In fact, in the past the US Congress passed legislation - the Brown Amendment - requiring the US to oppose IMF agreements that do not exempt health and education spending from IMF budget caps.
National Education Association Protests IMF Pressure on Teachers in Jamaica http://www.justforeignpolicy.org/node/671 On Mon, Mar 30, 2015 at 2:46 PM, raghu <[email protected]> wrote: > Exclude humanitarian spending from budget surplus requirements? I am > surprised this has not been floated yet.. > > Even the Eurocrats do not want people denied food, heating and > electricity... One hopes.. > -raghu. > > > > > > On Mon, Mar 30, 2015 at 12:13 PM, Robert Naiman < > [email protected]> wrote: > >> Suppose that we were only allowed to raise a single demand in the context >> of the Troika-Greece confrontation. Suppose that the demand had to satisfy >> the following properties: >> >> 1. It's winnable. >> 2. Winning it would make a substantial difference to the well-being of a >> bunch of people in Greece. >> 3. The demand would be popular in Greece. >> 4. The demand would be marketable in the West, something we could >> organize a bunch of people around, such as labor leaders, health groups, >> Members of Congress. >> >> What should the demand be? >> >> ---------- Forwarded message ---------- >> From: Mark Weisbrot, CEPR <[email protected]> >> Date: Mon, Mar 30, 2015 at 9:06 AM >> Subject: Are the European Authorities Destroying the Greek Economy in >> Order to "Save" It? >> To: [email protected] >> >> >> [image: CEPR logo] >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=BzgzWIjlU8Bgzf78mLdr0fE%2Ba9uoRu6y> >> Are the European Authorities Destroying the Greek Economy in Order to >> "Save" It? >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=4SVN8gEJ%2FqOd7d%2BNGH9tI%2FE%2Ba9uoRu6y> >> >> By Mark Weisbrot >> ------------------------------ >> >> This article was published by Al Jazeera America >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=jTR5WXjWZJhnYtSJ1lva7PE%2Ba9uoRu6y> >> on March 30, 2015. >> ------------------------------ >> >> There is a tense standoff right now between the Greek government and the >> European authorities – sometimes known as the Troika because it includes >> the European Commission, the European Central Bank (ECB), and the >> International Monetary Fund (IMF). ECB President Mario Draghi denied >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=gL%2FG2qsUjw%2F5HBb4dH96t%2FE%2Ba9uoRu6y> >> this week that his institution is trying to blackmail the Greek government. >> >> But blackmail is actually an understatement of what the ECB and its >> European partners are doing to Greece. It has become increasingly clear >> that they are trying to harm the Greek economy in order to increase >> pressure on the new Greek government to agree to their demands. >> >> The first sign that this was the European authorities’ strategy came on >> February 4 -- just 10 days after the Syriza government was elected -- when >> the European Central bank cut off >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=3iQOt3qFbln54Lp5mZ3ybfE%2Ba9uoRu6y> >> the main source of financing for Greek banks. This move was clearly made in >> bad faith, since there was no bureaucratic or other reason to do this; it >> was more than three weeks before the deadline for the decision. >> Predictably, the cut off spurred a huge outflow of capital from the Greek >> banking system, destabilizing the economy and sending financial markets >> plummeting. More intimidation followed, including a slightly veiled >> threat >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=7J2DBkBlhAYztf5%2Fu6yamPE%2Ba9uoRu6y> >> that Emergency Liquidity Assistance – Greece’s last credit lifeline from >> the ECB – could also be cut. The European authorities appeared to be hoping >> that a “shock and awe” assault on the Greek economy would force the new >> government to immediately capitulate. >> >> It didn’t work out that way. The Syriza party had a mandate from the >> Greek electorate to improve their living standards after six years of >> Troika-induced depression and more than 25 percent unemployment. The new >> Greek government backed off its demand for a debt “haircut,” and made other >> compromises, but wasn’t going to simply surrender as if there had been no >> election. The European authorities finally blinked on February 20 and >> agreed to grant a four month extension, through June, of the prior >> “bailout” agreement – the quotes are necessary because most Greeks have not >> been “bailed out,” but rather thrown overboard, having lost more than 25 >> percent >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=1lGlmLxtAKzoIrhmIaGiMvE%2Ba9uoRu6y> >> of their national income since 2008. >> >> The immediate condition for the February 20th agreement was that the >> Greek government present a list of reforms that they would undertake, which >> they did, and which European officials approved. Remaining issues were to >> be negotiated by April 20th, so that the final installment of IMF money – >> some 7.2 billion euros – could be released. One might assume that the >> February 20th agreement would allow these negotiations to take place >> without European officials causing further immediate and unnecessary damage >> to the Greek economy. One would be wrong: a gun to the head of Syriza was >> not enough for these “benefactors;” they wanted fingers in a vise, too. >> >> And they got it. The ECB refused to renew the Greek banks’ access to its >> main, cheapest source of credit that they had before the January 25 >> election. And they refused to lift the cap on the amount that Greek banks >> could loan to the Greek government – something