Adults in the Room Quotes

“Beneath the specific events that I experienced, I recognised a universal story – the story of what happens when human beings find themselves at the mercy of cruel circumstances that have been generated by an inhuman, mostly unseen network of power relations. This is why there are no ‘goodies’ or ‘baddies’ in this book. Instead, it is populated by people doing their best, as they understand it, under conditions not of their choosing. Each of the persons I encountered and write about in these pages believed they were acting appropriately, but, taken together, their acts produced misfortune on a continental scale. Is this not the stuff of authentic tragedy? Is this not what makes the tragedies of Sophocles and Shakespeare resonate with us today, hundreds of years after the events they relate became old news?”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“Bullies blame their victims. Clever bullies make their victims’ culpability seem self-evident.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“If you cannot imagine walking out of a negotiation, you should never enter it. If you cannot fathom the idea of an impasse you might as well confine yourself to the role of a supplicant who implores the despot to grant him several privileges”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“Austerity is a morality play pressed into the service of legitimizing cynical wealth transfers from the have-nots to the haves during times of crisis, in which debtors are sinners who must be made to pay for their misdeeds.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“Forcing new loans upon the bankrupt on condition that they shrink their income is nothing short of cruel and unusual punishment. Greece was never bailed out. With their ‘rescue’ loan and their troika of bailiffs enthusiastically slashing incomes, the EU and IMF effectively condemned Greece to a modern version of the Dickensian debtors’ prison and then threw away the key.

Debtors’ prisons were ultimately abandoned because, despite their cruelty, they neither deterred the accumulation of new bad debts nor helped creditors get their money back. For capitalism to advance in the nineteenth century, the absurd notion that all debts are sacred had to be ditched and replaced with the notion of limited liability. After all, if all debts are guaranteed, why should lenders lend responsibly? And why should some debts carry a higher interest rate than other debts, reflecting the higher risk of going bad? Bankruptcy and debt write-downs became for capitalism what hell had always been for Christian dogma – unpleasant yet essential – but curiously bankruptcy-denial was revived in the twenty-first century to deal with the Greek state’s insolvency. Why? Did the EU and the IMF not realize what they were doing?

They knew exactly what they were doing. Despite their meticulous propaganda, in which they insisted that they were trying to save Greece, to grant the Greek people a second chance, to help reform Greece’s chronically crooked state and so on, the world’s most powerful institutions and governments were under no illusions. […]

