Yanis Varoufakis's Blog, page 61

A Chronicle of a Lost Decade Foretold – FilmsForAction & Project Syndicate

ATHENS – To exorcise my worst fears about the coming decade, I chose to write a bleak chronicle of it. If, by December 2030, developments have invalidated it, I hope such dreary prognoses will have played a part by spurring us to appropriate action.
Before our pandemic-induced lockdowns, politics seemed to be a game. Political parties behaved like sports teams having good or bad days, scoring points that propelled them up a league table that, at season’s end, determined who would form a government and then do next to nothing.
Then, the COVID-19 pandemic stripped away the veneer of indifference to reveal the political reality: some people do have the power to tell the rest of us what to do. Lenin’s description of politics as “who does what to whom” seemed more apt than ever.
By June 2020, as lockdowns began to ease, left-wing optimism that the pandemic would revive state power on behalf of the powerless remained, leading friends to fantasize about a renaissance of the commons and a capacious definition of public goods. Margaret Thatcher, I would remind them, left the British state larger, more powerful, and more concentrated than she had found it. An authoritarian state was necessary to support markets controlled by corporations and banks. Those in authority have never hesitated to harness massive government intervention to the preservation of oligarchic power. Why should a pandemic change that?
As a result of COVID-19, the grim reaper almost claimed both the British prime minister and the Prince of Wales, and even Hollywood’s nicest star. But it was the poorer and the browner that the reaper actually did claim. They were easy pickings.
It’s not hard to understand why. Disempowerment breeds poverty, which ages people faster and, ultimately, readies them for the cull. In the shadow of falling prices, wages, and interest rates, it was never likely that the spirit of solidarity, which soothed our souls during lockdowns, would translate into the use of state power to strengthen the weak and vulnerable.
On the contrary, it was megafirms and the ultra-rich that were grateful socialism was alive and well. Fearing that the masses, condemned to the savage arena of unfettered markets amid a public-health disaster, would no longer be able to afford to buy their products, they reallocated their spending to shares, yachts, and mansions. Thanks to the freshly printed money central banks pumped into them via the usual financiers, stock markets flourished as economies collapsed. Wall Street bankers assuaged their guilt, lingering since 2008, by letting middle-class customers fight over the scraps.
Plans for the green transition, which young climate activists had put on the agenda before 2020, were given only lip service as governments buckled under towering mountains of debt. Precautionary saving by the many reinforced the economic depression, yielding industrial-scale discontent on a browning planet.
The disconnect between the financial world and the real world, in which billions struggled, inevitably widened. And with it grew the discontent that gave rise to the political monsters I was warning my left-leaning friends about.
As in the 1930s, in the souls of many, the grapes of wrath were growing heavy for a new, bitter vintage. In place of the 1930s soapboxes from which demagogues promised to restore dignity to the disgruntled masses, Big Tech provided apps and social networks perfectly suited for the task.
Once communities surrendered to the fear of infection, human rights seemed an unaffordable luxury. Big Tech developed biometric bracelets to monitor our vital data around the clock. In cahoots with governments, they combined the output with geolocation data, fed it all into algorithms, and ensured that the population received helpful text messages informing them what to do or where to go to stop new outbreaks in their tracks.
But a system that monitors our coughs could also monitor our laughs. It could know how our blood pressure responds to the leader’s speech, to the boss’s pep talk, to the police announcement banning a demonstration. The KGB and Cambridge Analytica suddenly seemed Neolithic.
With state power re-legitimized by the pandemic, cynical agitators took advantage. Instead of strengthening voices calling for international cooperation, China and the United States bolstered nationalism. Elsewhere, too, nationalist leaders stoked xenophobia and offered demoralized citizens a simple trade: personal pride and national greatness in exchange for authoritarian powers to protect them from lethal viruses, cunning foreigners, and scheming dissidents.
Just as cathedrals were the Middle Ages’ architectural legacy, the 2020s left us tall walls, electrified fences, and flocks of surveillance drones. The nation-state’s revival made the world less open, less prosperous, and less free precisely for those who had always found it hard to travel, to make ends meet, and to speak their minds. For the oligarchs and functionaries of Big Tech, Big Pharma, and other megafirms, who got on famously with the strongmen in authority, globalization proceeded apace.
The myth of the global village gave way to an equilibrium between great-power blocs, each sporting burgeoning militaries, separate supply chains, idiosyncratic autocracies, and class divisions reinforced by new forms of nativism. The new socioeconomic cleavages threw the prevailing features of each country’s politics into sharp relief. Like people who become caricatures of themselves in a crisis, whole countries focused on their collective illusions, exaggerating and cementing pre-existing prejudices.
The great strength of the new fascists during the twenties was that, unlike their political forebears, they did not even have to enter government to gain power. Liberal and social-democratic parties began to fall over one another to embrace xenophobia-lite, then authoritarianism-lite, then totalitarianism-lite.
So, here we are, at the end of the decade. Where are we?

