“This is not just economics,” argued Varoufakis. “This is a political struggle. Argentina and Greece are clear cases where the local oligarchies have enormous conflicts of interest in the debt of our countries and what they do is play against our states.”
The former Hellenic Minister of Economy raised two problems. The first, the role of the local oligarchies. Macri acted on behalf of the local oligarchies by paying the debt in dollars.
The second, the ways in which the Argentine government can increase fiscal space and prevent capital flight from leaving the economy.
Varoufakis also said that “the debt in the hands of the vultures or the international banking system is a mechanism to ensure that the funds are transferred to the offshore banks.”
Later, Varoufakis pointed out: “We have to internationalize the process. You face specific circumstances. The difference between saving and investment must be equal to zero. If you have a budget deficit, you cannot pay the IMF and how you should pay it, you must cut investments, which is detrimental to economic development. “
Then, he raised the need to “create a digital payment system to direct payments and inject liquidity and allow the cancellation of debts in the economy. This type of mechanism must be used to create liquidity at the local level.
Finally, the former Greek minister stressed: “We need governments that plan the fight against international finance.”
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