Quotulatiousness

February 28, 2012

Did Greece get bailed out or did it default? A little from column A and a bit from column B

Filed under: Economics, Europe, Government, Greece, Politics — Tags: , , , — Nicholas @ 09:56

Detlev Schlichter explains what happened in the “big fat Greek bailout”:

Greece was bailed out for the second time in four months. Or did it default? Well, a bit of both, I guess.

All bondholders are equal. But some are more equal than others. If you are the ECB, your Greek bonds were exchanged, par for par, for new Greek bonds, and you can go on pretending that they are worth their principal amount. You won’t have to report a loss for now. But if you are a ‘private’ entity — and that is a rather loosely used term these days as it includes the banking industry which is either now partially owned by the state or to a considerable degree dependent on ongoing support from the lender-of-last resort — more than half your Greek investment was wiped out. So Greece defaulted. But as you ‘agreed’ to the ‘haircut’ it was in fact a ‘voluntary restructuring’, although you really had no choice.

[. . .]

I guess we shouldn’t lose sight of the fact that Greece’s economic model is fundamentally unsustainable, whichever way you cut it. Greece has been living beyond its means for a long time, and has managed to do so by flying under air-cover of the EMU project and with the tailwind of cheap credit and easy money. Spending by the Greek state accounts for more than half of registered economic activity, and a third of the workforce is employed by the public sector. ‘Activities’ are being subsumed under the heading of ‘Greek GDP’ that nobody would voluntarily pay for, that are to a large degree wasteful, and that are simply unaffordable under anything but the most bizarrely generous credit conditions, i.e. precisely those that Greece enjoyed from 2001 to 2008. Easy money has been used to paper over grave economic imbalances. Some of what is generously labelled ‘GDP’ should be discontinued — and fast.

To even suggest that such an economic model would be manageable if Greece, a country with about three quarters of the population of metropolitan Los Angeles but with less than half of L.A.’s GDP, only had its own paper currency and could inflate and devalue to its heart’s content, is economically illiterate. No country ever prospered by running budget deficits funded by the printing press or by creating domestic inflation. Devaluing your currency may give your exporters a shot in the arm — for about five minutes. But it scares your domestic savers away for years to come and severely diminishes your ability to keep or attract capital, the backbone of any sustainable economic model. To even try and attempt to ‘inflate away’ a debt load worth 160 percent of a generously calculated GDP would cause economic damage of gigantic proportion. One must have swallowed the Keynesian mythology of deficit-spending whole to believe that the country could borrow and print itself out of this mess. A proper default on its existing debt and rebuilding from a lower base — but with a hard currency — are the better options.

February 21, 2012

Greece: “now officially a ward of the international community”

Filed under: Economics, Europe, Government, Greece — Tags: , , , — Nicholas @ 10:40

Felix Salmon on the dire Greek financial future:

Greece is now officially a ward of the international community. It has no real independence when it comes to fiscal policy any more, and if everything goes according to plan, it’s not going to have any independence for many, many years to come. Here, for instance, is a little of the official Eurogroup statement:

    We therefore invite the Commission to significantly strengthen its Task Force for Greece, in particular through an enhanced and permanent presence on the ground in Greece… The Eurogroup also welcomes the stronger on site-monitoring capacity by the Commission to work in close and continuous cooperation with the Greek government in order to assist the Troika in assessing the conformity of measures that will be taken by the Greek government, thereby ensuring the timely and full implementation of the programme. The Eurogroup also welcomes Greece’s intention to put in place a mechanism that allows better tracing and monitoring of the official borrowing and internally-generated funds destined to service Greece’s debt by, under monitoring of the troika, paying an amount corresponding to the coming quarter’s debt service directly to a segregated account of Greece’s paying agent.

