to concentrate the mind of the electorate. Instead of making these two issues the axis upon which the safety and continued economic prosperity of the nation depended, it squandered this political capital it had in its hands by ‘hoarding’ the first, that is, by keeping silent about the great importance of the security of the country during the electoral campaign¬—and considering that the war in Iraq was being won by the Coalition of the willing with hardly any Australian casualties, which was vital to the security of the West, the reticence of this fact was politically astonishing—and by treating the second, i.e., economic management, as a ‘safe haven’ in the electorate’s mind and a safe protectorate that could not be ‘stolen’ by the me tooism economic conservatism of  Kevin Rudd.

Rudd owes his victory to the humdrum desires–that had nothing to do with the war or climate change–of Howard’s battlers and to the self-employed tradesmen, both groups drenched with middle-class conservative values. Once Kevin 07 established in the minds of these two groups his economic conservatism coupling this with his promises of lower food and petrol prices as well as ending the ogre of Work Choices, which the unions’ advertising campaign successfully managed to depict, then Rudd was bound to win the race, as the unbreakable momentum of all the polls had shown during the long campaign, without steroids.

Howard’s campaign strategists committed the error of thinking that they could take the wind off the sails of Rudd first by a profligate and luxurious spending, and secondly, by tampering with the Work Choices legislation with the aim of making it more palatable to the electorate, and in the process bungling it, which instead of making it acceptable to the latter it created the strong impression of Howard’s guilt about Work Choices as being an anti-working class measure and hence generating a great distrust of Howard. From this point on whatever Howard was saying was falling on deaf ears and no monetary offers lining the pockets of the electorate would change the latter’s choice to have a go with Rudd. Indeed, “the electorate had moved”, to quote Carr, and ‘de-latched’, from Howard not because of Kyoto and the war in Iraq, as Carr claims, but because of the failure and inability of the Coalition’s strategists to expose the falsity of Rudd’s so called “new leadership” and to take the wind off the sails of  his bloated populism, as it’s written in Kevin Rudd’s stars that his “new leadership” will be led by the weathervane of populism.

Carr ends his tirade against McGuinnes by stating that the latter “was haunted with ghosts…above all the imaginary leftists who seemed to occupy a large part of his mental space”. As if he himself and the left in general, were free of their own ghosts planted in their dragons’ teeth by that great intellectual landlord absentee from history Karl Marx, class struggle, the proletariat, capitalist exploiters, the universal man, who would work during the day, play the harp in the afternoon, and write and “practice” poetry during the night. Not to mention its more modern up to date fads such as “make poverty history” in countries such as Africa where political corruption is rife and when one gets on the sleaze racket of a governmental position it becomes a way of life and where a free rein of insatiable cleptocracy reigns.

Just-in-time news, Bob Carr has drowned…It was never wise for lake swimmers to swim in the mountainous sea of Paddy McGuinnes.

I rest on my oars:Your turn now

Is the European Central Bank the Shy Bride of Lender of Last Resort?

By Con George-Kotzabasis December 1, 2011

It goes without saying, that merely a new European treaty, as proposed by Chancellor Merkel and President Sarkozy, no matter how strong its teeth, will not resolve the crisis. But the solving of the crisis might lie in a fecund combination of new rules to be observed strictly, and new bold economic measures, including the ECB as lender of last resort. And Mario Draghi’s hesitation might only be a ruse. His guise of being the shy bride of decisive intervention might only be a pretension, and he may surprisingly shock everybody by sprightly stepping boldly and marrying the groom of lender of last resort. This unexpected nimble move from shyness to boldness will be a powerful incentive to rally the markets behind the Eurozone. And one might not dismiss lightly that “magic” and a Deus ex machina might have a role in this tragic play.

P.S. Since the above was written, Mario Draghi lowered the discount rate of the ECB to 1% and distributed to European banks nearly 500 billion euros to lend to their customers. This is equivalent of using the instrument of lender of last resort by the ECB although doing this by roundabout means and not in a formal manner. And apparently this bold and imaginative initiative of the ECB has stabilized the European markets

An Exchange Between Kotzabasis and Professor Varoufakis on Merits and Demerits of Capitalism

The following exchange between me and Professor of  Economics Yanis Varoufakis at Athens University took place on his blog

http://yanisvaroufakis.eu/ about the capitalist system under the post:

Ending 2011with a fable for our times-December 24, 2011

December 24, 2011 at 03:14 #

Kotzabasis says,

Is Amartya Sen’s absolute prosperity and relative inequality of the capitalist system vulgarly to be replaced by Yanis Varoufakis’s “despicable inequality?”

Professor Varoufakis distorts and defames the whole history of the dynamism of entrepreneurial capitalist wealth that shot up the standard of living of the masses to “Himalayan” heights. To claim that capitalist “wealth …needs poverty to flourish,” is just an ornamental academic trapping empty of history and fugitive from serious thought. Capitalism, like everything else in life, was never meant to be “stable” but a process of Schumpeterian “creative destruction.” But this can only be understood and accepted by realists and not by heroic ideologues, like Professor Varoufakis.

Professor Varoufakis says,

December 24, 2011 at 15:32 #

It is always good to encounter intransigent Panglossian views in the post-2008 world. There is something touching about undying faith, even when of the toxic variety.

 December 25, 2011 at 01:48 #

Kotzabasis says,

Professor Varoufakis

Are capitalist entrepreneurial creativity, wealth, and prosperity based on “intransigent” “Panglossian” naivety? And is the history of capitalism to be truncated and concentrated naively and un- imaginatively between 2008 and 2011 for you to make your uninspiring and toxic argument?

Professor Varoufakis says,

December 25, 2011 at 11:56 #

No, capitalism’s wonders have nothing to do with Panglossian naïveté. But your determination to portray it as the best of all possible systems exudes it. As for my assessment of capitalism, and your claim that I truncate the latter’s history to a period around 2008, feel free to judge it. But only after you acquaint yourself with it. (For had you read it, eg either of my last two books, you would have realized that I truncate nothing. And that I go to great lengths to analyse capitalism’s contradictions, something that entails a celebration of its achievements as well as an exposition of its failures.) Till you are prepared to become acquainted with what I am really saying, before you attack it, I shall treat you as no more than a minor Panglossian.

Kotzabasis says,

December 26, 2011 at 02:46 #

Professor Varoufakis

Thank you for your advice how to overcome my “minor Panglossian” status. But unfortunately for me I’m bound to retain it, as your crass defamation of capitalism in your POST, hardly incentivized me, to use a term of your “little man” John Howard, to read your books and be acquainted with your thoughts. And indeed, my preference is to be “treated… as a minor Panglossian” than go through the treat to major on your ‘Pandistortions’ and jaundiced strictures on capitalism.

But to come to the gist of the matter in hand, my riposte to you was not to either of your two books, which, as I imply above I have not read. My reply was specifically to your post where you wistfully and wrongfully write, “Should we dare to hope of a new era in which WEALTH NO LONGER NEEDS POVERTY TO FLOURISH,” and of the illusion that “capitalism can be stable” and where you vulgarly and gracelessly contend that capitalism creates “DESPICABLE INEQUALITY,” and in your reply to my first post where you refer to the “post-2008 world.” It might well be that these ‘populist flourishes’ had not meant to be of any intellectual seriousness and their only aim was na deleazei ( to allure) and enthuse the ignorant to rush and become volunteer workers to your construction of your ‘matchsticks’ good society, as a replacement to the infernal deeds of capitalist society. But could one do this at the cost of one’s intellectual integrity?

And it is most surprising that the Gargantuan, indeed, Cyclopean efforts that you have put in your Modest Proposal(MP)—although one must note that Cyclopean efforts without a Ulysses are fated to be wasted efforts—have the aim to save Europe, a system that according to you produces genetically “despicable inequality.” Fortunately, however, for those condemned to this despicable inequality, but unfortunately for you, Andreas Koutras’s fatal Jovian bolts demolished to ashes the MP, from which no contriving number of revisions to it will give rise to a Phoenix solution that will salvage the European Union from its peril.

Lastly, to state that “to analyse capitalism’s contradictions… entails a celebration of its achievements as well as an exposition of its failures,” is to state the obvious.

