Friday, December 25, 2009


First Iceland, then Ireland, now Greece. Much of Europe is mired in inescapable debt and bankrupt nations, the result of
  • crashing banks,
  • bank bailouts, and
  • soaring unemployment.
The U.S. and U.K. watch from a distance, knowing their turn is next.

Unbeknownst to most Europeans, the public money that financed the bank bailouts created a massive public debt problem, to be solved by massively slashing public programs that benefit workers and the poor. This amounts to a blatant transfer of billions — maybe trillions of dollars — in public wealth, away from the majority of citizens toward a parasitic crust of bankers.

Who is to pay for their colossal spending spree on
  • bank giveaways and
  • foreign wars

Government bonds were printed and purchased by global investors (capitalists).
Now, these investors want to be sure that the heavily indebted governments are able to pay up. And they’re becoming impatient.

Moody’s released their notorious “misery index”. Behind bankrupt Iceland comes the United States

"This is mainly because of the crisis of public finances [bank bailouts plus unemployment] that has beset many rich countries in what Moody's believes will be the final — and disturbingly long-lasting — stage of the crisis.”

Moody’s is demanding that less-rich nations like Greece, Ireland, Spain, etc., take immediate actions to make their rich investors happy. The Washington Post explains Ireland’s situation:
  • slash salaries for 400,000 government workers
  • reductions in benefits for such groups as widows and single mothers to the blind and disabled children.”
  • Unemployment benefits were also slashed by as much as 30%.”

The U.S. and the U.K. must make immediate plans to make major cuts “…this will be the year [2010]

John Chambers of Standard & Poor’s was more blunt:
  • draw down fiscal stimulus,
  • pare expenditures [make cuts],
  • raise revenues [taxes] and probably take a look at
  • [cuts] in their entitlement programs" — Social Security, Medicare, Education, etc.

This is not news to President Obama. In a statement to WAPO he pledged to "reform entitlement programs.” (January 16, 2009). This was to be done after the economy had stabilized.

The mainstream media will support our corporate-owned President We will be told that there are “no other options,” when in fact there are.
  • Military spending could be reduced by hundreds of billions of dollars.
  • Taxes should be raised significantly for the very wealthy.
Barack Obama will soon be pursuing a policy that George Bush Jr. would never dare try.

American unions should look to Europe
  • mass demonstrations
  • united strike action
  • put sufficient pressure on a government enforcing a solidly right-wing corporate agenda.

Somebody must be made to pay for the economic crisis. Corporate-elite is planning to push this burden on to the working class. The working class must push back. Unions and community organizations should begin organizing now to tax the rich and corporations save Social Security, Medicare, and public education.

No comments: