27 Centuries later, Athens has come full circle

Athens at the dawn of the 6th Century B.C. was an unremarkable city. The arts, science, and philosophy that would make it great were still centuries away.
The only notable thing about Athens of the time was its relatively large size, which was also the source of its problems. Athens was too large to feed itself and this was becoming a crisis.

Athens was ruled much like other Greek cities after the collapse of the Bronze Age, by an oligarchy.

On the political side, the vying of aristocratic families was tearing the city-state apart. The city of Athens was run by nine archons. These archons were elected for one-year terms by a council of former archons called the Areopagus. Archonships were available only to members of the aristocracy. These aristocrats used their position and power to benefit only their own family. The only political body capable of calling these people to task was the Areopagus. Since the only check on aristocratic power was other aristocrats, the needs of the rest of the population went unnoticed.

Athens was slightly ahead of the curve in that it had an existing Constitution, but that Constitution merely enshrined the power of the oligarchy.
The aristocratic families were bitter rivals and battled over whatever scraps of wealthy the society produced. This system was so inefficient that even they had to conceed the need for a third party to institute reforms. So every ten years they selected a tyrant. Some were worse than others. In 621 BC Draco, the namesake of the word "draconian", codified a set of "notoriously harsh" laws that were "a clear expression of the power of the aristocracy over everybody else." The punishment for breaking Draco's laws was almost always death. This did not stop the aristocrats from feuding.
Enter an ancestor of Plato, Solon, the lawgiver.

Solon who also came from an aristocratic family, made a name for himself by winning a minor war against a nearby Greek tribe.
When the Areopagus selected Solon in 594 B.C. they almost certainly did not expect sweeping reforms that would forever change Athens, but that's what they got.

Solon instituted broad political reforms, including expanding the definition of citizenry, gave them real political power, and lowering standards for those seeking to hold public office. Solon changed the qualifications for political power from lineage to wealth, which may not sound progressive in today's world, but it was for those days because it extended political power to a much larger group.
He also imposed economic reforms that helped modernize the economy.
It's hard to know exactly what the reforms were because there were no serious historians at the time and writing of his laws have not survived. Modern historians have had to piece his reforms together from various sources and scraps.

However, it is his social reforms that I want to focus on for this essay.

"...there was conflict between the nobles and the common people for an extended period. For the constitution they were under was oligarchic in every respect and especially in that the poor, along with their wives and children, were in slavery to the rich...All the land was in the hands of a few. And if men did not pay their rents, they themselves and their children were liable to be seized as slaves. The security for all loans was the debtor's person up to the time of Solon. He was the first people's champion."
- Aristotelian Athenaion Politeia

In most years the small Attica farmer barely scraped by. By law or custom, a struggling farmer could not use his farm as collateral for a loan, even if he owned the farm. He had to offer himself and his family as that collateral. Failure to meet the conditions of the loan meant being sold into slavery.

One of the most important things that Solon outlawed was the horos.
The horos was a wooden or stone pillar indicating that a farmer was in debt or under contractual obligation to someone else, either a noble patron or a creditor. However, it may have been even worse than that.
You see the Greek word horos meant "access-governing boundry marker". This implies that the horoi was actually used to restrict the movement of those debtors, thereby enforcing the condition of peonage. Outlawing the horoi gave the poor freedom of movement and association.

And then Solon got really radical.

Solon announced a general jubilee - a one-time cancellation of all debts to "shake off their burdens."
His next act was to forbid the enslavement of one Athenian by another and made it a "civic right" rather than a "human right", thus creating the concept of citizenship.
Anticipating that the aristocrats would turn to intimidation against the newly freed debtors and slaves to re-establish their power, Solon outlawed acts of hubris - behavior intended to humiliate and intimidate.

To give these reforms teeth, Solon created a new assembly of citizens to act as a court of law. State officials who abused their power could now be held accountable.

After all of his reforms were put into place, Solon did one last amazing thing - he left Athens for 10 years and travelled the ancient world. The reason he did this is because according to the Athenian constitution, no one by Solon could oveturn his reforms. He made the logical assumption that if he stayed, rival aristocratic families would use intimidation and threats to make him repeal those laws.

Unfortunately, Solon's reforms were before their time and flawed.
Solon had failed to institute land reform, the primary source of the inequality of wealth and power.
Eventually one of Solon's relatives, Peisistratos, seized power unconstitutionally after five years and repealed some (but not all) of Solon's reforms.
Nevertheless, Solon's reforms set a new standard of how to govern, some of which remained part of Athenian society.

In 514 B.C., Hippias became tyrant of Athens by way of murder. His cruelty created unrest, and to retain power he created a military alliance with Persia.
A rival Athenian family, Isagoras, feeling threatened by Persia allied itself with Sparta, which implimented a coup. Spartans being no fans of democracy and freedom, had a change of heart and tried to recall Hippias, but this set off a revolt by the Athenian populace which chased the Spartans from the city. Persia theatened Athens to accept Hippias as their ruler, but Athens defied them.

Athenians then selected Cleisthenes, a political rival of Isagoras, in 508 B.C.
Cleisthenes became the one who instituted the full democratic reforms that we know when we think of Athenian democracy. He lifted the wealth restriction on citizenship, thus expanded voting rights to over 10% of the population of Athens and instituted isonomia ("equality vis à vis law", iso=equality; nomos=law).

Athens today

The IMF released a report just a few days ago admitting what so many economists have already said, that Greece's debt is unsustainable and odious. The IMF had this report for months.
Just two days ago Wikileaks released a document from 2011 where German Chancellor Angela Merkel who told her personal assistant that Greece's debts would still be unsustainable under the terms of the new arrangement.

So basically the troika knows beyond a shadow of a doubt that the crushing austerity they are forcing upon Greece is doomed to fail. Greece will never be able to pay these debts.
Yet neither the IMF, nor the ECB, nor the political leaders of Europe are willing to change course. Why?

The debt, in other words, isn't about money. It's about political control.

Since it isn't about economics and finding the best way to limit financial losses, then it must be about politics.
Not politics like you and I think of politics, with campaign speeches and elections, but realpolitik.

Prime Minister Alexis Tsipras allows the Greek people to decide their own fate via a democratic referendum. That’s enough to send the troika – the European Central Bank (ECB), the European Commission (EC), and the International Monetary Fund (IMF) - into a paroxysm of rage. Here, in a nutshell, is everything one needs to know about the EU “dream”.

The European Commission chief, Jean-Claude Juncker, said he felt “betrayed” by the “egotism” shown by Greece in failed debt talks.
Just looking around the web today you can easily find apologists for this authoritarianism.

Greece’s referendum shows you can have too much democracy

Some things are too important to be left to voters.

Greece Is Doing Democracy Wrong

In a crisis, effective democracy requires an elected leader to do what he or she thinks is right -- and take the consequences later, when elections are called.

Both of these articles violate Solon's law against hubris - telling the Greeks what democracy means.
What Syriza is doing is direct democracy, in the true tradition of ancient Athens, not representative democracy.
It's easy to understand why an American might get confused by the sight of real democracy. After all, Congress just passed the TPP fast-track bill over the objections of the American public, while being barred from telling the public what was in it. And yet we are told that this is democracy.

"The very idea that a government would consult its people on a problematic proposal … was greeted with incomprehension and often with disdain bordering on contempt. I was even asked: ‘How do you expect common people to understand such complex issues?’"
- Greek Finance Minister Yanis Varoufakis

One thing is for certain: the political and financial leaders of today have nothing but contempt for the people they supposedly represent.
The current meme being pushed is that the Greek population is "confused" and "doesn't understand what it is being asked." That's simply arrogance.

The real question is if Greece can have a fair election with Europe holding a financial gun to its head? It's impossible to predict.
But Greek citizens have a long tradition of acts of courage defending democracy in the face of overwhelming odds. If they can stand up to Persia and refuse to accept Hippias as their ruler, they can also stand up to the troika in the name of Solon and refuse to accept peonage.
 photo Greece Oxi Vote_zpsj3hr0noz.jpg

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gulfgal98's picture

What a great history lesson and then you tied it into what has happened to Greece in recent years. Well done!

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Do I hear the sound of guillotines being constructed?

“Those who make peaceful revolution impossible will make violent revolution inevitable." ~ President John F. Kennedy

Pluto's Republic's picture

…as it gives more context to the idea of direct democracy vs. representative democracy. This "idea" could change things for the global psyche.

Thanks for a very informative essay.

Now that we know that the Greeks rejected their soul-sucking unsustainable debt with a "no" vote — new ideas are taking form. People around the world are looking up from their indentured toil to watch. Many are hoping that Greece will be punished and crushed into writhing agony for not "obeying." But that will not be the case at all. Government revenues will continue to amass, but now they can benefit the people rather than spent totally on servicing the debt. Wealthy friends are standing by, for example the AIIB and BRICS, happy to invest in a debt-free nation that happens to be the maritime jewel in the crown of the Mediterranean. Greece is alive again.

2015 is the year of black swans. They will all profoundly affect the currency market this year, and that in turn will reset the future of the US and its place in the world. All this before the 2016 elections. (More on those specifics, later.)

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____________________

The political system is what it is because the People are who they are. — Plato
Pluto's Republic's picture

I've been reading over at Zero Hedge, but it is all a mishmash, unless you are conversant with "assploding."

I did read an analysis that had some interesting parts:

With early returns from the referendum coming in, it is clear that a vote of “no” to the austerity measures proposed by the institutions formerly known as the troika will prevail, with a clear majority that will likely surpass 60%. As I write this, the sky is falling on Greece, the sea is drying up, day has become night, trees and flowers and kittens are dying, bullets and missiles are flying, and Greece is feeling the angry wrath of the gods for defying the will of the creditors, the mass media, and the troika.

At least, that’s what the mass media would have had us believe, with their dire warnings as to what a “no” vote would bring for Greece and with their utterly disgraceful coverage of events in Greece over the past two weeks. In reality, as I am writing this, I am sitting on a park bench in an ordinary neighborhood of Athens. It is a beautiful Greek summer evening, there is a light breeze, young people, families, and the elderly are walking about, and there is no sign of anything but life continuing on as normal. A couple of miles away, in Syntagma Square, more Greeks are congregating to celebrate the “no” victory in today’s referendum.

And, more on the media manure we are all subjected to on a daily basis:

The media coverage seen in the previous days, both from Greek and international outlets, is nothing short of disgraceful; a hatchet job against Greece and its people. The Guardian, which remains for some absurd reason a well-regarded publication in Greece despite years of inaccurate and sensationalistic articles about Greece, warned its readers that shelves in Greek supermarkets are barren, that the tourist resorts of Mykonos and Santorini are facing “food shortages,” that gas stations are out of fuel, and that every single ATM in Athens had throngs of people queuing up to withdraw their funds….

The New York Times, the Washington Post, CNN and the BBC warned their audiences about the impending chaos that would be arriving in Greece in the event of a “no” vote, while making sure to warn the audience about the perils that a “grexit” would bring to Greece, connecting the referendum with the issue of whether or not Greece will remain in the Eurozone. Such biased “reporting” is irresponsible and, indeed, criminal and it is a tremendous shame that these “journalists” have such a large audience, including tens of thousands of Twitter followers, to spread their misinformation.

Today’s vote is a response not just to this media terrorism, but to all those around the world who have fallen victim to such media coverage: the clearly ignorant and uniformed and the racist, who continue to fall back on completely untrue and discredited stereotypes that Greeks don’t work hard, don’t pay taxes, retire at age 50, and have been living off of free money provided by “hard-working European taxpayers”

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____________________

The political system is what it is because the People are who they are. — Plato

On the European leader side they are trapped by their neoliberal ideology, slander of the Greeks, and their own propaganda. They can't give into Greece now.
On the other hand, a messy default and an even messier Grexit is not in their interests either. Plus the whole mess has given them a big PR black eye.

On the Greek side, there is simply no way out from under these debts.

A little bit of give and take on both sides might allow to kick the can down the road for a few more years, but it's not a real solution.

What about this for a solution:
Europe tells Greece, "All right. You want your debt cut? You want an end to austerity? You got it, but on one condition: You leave the Euro and don't come back. We'll even float you some loans to help with the transition. But after that you are cut off."

It's a permanent solution while showing both some compassion and tough love.
I think it would sell in Germany. It might even sell in Greece.
What do you think?

