ON ECONOMICS AND GEOPOLITICS (June 30, 2015)
Two Nobel laureates in economics, Paul Krugman and Joseph Stiglitz, are squarely behind Greece in its struggle with its creditors—the European Union, the European Central Bank, and the International Monetary Fund. Both of them are advising the Greek people to vote against the creditors’ bailout proposal in this week’s referendum. According to Krugman and Stiglitz, Greece got into the economic mess that can be best described as depression because it was forced into austerity by its incompetent creditors. Both of them Keynesian in their thinking, they abhor austerity in economic crises, and rightly so. But neither of them has much to say about the sequel of the bailout referendum that cuts Greece adrift. What next? And whither? This is where economics is of little help. This is the domain of geopolitics, where Nobel prizes have little chance of ever sprouting, and where the likes of Vladimir Putin have much to say. Chances are that he agrees with Krugman and Stiglitz’s advice to the Greek people. The only difference is that he knows what next, as well as whither, in quite some detail. Ah, if that Nobel prize in geopolitics only existed!