Earlier this week I speculated that the possible Greek referendum on the EU bailout/austerity deal could have potentially cost Obama the 2012 re-election. I thought this because while I believe Greece telling their creditors to go shove it would have been the best long term solution for Greece, it would likely cause some short term worldwide economic pain and in politics the economic performance right before the election is often decisive. The ripple effect from Europe would be felt here given they are a major trading partner and Obama will be in real trouble if the economy takes a downward dip.
While I was focusing on Obama, because this is an American political blog, the basic potential political impact of the referendum on the incumbent ruling parties/leaders in Europe was the same but much greater. While Europe’s handling of this crisis so far has been objectively terrible for any national leader facing an election soon, like French President Nicolas Sarkozy, continuing to kick the can down the road past the election is better politics than allowing the problem to unfold now. The point of my earlier post was to show how scary this one nation’s referendum was to those in power elsewhere.
This is why I’m not surprised that with the Greek referendum potentially so dangerous to so many global financial and political elites, they turned every tool they had towards killing the referendum quickly. It only took about five days but the elites got their way, the referendum is now dead.
For the financial elites and many of the world’s incumbent political leaders, their world is now safe from actual democracy.