Out of control

The Greek economy is spiraling out of control. Attention in the British media is focussed on possible contagion but the future for the Greek people has now gone critical. 63 billion euros have been taken out of Greek banks since 2009 states Greek Finance minister Mr. Philippos Sachinidis. Estimates vary (the FT quotes 750 million euros a day - 14 May) but all concede that 100s of billions of euros are being moved out every week.

Anti-austerity movements and parties in Greece have long described themselves as 'the lab rats of Europe.'  And the foul experiments are apparently to continue. The landslide of euro-wealth that is tumbling out of Greek banks threatens any positive programme - and any possible way forward. Even were the current severe austerity to continue it would not in any way reduce the scale of the catastrophe that Greece now faces. Chaos has been engineered at the insistence of Europe's political leadership. Greece's people are not only facing the desertion of their own super rich but are also being torpedoed by the EU for their impertinence in voting against further austerity.

What could or should be done - from an anti-austerity perspective?

It's a futile 'what if' - but let's start from the 6 May. In my view the current financial attack could have been foreseen given the anti-austerity vote. It might have been more politically astute if the largest anti-austerity party had formed a minority government on May 7 and then have started to initiate its anti-austerity programme. Then the June 17 election would have been about who supported that programme rather than the gathering impact of the financial and accompanying media storm.

It is still critical today for anti austerity politics in Greece to come up with a bold response to the gathering crisis to prevent fear from driving the Greek electorate back into the arms of their old corrupt masters.

Here are some suggestions from an outsiders point of view.

First Greek banks need to be re-capitalised. The banks need to be nationalised immediately and the export of capital stopped by law. Domestic withdrawals should be limited to a maximum of 100 euros a day for an emergency period. Companies and individuals in Greece with more that 10 000 euros in foreign accounts should, by law, be forced to repatriate their funds from foreign banks under threat of loss of assets to the value of the holdings.

All business, including foreign business based in Greece with assets above 5 million euros should pay a one off levy of 20% of those assets to a government 'rebuilding' fund, again under pain of seizure of equivalent assets. All Greek citizens would be allocated a bank account through which all government wages, payments and pensions would flow.

Immediate steps should be taken to open a dialogue with the Chinese leadership to agree in principle a line of credit, to be based on future agreements to develop shared ownership of important assets including dock space, shipping maintenance and build and access to merchant marine.

Finally the creation of a new currency should take precedence. As soon as technically possible the new currency should be issued at a fixed exchange rate to the euro and simultaneously new purchases or payments in Greece would cease to be be allowed in euros. Any black market exchange would lead directly to the forfeiture of all assets. Greece would have withdrawn from the EU and managed a significant devaluation of its currency.

All of these emergency measures would be accompanied by a call to the world to spend their summer in Greece, to join with the Greek people in their bravery, optimism and in the battle for their future. To spend holiday money on something great. To take heart and give strength. To dance. Drink ouzo and Retsina (shudder). To soak up them rays!

Hope to see you there!