The problem, of course, is that all the observers and “segregated accounts” in the world can’t turn Greece’s economy around when it’s burdened with an overvalued currency and has no ability to implement any kind of stimulus. Quite the opposite: in order to get this deal done, Greece had to find yet another €325 million in “structural expenditure reductions”, and promise a huge amount of front-loaded austerity to boot.

February 16, 2012

Getting rid of that messy, obstructive “democracy” thing in Europe

Filed under: Bureaucracy, Europe, Government, Greece, Liberty — Tags: , — Nicholas @ 10:40

Bruno Waterfield on the destruction of democracy in Greece and what it will mean for the rest of the European Union:

What happens in Greece will mark the opening of a new era in European politics. It is important therefore to understand what is and isn’t going on. The crisis is not, as many believe, being driven by ‘neoliberal’ economic policies. It isn’t caused by any Greek cultural propensity to fecklessness either. And, despite the protest graffiti and the timeless appeal of Nazi references, the Greek tragedy is not a plot to restore an explicit German hegemony in Europe. Angela Merkel is no Adolf Hitler.

What is happening in Greece is a crisis of European proportions because it is the sharpest expression of a destructive trend common to all countries in the EU: the twenty-first-century elite mission to place institutions, policy and statecraft above society. The Greek catastrophe, then, is an indicator of what happens when the question of interest or politics becomes the sole preserve of bureaucratic or state structures decoupled from, and increasingly defined against, the public.

Measures imposed on Greece are explicitly declared, even celebrated, as being in opposition to Greek society. Any attempt by political parties to uphold the democratic representation of Greek interests is met with aggressive hostility. Moreover, the EU-IMF programme, or so-called Memorandum of Understanding, for Greece is utterly divorced from economic reality. As documented in the Daily Telegraph, the Eurozone’s policies are pushing Greece into a ‘death spiral’ that defies any economic logic.

February 15, 2012

Italy faces the end of “a job for life”

Filed under: Economics, Europe, Italy, Law — Tags: , , — Nicholas @ 09:51

You could say that they’re not happy about the possibility:

It was just an off-the-cuff quip during a television interview this month. But when Prime Minister Mario Monti remarked that having a job for life in today’s economy was no longer feasible for young people — indeed, it was “monotonous” — he set off a barrage of protests, laying bare one of the sacrosanct tenets of Italian society that the euro zone crisis has placed at risk.

Reaction was fast, furious, bipartisan and intergenerational. “I think the prime minister has to be careful with the words he uses because people are a little angry,” Claudia Vori, a 31-year-old Rome native who has had 18 different jobs since graduating from high school in 1999, said of Mr. Monti’s “monotonous” moment.

[. . .]

In Italy in particular, every major political force after World War II subscribed to the idea of guaranteeing the work of the male breadwinner to preserve the traditional family structure, said Elisabetta Gualmini, a labor expert who teaches at the University of Bologna. This social doctrine was also blessed by the Roman Catholic Church, which still holds much sway in Italy.

“The problem is that this model is myopic” in a global marketplace, Professor Gualmini said. “But Italy has entrenched itself on this model, which became a strong ideology and so rooted in beliefs that it cannot be challenged.”

February 13, 2012

How Greece got into their predicament

Filed under: Economics, Europe, Government, Greece, Politics — Tags: , , , — Nicholas @ 10:18

Anita Acavalos wrote this article in 2010. It’s still relevant — perhaps even more so today:

Although at first glance the situation Greece faces may seem as simply the result of gross incompetence on behalf of the government, a closer assessment of the country’s social structure and people’s deep-rooted political beliefs will show that this outcome could not have been avoided even if more skill was involved in the country’s economic and financial management.

The population has a deep-rooted suspicion of and disrespect for business and private initiative and there is a widespread belief that “big money” is earned by exploitation of the poor or underhand dealings and reflects no display of virtue or merit. Thus people feel that they are entitled to manipulate the system in a way that enables them to use the wealth of others as it is a widely held belief that there is nothing immoral about milking the rich. In fact, the money the rich seem to have access to is the cause of much discontent among people of all social backgrounds, from farmers to students. The reason for this is that the government for decades has run continuous campaigns promising people that it has not only the will but also the ABILITY to solve their problems and has established a system of patronages and hand-outs to this end.

