This road is named Oxi

Greece has voted.

The result is a conclusive "OXI" [pronounced "O-Shee"] and means NO

But No to what exactly?

How often has someone said "what is there to understand about "No"?"

In this case everything. No is about as unclear as it can be. There is no apparent plan for OXI




The guns rang out after dark last evening with tracers filling the night sky around the valleys of our villa and the sounds of AK47s and Kalahnikovs firing reverberated off the mountains.

One bullet came down in our yard whizzing through the air and burying itself with a  thud about 4 meters from where I sat. That got my attention.

It is a common thing on Crete for the guns to fire for any reason from a family celebration to a community event. Even Easter [Pascha here] is marked with extensive gun fire.




The Cretans are happy with the result. This island voted 73% No which is what I was experiencing antidotally as I talked with Greeks.The feeling is that they have defended their freedom against "enslavement to the Eurozone"

The ex-pats wanted a Yes vote and fear what the No will mean. They fear ambiguity but I concluded that Yes might leave ex-pats more vulnerable than No.

The past few days saw me leaning more and more to No being the wisest choice between two very bad options. That left me alone in my ex-pat circle of friends but those who know me will recall swimming against the majority is a common position for me.

One business owner in Loutra, an isolated resort community on the Libyan Sea where I spent yesterday, summed it up best for me. He said "this referendum is a small matter for me". He said the referendum was a mistake. "Syriza was elected to lead and failed with this question which will go No and will simply mean the Greeks reaffirm their choice of Syriza to lead and now they will have to lead- which is what they should have done in the first place".

The fact that the economic crisis will grow and impact all of Europe was affirmed over night. The Euro has begun its fall in value against other currencies.

As messed up as the economy and governance are in Greece, and these are very messy indeed, the EU has inexplicably really dropped the ball on providing responsible leadership for this crisis.





Austerity is a cruel cruel dynamic to drop into people's lives.

I can only say you must be here to see what it is like. For those friends in New Brunswick where we struggle with great debt, please trust me when I advise "you do not want to experience this first hand".








The cruelty of austerity and the unrelenting pressure to apply more suffering to the Greek people demonstrates the sociopathic nature at the core of our institutions and businesses, especially the banks.






On another personal note I am very pleased that the vote was decisive. A narrow win by either side could have easily tipped into  some unrest.

Yet little has changed.

Things will get worse. If trade is impeded shortages will begin to appear soon.



We are deeply effected by these dynamics. We are installing our pool. We have a big hole in the ground now and our contractors can not find out if the pool, which is supposed to be in Athens at this time and coming to Crete mid- week, is even there.

Crete and Greece have a big hole in the middle of their new road called OXI and we have a big hole in our property.

The EU has a big hole on the horizon and in all three cases what lies at the bottom of each hole cannot be seen at this time.


We have several thousands Euros in our Greek bank account. We can only withdraw 60 euros a day if I can find an ATM with money in it. If "a haircut" occurs in the banks, as predicted, we could see up to half of our money disappear in a flash.

So the road is OXI and, like it or not, we find ourselves walking it with our Greeks neighbours and friends.

Street Talk on the Greek Referendum, Voting Day

Today is the voting day when the people of Greece will make a choice.

Yes or No?

 "Nai" means "yes" in Greek and "Oxi", pronounced "O-shee", means No




Today's Referendum Question:

Will it be a yes to the Eurozone and compliance with the bailout packages that are offered together with the oppressive terms and conditions that will accompany the continuing bailout.

Or will it be No and the tremendous uncertainty that will accompany a no vote up to and including possible expulsion for the Eurozone and the need to create a new currency.

Either choice brings more depression in the economy and a steadily falling standard of living.

[The pictures in this post are from the village of Kalives yesterday]







I talked to several Greeks and ex-pats in the villages the last two days as I went about my business. In the hardware store some young men and some elderly men stood for 30 minutes to explain the reasons they are voting no.

A generalized fear is that the vote has already been fixed by the Yes side. The Yes side is viewed as the "have money side" and is composed of the wealthy who are making money on the suffering of the people and lack compassion.

That alone is a frightening line of thinking and a precursor to revolution. They feel that with so many voting No that if the results are Yes vote then the vote was rigged.

But the polls  consistently show it is far too close to call.

