Greece is not in turmoil. This is especially relevant to stock markets, which Flaubert once described as nothing more than “barometers of public opinion”. Irrespective of any fundamentals, objective or otherwise, the projection of chaos that has become associated with Greece is partly responsible for the fact that the Greek government has to pay yields of up to 30 per cent to borrow money. I ride into Thessaloniki, up the inside of stagnant traffic jams. When whole cities can still afford to sit in cars, burning petrol at €1.80 a litre… there’s obviously a lot of crisis left to run.
Everyday Greeks seem similarly dismissive of Crisis! A woman in a bakery smiles… “What did you expect?… are we all supposed to be crying?” A man sits outside a cafe… “Pro-pa-gan-da!… Bullshit!” His friend grabs a stool… belly like a water melon, stubble, black sunglasses, curly hair cut short at the sides. He spreads his legs, pulls his shorts up like a Greek John Goodman straight out of The Big Lebowski. He plants a finger on a hairy thigh… “You see a crisis here?!… we have sun, sea, farms, petroleum… There is a crisis… a bankingcrisis… and they want us to pay for it.” He goes on. “The euro was a catastrophe for Greece…” he points into his palm… “€1 was 340 drachma… coffee was 100 drachma before… then it was €1.” Italians will say exactly the same. Prices doubled overnight.
Meanwhile Europe is drip-fed a diet of ignorance. Reuters will whisper about ‘Grexit‘ and a ‘drachmageddon‘ that will cost hundreds of billions of euros if Greece fall out of the eurozone. Either lazy journalism or market omerta prevents the making of the obvious point that bailouts to keep Greece in the euro have already cost – erm – hundreds of billions of euros, failed to work, and will ultimately see Greece sell their national assets – from islands to major ports – at far below their true value. It’s a little confusing that the structure of a Greek restructure is a country that has sold the very things by which it could once have made money… perhaps that’s just the formula for the ‘mature economy‘ the Greeks are to become. A mature economy is one that innovates new ways in which it can be stuffed by the markets.
Talking to people on the streets, what is most obvious is that everyday Greeks quite clearly do not want to be bailed out, just as Angela Merkel tries to appease the everyday Germans who do not want to bail them out. If everyday Europeans, both bailers and bailees, do not want to do any bailing… it seems the only ones in favour of a bailout must be the French and German banks that will otherwise be unable to absorb the losses of their own failed investments. Let’s be clear… we do not bail out governments or taxpayers… we bail out banks, the primary representatives of capitalism who are not themselves subject to the primary rule of capitalism. Failed businesses are supposed to go bust.
And yet there’s more to it than that, and northern Europeans would do well to resist judgements of lazy Greeks getting what they deserve. Greece is a foothold for the idea of market preeminence over societies, applauding its application in the Mediterranean will help bring about the day when we are all made Greek. The 1929 Wall Street Crash and Great Depression saw Roosevelt famously tell the American people, “we have nothing to fear but fear itself”… in the twenty-first century our governments encourage us to shit ourselves and hope that the markets will clear up the mess. Keep hoping. For five years Europeans have been given a constant crisis narrative, one accompanied by a paucity of any real information. Italians have low household debt, a banking system thought to be solvent, and high government debt. Spain has a largely insolvent banking system and low government debt. Public sector spending is higher in France than in Italy, and yet traditionally stable France has become a more attractive destination for investment since Crisis! gathered momentum. Britain saw a financial sector debt crisis transformed into a public sector debt crisis, not least because of the costs of supporting the financial sector. Faced with very diverse economies and problems, each different nation has been prescribed the exact same solution. Strip your states… empower the markets. The markets, the markets… always the markets, a remedy proposed by those who stand to benefit from its application… if this were a medical situation we’d be talking about quack doctors and second opinions. Only in a climate of hysteria could such flimsy reasoning have come so far.
Heading east for Alexandropoli I see graffiti covering signposts, a handful of which caution drivers to turn on headlights in tunnels, to be aware of landslides. It’s noticeable that just the English language portion of the warning has been painted over, so that you can only see it if you’re passing slowly on a bicycle. I doubt it will cause the deaths of many foreigners, but the antipathy of some is clear. None of what I’m saying is to claim that all was once well in Greece. There is general consensus that taxes were evaded, corruption problematic and pensions generous. Whatever the truth in that, the solutions on offer will create new problems rather than eradicating old ones.
As I ride for Turkey I think back to Paris, to the businesswoman who told me the French didn’t believe in the crisis and would “bury their heads in the sand.” The more I think about it the more I disagree. Swallowing the pill of austerity and putting your faith in ultimate salvation from the markets has been disguised as some sort of dignified resilience. Suck it up and don’t squirm. She had it the wrong way round… the only dignified thing left to do is voice the sort of truths that society has long been made embarrassed to declare. The rules of our system are broken… we must take our heads out of the sand in order to say so.