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The citizens of Greece, the birthplace of democracy made it abundantly clear that they are unwilling to accept the terms of an extended bailout of their broken economy.
It is clear that they are tired of living under austerity measures under which, like most major things financial, cause the greatest suffering to pensioners and the poor. Many of those people live in a world of austerity even in the best of times. For government leaders, who are using the citizenry as political pawns, but who are barely feeling the personal brunt of the impositions, it’s not about the money. It’a about power.
Prime Minister Tsipras has touted the vote as a mandate for “a more sustainable future.” The question is, what does a nation on the verge of bankruptcy envision as a more sustainable future?
The stress of living under a spiral pile of debt with no apparent way out has the power to mentally and emotionally cripple individuals caught in that mire. In the case of nation-states, it has to power to do the same for the masses. When there seems to be no escape, no decision seems to be the right one.
Tsipras believes that the “No” vote will give him more leverage to continue negotiating. In order to prove his point, however, he has led his country from the verge of bankruptcy to the verge of a continental and potentially global crisis.
Tsipras can now come to the (bargaining) table with absolutely nothing to offer. Where once he was like an indigent holding a sign that says “Will work for food,” now he approaches the EU with, “If you don’t help us, we’re all in trouble.”
I stand by my column of 30 June in that I still believe that a deal will be struck. When that happens, it is not likely that either the lender or the borrower will walk away entirely happy. That can only lead to a continuing strained relationship.
Regardless of the vote, Greece is looking at continued austerity – or worse.
The major concern of ADVFN readers will be about what will happen when the markets open. It’s probably not going to be good. The markets do not like uncertainty, and there is no certainty with the Greek debt situation. This week could be a wild ride. However things go, the Greek people will be living under austerity for several more days, if not years.
