Open Letter To Yanis Varoufakis

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Yanis Varoufakis,
Minister of Finance,
Ministry of Finance of the Hellenic Republic,

Yanis Faroufakis


Dear Mr. Varoufakis,

Congratulations on your referendum win as your nation enters one of the most difficult periods in its history. While you have a reputation as being a clever economist, and though you are rooted in Marxist theory, please accept this letter in the hope that you might inspire your people toward self-fulfilment, independence, and freedom.  As you stare into tomorrow, . . . in point form — you’re busy.

•   Greece was seduced into the EU with attractive interest rates — that’s understandable, but not much. A nation lured into giving up control over its currency is a nation beguiled into relinquishing the last vestiges of control over its own culture.  Get out of the EU while the people are behind you to do it.

•   Contrary to your own past perceptions, Keynesianism does not work. Greece is simply a small version of America — two political parties have controlled it for as long as most Greeks can remember, and those two parties have for decades done the bidding of senior bankers and plutocrats.  Of all economists on the planet, YOU, Yanis, have the opportunity to break the historical trend, and make history.

•   The EU leaders are going to now press the throttle on infusing the fear factor.  Problem is, they are more worried than you are.  If they give you any relief, led by Germany, the rest of the troubled nation members, starting with Spain, Italy, and Portugal, will demand equal treatment. Ignore them.  They believed in Keynesianism and flooding banks with free money — let them knock on your door begging you to listen, and then ignore them.  What are they going to do, repossess your car, or perhaps your art gallery?

•   They believed in QE (Quantitative Easing), let them languish in qualitative socialist stagnation.  Merkel blundered through this multiyear disintegration of the EU and its mismanagement by bankers and bureaucrats, but no one noticed since she was sitting atop Europe’s only real production engine. Now the EU’s socialist incompetence is forcing it to stare into its own abyss, along with its bankers.  Let its crony capitalist central banking system crack under its own weight. They also all need to rebuild.

•   The ESM (European Monetary Union) lent you about $160 billion.  It has no loan reserves. You already know its liabilities are rigged triple-A rated bonds, you know, the fake ratings based on the notion that their loans to you, to Portugal and Ireland are such ‘safe’ assets.  That’s the QE dreamland the central bankers want all of us to live in.  But as you also know, the EU governments especially Germany, will get lead position at the front of the line to ‘cover’ or backstop the loses.  And that’s just for a start.  Let them sweat. Stand hard.

•   Yes, their bonds will get expensive.  European taxpayers may revolt against their inept leaders. The failure of the ‘Greek’ socio-economic structure, and its venture into the EU and with EU bankers is being magnified by its comparable similarity to the rest of the members. That’s not your problem.  Although, German taxpayers will get a surprise when they find out what Merkel committed them to.

•   Oh, and about the Trans-European Automated Real-time Gross Settlement Express Transfer system (TARGET2), you know, that EU clearing house to which your banks owe more than $110 billion?  Let the EU, its heads of state and its central bankers worry about it.  Your banks have a job to do, with you, that’s called rebuilding your country.  If those 5 ugly ducks don’t co-operate, use the smaller banks to get the new currency into the system and into reconstruction.  That is exactly what should have occurred in America, but instead, The Fed just fed it’s biggest friends with cheap cash that never made it to the street and into the hands of entrepreneurs.  Oh sure, some lent money for homes and cars that they could repossess, but they did nothing to stimulate the most critical parts of the economy.

•   World media, particularly the North American kind like the NYT, is doing its best to convince all that Greece will not leave the EU, or that if it does leave, the Greek economy (less than 2% of the EU) is insignificant.  They are lying.  You inherited a Greece with a bloated government, using cheap central bank money and a self-serving political class (2 parties who alternated in the seat of power)  which has fed its financial benefactors, and misled the country into poverty.  The media does not wish these facts to gain too much traction in America, where too many parallels might become evident. And, the EU is being equally mismanaged by bloated governments, which have become oxygen sucking blobs, stifling freedom of their own people.

•   The EU knows and you know that you can never repay that total of $330 billion your country owes. Even term extensions out 40 years will make no difference to you or your grandchildren.  So leave it alone.  Greece has been a bankrupt nation for years.  Embrace the inevitable fact that Greece is in for a 20 year rebuild and accept that this remake will be stressful.   Get on with reprinting your own currency, and get back in control.   Focus inward, not outward for now.  Stimulate your industries, your agricultural and manufacturing sectors, and promote your natural resources, but most of all give entrepreneurs reason to form new companies, reversing the trend in Greece’s expanding unemployment lines.

•   Get out in front of the story. Tell Greeks what you’re doing, what your plans are and don’t do what the other leaders are doing.  Tell your people the truth.  You’ve been given a mandate, and hold tremendous political capital.  Use it. Re-organize your taxation system, your bureaucracy, your leeches, your assets, your laws, your liabilities, and particularly your pension system.

•   Your nation must enter a new age of freedom.  Freedom from bureaucratic overburden and inefficiency, freedom from graft, freedom of business, freedom of economy, freedom from political corruption and freedom of labour.  Imposition of stifling regulations, particularly from a distant central and foreign politicos and bureaucrats, may satisfy grandiose schemes of global empires, but it irritates natural human tendencies toward self-actualization.

Your boss may not know what to do, he’s really just a political hack, but surely, you do. You’ve personally experienced what a relatively free society is capable of.  Do the right thing.  Make a break from your roots.  Part ways with Keynesians and their ilk.  Get creative.

Show the developed world that the cradle of democracy can surge to become a leader once again.  Show the self-destructive socialists in Europe and America that their current path leads to nowhere, and that there is a new Greek Experiment on the make.  Impose a positive stamp on history as your legacy to Greece’s grandchildren — freeing them from the serfdom of overwhelming debt.  If you’re really the smartest guy in the room, give us a light that might just become a North Star.

