EURO CRISIS AND CUT and DRY PRIVATIZATION (CPD)
Expanding the EFSF (European Financial Stability Facility) to a size of 440 billion euros ($590 billion)) will not solve Greece crisis and the Eurozone debt. If the European political leaders do not have the courage or the will to transfer part (or all) of their national sovereignty to a single European political authority, they should explore a solution to this crisis in term of realpolitik. One of the many options available is a 2-step process: 1- Structuration of a flexible mechanism of an orderly exit from the Eurozone for all 17 European nations. 2- Creation of the “EUROS”: a basket of European currencies.
Austerity with a policy of “cut-and-dry-privatization” (CPD) will only weaken the fabric of Greece society and make more complicated the process of wealth creation. The economy of Greece will shrink 5.5 percent in 2011 and the government must reduce the public workers by 30,000. In the next 4 years, more than 6 billion euros will be cut from social security. The people of Greece will pay more taxes and the country debt to GDP ratio will be more than 170%.
As a legal transfer of wealth to an elite or group of people, Cut-and-dry-privatization (CDP) eliminate jobs and create disequilibrium in capitalism. The ultimate goal of this strategy is profit and reimbursement of creditors. Wall Street exposure to the Eurozone is $ 2,7 t or more. Debt nations are defined by “cut-and-dry-privatization” (CDP). The phenomenon is more accentuated in the United States as an ideology of the republican-Tparty. We are on the hedge of sub-capitalism.
Capitalism is a process of creation of wealth and abundance of resource. It is a mine of job creation in which Privatization is the tool.
Aboubacar Sissoko
