Greece: To default or not to default?

O democracy you never seize to amaze me. As of this morning Greece banks are closed by order of the Greek Government leaving Greek citizens unable to withdraw savings and access bank accounts.

For months the SYRIZA government with a mandate from the people have been in talks with Troika. The Troika are the IMF (International Monetary Fund) the EU (European Union), and the ECB (European Central Bank) who have loaned Greece hundreds of billions of dollars saving the nation from total economic collapse. These talks have broken down due to the SYRIZA’s rhetoric and demands. Since taking power SYRIZA has repeatedly tried to get austerity measures lifted that Greece previously agreed on in order to receive bailout money. The austerity measures have been forced upon Greece because Greece is not to be trusted with spending its own money let alone someone else’s. Just today Greece asked for 6 billion euros of emergency funding which was promptly rejected by the European Central Bank setting off the above mentioned bank closures.

While austerity certainly wasn’t working for the Greece at least Euro creditors had some assurance that Greece would not default. Of course just some five months ago Greece elected SYRIZA a political party that vowed to end Troika spending restraints. While socialist governments such as SYRIZA certainly improve the life of people by subsidizing health care, subsidizing college, and a progressive tax code they also tend to increase taxes and deficit spending. The funny thing about Greece electing a socialist government is that Greece already has massive debt and owes 300 billion euros to foreigners.

But wait there’s more. Not only did it elect a socialist government in a time when Europe looked upon Greece as the nation that fudged its economy and whom kicked off the Euro debt crisis. Greece also elected a government that believes in renegotiating spending restraints with the Troika. With that said Greece accepted Troika money with the understanding that spending restraints would be put in place and agreed to austerity measures.

So the government that Greece elected to power is being funded and kept aloft by the Troika. And now Greece does like the rules these institutions and government set up when they bailed Greece out. Of course the Troika hold the upper hand and the current government has proved unable to renegotiate spending restraints.

 I think Greece will exit the Euro and reintroduce its traditional currency the Drachma. In the past the theory was that if Greece is allowed to leave a domino effect would occur that sees multiple nations trying to leave the Euro, which will weaken the currency. However there is another theory. It is the Chain theory the belief that if the weak link(s) leave the Euro then the Euro will become stronger. The fact that Greece was denied an emergency bailout and that the Troika refuses to lessen austerity measures shows that EU leadership does not care, at least as much as it once did, if Greece leaves the Euro. The Troika have tried to work with Greece in the past by cutting its debt and releasing bailout money early. Such measures have failed in getting Greece out of its crisis. Greece will probably reintroduce the Drachma in order pay debts and its own citizens. Though it may hurt in the short term is time to let an ungrateful Greece go its own way and the let the Euro flourish.

Victory Together or Defeat Alone

It’s a turn in tack for the United States. The United States sits at a crossroad, I believe the path we follow will determine the future of the United States. We are a prideful patriotic people long accustomed to a great smashing victory against an evil but rationale enemy. ISIS, along with any other non-state actors, is not a rational enemy whom we can defeat in a head on battle. Barack Obama earlier this week, in a startling departure from his previous war policies, laid out a new path for the United States.

President Obama has laid out a plan to destroy ISIS and disrupt terrorist activity from the deserts of the Middle East to the shores of North Africa. Yet we all know that such a task cannot be accomplished in a single presidential administration nor by a series of strategic airstrikes. With his popularity plummeting and Americans sick of a lack of leadership in the world President Obama has laid out a plan that will send Americans back to the Middle East.

While I am no Dove it would seem that since September 11^th 2001 the United States actions against terrorists have been primarily reactionary in nature. Terrorism is used by groups whom lack the power to fight through conventional and legitimate means. They use the terrorizing of civilians and suicide attacks to strike fear into the heart of industrialized nations, a glaring example of course is the United States.

Americans must lead but not alone. Europe besieged as it is by economic and political crisis must help the US in the fight against terrorists in the Middle East. If Americans truly want victory in the Middle East we must accept the fact that victory is decades if not centuries away and that the age where a super power could unilaterally act is long past.

We Can’t Have Our Smashing Victory

It’s a turn in tack for the United States. The United States sits at a crossroad, I believe the path we follow will determine the future of the United States. We are a prideful patriotic people long accustomed to a great smashing victory against an evil but rationale enemy. ISIS along with any other non-state actor is not a rational enemy whom we can defeat in a head on battle. Barack Obama last night, in a startling departure from his previous war policy, laid out a new path for the United States.

President Obama has laid out a plan to destroy ISIS and disrupt terrorist activity from the deserts of the Middle East to the shores of North Africa. Yet we all know that such a task cannot be accomplished in a single presidential administration nor by a series of strategic airstrikes. With his popularity plummeting and Americans sick of a lack of leadership in the world President Obama has laid out a plan that will send Americans back to the Middle East.

While I am no Dove it would seem that since September 11^th 2001 the United States actions against terrorists have been primarily reactionary in nature. Terrorism is used by groups whom lack the power to fight through conventional and legitimate means. They use the beheading of civilians and suicide attacks to strike fear into the hard of industrialized nations, a glaring example of course being the United States.

Americans must lead but not alone. Europe besieged as it is by economic and political crisis must help the US in the fight against terrorists in the Middle East. If Americans truly want victory in the Middle East we must accept the fact that victory is decades if not centuries away.

Sanctions and Planes: Ukraine Strikes Back

O the world it seems is never quiet. Russia has once again caught this news cycle. For one President Obama recently announced new US sanctions against Russia. Second another Malaysia flight 17 has been brought down this time by Russia Rebels located in the Ukraine.

President Obama’s new sanctions will be far more effective then the previous ones. Past sanctions have only punished members of Russia’s political lite (Putin’s inner circle)  by freezing bank accounts  and preventing travel to the US. These new sanction’s will directly harm the Russia state by attacking several of its largest corporations threaten to severely damage.

The corporations under these sanction are Gazprombank and Vnesheconombank two of Russia’s Banks, OAO Novatek “Russia’s largest independent producer of natural gas, and Rosneft, the largest petroleum company [in] [the] [world]”. Unless Ukraine is allowed to flourish without Russian interferences (which I doubt will happen) I believe that these sanctions will wreck havoc with the Russian economy.

The second development regarding Russia and Ukraine tragically involve the loss of human life. Malaysia Airlines Flight 17 was shot down by pro Russian rebel forces while flying over eastern Ukraine.  Russia via its powerful propaganda machine is stating that western media is over sensationalizing the event. I disagree.

Putin seems to be callous about the fact that Malaysia Airlines Flight 17 was an all-civilian passenger plane with no stake in the Russian Ukrainian conflict. The world must force Putin to get his troops and supporters in the Ukraine under control. I fear as the Ukrainian conflict heats up more civilian casualties are sure to occur due to actions of pro-Russian forces with little restrained.