Anything can be done in Greece provided someone has political connections, from securing a job to navigating the complexities of the Greek bureaucracy. The government routinely promises handouts to farmers after harsh winters and free education to all; every time there is a display of discontent they rush to appease the people by offering them more “solutions.” What they neglect to say is that these solutions cost money. Now that the money has run out, nobody can reason with an angry mob.

[. . .]

Greece is the perfect example of a country where the government attempted to create a utopia in which it serves as the all-providing overlord offering people amazing job prospects, free health care and education, personal security and public order, and has failed miserably to provide on any of these. In the place of this promised utopian mansion lies a small shack built at an exorbitant cost to the taxpayer, leaking from every nook and cranny due to insufficient funds, which demands ever higher maintenance costs just to keep it from collapsing altogether. The architects of this shack, in a desperate attempt to repair what is left are borrowing all the money they can from their neighbours, even at exorbitant costs promising that this time they will be prudent. All that is left for the people living inside this leaking shack is to protest for all the promises that the government failed to fulfil; but, sadly for the government, promises will neither pay its debts nor appease the angry mob any longer. Greece has lost any credibility it had within the EU as it has achieved notoriety for the way government accountants seem to be cooking up numbers they present to EU officials.

H/T to Steve Baker MP for the link.

Greek government expands categories of disabled to include “compulsive gamblers, fetishists and sadomasochists”

Filed under: Bureaucracy, Europe, Government, Greece, Health — Tags: , , , , — Nicholas @ 10:04

At a time most people expect the Greek government to be cutting back, the Labor ministry just expanded the recognized disabilities to include a few categories that will raise eyebrows:

Disability groups in Greece expressed anger on Monday at a government decision to expand a list of state-recognized disability categories to include pedophiles, exhibitionists and kleptomaniacs.

The National Confederation of Disabled People, calling the action “incomprehensible,” said that pedophiles could be eligible for a higher disability pay than some people who had received organ transplants.

The Labor Ministry said the categories added to the expanded list — that also includes pyromaniacs, compulsive gamblers, fetishists and sadomasochists — were included for purposes of medical assessment and used as a gauge for allocating financial assistance.

Der Spiegel: Is it too late to save Greece?

Filed under: Bureaucracy, Europe, Government, Greece — Tags: , — Nicholas @ 08:48

The Greek civil service is overstaffed, and has lots of quirky habits, proving the old adage that there’s nothing as permanent as a “temporary” government program:

One of Greece’s purported saviors is a short, rotund, 72-year-old man named Leandros Rakintzis. He was once a respected constitutional judge on the country’s highest court, the Areopagus. Since 2004, he has been the head of a government agency that is the first of its kind for Greece. Rakintzis is Greece’s general inspector of public administration.

His body twitches and shakes with delight as he talks about his successes and discoveries. For example, he discovered that on weekends, hospitals admit elderly people who require nursing care or are confused because their children bring them there so that they can take a few days of vacation. This, of course, drives up healthcare costs.

[. . .]

Rakintzis has stories to tell that take place throughout Greece, and some are downright unbelievable. For example, the government agency that was created to manage a bid to make Greece’s second-largest city, Thessaloniki, a European cultural capital in 1997 is still humming away. Its employees are supposedly working on winding down the major event and settling up the accounts — 13 years later.

How many people work there? “I don’t know. Not even the government knows that,” says Rakintzis. He adds, in an almost threatening tone: “Not yet.” Rakintzis and his staff are now in the process of investigating about 4,000 government offices and agencies in similar situations.

[. . .]