Professor Varoufakis says,

December 27, 2011 at 04:33 #

Impressed by your dedication to keep knocking down my (according to you) already demolished, and perpetually ridiculous, arguments, as well as by the amount of time you dedicate to a blog (mine) which you consider unworthy, I shall continue to post your comments. Carry on Sir!

Kotzabasis says,

Professor Varoufakis

With your Kazantzakian character I could never imagine that you would not post my comments.

 

 

 

 

 

The Intellectual Cheating of Liberals

A short reply to a Liberal –By Con George-Kotzabasis

Clearly your vocation in the ‘market of argument’ is to be a peddler in non sequiturs. Why are you shifting the ground of the argument, is it because your pockets are empty of all coins of counter reasoning on the issue? The question as was initially put by Clemons’s use of the Bolton quote was not whether Israel’s and America’s wars were self-defensive or not but whether there was “moral equivalence” between the deliberate and non-deliberate killing of civilians. Clemons by cheating intellectually, by speciously transforming this argument of moral equivalence into an argument of devaluation of “Muslim and Arab lives” has made himself intellectually and morally persona non grata.

Talleyrand, eloquently and boldly said the following in the face of Napoleon, when the latter deposed the legitimate Ferdinand II and placed his own brother Joseph on the throne of Spain, “Sire, un enfant de famille may gamble away his last farthing—the heritage of his ancestors—the dower of his mother—the portion of his sisters—and yet be courted and admired for his wit—be sought for his talents and distinction—but let him once be detected in cheating at the game, and he is lost—society is forever shut against him.” You likewise, in partaking in this Napoleonesque cheating of Clemons “at the game,” have become your own ‘guest’ as an intellectual and moral pariah.

Obama’s Angelic Doctrine Disarms Evil Enemies

By Con George-Kotzabasis

Reply to: The Mellow Doctrine by Roger Cohen

global.nytimes.com May 03, 2009

Roger Cohen riding his high horse as a columnist of The New York Times trots a ‘neighing’ argument that throws the rider on the paddock. He claims and infers that the new policies of President Obama in foreign affairs, which he frames in his term of The Mellow Doctrine, are holistic remedies for the wanton malicious inflicted maladies that the Bush-Cheney administration had placed upon the body politic of America that had alienated it in the minds and hearts of so many people in the world.

These policies now are spreading and reverberating across Latin America, Europe, and Asia Minor and are creating an echoing melodious sound of Europeans, Turks and Latinos–with only a slight discordant hoarse bass note coming through the nostrils of an old dog, Fidel Castro, who can smell in Obama another imperialist rat. In Strasbourg the French and Germans loved to hear the President expostulating on the new fully cooperative conduct of the U.S. with its major allies, the French seeing him as an exemplar of their own past mission civilisatrice in the sphere of diplomacy, and the Germans as a second Ich bin ein Berliner, after John F. Kennedy. In Prague, the multi-cultured Czechs were delighted to hear him say that he was “committing the United States to a world without nuclear weapons,” and his outpouring of a profusion of mea culpa of America’s past misdeeds and the arrogance of imperial powers and its leaders, who like Roosevelt and Churchill would determine the fate of peoples “sitting in the room with a brandy.” In Turkey, the most modern of Muslim nations thanks to its insightful great Soldier-Statesman Kemal Ataturk, the Turks were regaled to see Obama parading before them his own partial Muslim origins and hear him say that Muslims had been treated with “insufficient respect” in the past. And in Trinidad and Tobago, where the Fifth Summit of the Americas was held, Obama enraptured the Latinos to such a degree that even the spirited anti-American warriors Raul Castro and Hugo Chavez were won over, the latter being moved so much so that he gave as a gift to Obama a book on American imperialism and the latter reciprocating to Hugo’s generous gesture by giving him a warm handshake and a friendly touch on the shoulder.

