I’ve written about Yanis Varoufakis a few times. I check him out whenever there’s a flare up in Greece. There’s one now, so I headed over to his blog and found that he’ll be running on the SYRIZA ticket. He seems a genuine guy, with some really whacked out ideas on centralizing the entire European banking system with a bunch of bonds he made up in his head.
If I remember correctly, he wants Greece to default on the debt, liquidate it, and stay in the Eurozone nonetheless. If this is what he really wants, he won’t be able to accomplish it in SYRIZA. SYRIZA wants an end to the bailout scheme, which is doing nothing but putting Greece into even more debt (it’s debt to GDP has not fallen contrary to popular perception) and at least that aspiration is a good one. But what SYRIZA wants instead is an end to austerity and a free ride to keep spending.
If Varoufakis actually wins a seat, which seems likely, he will likely start to butt heads with his pretty-boy party leader Tzipras, a far leftist who thinks prosperity is invented out of nothing by the good graces of politicians like himself.
End the bailout Varoufakis and Tzipras will agree on. What happens after that, and they’ll start fighting. Tzipras will want more spending, which if he pushes it, will end up pushing Greece out of the Euro by force because Europeans (by which I mean Germans) are not going to finance it anymore. This, Varoufakis doesn’t want. And if they do get pushed out, there will almost certainly be hyperinflation in its drachmas within weeks.
So let’s see what Yanis does. He writes:
My greatest fear, now that I have tossed my hat in the ring, is that I may turn into a politician. As an antidote to that virus I intend to write my resignation letter and keep it in my inside pocket, ready to submit it the moment I sense signs of losing the commitment to speak truth to power.
Keep that letter handy Yanis. You’re going to need it once you see that your fellow politicians are not going to want to cut their spending.