Greece has more than five times as many civil servants per capita than the United Kingdom. The country’s inflated government apparatus consumes tens of billions of euros a year. It’s money the Greek state doesn’t have — and actually never did. Greece’s gross domestic product is only slighter higher than that of the German state of Hesse and is just one-tenth the size of Germany’s total economic output.

February 8, 2012

A spectre is haunting the EU elite: the spectre of democracy

Filed under: Bureaucracy, Europe, France, Greece, Politics — Tags: , , — Nicholas @ 10:25

Bruno Waterfield on the worries of the movers and shakers in the fancy office suites in Brussels:

The European Union is currently straining every sinew in a campaign to stifle outbreaks of politics across Europe.

For the EU oligarchs, democracy sucks. What if the Greeks — voting in elections this April — decide to tear up an austerity programme painstakingly hammered out by their betters in the EU and the IMF? Imagine — and the memory of all those lost referendums still smarts among Eurocrats — if a country should decide it has had enough of the economic mismanagement and diktat that has characterised the Eurozone’s handling of the economic crisis.

A spectre is indeed haunting the corridors of Brussels offices and it is real: a well-founded fear that voters will reject the ‘fiscal compacts’, ‘debt brakes’ and ‘golden rules’ aimed at securing the EU’s reign in de facto perpetuity.

[. . .]

Pierre Moscovici, the Socialist campaign manager, has further horrified the EU by hinting that a new French president could hold a referendum — a taboo in contemporary European politics. ‘I am convinced that we will find allies for a renegotiation aimed at a policy change to pull us out of this austerity spiral and recession. We don’t like the idea of a popular vote because we are pro-Europeans and we don’t want a “No”, but nor can we allow tensions to spill over’, he said last week.

February 7, 2012

Finns vote to stick with the EU

Filed under: Europe, Government — Tags: , , — Nicholas @ 10:48

A summary of the recent presidential election results in Finland, from The Economist:

Those who argued that Finland is fast becoming a Eurosceptic country that is against the country’s membership of the European single currency, the euro, have been proved wrong by its presidential election. The run-off on February 5th was contested between the two most pro-European candidates. Timo Soini, leader of the anti-euro True Finns, which took a spectacular 18% of the vote in the general election last April, was humiliatingly pushed out in the first round. The winner, Sauli Niinisto, a former centre-right finance minister, took 63% of the vote to 37% for the loser, Pekka Haavisto of the Greens (who was also the first openly gay candidate for the post).

Mr Niinisto declares himself to be firmly in the pro-EU, pro-euro camp—indeed, as finance minister he helped get the country into the euro in the first place. That matters because the Finnish presidency is more than a ceremonial post, especially in foreign policy, even if recent constitutional changes have made it weaker than it once was. Most power, especially in domestic issues, rests with the government, a cumbersome six-party coalition led by Jyrki Katainen, the conservative prime minister. The arrival in the presidential palace of Mr Niinisto, a fellow conservative, will strengthen Mr Katainen’s hand. Yet strains within the coalition, which was designed largely to keep the True Finns out of power, are likely to persist.

February 6, 2012

What would follow a European Union crack-up?

Filed under: Bureaucracy, Economics, Europe, France, Germany, Politics — Tags: , , — Nicholas @ 10:13

If you listen to Angela Merkel and other European leaders, what would follow a break-up of the EU would be something out of Mad Max, a post-apocalyptic wasteland where the living would envy the dead. With no Brussels bureaucrats to direct everyone’s affairs, war, pestilence, starvation, looting, violence and unregulated bananas would proliferate. Bruno Frey isn’t quite as sanguine:

The major problem is that people do not see any alternative to the presently enacted European unification. The Europe-minded politicians even insist that, if the euro and the EU collapse, complete chaos will break out. The European continent will go back to the situation before World War II. The various nations will isolate themselves economically, and they will even start to fight each other. A war within the core of Europe, in particular between France and Germany, is taken to be a real possibility lurking in the background.

