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Smith reports: "Violence erupted in the heart of Athens as mass protests against further austerity measures in crisis-hit Greece escalated on Wednesday."

Demonstrators protest outside the Greek parliament in Athens. (photo: Aris Messinis/AFP)
Demonstrators protest outside the Greek parliament in Athens. (photo: Aris Messinis/AFP)


Athens Descends Into Violence as 200,000 March Against Austerity

By Helena Smith, Guardian UK

26 September 12

 

Occupy Wall Street: Take the Bull by the Horns

 

Police respond with tear gas to firebombs thrown from sidelines of demo against €12bn cuts

iolence erupted in the heart of Athens as mass protests against further austerity measures in crisis-hit Greece escalated on Wednesday.

Police fired tear gas at crowds throwing rocks and petrol bombs. The exchange disrupted an otherwise peaceful march through the capital by up to 200,000 demonstrators participating in a general strike, the first big confrontation with Greece's three-month-old coalition government.

Industrial action, hailed as a triumph by unions, brought the country almost to a standstill, grounding flights, disrupting transport and shutting public services including tourist sites.

The governing coalition, under immense pressure to pass yet more cuts by international creditors keeping the moribund Greek economy afloat, had ordered bulletproof barriers to be erected around the parliament but had hoped the protests would end peacefully.

As smoke rose over parts of the city and protesters donned gas masks, it was clear those hopes had been dashed. About 3,000 officers - twice the number usually deployed - had been standing guard in central Athens as authorities braced for rioting.

"This is a warning to the government not to pass the measures," said Ilias Iliopoulos at the ADEDY, the union of civil servants, insisting that about 350,000 Greeks took part in protest marches. "Today was a huge success as witnessed by all those in the armed forces and police who also participated because they, too, will be affected by these cuts. The government must know that if wants to push us further into a corner, we will react."

Prime minister Antonis Samaras's conservative-led alliance is expected to decide on Thursday on budget cuts totalling €11.9bn (£9.46bn) - more than 5% of the country's GDP. Once endorsed, the controversial austerity package will be sent to parliament for ratification. "Once the Greek people learn exactly what the measures are, there will be uproar," Iliopoulos said. "There will be mass protests."

Ships stayed docked, shops pulled down shutters, and museums and monuments - including the Acropolis - closed to visitors. Air traffic controllers walked off the job for three hours and hospitals were operating with emergency staffing levels only.

Much of the union anger is directed at the additional spending cuts over the next two years that Greece has promised its "troika" of lenders - the European Central Bank, the European commission and the International Monetary Fund - in order to secure its next tranche of aid. The bulk of the cuts are expected from slashing wages, pensions and welfare benefits - heaping new misery on Greeks, who say repeated rounds of austerity have pushed them to the brink yet failed to transform the country for the better.

A poll by the MRB agency last week showed that more than 90% of Greeks believe the planned cuts are unfair and a burden on the poor, with the vast majority expecting more austerity in coming years.

With the country in its fifth year of recession, analysts said a strong public backlash could tear apart the weak coalition.

"What people want to tell Samaras is that they are hurt - and Samaras could use this to demand concessions from the troika," said MRB's polling director, Dimitris Mavros.

"The people are willing to give the government time, but on certain conditions like cracking down on tax evasion and securing a bailout extension. If the government succeeds in that, its life will also be extended."

 

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+16 # dkonstruction 2012-09-26 12:08
the greeks are absolutely right to fight back against the austerity pushers but then the question becomes what is the alternative? The alternative begins with an understanding that the reason the greeks are in trouble is that they have been forced to borrow in a currency (the euro) they don't control and are thus forced to pay outlandish interest rates and pay the debt back in that very same currency (the euro) they don't control. The whole point of a "fiat" money system for a sovereign state is that it can print its own money debt free and as the japanese example has demonstrated (they have been running far greater deficits than the US for more than a decade in terms of debt to gdp and it has not affected either the value of their currency or inflation one bit). So, for example, the greeks could issue their "risk free" bonds (see the following proposal http://moslereconomics.com/2011/06/29/the-mosler-plan-for-greece/ which would cost them far less (i.e., save them a ton of money that could be used to pay off the euro debt) and would put an end to all of these calls for more austerity.
 