Banks restructure the debt of stressed corporations every day, not out of philanthropy but out of enlightened self-interest. But the problem was that, now that we had accepted the EU–IMF bailout, we were no longer dealing with banks but with politicians who had lied to their parliaments to convince them to relieve the banks of Greece’s debt and take it on themselves. A debt restructuring would require them to go back to their parliaments and confess their earlier sin, something they would never do voluntarily, fearful of the repercussions. The only alternative was to continue the pretence by giving the Greek government another wad of money with which to pretend to meet its debt repayments to the EU and the IMF: a second bailout.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“Hindsight blurs history and tortures the mind with sterile hypotheticals.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“Most Europeans like to think that American bankruptocracy is worse than its European cousin, thanks to the power of Wall Street and the infamous revolving door between the US banks and the US government. They are very, very wrong. Europe’s banks were managed so atrociously in the years preceding 2008 that the inane bankers of Wall Street almost look good by comparison. When the crisis hit, the banks of France, Germany, the Netherlands and the UK had exposure in excess of $30 trillion, more than twice the United States national income, eight times the national income of Germany, and almost three times the national incomes of Britain, Germany, France and Holland put together.8 A Greek bankruptcy in 2010 would have immediately necessitated a bank bailout by the German, French, Dutch and British governments amounting to approximately $10,000 per child, woman and man living in those four countries. By comparison, a similar market turn against Wall Street would have required a relatively tiny bailout of no more than $258 per US citizen. If Wall Street deserved the wrath of the American public, Europe’s banks deserved 38.8 times that wrath. But”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“You are of course right, Yanis. These targets that they insist on can’t work. But, you must understand that we have put too much into this programme. We cannot go back on it. Your credibility depends on accepting and working within this programme.2 So, there I had it. The head of the IMF was telling the finance minister of a bankrupt government that the policies imposed upon his country couldn’t work. Not that it would be hard to make them work. Not that the probability of them working was low. No, she was acknowledging that, come hell or high water, they couldn’t work. With”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“As I have frequently observed, there is a widespread belief in Europe’s north that the continent is populated by hard-working law-abiding ants on the one hand and lazy tax-avoiding grasshoppers on the other, and that all the ants live in the north while mysteriously the grasshoppers congregate in the south.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“The motives of the troika and Greece's domestic oligarchy are obvious. Debt is creditor power, and unsustainable debt gives creditors exorbitant power.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“There are times in politics when you must be on the right side and lose.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“We were divided and ultimately we were ruled.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“In reality, states never repay their debt. They roll it over, meaning they defer repayment endlessly, paying only the interest on the loans. As long as they can keep doing this, they remain solvent. It helps to think of public debt as a hole in the ground next to a mountain representing the nation’s total income. Day by day the hole gets steadily deeper as interest accrues on the debt, even if the state does not borrow more. But during the good times, as the economy grows, the income mountain is steadily getting taller. As long as the mountain rises faster than the debt hole deepens, the extra income added to the mountain’s summit can be shovelled into the adjacent hole, keeping its depth stable and the state solvent. Insolvency beckons when the economy stops growing or starts to contract: recession then eats into a country’s income mountain, doing nothing to slow the pace at which the debt hole continues to grow.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“Upton Sinclair once said, ‘It is difficult to get a man to understand something when his salary depends upon his not understanding it.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“Rather, an authentic drama was afoot reminiscent of a play by Aeschylus or Shakespeare in which powerful schemers end up caught in a trap of their own making. In the real-life drama I was witnessing, Summers’s sacred rule of insiders kicked in the moment they recognized their powerlessness. The hatches were battened down, official denial prevailed, and the consequences of the tragic impasse they’d created were left to unfold on autopilot, imprisoning them yet further in a situation they detested for weakening their hold over events.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“There are two kinds of politicians,’ he said: ‘insiders and outsiders. The outsiders prioritize their freedom to speak their version of the truth. The price of their freedom is that they are ignored by the insiders, who make the important decisions. The insiders, for their part, follow a sacrosanct rule: never turn against other insiders and never talk to outsiders about what insiders say or do. Their reward? Access to inside information and a chance, though no guarantee, of influencing powerful people and outcomes.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“Chasing tax cheats using normal procedures was not an option. It would take decades just to identify anything like the majority of them and centuries to prosecute them successfully; the more we caught, the more clogged up the judicial system would become. We needed a different approach. Once Danis was on board a couple of days later, together we thought of one: we would extract historical and real-time data from the banks on all transfers taking place within Greece as well as in and out of the country and commission software to compare the money flows associated with each tax file number with the tax returns of that same file number. The algorithm would be designed to flag up any instance where declared income seemed to be substantially lower than actual income. Having identified the most likely offenders in this way, we would make them an offer they could not refuse. The plan was to convene a press conference at which I would make it clear that anyone caught by the new system would be subject to 45 per cent tax, large penalties on 100 per cent of their undeclared income and criminal prosecution. But as our government sought to establish a new relationship of trust between state and citizenry, there would be an opportunity to make amends anonymously and at minimum cost. I would announce that for the next fortnight a new portal would be open on the ministry’s website on which anyone could register any previously undeclared income for the period 2000–14. Only 15 per cent of this sum would be required in tax arrears, payable via web banking or debit card. In return for payment, the taxpayer would receive an electronic receipt guaranteeing immunity from prosecution for previous non-disclosure.17 Alongside this I resolved to propose a simple deal to the finance minister of Switzerland, where so many of Greece’s tax cheats kept their untaxed money.18 In a rare example of the raw power of the European Union being used as a force for good, Switzerland had recently been forced to disclose all banking information pertaining to EU citizens by 2017. Naturally, the Swiss feared that large EU-domiciled depositors who did not want their bank balances to be reported to their country’s tax authorities might shift their money before the revelation deadline to some other jurisdiction, such as the Cayman Islands, Singapore or Panama. My proposals were thus very much in the Swiss finance minister’s interests: a 15 per cent tax rate was a relatively small price to pay for legalizing a stash and allowing it to remain in safe, conveniently located Switzerland. I would pass a law through Greece’s parliament that would allow for the taxation of money in Swiss bank accounts at this exceptionally low rate, and in return the Swiss finance minister would require all his country’s banks to send their Greek customers a friendly letter informing them that, unless they produced the electronic receipt and immunity certificate provided by my ministry’s web page, their bank account would be closed within weeks. To my great surprise and delight, my Swiss counterpart agreed to the proposal.19”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“Austerity is a morality play pressed into the service of legitimizing cynical wealth transfers from the have-nots to the haves during times of crisis, in which debtors are sinners who must be made to pay for their misdeeds. Not”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“The notion that elections cannot be allowed to change economic policy, indeed any policy, is a gift to [founder and leader of Singapore] Lee Kuan Yew supporters or indeed the Chinese communist party, who also believe this to be true. There is of course a long tradition of doubting the efficacy of the democratic process. But I would like to think that his tradition has been expelled long ago from the heart of Europe. It now seems that the euro crisis has brought it back. I urge you all to band together in a collective bid to resist it. Democracy is not a luxury to be afforded to the creditors and denied to the debtors. Indeed, it is the lack of democratic process in the heart of our monetary union that is perpetuating the euro crisis. Then again, I might be wrong. Colleagues, if you think that I am wrong, if you agree with Wolfgang, then I invite you to say so explicitly by proposing that elections should be suspended in countries like Greece until the country's programme is completed. What is the point of spending money on elections and asking our people to get all fired up to elect governments that will have no capacity to change anything?”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“the accusation was false, and although doubts still slithered through my mind like restless serpents”
― Yanis Varoufakis, Adults in the Room: My Battle with the European and American Deep Establishment

