Beware Greeks Bearing Rifts

Why Varoufakis Couldn’t Fix the Debt Crisis

Alkis Konstantinidis

The Abrahamic religions take a radical view of debt. Charging excess interest is the sin of usury, and outstanding obligations are supposed to be periodically canceled during jubilee years. The old moralists understood the dangers of insisting on the repayment of unpayable debts. But the global financial crisis has revealed that we badly need to relearn this wisdom.  A debt crisis occurs when the credit that has sustained spending suddenly dries up, making it difficult or impossible for debtors to service their debts. This is what happened to both U.S. investment banks and eurozone governments from 2008 on (as well as …