The Stanford Daily: Greece will not go bankrupt, for geopolitical reasons

The Stanford Daily: Greece will not go bankrupt, for geopolitical reasons

Athens, February 10, 2015/ Independent Balkan News Agency

By Spiros Sideris

For purely non-economic reasons, SYRIZA will not leave empty-handed from the negotiating table, writes analyst of the “The Stanford Daily”, Winston Shi.

“The coming months will be crucial for the future of the eurozone and therefore for the financial stability of Europe itself”, says Shi and notes that “the electoral promise of SYRIZA is quite honest: 50 cents instead of 1 dollar is better than nothing”, while he stirs up the statement of Finance Minister:” in March we will have liquidity problems… then we’ll see how strict Europe is”.

Meanwhile, the commentator of The Stanford Daily writes that “from the perspective of SYRIZA, this is a pretty smart plan” and this is because “there is no formal supranational police forcing countries to pay their debts [… ]. In short, Greece may default on its debt whenever it wants”.

At this point, the analyst of the American newspaper, wonders what kind of tremors might bring a disorderly Greek default, as well as its coercion to abandon the euro to other member states of the eurozone. “But,” says Winston Shi, «The eurozone is not working in a vacuum, and this is where America comes”. “Greece probably will not bankrupt and will not abandon the euro and SYRIZA probably will not leave empty handed” from the negotiation, believes the American journalist who stresses that this “has nothing to do with the economy. Everything have to do with geopolitics”.

Shin explains that “if SYRIZA bankrupts, then they won’t be able to borrow from the markets, but will continue to borrow from places where the free market does not apply. Countries like China and Russia can economically save Greece in exchange for political favors. And if SYRIZA intends to play the owner who auctions its possessions, losing money from the deal, however, may still be worth buying the friendship of Greece”. “Besides”, says the analyst “it is no coincidence that immediately after the victory of SYRIZA, Vladimir Putin called Alexis Tsipras to Moscow”.

“There is a reason because Greece is in NATO, and there is a reason why Greece was the first country that Harry Truman suggested when he proposed the Marshall Plan”, Shi says and adds: “Greece, along with Turkey, possesses an excellent strategic position in Europe. Along with Turkey, it has been indicated (by Putin) for access of Russian control in the Mediterranean. And during the Cold War, it was one of the most important military bases for the US. Apart from this, the thought that a NATO member will be accountable to a country outside NATO is clearly unacceptable”.

Consequently, for Shi, «America will probably push Europe to accept a longer timeframe for the Greek debt – en short, a refinancing. Both sides of the conflict will be able to say that they got what they wanted – Greece will be able to relax its austerity and Europe to avoid the cancellation of the debt. America should give some concessions to Europe to do so. But, I guess that is the price to be able to be the leader of the free world”.