Debt Crisis Analysis
Bruce Wilson made this comment as part of one of his great articles.
“The same scenario was played out during the Third World debt crisis of the 1980s and the Asian financial crisis of the 1990s.
Lending binges by banks and speculators led to debt defaults, followed by severe austerity measures to protect the interests of the financiers.
The solution is always the same, says Bello: “Pin the blame on the victims by characterizing them as living beyond their means, get public agencies to rescue you with money upfront, and stick the people with the terrible task of paying off the loan by committing a massive chunk of their present and future income streams as payments to the lending agencies.”
While the world follows this “living beyond their needs” narrative perpetuated by the corporate media – banks continue to deflect the pressures for financial regulation. As long as the banks get their way and austerity measures continue, the economies of Greece and the peripheral countries of Europe will continue to stagnate and the people will suffer.” Author: Bruce Wilson
Find his whole article “here”.
The problem with corporate styled capitalism is that banks and businesses are not only insensitive to the real needs of citizens because of a push toward profits as the true and only main and important goal, but they are also too big for anyone to allow them to fail. This means we need to work hard at taking money out of politics so that the needs of the people can have the larger weight of influence. This is the only way we can have a strong democracy of, for, and by the people. (A twist on the words of a great speech by Abraham Lincoln. Which you can find here.)
Abraham Lincoln also feared for his nation because of the influence of corporations. Capitalism has a fatal flaw in that it’s love of money and greed tend to place all the wealth eventually into a few hands and impoverish the vast majority of hard working citizens. Repairing this flaw must mean a government big enough and strong enough and democratic enough to stop the formation of corporations and banks that are too big to fail. When this grabbing of most of the power and wealth of our nation by a few rich individuals occurs and we lose our democracy to big money influences, any nation begins to look like a dictatorship of a few, a result also attained by communism.
A truly free and vibrant economy cannot exist without everyone being made players in the economic game rather than being slaves to it. Picture a game of monopoly, a board game where players of the game roll dice and move around a piece that can land on owned “properties” and have to pay “rent” to the owner.
When a child I played this game and eventually one player will own all the landing places and collect all the rent until finally everyone else was “broke” and homeless. Sometimes the “winner” of the game would try to keep playing by handing out just enough play money and landing spaces to other players so that they could keep playing, but never enough to spaces or money to put them in serious threat of losing. Usually all the players who had “lost” would walk away in disgust.
Consider now when such a game occurs in real life, then you can’t walk away, you are stuck in the unfair rigged game. This is what happens more or less when corporate styled capitalism, and too big to fail banks, take over the game. Eventually all except a minority will lose any position where they might hope to succeed.
Those in such a “position”, a position from which they might find some success in the game, are the middle class. Progressives seek to strengthen the middle class and help the poorest from being hopeless and turning to crime or violence. This means that the poor are in a position to move into the middle class, and that the middle class can hope to rise to upper class status.
I hope you will read all of Bruce Wilson’s article and remember to “keep the faith” in democracy and fight for it with diligence, something that requires not guns but constant vigilance, and a determination that your vote, nor anyone else’s will be “bought and paid for” in any way what so ever…