European politics: does Germany want a failed-state buffer region to absorb or discourage the immigrant influx?
The Foundation is doing remarkable work in helping the people of Greece deal with their ongoing economic crisis.
Stavros Niarchos has spent $100 million so far on jobs-creating projects in technology innovation and cultural preservation, and has promised another $200 million for the years to come.
He continues: “These ancient people built in stone and inscribed their ideas on tablets. Yet how fragile their achievements proved to be in the face of economic decline and the onslaughts of invaders … “Any way you look at it, the people of Greece are headed toward misery. And you can see it on their faces . . . “
“In the end, this is an end-of-growth dilemma. If Greece’s economy were still expanding at its 1990s rate, there is at least a chance that the government could repay its debt. But that kind of growth is now unachievable. And as the whole global economy sputters, it is nations like Greece, which live largely from tourism and import all their oil, that will likely confront growth limits first” . . .
Is Germany willing to see Greece—and maybe eventually another country or two—exit the euro, and perhaps the European Union as well, so as to create a failed-state buffer region to either absorb or discourage the immigrant influx?
A summary of the final paragraphs of Richard’s article follows. Refugees from political chaos in the Middle East, and from worsening African poverty, have fed rapid population growth in Athens (and Istanbul as well). Immigration has led to the requirement for more investment in schools, roads, and other infrastructure, and hence more borrowing to finance such projects.
This is a problem for Europe as a whole, but it’s the entry points (Turkey, Greece, Italy, and Spain) that bear the brunt. No doubt European nations situated further north would like a firewall against this tide of immigrants, which can only expand as the century wears on.
One man speculated that an unspoken subtext of the debt crisis might be that Germany is willing to see Greece—and maybe eventually another country or two—exit the euro, and perhaps the European Union as well, so as to create a failed-state buffer region to either absorb or discourage the immigrant influx.
Greece offers an opportunity to study the challenges and opportunities of the end of economic growth for those in the “developed” world. But it’s more than a historic test case; Greece is a nation of 11 million people who face real hardship. Wish them well; you might be next.
Read his article here: http://www.postcarbon.org/greece-diary/
Posted on August 4, 2015, in Banking, Economy, EU, Finance, Government and tagged debt crisis, end-of-growth, failed-state buffer region, Germany, Greece, growth limits, immigrant influx, Richard Heinberg, Stavros Niarchos Foundation. Bookmark the permalink. Leave a comment.