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Pluto's Republic's picture

…I think your essay is. You brought the historical context to life for me. On another note, I captured a map the other day that really intrigued me. I thought it would fit your essay well:

Phoenicia Greece Map.jpg

Okay, back to the solution.

I think it is important to take into account that there are about $75 trillion in active derivatives based on whether or not Greece defaults on its bonds. Banks like JPM are counter-parties. Just sayin'

The amount of Greek debt is equal to one-quarter of the amount of funny-money-QE that the ECB prints in one month.

My thinking is, whatever "moral hazard" kabuki narrative takes place on the surface, the EZ should just quietly pay that off (buy up all the toxic bonds), laugh nervously, and move on.

"Leave the Euro" as you suggest, is actually two things. There is the EU and, then, there is the EZ. Greece is not going to leave the EU — nor is Switzerland or the UK or any other country that is in the region, yet has their own currency. So, that's off the table. The "Economic Zone" — countries that use the Euro as a currency — is another story. Again, this is entirely up to Greece, although Greece cannot expect the EU version of the FDIC, or ELA, as they call it. (For example, many countries use the US Dollar as a currency, with or without the permission of the US.) Another big factor in play, here, is that Greece is a huge NATO base.

I'd like to see Greece nationalize their banks and issue their own currency, pegged to the Yuan. That way they can manage their own economy-to-scale, and print money just like the US does, to expand their economy and service their debts.

But they are way beyond me. I just read that they have the plates to print E20 notes, and they are running the presses tonight. Go figure….

Greece is now a debt-free nation. Europe is no position to make any demands at all.

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____________________

The political system is what it is because the People are who they are. — Plato

but I have to disagree with the last sentence.

Greece is now a debt-free nation. Europe is no position to make any demands at all.

Greece has not renounced its debts. Until that happens it is not debt free.
Also, as long as Greece is on the Euro, Europe still has lots of leverage. They can still make sure that Greece's banks close and stay closed (although that is their nuclear option and will only do that as a last resort).

The Greek people rejected the austerity proposal, but that is all they did. Syriza has gained political capital, but only a limited amount.

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WheninRome's picture

How about that Christin person, like when did they become an expert on Greece, or anything for that matter? I hate that person.

DKOS has really gotten low rent and sophomoric lately.

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Pluto's Republic's picture

And we shall see.

As I write this, the currency markets in Europe will open in 15 minutes. Events will seek a stability, but it may be very volatile getting there.

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____________________

The political system is what it is because the People are who they are. — Plato
Pluto's Republic's picture

Greek Finance Minister Varoufakis announces resignation

Minister makes announcement on personal blog as European creditors scramble to respond to "No" vote in debt referendum.

http://www.aljazeera.com/news/2015/07/greek-finance-minister-varoufakis-...

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____________________

The political system is what it is because the People are who they are. — Plato
mimi's picture

"voiced their opinion" about him that Tsipras felt he has to let him go for him to continue negotiating. Or what is the reason. Just heard BBC radio and they had some guy in the German CDU talking trash about him.
Wow.
Please tell me what it means.

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mimi's picture

sacrificial lamb to satisfy EU and CDU. That is a shame. I don't see this as something Tsipras should have to do, no matter how "brave" Varoufakis is formulating his resignation.

Soon after the announcement of the referendum results, I was made aware of a certain preference by some Eurogroup participants, and assorted ‘partners’, for my… ‘absence’ from its meetings; an idea that the Prime Minister judged to be potentially helpful to him in reaching an agreement. For this reason I am leaving the Ministry of Finance today.

I consider it my duty to help Alexis Tsipras exploit, as he sees fit, the capital that the Greek people granted us through yesterday’s referendum.

And I shall wear the creditors’ loathing with pride.

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mimi's picture

has stabilized the Euro currency...
The German Commerzbank said lakonically""Der foreign exchange market gets used to Greece shocks". Heh, move on, nothing to see here.

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lotlizard's picture

Nor is it part of the extended thingy called the European Economic Area.