For the Project Syndicate site click here. And here for Films for Action

Jamie Galbraith on DiEM-TV’s ‘Another Now’ discussing the “criminal incapacity of the elites”

Συζητώντας με την Πάολα Ρεβενιώτη στην “Κατάσταση Πολιορκίας” του ΜέΡΑ-TV

Λίγες φορές έχω χαρεί συζήτηση όσο το περασμένο Σάββατο με την Πάολα Ρεβενιώτη, της οποίας η έντιμη, αγωνιστική, αντι-καταθλιπτική δράση μας δίνει δύναμη . Η εικόνα της Αθήνας των περασμένων δεκαετιών που μοιράστηκε μαζί μας ήταν ένα ακόμα “μπόνους”. Αν δεν την είδατε, δείτε την – δεν θα το μετανιώσετε.

A chronicle of our BLEAK TWENTIES – Cambridge Union Online

The good folk at Cambridge Union invited me to deliver a talk over the internet during our lockdown days. I chose to deliver a speech, or text, reciting what I fear might prove an accurate assessment of our BLEAK TWENTIES from the perspective of, say, December 2030. My great hope is that it is proven grossly inaccurate. But my fear is that it won’t…

European Oligarchy Has Banned Transfer of Wealth to Poor: Interviewed by Vijay Prashad

Have Merkel & Macron just announced a eurobond-funded godsend for the EU? DiEM25’s view

On Monday 19th May 2020, Chancellor Merkel and President Macron announced a joint proposal for a 500 billion euro common fund, to be financed by allowing the European Commission to borrow from the money markets. The fund will, according to the Merkel-Macron proposal, finance directly businesses across the EU – by means mainly of transfers. Is this a breakthrough? Here is my answer on behalf of DiEM25.

Για το 5ο Μνημόνιο που έρχεται, την ΕΕ, τον Σόιμπλε, το ΜέΡΑ25 & τον πολιτικό πολιτισμό – ΕΡΑ1

Discussing movies in the age of lockdown with Valeria Golino on DiEM-TV’s ‘Another Now’ – VIDEO

Honoured that Valeria Golino was my guest in the latest episode of DiEM-TV’s ‘Another Now’. With the extraordinary actor we talked films, films, films, plus a little on some common biographical details involving Greece, Egypt, scoliosis, not to mention that she played my… wife in ADULTS IN THE ROOM
For previous episodes with Johann Hari, Roger Waters, Stephanie Kelton and Caroline Lucas click here.

Άρθρο Γ. Βαρουφάκη: Η Προοδευτική Διεθνής – Άρθρο στην ΚΑΘΗΜΕΡΙΝΗ

Ακόμα κι όταν ο κορωνοϊός θα έχει νικηθεί, το νέο χρέος που θα έχει αφήσει στο διάβα του θα βαραίνει για χρόνια την υφήλιο δηλητηριάζοντας τις δημοκρατίες μας και συνεισφέροντας στην οικοδόμηση ενός κόσμου λιγότερο ανοικτού, φτωχότερου, γεμάτου τείχη και μισαλλοδοξία. Το υφεσιακό κύμα που έφερε η πανδημία βρήκε την παγκόσμια οικονομία ήδη ευάλωτη. Υστερα από μία δεκαετία «εύκολου» χρήματος που οδήγησε στην υπερχρέωση μεγάλες επιχειρήσεις στις προηγμένες χώρες και τις κυβερνήσεις των πιο αδύναμων κρατών, ο κορωνοϊός ήταν η ακίδα που όλοι φοβόμασταν ότι θα σκάσει την παγκόσμια φούσκα χρέους.