One of the elderly men repeated over and over that here the "people eat the money". It took me a while to grasp that what he wanted me to appreciate is that euros go to buying food and the people- especially the elderly who have seen their pensions slashed, are hungry.








Soon after one of the young men said "Ella- ella", "come, come" and he took me out to where a rusty truck was parked with some vegetables in the back. He told me some of the farmers from up in the mountains villages come each day and put food in the back of the truck for anyone hungry to take.

There was almost nothing left. Just scraps of vegetables.




What was interesting, or perhaps more accurately- alarming, is a consensus that a Yes vote would suit the "masters" just fine as France and Germany are using the Eurozone crisis to "enslave" the poor countries like Greece, Italy, Spain and more. They see it as the goal of the rich and powerful to put everyone under a new global economy of oppression which is why they must vote No even though this choice is wrought with unknown risks of great gravity.

Yes = "sign your life away"
No = "freedom for Greeks"

The extreme positions and thinking that accompany these positions is quite unnerving. The analysis or the evidence to back some of these claims appears to be missing from the conversation.

The new bailout is being increasingly called by the "New Treaty of Versailles" [the original treaty ended WW1 with such extreme penalties for Germany that it may be the greatest single cause for the renewed hostilities of WW2]. Again- an example of an extreme position which invokes and many dangerous images.


The vote will have some irregular practices. For example they told me that the voting boxes will be open and not the usual slot topped box we are familiar with. They believe this is so everyone can see the last voters choice. If anyone knows whether or not this is true I would appreciate and update on that front.

The euro is seen as the devil's money. The European Central Bank [ECB] with austerity has robbed the Greeks of their ability to care for the elderly.




The International Monetary Fund published a report a short time ago stating that from the 240 billion euro bailout 89% went straight to the banks for debt relief. Of the 11% that made it to Greece it is estimated that at the most, half of that made it into the general economy. The other half has disappeared.

If there is a Yes vote and the terms of a renewed agreement with the Troika occurs it will mean cutting the pensions again by half, lowering minimum wage for a third time and putting an absolute end to collective bargaining in Greece.

What would you call this if was happening to you?

Remember the economic crisis in the US saw massive sums of money going to the banks at public expense and a financial punishment of the those most vulnerable. The same pattern exists here.

How would you vote if you were making a choice under these circumstances after years of failed austerity?

One business owner whom I trust told me that international shipping containers destined for Greece slowed in recent weeks and has come to a complete halt about a week ago. Nothing is coming into Greece in terms of import. If that continues then real shortages are on the immediate horizon.

Neither a Yes nor a No choice will mean relief for Greece. Whatever the results today there is a long and difficult road lying before this country and whatever the vote, the rich will undoubtedly find opportunity to make more money at the expense of vulnerable people.

Today will set this country on a new road- which road it will be is the choice today.

Greece in the Crosshairs of Crisis

A Chinese blessing says, "may you live in interesting times". 

Buying a villa in Greece during an economic crisis certainly is interesting. Now the country has made it's way into the unchartered waters of being forced out of the Euro zone, a move for which there is no formula nor precedent.

The debate over the pending referendum to be held in two days is hot. Early polls suggested the No vote- or the vote to tell the EU to stick it,  was going to win easily. 

But now that people have had a taste of what expulsion or leaving will look like, the vote appears to be swinging the other way. But even a Yes note is fraught with uncertainty and is far from a solution. 

One lady I spoke with yesterday in Chania said "even if she has to go back to her village and live off her garden and 20 olive trees, it will be better than what she experiences now. There is not much ambiguity here. People are clear in their choice. They are scared. 

If Greece chooses to stop using the Euro and goes back to its historical currency called the drachma there is even greater cause for concern. Greece has nothing to base a new currency on at this time. So what is suggested is a "haircut".

This kind of haircut will see the Government take a substantial portion of everyone's bank account and savings to be used to establish a base for the new currency. This seizure could be as much as half or more of all bank accounts. That alone is a major cause for concern.



Many businesses only take cash. One taverna we ate at last evening said they needed cash in order to buy the next days' supplies as suppliers are not offering credit -even very short term credit, at this time. The local gas station manager only buys each morning, the gas she can sell that day and thus often runs out. 











The media- especially the foreign medias, are using fear to sell papers thus the worst fears are highlighted. Tourists are here on vast numbers, but they are spending far less than they used to. One person we spoke to said the Greeks "need the love from others" to help get past this. By love she meant coming here and spending.