“Between them, the leaders of France and Germany had a stake of around €1 trillion in not allowing the Greek government to tell the truth; that is, to confess to its bankruptcy. Yet they still had to find a way to bail out their bankers a second time without telling their parliaments that this was what they were doing. As Jean-Claude Juncker, then prime minister of Luxembourg and later president of the European Commission, once said, ‘When it becomes serious, you have to lie.”
― Yanis Varoufakis, Adults in the Room: My Battle with the European and American Deep Establishment

“I assured them that our government was not going to be ideological about this: if I was asked whether I was in favour of or against privatization, my answer would be, ‘It depends on the asset in question – a port, a railway, a beach, an electricity company?’ Beaches I would never sell, I told them, just as I would never sell the Parthenon. And the privatization of electricity grids reliably leads to environmentally and socially suboptimal outcomes. But when it came to ports and airports, I would form a view based on four criteria: how much the buyer was committing to invest in the asset; the buyer’s commitment to workers’ rights to union representation and decent wages and conditions; environmental standards; and the extent to which the buyer would be obliged to leave room for and encourage the benefit of small and medium local businesses.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“Observing the European Union’s attempts to deal with the crisis is a bit like watching Othello – one wonders how our rulers can be so deluded”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“When a person believes one thing but chooses or is forced to advocate its opposite, the result is cognitive dissonance. Eventually, in order to endure the internal conflict, one is forced, like Orwell’s Winston Smith, to change one’s mind. But the emotional fallout from such stress must somehow be vented; someone else must take the blame. Since I had been chosen to perform the role of scapegoat by the victorious trinka, I was the obvious choice for my defeated comrades too.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“The 61.3 per cent who voted no had to be discredited as a people led astray by opportunists,”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“He knew that the eurozone’s economic policies were not just atrocious for Greece but terrible for Europe and, by extension, for the United States too. And he knew that Greece was merely the laboratory where these failed policies were being tested and developed before their implementation everywhere across Europe.”
― Yanis Varoufakis, Adults in the Room: My Battle with the European and American Deep Establishment

“Forcing new loans upon the bankrupt on condition that they shrink their income is nothing short of cruel and unusual punishment. Greece was never bailed out.”
― Yanis Varoufakis, Adults in the Room: My Battle with the European and American Deep Establishment

“The cynic would be almost right.8 Except it would not be the whole story. As I departed that day, I was not leaving behind me a Machiavellian dictator; I was leaving behind a sunken heart, a man ostensibly more powerful than almost anyone in Europe who nevertheless felt utterly powerless to do what he knew was right. As the great tragedians have taught us, nothing causes greater wretchedness than the combination of supreme authority and wholesale powerlessness.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“When inordinate weight is loaded onto a flimsily constructed bridge, the weakest beam will break first.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment

“John Kenneth Galbraith: ‘There are times in politics when you must be on the right side and lose.”
― Yanis Varoufakis, Adults in the Room: My Battle with Europe's Deep Establishment