Το γεγονός ότι το υπερβολικό χρέος βαραίνει όλη την υφήλιο, όπως και ο φόβος της COVID-19, δεν σημαίνει ότι όλοι κινδυνεύουν το ίδιο. Η δημοσιονομική τονωτική ένεση που εξήγγειλαν οι αρχές των Ηνωμένων Πολιτειών ξεπερνάει το 14% του εθνικού τους εισοδήματος. Η αντίστοιχη τονωτική ένεση της γερμανικής κυβέρνησης ωχριά μπροστά της. Με τη σειρά τους, οι αντίστοιχες τονωτικές ενέσεις των κυβερνήσεων του ευρωπαϊκού Νότου ωχριούν μπροστά στη γερμανική. Και, βέβαια, καλύτερα να μη μιλάμε καν για τονωτικές ενέσεις στις φτωχότερες χώρες της Ασίας, της Αφρικής και της Λατινικής Αμερικής. Με άλλα λόγια, οι παγκόσμιες ανισορροπίες, που γεννούν εντάσεις και πολιτικά τέρατα, γιγαντώνονται καθημερινά.
Το βαθύ «κούρεμα» χρεών –που αν δεν γίνει θα αποτρέψει την παγκόσμια ανάκαμψη– είναι ο μόνος τρόπος να διατηρηθεί ζωντανή η ελπίδα για διεθνή συνεννόηση όσον αφορά την καταπολέμηση της φτωχοποίησης χωρών και πληθυσμών, της κλιματικής καταστροφής και των γεωπολιτικών εντάσεων.
Προς αυτή την κατεύθυνση, την περασμένη Τετάρτη, τριακόσιοι νομοθέτες απ’ όλο τον κόσμο συνυπογράψαμε επιστολή του γερουσιαστή Μπέρνι Σάντερς προς τη Διεθνή Τράπεζα, με την οποία ζητήσαμε βαθιά «κουρέματα» του χρέους, αλλά και παροχή από το Διεθνές Νομισματικό Ταμείο νέων πιστωτικών μονάδων (SDR) για τις χώρες των οποίων οι οικονομίες επλήγησαν από την πανδημία.
Η πρωτοβουλία αυτή έχει προϊστορία. Τον Σεπτέμβριο του 2018, παρατηρώντας τον τρόπο με τον οποίο το μη βιώσιμο χρέος εκκόλαπτε νέες μορφές αυταρχισμού και εθνικισμού, με τον Μπέρνι Σάντερς διακηρύξαμε από τις σελίδες του Guardian την ανάγκη μιας νέας Προοδευτικής Διεθνούς, με ζητούμενο την υπέρβαση του δίπολου παγκοσμιοποίησης – απομονωτισμού. Στόχος μας, δηλώσαμε, ήταν να αναμετρηθούμε με τις δυνάμεις του αυταρχισμού που σκοπεύουν να μας διαιρέσουν και να στρέψουν τον έναν λαό εναντίον του άλλου. «Γνωρίζουμε», πρόσθεσε τότε ο γερουσιαστής Σάντερς, «ότι αυτές οι δυνάμεις συνεργάζονται διασυνοριακά. Πρέπει κι εμείς να κάνουμε το ίδιο».
Δύο μήνες αργότερα, στις 30 Νοεμβρίου του 2018, στο Βερμόντ των ΗΠΑ, με την υποστήριξη της πρωθυπουργού της Ισλανδίας Κατρίν Γιακομπσντότιρ, απευθύναμε ανοικτό κάλεσμα για την ίδρυση Προοδευτικής Διεθνούς που θα εκπονήσει παγκόσμια ατζέντα πολιτικής – μια Διεθνή Πράσινη Νέα Συμφωνία την οποία, κατόπιν, θα στηρίξουμε από κοινού σε κάθε χώρα κάθε ηπείρου.
Από την περασμένη Δευτέρα, η Προοδευτική Διεθνής, η οποία πρωτοξεκίνησε στο Βερμόντ από το Ιδρυμα Σάντερς και το DiEM25, είναι πραγματικότητα. Πενήντα πολιτικοί ηγέτες, όπως η Κατρίν Γιακομπσντότιρ και ο τ. πρόεδρος του Ισημερινού Ραφαέλ Κορέα, αλλά και διανοούμενοι όπως η Αρουντάτι Ρόι και ο Νόαμ Τσόμσκι, συνιστούν το πρώτο συμβούλιο που θα καθοδηγήσει τις εργασίες και τις πολιτικές δράσεις της Προοδευτικής Διεθνούς.
«Η συμμετοχή μου», γράφει η κ. Γιακομπσντότιρ, «έχει δύο κίνητρα: τη συλλογική αντιμετώπιση της Διεθνούς της αυταρχικής Δεξιάς, ιδίως στα ζητήματα της ανεξάρτητης Δικαιοσύνης και της ελευθερίας του Τύπου. Και, δεύτερον, το θετικό όραμα της Προοδευτικής Διεθνούς για κοινή ευημερία, ασφάλεια και αξιοπρέπεια για όλους τους λαούς».
Την Παρασκευή 15η Μαΐου, στις 8 μ.μ., μαζί με την Κατρίν Γιακομπσντότιρ, παρουσιάσαμε, μέσω ανοικτής τηλεδιάσκεψης, το σκεπτικό της πρωτοβουλίας που ξεκινήσαμε το 2018 στο Βερμόντ και η οποία σήμερα, ενόψει της νέας Μεγάλης Διεθνούς Υφεσης που απειλεί ιδίως χώρες υπερχρεωμένες όπως και η δική μας, είναι περισσότερο αναγκαία από ποτέ.