 
+9 # RMDC 2012-09-27 02:29
Good points, dk.

What we are seeing is the most massive transfer of wealth from the middle class and poor to the richest people on earth. the banks have gained control of governments in most western nations and they are using governments to extort wealth out of whole nations. There never was any Greek financial crisis, except for the one engineered by Goldman Sachs. Greek government revenues went down because of the 2008 global economic collapse. But it could have re-structured its debt and it could have defaulted on some. It was the ECB which required Greece to borrow huge additional sums of money that were sent directly to private banks. And the people are left paying the huge additional debt.

What is happening to Greece and other nations in Europe is just what the IMF did to developing nations all over Afraica, S. America, and Asia from the 60s to 90s. These nations were looted. Now the banks are turning on Europe. The US will be next.
 
 
+4 # dkonstruction 2012-09-27 05:26
thanks for the comment RMDC. I think it is critical that progressives/ra dicals raise much more fundamental objections to the neo-liberal austerity folks (who have basically gotten everyone on the left and right to buy into this nonsense) about the whole idea that in an economy run by a sovereign "fiat" currency can ever be insolvant or go broke...it just ain't so. Realizing this means we can fully challenge the notion (even without "taxing the rich" or cutting military spending...both of which we also need) that we can't afford to pay for social programs or "entitlements" because we don't have the money and how we are saddling our kids and grandkids with huge debt burdens...all of this just isn't true and once we get past this and realize there is the money we can get down to the conversation we should be having which is how do we want to allocate our resources so that everyone has a job who wants/needs one and we are able to provide all of the goods and services we think people should get in an advanced democratic nation.

I agree with you about Greece but would add that i think it's also key that they gave up sovereign control of their currency when they joined the euro and this makes it much more difficult for them (or any country) to get out of its economic difficulties... control of currency and the ability of the country to "print" what it needs is essential.
 
 
0 # MidwestTom 2012-09-27 04:43
Tou are eight and wrong at the same time. They could issue their own bonds and inflate their currency to pay off the bonds. The problems comes when they want to buy something that is not made in Greece, because as their own currency sinks in value,imported items will become more and more expensive. The U.S. has been able to print our way out of trouble because the dollar is and has been the currency for almost all world trade. If we loose that position we will be just like Greece, having to run with a balanced budget.

Iraq started selling oil in EUROs and we invaded to stop it. Now the Chinese and the Indians are selling goods in their currency and Iran is selling oil to India in Indiana currency, If this trend continues, expect a major war, because if we are forced to balance our budget, we will implode.
 
 
+1 # dkonstruction 2012-09-27 11:03
Mosler makes an interesting case for why the types of bonds he is talking about won't be inflationary... still trying to wrap my head around these MMT (Modern Monetary Theory) folks but they are intriguing.

As for Iraq, my understanding is that Saddam talked about (as others have been doing) switching from dollars to euros to sell oil but we invaded and overthrew him first. I agree though that if the world producers stop using the dollar and switch to the euro for the oil market we are in serious trouble (not much chance anytime soon though given europe's economic woes and the effect on the euro.

But, we never have to balance our budget so i disagree that this will be an issue.
 
 
+6 # Smiley 2012-09-26 21:48
Austerity is a spiral into chaos. There is no light at the end of that tunnel.
 