This view disregards the fact that the European unification process was made possible only because Germany and France stopped considering each other as enemies. They then saw themselves as the ‘motor’ of the European integration process, which started with the establishment of an economic union and then expanded to the political sphere. It is certainly wrong to think that the only thing that was needed to bring peace to Europe was a formal international treaty.

The claim that the downfall of the euro and the EU would produce chaos and war may be interpreted to be just a strategy necessary to get support for helping the highly indebted nations such as Greece, Portugal, Spain, or Italy with ever more financial support. However, conversations I have had with persons from various European countries suggest that many people really believe that Europe will disintegrate and that wars are looming if the EU dissolves. I hold this view to be seriously mistaken.

[. . .]

The individual countries in Europe will quickly form new treaties among themselves. Collaboration will be maintained in all those areas where it has worked well. Some countries will remain in a newly formed and smaller Eurozone, for which the appropriate treaties will be designed. A similar reconstitution will take place with respect to Schengen, which will then encompass different members. Only those countries that find it advantageous will join a new convention on the free movement of persons. In contrast, those nations that do not find such new treaties attractive, or that are not admitted to them by the other members, will not join.

The result will be a net of overlapping contracts between countries, which the various nations will join at will. These contracts will not be based on a vague notion of what ‘Europe’ may mean, but rather on functional efficiency. Crucially, the individual treaties will be stable because they will be in the interest of each member.

January 31, 2012

Germany issues “secret” document to Greek government on debt repayment

Filed under: Economics, Europe, Germany, Government, Greece, Politics — Tags: , — Nicholas @ 09:41

Mick Hume recounts the machinations within the European Union:

One outraged Greek government minister described it as ‘the product of a sick imagination’. Another called it ‘absolutely laughable’. The formal title of the document in question is ‘Assurance of Compliance in the Second GRC Programme’. It is neither a joke, nor a sick fantasy. It reads more like the draft of a death warrant for democracy, first in Greece and then elsewhere in Europe.

This supposedly secret document was issued by Angela Merkel’s German government to its partners in the Eurozone — and then carefully leaked, to ensure maximum impact. It sets out two extraordinary measures that the Germans want to impose to ensure that the Greek authorities comply with the swingeing budget cuts which they promised but have apparently failed to deliver to the markets’ satisfaction.

First, it says Greece must ‘legally commit itself to giving absolute priority to future debt service’. All state revenues must go first to paying debts and interest due, before a cent can be spent on public services. And the Greek government will not be allowed to threaten to default on its debts in future; if it cannot pay, it must accept that ‘further cuts’ will be ‘the only possible consequence’.

Second, the Germans want the Eurozone to oversee the ‘transfer of national budgetary sovereignty’ from Greece to ‘the European level’ under a ‘strict steering and control system’. The plan is for the Eurozone group to appoint a budget commissioner to oversee Greek finances, with the power ‘to veto decisions not in line with the budgetary targets’ set by European and international officials. If that was not humiliating enough, the Greeks would also have to look happy to bend the knee by ensuring that this new system of outside control ‘is fully enshrined in national law, preferably through constitutional amendment’.

To get the Greeks to agree to these unprecedented conditions, the German document also offers incentives — or as we used to call it, threats. If Athens does not accept the compliance measures, then ‘the Eurozone will not be able to approve guarantees for GRC II’. That is the second huge bailout of €130 billion which Greece desperately needs if it is not to go officially bust in weeks. The ‘Assurance of Compliance’ document is a ‘secret’ blackmail note.

Update: Ah, Monty captures the absurd state of the EU perfectly in a throw-away line in today’s Daily DOOM — “Like German porn, the politics of the Greek bailout just keep getting weirder and more complicated.”

January 30, 2012

Researching how to stop asteroids from “just dropping in”

Filed under: Europe, Science, Space, Technology — Tags: , , , — Nicholas @ 10:08

Brid-Aine Parnell in The Register on some of the technologies being explored to reduce or eliminate the chance of unpleasantly close encounters with celestial objects:

A new international consortium has been set up to figure out what Earthlings could do if an asteroid came hurtling towards the planet on a path of imminent destruction.