We, my wife and I, have been gleaning the media, consulting with other ex-pats on Crete and drawing from any other well that may offer wisdom at this time.

To say we live in interesting times in Crete only begins to describe our reaction. Yet, at the end of the day, we remain observers in the Greek political arena and are simply along for the ride. It is not for us to voice an opinion too loudly as we need to live here and the fractures from this vote and crisis may be long lived. 










So these blog entries will focus on the view from where I sit.

To begin - a briefing on the current history to this crisis. The current Greek economic crisis has many tentacles and roots that often exceed my skill in macroeconomics to comprehend. Never the less I try. 

The current crisis is the result of poor choices by everyone involved. The sheer number of official voices and deeply vested competing interests complicates it. 

It begins with the Greeks, their culture, way of life and outlook on the world, their history and of course their roller coaster political life that has characterized them all through modern times. 

Tax avoidance is a matter of some honour for the Greeks. The Greeks do not seem to share a social contract such as many Canadians do who, as we pay our substantial taxes reluctantly, also see that we are supporting all that makes Canada work. It appears the Greeks have a different focus. Their major spheres of interest are family, village and church. The greater whole, well, it is an ambiguous relationship.

Social responsibility is different here. To say it is lacking is, of course, nonsense but to say it is other appears to be true. The Greek norms are quite foreign to us. We experience these wonderfully in such things as Greek graciousness and hospitality yet we can be perplexed at the general acceptance of such things as corruption and the all pervasive underground economy as the natural way of doing things.

On the other side is a myriad of groups and institutions beginning with the three major players.  The EUC [European Union Commission, the ECB [European Central Bank and the IMF [International Monetary Fund] together are called the Troika and it appears they have trouble talking to one another thus agreements are made by one body, altered by another or rejected by the third. It all makes for ongoing uncertainty from that front.

Certain leaders such a Germany’s Merkle also muddy the waters inserting their own vetoes and demands.

In short there are simply too many voices at the table for a meaningful negotiation.

Last year things were looking like the worst might be over. Unemployment was improving and Greece was beginning to move towards balancing the books.

But all that suddenly changed when a snap election was called and a coalition of the left – the Syriza party, ran on a platform of renegotiating austerity believing that the Troika would have to comply with Greek demands and grant a better deal.

The gamble has failed spectacularly

What has happened, simply put, is that everyone has boxed themselves into a corner. Syriza said no way to the Troika and now the EUC and the Troika say no way to the Greeks.

For some unfathomable reason PM Tsiparas [above], has called a snap referendum vote without a clear question. There is little time to debate or think and little meaningful information to go on. The strategy seems to be that a knee-jerk reaction by the Greeks voters will influence the Troika in ways favourable to Greece.

The Greeks are an emotional people and it looked like there was clearly going to be a 60% “No” vote to staying in the EU and complying with the bailout formula.

With the banks closed and with withdrawals severely limited the Greeks got a taste of what No will mean it now appears that number is reversing and about 60% will vote Yes. Yet if that happens it will mean the Greeks have rejected Syriza who they just elected and there may need to be a new election and everything begins all over again. But another serious question is whether or not the EU patience with Greece is nearing its end.

To say it is a mess is too simple. It is a tragedy. People are suffering and it appears the pain is growing and may begin to avalanche soon.

One analysis I find helpful to understand the Troika’s position is that Greece is not alone with an economy in crisis. Italy, Spain, Portugal and Ireland are struggling with extreme debt. It may be the Troika is making an example of Greece to scare these other countries into compliance with the Troika.

As I recall Napoleon encouraged his officers to shoot some soldiers from time to time to “encourage the others”.  Has the Troika come to a similar conclusion?

So Sunday's vote looms on the immediate horizon and there is little chance that whatever happens will mean relief for the Greek people. This will go on and on no matter the choices. 

For those in Canada this should not be seen as simply an EU problem. New Brunswick it flirting with similar excessive debt and the story from here could become the story there. 

The banks are a powerful reality in our lives and they do not have a human face such that they can easily be compassionate. The bankers are accountable to investors who have come to expect a healthy annual return on their investment. Taken together all these forces point to how unsustainable the structures that have served us so well in the past have become. 

As Ghandi observed many years ago, "there is enough in this world for everyone but there is not enough for everyone's greed".