To Cohen, all the above related events are a clear sign that “Foes…have been disarmed by Barack Obama’s no-drama diplomacy.” Obama’s “mellow doctrine…finding strength through unconventional means: acknowledgement of the limits of American power; frankness about U.S. failings; careful listening; fear reduction; adroit deployment of the wide appeal of brand Barack Hussein Obama; and jujitsu engagement.” If the above quotes are not a perfect illustration that Obama made a confession of American weakness before the ‘priesthood’ of his ‘Catholic’ enemies, then one will ever search in vain for  a definition of weakness in any dictionary. And to bring jujitsu in this bout of weakness as a saving line is like offering someone who already lies unconscious on the floor from the blows of his opponent the Japanese art of training the mind and body in unarmed combat. In this context for Cohen to mock Dick Cheney for saying that America’s enemies perceive “a weak president,” is to brand himself with his own mockery.

This confession of weakness is the ‘Eighteenth of Brumaire of Barack Hussein Obama,’ to paraphrase Karl Marx on Louis Bonaparte, an intellectual coup d’état by   the constitutional lawyer against the constitution of the political wisdom of the ages in whose preamble imprescriptibly is written that to show and admit weakness before one’s enemies is the cardinal unforgiveable political sin. As in any human contest only when a party is weakened is prepared to make concessions whereas the strong seek and drive home their victory. This applies more so to fanatically religious enemies who have an ineradicable tendency to see, due to their irrational cogitations, any conciliatory initiative of their opponents as an admission of weakness.

But the intellectual fragility of Cohen’s argument is exposed by his use of the weakest enemies of America, that is, the Castro brothers and Hugo Chavez, and surprisingly Turkey, which has not been an enemy of the U.S., to drive home the success of the conciliatory attitude of President Obama. In the case of Turkey, he claims that at the NATO meeting the Turks dropped their opposition to the nomination of Denmark’s Anders Rasmussen as the alliance’s secretary general because of “Obama’s conciliatory message to Muslims.” In contrast, the previous administration by “humiliating Muslims” filled the schools of Waziristan and Ramadi with recruits for future terror. When one asks whence this humiliation of Muslims started the unutterable answer of Cohen must be since 9/11. The undeniably harsh but necessary measures that the Bush administration took against Muslim terrorists to protect its citizens from, at the time, imponderable future attacks, were in the eyes of Cohen measures that “humiliated Muslims.” Just as well columnists of this sort are ‘unsheathing’ their pens to write their columns instead of unsheathing their paper swords to protect Americans.  

Most of all Cohen is apparently very fond of the following by President Obama. “Resistance” to a set of U.S. policies “may turn out to be based on old preconceptions or ideological dogmas” of the previous administration, and “when they are cleared away …we can actually solve a problem.” So President Obama with a broom in his hand once he sweeps this ideological debris of the Bush administration he will be able to start solving the innumerable problems that America is facing. But the fact is that the United States is not countenancing these problems because of “old preconceptions or ideological dogmas,” but because of its status as the sole superpower is inevitably burdened to carry like Atlas all the world’s crises and hot spots on its back and to set up actions that are not always agreeable by the rest of the world that would have a chance to resolve these crises. And inevitably because of the multiple actions it has to take in so many complex parts of the world it cannot jump over the shadow of fallibility. The alternative, to restrict its engagement with the rest of the world because of its immense risks and possible errors of judgment, is not the raison d’être of great power. Moreover, a disengagement from the hot spots of the world would allow sinister and brutal fanatical leaders to take over countries and oppress their peoples as well as endanger the stability of the world.

The political naivety and immaturity of President Obama is encapsulated in his own terms in regard to Iran: Normal relations can be restored on the “mutual respect” of opponents. This would be forsooth the reality if your opponent considered you to be negotiating from a strong position. It would not be true if his estimate was that his opponent was negotiating from a weak position contra his own strong position. The strong can be at times kind, gracious, and helpful toward the weak but never have any respect for the weak. This is more so in the hard realm of geopolitics. The Iranian theocracy will see any diplomatic initiatives by the United States as an admittance of political feebleness by the latter and will exploit this to their advantage. And by the time when President Obama will become aware of this the Iranians will be already close to the entrance of the nuclear club. No angelic or mellow doctrine of Obama will disarm America’s implacable irreconcilable foes. Only the thunder, and as last resort the bolt of Jupiter, can defeat these deadly enemies.  

Hic Rhodus hic Salta