Tuesday, January 1, 2013

‘Fiscal cliff’ scare to attack social programmes

The financial war against the economy at large

Michael Hudson argues that governments have pro-creditor policies that centralise creditor control over eonomies, enabling creditors to load governments, companies and households with debt, to siphon off their income as debt service and, for non-payment, to seize public property and employee pension pots, while indebted labour fears to strike or complain about working conditions. Financial interests write tax laws and curtail debtor rights. Why, for instance, is it necessary to force employees to pre-pay for social programmes while monetisation can be used for bank bailouts (instead of banks pre-paying insurance premia against bank busts), military spending (no pre-paying for wars) and even the rebuilding of private beaches and beachfront homes washed out by hurricane Sandy?

Posted by icarus @ 11:13 AM (1719 views)
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6 thoughts on “‘Fiscal cliff’ scare to attack social programmes

  • Thanks for posting, Icarus.

    “Workers have become so deeply indebted on their home mortgages, credit cards and other bank debt that they fear to strike or even to complain about working conditions. Losing work means missing payments on their monthly bills, enabling banks to jack up interest rates to levels that used to be deemed usurious. So debt peonage and unemployment loom on top of the wage slavery that was the main focus of class warfare a century ago.”

    My first thought on reading the above was that the UK happily and enthusiastically bid up property prices during the boom years and will do so again at the first opportunity. If you accept Hudson’s thesis then our capture by the financial industry is complete.

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  • compelling analysis IMHO. The question is what can be done about it?
    N

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  • Almost seems like a conspiracy theory but we can see examples of this “war” all around us. Paul Krugman has written some pieces for the NY Times which touch on similar themes – we could be turning into a society of robber barons and serfs.

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  • happy mondays says:

    @ ltf – We could be turning into a society of robber barons and serfs “with a bit of civil unrest”

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  • Yep, excellent article. The worst of the damage is in the US, but the UK is clearly going down the same path with glee. The rest of Europe appears to be resisting, at least so far….

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  • An interesting read.

    Drewster notes: “The rest of Europe appears….”

    Over Christmas I momentarily got the feeling that the rest of Europe was going bankrupt! Certainly the Spanish and Greek banks, ably supported by Dexia (Belgium/France).

    Maybe not, Ambrose in the Telegraph wrote today: “The US, Japan, Britain, as well as the Swiss, Scandies, and a string of states around the world, are actively driving down their currencies or imposing caps”.
    LINK
    http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/9773911/Stocks-to-soar-as-world-money-catches-fire-Calvinst-Europe-left-behind.html

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