that they did not do to the >> previous government. The result has been to create a serious cash flow >> problem for both the government and the banks. Because of the ECB’s credit >> squeeze, the government could soon find itself in a situation that the 2012 >> government faced when it delayed payments to hospitals and other >> contractors in order to make debt payments; and it could even face default >> at the end of April. >> >> The amounts of money involved are quite trivial for the European Central >> Bank. The government has to come up about 2 billion euros of debt payments >> in April. The ECB has recently shelled out 26.3 billion euros to buy >> eurozone governments’ bonds as part of its 850 billion euro quantitative >> easing >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=YXtpomq%2BUK4ZfFTv%2F7i9O%2FE%2Ba9uoRu6y> >> program over the next year and a half. The ECB’s excuses for causing this >> cash crunch in Greece ring hollow: for example, it argues that banks under >> the previous government didn’t have to have the limit that the ECB is >> imposing on banks now, because the prior government had committed to a >> reform program that would fix its finances. But so has this one. >> >> It could hardly be more obvious that this is not about money or fiscal >> sustainability, but about politics. The European authorities want to show >> who is boss. And also, this is a government that they didn’t want. And they >> really don’t want this government to succeed, which would encourage Spanish >> voters >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=cHtS3xaHGBFqfVhfAjfFOPE%2Ba9uoRu6y> >> to opt for a democratic alternative (Podemos) later this year. >> >> The IMF had projected >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=6GWZS81YA975Fg3G4RllsvE%2Ba9uoRu6y> >> [PDF] the economy to grow by 2.9 percent this year, and until the last >> month or so there was good reason to believe that – as in 2014, after years >> of gross over-estimates – their forecast would be on target. This growth >> would likely have kept Syriza’s approval ratings high, together with its >> measures to provide food and electricity to needy households, and other >> progressive changes. The ECB’s actions, by destabilizing the economy and >> discouraging investment and consumption, will almost certainly slow >> Greece’s recovery, and could also be expected to undermine the government’s >> support. >> >> If carried too far, European officials’ actions could also inadvertently >> force Greece out of the euro. It’s a dangerous strategy, and they should >> stop undermining the economic recovery that Greece will need if it is to >> achieve fiscal sustainability >> >> >> Mark Weisbrot >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=i%2F6jlqkJdTFrU3Evyp4Bp%2FE%2Ba9uoRu6y> >> is co-director of the Center for Economic and Policy Research, in >> Washington, D.C. and president of Just Foreign Policy >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=%2FpGV6XeCww29HB7pgEy0vHCnx272yRRh>. >> He is also the author of the forthcoming book *Failed: What the >> "Experts" Got Wrong About the Global Economy* (Oxford University Press, >> 2015). >> >> More from CEPR >> Reports >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=vL%2Bwo2eAe5cGNqbZqMzZ2%2FE%2Ba9uoRu6y> >> Op-eds & Columns >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=bacKp7f6peN%2FcQxlaFGayvE%2Ba9uoRu6y> >> Data Bytes >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=8vG1A1%2F9hxNUgG%2F3%2BgUDWvE%2Ba9uoRu6y> >> Beat the Press >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=GIWE8wndyo4jeEzjDKjgfPE%2Ba9uoRu6y> >> CEPR Blog >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=jxodUe%2FuYCzLuI8BfS2qMPE%2Ba9uoRu6y> >> The Americas Blog >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=frijEADu9sMtK02oVSCix%2FE%2Ba9uoRu6y> >> Haiti Relief and Reconstruction Watch >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=%2BDZZRIe0BLIn9nDVxCbq8vE%2Ba9uoRu6y> >> Events >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=QBUtzTOlt1SaH3f4ujQZz%2FE%2Ba9uoRu6y> >> >> Donate >> Please consider making a donation >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=QqyHsfwMpaL%2B5fjzTi0KTPE%2Ba9uoRu6y> >> to CEPR. In addition to foundations, we rely on people like you to support >> our work. >> >> Federal employees can support CEPR through the Combined Federal Campaign, >> CFC #79613. >> >> [image: CFC Badge] >> >> About >> The Center for Economic and Policy Research is an independent, >> nonpartisan think tank that was established to promote democratic debate on >> the most important economic and social issues that affect people's lives. >> CEPR's Advisory Board includes Nobel Laureate economists Robert Solow and >> Joseph Stiglitz; Janet Gornick, Professor at the CUNY Graduate Center and >> Director of the Luxembourg Income Study; and Richard Freeman, Professor of >> Economics at Harvard University. >> >> >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=EGmkWog%2FBoCfnMxU%2BodRePE%2Ba9uoRu6y> >> >> >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=BX%2FvuZ0VKcQWeoxGvobBwfE%2Ba9uoRu6y> >> >> [image: CEPR RSS Feed] >> <http://org.salsalabs.com/dia/track.jsp?v=2&c=d8skZW%2FouA2ALdESuNuIYfE%2Ba9uoRu6y> >> >> Center for Economic and Policy Research, 1611 Connecticut Ave, NW, Suite >> 400, Washington, DC 20009 >> Phone: (202) 293-5380, Fax: (202) 588-1356 >> >> >> >> >> >> _______________________________________________ >> pen-l mailing list >> [email protected] >> https://lists.csuchico.edu/mailman/listinfo/pen-l >> >> > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > >
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