 

 

Bernie Sanders, Ilhan Omar, Yanis Varoufakis & Richard Durbin and 300 other lawmakers call for a cancellation of developing world’s’ debt – Washington Post

Sen. Bernie Sanders (I-Vt.) and Rep. Ilhan Omar (D-Minn.) in a Wednesday letter addressed to Georgieva and David Malpass, president of the World Bank, called on international financial organizations to consider “extensive debt forgiveness” for more than 70 of the world’s poorest countries. The letter, which also called for significant fiscal stimulus to help stabilize the global economy, was signed by more than 300 lawmakers from over two dozen countries, including former Argentine president Carlos Menem, former Greek finance minister Yanis Varoufakis and Sen. Richard J. Durbin (D-Ill.), one of the most senior members in the U.S. chamber.


“The vulnerable communities that lack the resources and privileges to adopt adequate public health measures will ultimately face the disproportionate burden of coronavirus,” read the letter, a draft of which was shared with Today’s WorldView. “Such harm means that global supply chains, financial markets, and other interconnected exchanges will continue to be disrupted and destabilized.”

The two U.S. lawmakers called for a technocratic instrument in the IMF’s tool kit known as special drawing rights, or SDRs, that could bring hundreds of billions, even trillions, of dollars of new liquidity into the global economy. The last time the IMF allowed for a major infusion of additional SDRs was in 2009 as part of a $1 trillion injection into the global economy that followed the financial crisis.

The IMF’s gold reserves have soared $19bn since #coronavirus pandemic. This is more than the entire debt the poorest countries owe. The IMF should use these windfall profits to #CancelTheDebt to avert catastrophic loss of life in developing countries

Sanders and Omar, widely seen as occupying the left flank of Democratic Party politics, are pushing ideas about debt relief and crisis spending that are becoming increasingly mainstream. Economists and policymakers to their right have already made similar calls for a new round of SDRs, which would not make much of a difference for taxpayers in wealthy nations. Boosters of the idea say that rich countries could voluntarily transfer some of the funds generated by the SDRs — which are allocated on the basis of IMF quotas that give richer nations much larger shares — to poorer ones.

“Taking commonsense measures to cancel debts and provide financial stability — steps which do not cost U.S. taxpayers a penny — is the very least we can do to prevent an unimaginable amount of poverty, hunger, and disease that could harm hundreds and hundreds of millions of people,” Sanders said in an email to Today’s WorldView.

So far, the Trump administration, whose Treasury Department carries enormous influence over the IMF, has balked at the idea. One reason for its opposition is an unwillingness to create a mechanism that boosts the foreign reserves of adversarial countries such as China, Iran or Venezuela without forcing them to make any concessions…

For the letter’s signatories, debt forgiveness is an essential plank of a broader global recovery. “What this crisis shows us is that we are all in this together, as a global community,” said Sanders. “We have got to show unprecedented compassion, solidarity, and cooperation right now, because this pandemic has revealed for everybody that we are only as safe and healthy as the most vulnerable among us.”

For the original Washington Post article click here