Unlike most Western countries that claim to be democracies, Switzerland (like Greece last weekend) actually believes in giving the people a direct say on vital matters. So far every time EU membership, even the watered-down EEA version, has been put to the people in a referendum, the people have voted against it.

https://en.wikipedia.org/wiki/Foreign_relations_of_Switzerland

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LapsedLawyer's picture

blogs on economics, naked capitalism, on the politics of our own political elite towards this "crisis" manufactured by the banksters and assorted financial fraudsters. Bottom line, as summed up by the inestimable Yves Smith who runs the blog,

Even so, Obama and Treasury Secretary Jack Lew have been far more quiet than you’d expect given their attentiveness to the needs of the investing classes and the threat that protracted wrangling with Greece might pose to that. Of course, they might believe that Draghi’s [head of the European Central Bank] bazooka is more effective than Hank Paulson’s proved to be in the runup to the final phase of the financial crisis. But John Helmer indicates below that the Greek referendum has intensified the Administration’s interest in regime change in Greece. He confirms what we’d noticed, that Putin has been quite pointedly avoided being seen as meddling in Greece now; he can always pick up any pieces later. Also note that the anti-Greek government interests have connections to Hillary Clinton.

Hmm...."regime change".... Where have we heard that before?

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"Our society is run by insane people for insane objectives. I think we're being run by maniacs for maniacal ends and I think I'm liable to be put away as insane for expressing that. That's what's insane about it."
-- John Lennon

Pluto's Republic's picture

…I've read of late. Thanks for the reminder. It's a "big picture" community with excellent internal links provided by readers.

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____________________

The political system is what it is because the People are who they are. — Plato
shaharazade's picture

of this both yesterday and today at both dkos and The Guardian.

Today’s vote is a response not just to this media terrorism, but to all those around the world who have fallen victim to such media coverage: the clearly ignorant and uniformed and the racist, who continue to fall back on completely untrue and discredited stereotypes that Greeks don’t work hard, don’t pay taxes, retire at age 50, and have been living off of free money provided by “hard-working European taxpayers”

Then these anti-democratic, neoliberal, ignorant assholes, get indignant when you use the the term neoliberalism or neoliberal.
Meanwhile here's an interesting article about a crowdsource fund raiser for the Greek bail out. Like this young mans thoughts, If nothing else the Greeks voting no has made ordinary people globally who are not suffering from Stockholm Syndrome or cowardice, take notice. The oligarchical collectivist's with their financial terrorism of punitive austerity, Axelrod's inevitable 'world as we find it' has been rejected by the people of a democratic nation state under seige by want to rule the world bankster's and their pols.

http://www.theguardian.com/commentisfree/2015/jul/01/greek-bailout-crowd...

Why I set up the Greek bailout crowdfund

"The way to help a struggling economy is by investment and stimulus – not austerity and cuts. This crowdfunding is a reaction to the bullying of the Greek people by European politicians, but it could easily be about British politicians bullying the people of the north of England, Scotland and Wales. I want the people of Europe to realize that there is another option to austerity, despite what David Cameron and Angela Merkel tell you."

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shaharazade's picture

a very interesting historical and most timely piece. One of your best post's among many great ones. It amazes me that huge swaths of ordinary people in the West defend so stridently the 'oligarchical collectivist's' current political and economic vice grip on the worlds nation states and find austerity for the people acceptable and inevitable. This current so called NWO and it's global pillaging is as old as human civilization and unless people, ordinary people, stand up and refuse to give their consent and say No they will continue to go too far. These Visigoths always say they are inevitable and the rightful world rulers. Democracy and the inalienable self evident truths that are at it's core need to be defended over and over. It's a process and it's what human progress has always been about.

I read today an article about how the Brit's are still paying off the debt from World War 1. How is this possible? What kind of monetary system makes ordinary humans responsible for the economic folly and insatiable power, greed and blood lust of the 'owners of the place' Why are people held responsible for financing the geopolitical power games that do nothing but reek havoc on people and the planet. For what? Funny money for the criminals who need to be gone daddy gone once again.

Here's a needed giggle via pfiore8 on Facebook....

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lotlizard's picture

France extorted 90 million gold francs as the price for recognizing Haiti's independence and compensating former slaveowners for the loss of their "property."

http://www.theguardian.com/commentisfree/cifamerica/2010/aug/16/haiti-fr...
https://en.wikipedia.org/wiki/External_debt_of_Haiti

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