“I’m so bored. I hate my life.” - Britney Spears

Das Langweilige ist interessant geworden, weil das Interessante angefangen hat langweilig zu werden. – Thomas Mann

"Never for money/always for love" - The Talking Heads

Monday, November 28, 2011

Another day, another crisis

According to this NYT article, the OECD is playing its usual neo-liberal role in urging austerity on Europe.

This, of course, is the end game of a long history of reaction going back to the seventies, when policy elites and the generation of 68 turned their back on 'socialism' and began the long work of demoralizing populations and installing financial regimes that deflated wages, raised credit limits to cover their unpopular policies, and inflated the compensation of the investor and managerial class to a Gilded Age level.

Here's the deal: There's no such thing as an unsustainable government debt. The banks, of course, depend on the governments to enforce debt obligations, plus they depend on the governments to either give them money or loan them money at such low interest rates that it is the same (the U.S. 'capitalized" U.S. and foreign banks, hedge funds and the financial centers of corporations to the tune of 16 trillion dollars from 20008 to 2010 without anybody batting an eyelash). So, what army does Goldman have?

It is too bad that we live in a world in which bank debts are paid by practically free loans by governments, and government debts are paid by - crushing the middle class. Eventually, our debt serfs are going to look up and ask: who, exactly, do we owe this money to? The relatively paltry investment class, which includes about a million to two million people world wide? Sorry, I see no reason that countries should go down the hole just so these people can continue to enjoy their three vacation homes and the corporate jet.

If Spain, Portugal, Italy and Greece were smart, they'd band together and simply say no. If the EU central bank won't print the money this group needs to fund a bank and buy their own debt - a very easy thing to do - they should do it themselves, make up a Southern Euro. It would immediately deflate, and reverse Germany's export advantage in Europe. I see no reason that they shouldn't do this - except for the fact that the neo-lib colonies among the elites in those Southern countries would be horrified.

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