The project will look at three methods of averting disaster: the Hollywood-sanctioned solutions of sending up a crack team of deep drillers with a nuclear bomb to sort it out, or frantically hurling of all our nukes at it; dragging it to safety with a Star Trek-inspired tractor beam; or hitting it with something we have more control over, like a spaceship.

Sporting the cool moniker NEOShield, the project will explore the possibilities for kinetic impactors, gravity tractors and blast deflection as ways to save our planet from oblivion.

[. . .]

“In the light of results arising from our research into the feasibility of the various mitigation approaches and the mission design work, we aim to formulate for the first time a global response campaign roadmap that may be implemented when an actual significant impact threat arises,” NEOShield boldly stated.

January 26, 2012

Ireland’s septic protest

Filed under: Bureaucracy, Environment, Europe, Government — Tags: , , , , , — Nicholas @ 10:52

Elizabeth sent me a link to this Independent.ie article which allowed Lise Hand to dig deep into the Irish septic tank issue while managing not to get too potty-mouthed:

These doughty lads of the West weren’t messing about with a bit of chanting and poster-waving in the manner of an, ahem, bog-standard protest outside Leinster House. Not a bit of it, having driven since dawn in buses up from the corners of Galway, the attitude was, when we’re out, we’re out.

And so the Charge of the Septic Tank Brigade to the gates of Leinster was a colourful affair. They had brought a toilet with them and all, as a pertinent prop to illustrate their admanatine opposition to the introduction of a €50 septic-tank registration charge — a charge which affects rural Ireland, as it’s being imposed on almost half a million households who are not part of a public-sewage scheme.

What’s more, if any tanks fail an inspection, householders will be obliged to upgrade or replace them, which could cost thousands of euro.

And so, the several hundred men (and a few women) from the West were in fighting form on Kildare Street yesterday afternoon. And along with the toilet — which proved a handy seat for the protest’s organiser, Padraig ‘An Tailliura’ O’Conghaola from Rossaveal who was minding the megaphone and trying to keep a bit of order on proceedings.

There was an impressive array of giant paintings on black banners, tastefully depicting images such as sunsets and sailboats and a puzzled-looking lassie sitting on a toilet.

And there was quite a smorgasbord of slogans being waved about: from Winston Churchill’s observation, “We contend that for a nation to tax itself into prosperity is like a man standing in a bucket trying to lift himself up by the handle”; to more earthy exhortations, such as: “Septic Tank Charges are A Pain in the Hole”; and the bi-lingual “‘Cac’ Hogan RIP — Ireland’s Saddam Hussein”; to the pithy enjoinder, “Get A Grip — Stand Up to Europe”.

January 23, 2012

The EU culture war against Hungary

Filed under: Europe, Government, Media — Tags: , , , , , — Nicholas @ 10:07

Frank Furedi on the confused situation between the European Union bureaucracy and the government of Hungary:

Thirty or 40 years ago, the way that the EU and the IMF are behaving towards Hungary would have been described as a classic example of neo-colonial pressure. Unlike Greece, Hungary is not simply being lectured about the need to sort out its economy — it has also been subjected to a veritable culture war. As far as the EU and the Western media are concerned, the real crime of the Hungarian government is not so much its inept economic strategy as its promotion of cultural and political values that run counter to what is deemed correct in Brussels.

The Brussels bureaucracy has long regarded Hungary as a society in danger of being engulfed by white savages. In 2006, when people in Budapest rioted against their corrupt government, the EU and sections of the Western media described the demonstrators as right-wing mobs posing a threat to democratic values. At the time, Brussels weighed in to support its man in Budapest, Ferenc Gyurcsany, the Socialist prime minister. The fact that Gyurcsany had lied to cover up the scale of Hungary’s massive budget deficit, and that he had admitted his dishonesty to some of his close colleagues, did not stop his mates in the EU from singing his praises. Poul Nyrup Rasmussen, president of the Party of European Socialists, was quick to rush to Gyurcsany’s defence, claiming he was the ‘best man to make the reforms that Hungary needs’.