We wish you all the best in your most difficult endeavour.



James Raider

A constituent of the vast baby boomer generation with a career which has been fortunate to know the ponderous corporate worlds, as well as the intimately pressurized, and invigorating entrepreneurial domains of high tech and venture capital, I have harvested my share of mistakes meandering through corridors of enterprise from Silicon Valley, to London and endless, colourful, sometimes praetorian points in between. The voyage has provided an abundance of fodder for a pen yielding to an inquisitive keyboard, a foraging mind, and a passionate spirit. Whether political or business or social or economic or personal, is it not all political? It is a privilege to write, and an even greater privilege to be read by anyone, and sometimes with the wind at my back the writing may occasionally be legible. I do not write to invite scorn, nor to invite respect, but if I get really lucky the writing can stimulate thinking. I also write for the very selfish purpose of animating my own processes, and engaging the best of what life offers. Above all, whether biting fire or swatting shadows, I am grateful to be gifted the freedom to write and publish whatever flows down to the keyboard. To all those who enabled this freedom, and to all those standing guard to preserve it, I am indebted.

11 Responses to “Open Letter To Yanis Varoufakis”

  1. 2


    Yes, and our bourgeoisie, those who control our politic, the ruling elite of Goldman Sachs and their running mates are watching this very carefully. While they receive the special treatment from Obama and company at the expense of our citizens, and they continue to pulverize the American economy so that the economy is becoming lifeless from the actual or real unemployment; there is no way a stagnant economy that has shipped its production capability out of the country can pay down Obama’s mythical debt.

    The USA will be facing the same problems that plague Greece and the EU, it is only a question of time.

  2. 3


    Jaysus Skook its like you are going all socialist on us.
    I fully expected that by the time i got to “the ruling elite of Goldman sachs and their running mates…..”
    that you would have said
    Goldman Sachs and their running dogs…..”
    Sounds like you are channeling Bernie Sanders there

  3. 5

    James Raider


    @Skookum: #2

    The USA will be facing the same problems that plague Greece and the EU, it is only a question of time.

    The parallels between Greece and the U.S. are unmistakable. You’re right, it’s only a matter of ‘Time’.

  4. 6

    James Raider


    Yanis Varoufakis has been squeezed into resigning by the EU bankers and Merkel.

    The latté swilling, career communist and debt loving Euclid Tsakalotos is more to their liking. He won’t give them any attitude.

    Alexis Tsipras is lost. He understands nothing and is afraid of the EU. At least in Varoufakis he had a guy with some brass.

    Greece is screwed.

  5. 7

    James Raider


    @Bill: #3
    Unfortunately, Varoufakis didn’t resign. He was told to leave by Tsipras, who was Ordered to get rid of him by the EU leadership.

    I am also convinced that Merkel fears a Greek exit. It would lay bare some of her lies to German taxpayers regarding the fact that she increased their DIRECT exposure to Greece. They’re in for a shock.

    EU is a failed experiment that should be allowed to turn into dust, along with its Keynesian globalist bankers and kleptocrats.

  6. 8


    @James Raider: No one from the left likes to hear the bitter truth about their failure or the medicine they have to take. Alternately, I hear liberals brag about how well Europe does on socialism and brag about how well the US economy is doing (!) compared to Europe; if anything is doing worse than THIS economy, it is definitely tanking.

    Greece probably knows no one can let it fail for all the other institutions it will drag down with it, though helping them without a “fundamental transformation” of their socialist ways is just good money thrown after bad.

    I’ll bet Varoufakis is glad to be out.

  7. 9

    James Raider


    @Bill: #8
    “good money after bad” = Yes, and it goes both ways. Greeks can’t ever repay their debt, ever, and adding to it would make no sense, . . . either for the EU taxpayers, or for the Greeks. Greeks would only be burning cash.

    I’ve read and followed Varoufakis for a couple of years now, and although he’s on the opposite end of the scale from my own sense of what is right, I’ve nonetheless found him very creative and about one of the few economists anywhere that regularly stimulates one’s thinking. He explores outside his box, unlike just about all egocentric economists, or would-be economists like the idiotic ego-in-residence at the NYT.

    Now without him, IMHO, Greece is in serious trouble because its leader is simply going to continue with the status quo. He is clueless. It’s not simply a disintegration of the Greek economy we’re witnessing, but an eclipse of Greek culture. Drop the curtain.

  8. 10

    t t hermens

    @James Raider:

    The European idea is a good idea had it been well thought through before the onset
    of the creation of this incredible beaurocratic and incompetent machine which sucks the nations dry and produces nothing return. E.E.C. was a very good beginning and it should have been left at that. Europe didn’t need a Maastricht Treaty, then a Lisbon Treaty all man made and useless. Europe should go back to its E.E.C. status and abandon the Euro.

  9. 11

    James Raider


    @t t hermens: #19
    t t hermens, I strongly support the abandonment of the Euro.

    Each member nation has relinquished its sovereignty and control of its culture when took on the Euro.

    Each and every European nation is a very parochial sociopolitical and economic cluster which has been so for centuries. Even France was a segregated group of hundreds of disparate villages which didn’t even speak the same language, until Napoleon came along and implemented programs like building a network of roads.

    The Euro, a misguided concept promulgated by globalists who don’t understand human nature or the reality on the ground.

    Greece should take the exit door. Alas, it no longer has a leader that can guide it out of the mess. Varoufakis might have had a chance, since he understands currency and was on his way to doing just that.

    Greeks should now get rid of their leadership and start over.

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