Tuesday, January 1, 2013
‘Fiscal cliff’ scare to attack social programmes
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?