Greece stokes euro debt fears, hits riskier assets … Asian shares and commodities fell on Tuesday, after a shock announcement that Greece will hold a referendum on a new EU bailout deal for the debt-ridden country threw efforts to resolve the euro zone's debt crisis into fresh doubt. – Reuters
Dominant Social Theme: The markets are a good measure of what's going on. And they don't like the idea of a referendum. Therefore, we conclude the referendum is not a good idea. The Greeks should do what the Brussels Eurocrats tell them.
Free-Market Analysis: It is most interesting that stock markets reacted negatively to the idea that Greeks could decide their own future in terms of EU austerity measures. This is surely a dominant social theme – that the market renders unemotional verdict and decides in favor of the more successful reality. It does no such thing.
The global stock market, as created by the Anglosphere elites, is profoundly undemocratic and unfree. Having evolved amidst an ever more authoritarian order, today's markets and those who are influential in them have a vested stake in the current, wretched system. People speak of free markets – especially when it comes to equities – the bottom line is much different.
How is it that markets react to government doings and government finance when many of these events reduce freedom and entrepreneurship? The only answer is that stock markets around the world are set to behave a certain way. The inputs are terrible; the outputs are often disastrous.
In a free-market context, stocks would react to the news that the Greeks could choose their own destiny by going up instead of down. When countries become freer, they produce more entrepreneurs, more goods and services and eventually more prosperity. What's not to like about that? Apparently a lot, from the standpoint of investors. Here's more from the article:
The single currency has given up all of the gains made in a run to as high as $1.4247 last Thursday after the debt deal was announced. Greek Prime Minister George Papandreou's decision to call a referendum could result in a snap election if the public, angry with harsh austerity measures, rejects the deal, and possibly trigger a default, analysts said.
Investors fear the Greek move could undermine Europe's efforts to stop its sovereign debt woes from spreading, just when jitteriness has put Italian bonds under renewed pressure, with 10-year yields rising back above 6 percent.
Stock and bond markets are telling us that the sentiment is Greece shouldn't hold a referendum. How did we get in such a pickle? Well, through the hard work of the Anglosphere elites who have been manipulating markets with increasing vigor ever since the American Civil War.
In fact, the idea that markets – especially stock markets – are bastions of capitalist energy is increasingly a misguided one, an elite promotion. These days, stock markets are mostly a way for elites to cash out at the top of the business cycle, leaving the middle classes stuck with devaluing and even bankrupt enterprises.
Despite market sentiment, we would be surprised if the Greeks vote to continue with the farce of their involvement in the euro – and even in the EU itself. We think that's good. We don't think substantive change will arrive until the whole rotten edifice begins to crumble.
Of course, we've made arguments in other articles that this is exactly what the elites secretly want so that they can create a new worldwide government to take the place of fractured nation-states. But what we have now isn't so swell – and the elites are taking a significant risk by thinking they can control the chaos to come, if that is indeed what they contemplate.
In the era of the Internet, the 'Net Reformation is a process not an episode. Chaos could just as easily bring more freedom rather than more control. The elites are seemingly betting on the former. The certainty that they can manage "change" may extend to Greek Prime Minister George Papandreou – who may be taking a gamble that he can pressure the EU into a better deal by holding a referendum over the heads of sundry Eurocrats.
For this reason, we're not even sure a referendum will ever take place. (He's been vague about the date.) Alternatively, it could be the pressure has gotten to him and a referendum is a way out. Also, the idea of a referendum may defuse some Greek anger, and perhaps that's another reason to declare it.
It's not clear what Papandreou has in mind. What the announcement does accomplish, however, is to show us once more that modern markets are the creatures of the elites who have created them. These markets are like trees trained to grow in a certain direction. They value companies and even countries within the larger context of the current authoritarian system.
The results may satisfy the power elite, but they are not very satisfactory in terms of providing capital to deserving projects and talented entrepreneurs. Of course, that's not the point. In the modern era, capital is as "directed" as history itself.