What the Western media overlooked was that the corrupt Gyurcsany government was complicit in creating the conditions for mass demoralisation and cynicism. It was this EU-backed regime that did much to unravel and damage public life in Hungary. Gyurcsany’s humiliating electoral defeat in 2010, and the triumph of Viktor Orban and his Fidesz party, meant that the EU’s placeman was replaced by an autocratic nationalist and populist prime minister.

[. . .]

But then, the EU itself has no inhibitions about imposing its values on to its target audiences. It, too, does not want its constitutional proposals held up to public scrutiny. Sometimes it rules by decree and refuses people’s requests to hold any referenda on EU-related matters, on the basis that the issues are far too complex for ordinary people to understand. Evidently, the EU commissioners have read their Voltaire. To recall — it was Voltaire who praised the Russian absolute monarch Catherine the Great’s invasion of Poland and celebrated her ability ‘to make fifty thousand men march into Poland to establish there toleration and liberty of conscience’. The EU does not have 50,000 men but it does have many other resources for executing its culture war. Voltaire was tragically mistaken in his belief that deploying coercion was a legitimate tool for forcing people to change their beliefs — but at least he actually believed in tolerance and freedom of conscience. In contrast, the EU technocracy has little time for genuine tolerance.

January 7, 2012

Conrad Black: Current events vindicate Margaret Thatcher

Filed under: Britain, Economics, Europe — Tags: , , , , , — Nicholas @ 11:25

The current situation in Europe proves that British prime minister Margaret Thatcher was right all along:

Though it is probably happening too late to be overly gratifying to her, events are piling on to vindicate Margaret Thatcher completely in her reservations about British integration in Europe. Her response to the proposal to reduce Britain to a local government in a federal Europe was, memorably: “No, no, no, and never.” And her reward for her refusal to get on board what was then the thundering bandwagon of Eurofederalism, was to be sent packing by her own ungrateful party, though she was the only British political leader who had won three consecutive, full-term election majorities since before the First Reform Act expanded the electorate in 1832.

She was immensely popular with millions of Britons as a patriotic and courageous leader who took Britain off financial life support, saved it from strangulation by over-mighty, almost anarchistic unions, built a prosperous, home-owning democracy, threw the Argentinians out of the little corner of the British Empire they had wrongfully seized (the Falkland Islands), and played a starring role in winning the Cold War.

[. . .]

And as she liberalized the economy; imposed a free, secret ballot for labour strikes; lowered all taxes; privatized industry, housing, airports, almost everything except the National Health Service and the BBC; jolting economic growth resulted. Unfortunately, its most conspicuous exemplars included many successful entrepreneurs and financier types who offended British sensibilities by their garish and spivvy ostentation. The basis of Margaret Thatcher’s support was the Daily Telegraph-reading, gin and tonic-drinking, cricket-loving middle class, the backbone of the nation. But her enemies identified her with an infelicitous combination of Colonel Blimp fuddy-duddies and sticky-fingered, vulgar parvenus.

She had a somewhat hectoring manner in debates, and was notoriously impatient with what she considered pusillanimity from senior colleagues, sometimes calling cabinet members “blanc-manges,” or “suet puddings,” or even “spineless, boneless, men” (not necessarily inaccurately). Naturally less known was her exquisite courtesy and unaffected and egalitarian kindness to subordinates and strangers. It annoyed feminists that she was such a traditionalist, and weak men that she was a strong woman. But she triumphed by perseverance and courage; to the end, though a stirring speaker, she was nervous before a speech. She was a strong woman, but not at all a mannish one.

« Newer Posts — Older Posts »

Powered by WordPress