 
+2 # 666 2012-09-27 05:33
there's always light at the end of the tunnel.... especially it means the collapse of capitalism and the end of the global rule of the 1%
 
 
+2 # dkonstruction 2012-09-27 08:06
Quoting 666:
there's always light at the end of the tunnel.... especially it means the collapse of capitalism and the end of the global rule of the 1%


666, while i agree with the sentiment this was pretty much what what the German Communist Party said in 1933 (and why they did not form a coalition with the socialists to oppose Hitler and the Nazis). The idea that capitalism must collapse under its own weight or from its own internal contradictions is simply not true. Crisis yes but crisis is precisely the way capital works through it contradictions (at least in the short run) and since we are clearly in no way, shape or form, out of this crisis i think that either the system will try and muddle along yet not overcome its profitability problems or there is still much destruction of value/capital still to come (as in the Great Depression) which does not mean the system is collapsing or that it will ultimatley lead to "revolution" or a new society...what it does ensure though is alot more pain and suffering for the 99% which is never something we should be cavalier about and say "bring it on."
 
 
+1 # tonywicher 2012-09-27 10:37
The Syriza party is preparing to take power in the next Greek elections. We need a Syriza in the USA. There is an anti-austerity conference in NYC on October 27 to form such a coalition. Go to tarpley.net for more information.
 
 
+1 # Pikewich 2012-09-27 13:09
What is happening in Greece is a preview of what will begin here in the US after Obama is re-elected, starting some time in January.

The Foxconn model works so well in China for those whose own it all, we will be pushed into something similar while being told the government is broke (of course it is, these never ending wars cost huge amounts of money) and so we the people will have to shoulder the burden of those excesses.
 
 
0 # Charles3000 2012-09-28 03:17
Learn how Abe Lincoln dealt with high interest charging banks to finance the civil war (he used "greenbacks") and how Andrew Jackson made the central bank pay the national debt to zero in the 1830s.
After learning those two historical facts then rethink your statement about the government going broke.
 
 
0 # dkonstruction 2012-09-28 07:27
Quoting Charles3000:
Learn how Abe Lincoln dealt with high interest charging banks to finance the civil war (he used "greenbacks") and how Andrew Jackson made the central bank pay the national debt to zero in the 1830s.
After learning those two historical facts then rethink your statement about the government going broke.


There is a fundamental difference between a national currency based on "precious metals" (i.e., the gold and or silver standard) and a "fiat" currency system in which the national gov't can create its own money debt free. This is one of the main points made by the Modern Monetary Theory (MMT) economists. Being a student of history I know the history of Lincoln and the "greenbacks" as well as about Jackson and the bankers but neither example speaks to the question of the difference between a currency based on metal reserves and the current "fiat" system.
 
 
0 # rradiof 2012-09-27 19:48
To the barricades! Today, I showed my students the menus at Sidwell Friends School in Washington, D.C. My students live in the highest poverty area of St. Paul, MN. The demographics are 90% nonwhite, 90% free and reduced lunch, and 70% English as a Second Language. My students have complained since the beginning of the school year about the Federally mandated 700 calorie lunch for middle school students. This law which was prioritized by the President and his wife has forced a diet upon public schools across the nation. There are boycotts nationwide by hungry students (See the YouTuve video: "We Are Hungry"). Yesterday, one of my best students complained about feeling sick. I asked her, why do you feel sick? She said that the new lunches are nasty. So today, I took the time to show the students the three course lunches that the students eat at Sidwell Friends School (including, of course, Sasha and Malia Obama). My students were angry and understood for once the true message of the popular (among young people, especially) book/movie "Hunger Games." The message is AUSTERITY! While my students are placed on a forced diet in order to receive federal funds, the Obama children live high on the hog. Over and out.
 
 
0 # Glen 2012-09-28 05:14
You have shown an every day example of the creep of oppressive policies in the U.S. It proves once again how either malicious or stupid such as Obama truly is.

Mandating the loss of weight, "healthy" food, and all things related is the perfect example of how stealthy change can be. It sneaks up on the populace.

Oh, and The Hunger Games appealed to many more than just the young for the very reason you cited. There have been other books concerning a possible future that illustrate the same tragedies dumped on the population. Folks haven't paid enough attention to science, science fiction, and predictions.
 

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