‘Tooth Fairy’ Economics

Of the fictions that exist in our daily lives, there are several categories: childhood (e.g., Santa Claus), harmlessly supportive (e.g., you don’t look fat in that jacket), ignorant (e.g., natural selection and evolution are theories), and downright dangerous (e.g., Europe can hold together a single, viable financial system).

Threats and ultimatums aside, the Eurozone cannot be saved as it currently exists. All honest and clear-eyed observers agree. People in the continent’s most troubled economies no longer support it; that much is clearly evident. The real street-level individual human sacrifices necessary to right the currency are politically unthinkable in those countries. That is the message of recent elections in Greece and France.

Looking back, it was pure fantasy to begin with, sold to people by leaders who were either corrupt and self-motivated, ignorant, or selectively attentive. The Eurozone economies were fundamentally very different animals, not merely in terms of composition, but also of basic approach, social infrastructure, aims and purposes. In flush times, these differences were minimized by robust growth and super-normal returns to capital. Now? Not so much.

Turns out that when push comes to shove, Greeks don’t particularly want to change who they are, how their economy and society behave, or how their jobs, pensions and social security schemes operate. The French either, it now seems. Other members are teetering close to the same place.

So, let’s not pretend about this anymore, alright?

The Eurozone will either change radically (i.e., lose members) or die outright. Forcing the execution of existing agreements will cause real pain to real people, for little good in return. Let’s stick to harmless fictions.

That jacket doesn’t make you look fat.

2 thoughts on “‘Tooth Fairy’ Economics”

  1. The most troubled economies do want the Euro cousin, they make billions of it. It’s not Hellas, Portugal or Ireland. Hellas is responsible for less than 2% of the European debt. It’s Germany, France and all their allies and banker friends. The Euro is their playground because they can easily create debt dumpsters in countries like Hellas, they get rid of their sins and blame it on us. It is clear that leaving the Eurozone will not be as catastrophic for us as it would be for them. They try to make us believe it’s the other way arround but it’s not.

    When countries like Hellas will be able to have true governments instead of traitors and corrupted politicians then it won’t matter if we are in the euro or not. Hellas is one of the richest countries in the world, yes it is. It has oil, gold, aluminum, silver etc etc… it has amazing beauty, a key position in the european map and so many more. It’s worth much more than any would even think. So, the whole story about debts and hosterity measures is a way for the gold diggers do buy us out for nothing and then make us work for nothing to hand them our great wealth and our great country. Well.. guess again. We are sons of Leonidas, Alexander the great, Kolokotronis, Aris Velouhiotis and Mikis Theodorakis.

    So if you please our brothers and sisters in the U.S. let G. Soros, J. Polson, S. Kohen, D. Einhorn and their good friends Goldman Sacks, Neuberger Berman, Blackrock, Fitch, Moody’s, S&P and the Rothchilds know this: Come and get them if you dare you bastards!

    1. Thank you, Stelios, for this reflection of how the Greek people feel. It’s helpful for us, here in America, to hear directly from Greeks. Our media does this story a complete disservice by ignorance and inattention. I find your words educational, of course, but more, I find them inspirational. Fight on, dear cousin!

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