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Posts Tagged ‘global financial crisis’

Keynesian Checkers versus Monetarist Three Dimensional Chess

April 28, 2013 1 comment

spock-chess-2

You can almost smell the frustration pouring off Paul Krugman these days, as he once again proclaims the latest in a series of victories of Keynesian economic theory over its monetarists opponents.

Says Krugman:

“Sorry, guys, but as a practical matter the Fed – while it should be doing more – can’t make up for contractionary fiscal policy in the face of a depressed economy.”

Krugman’s argument, which is a continuation and expansion on a more extensive argument by Mike Konczal can be simplified: Keynesian policies are better at generating an overworked working class than monetarist policies.

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Reinhart-Rogoff and Austerity: The math is not the problem

April 24, 2013 1 comment

Eurozone-Crisis-Timebomb

After reading and commenting on David Graeber’s post at the Guardian, I feel it necessary to comment more broadly on the problem the euro-zone faces in the crisis, as well as the problem posed by the austerity regime being pursued by the member nation of the European Union. My point is to show that the errors of the bourgeois economists Reinhart and Rogoff are not, as is commonly believed, a simple math or spreadsheet error. Behind these errors is concealed the fact that the euro-zone itself is founded on a fundamental structural flaw resulting from the monetarist economic theory on which it is constructed. This flaw was nothing more than an attempt to obstruct the working class majorities of the member nations from democratic control over their economies — a flaw that is now haunting the euro-zone and will likely cause its collapse.

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Open Letter to Mr. Tsipras: You call that a fucking plan?

October 9, 2012 12 comments

To Mr. Tsipras of the Greece party, Syriza,

I read your letter to Angela Merkel today the Guardian and was not impressed. Frankly, I expected a guy who just might be running Greece next year to have a better argument than the one you gave. You stated:

As Angela Merkel visits Athens on Tuesday, she will find a Greece in its fifth consecutive year of recession. In 2008 and 2009, the recession was a spillover from the global financial crisis. Since then it has been caused and deepened by the austerity policies imposed on Greece by the troika – of the International Monetary Fund, the European Union, the European Central Bank – and the Greek government.

These policies are devastating the Greek people, especially workers, pensioners, small businessmen and women, and of course young people. The Greek economy has contracted by more than 22%, workers and pensioners have lost 32% of their income, and unemployment has reached an unprecedented 24% with youth unemployment at 55%. Austerity policies have led to cuts in benefits, the deregulation of the labour market and the further deterioration of the limited welfare state that had survived a neoliberal onslaught.

Yes. The financial crisis and austerity is taking its toll on Greece, but is that piglet Merkel unaware of this? Is she living in a cave? She knows exactly what the toll is on the population — she intends that austerity take that toll. So whining about it like some emoprog is not helpful in the least.

What the fuck are you prepared to do about it?

It is nice to know that Syriza, “respects the ordinary European taxpayer who is asked to shoulder loans to countries in distress, including Greece.” The question, however, is how Syriza proposes to end this burden, since Greece is now Europe’s AIG — a convenient pass-through account for a backdoor bailout of Europe’s banking system. In this shell game, Greece gets all the blame and the banksters get all the fucking money. How do you propose to end this fucking shell game?

And what are you offering to Greece as an alternative to participating in this monstrous scam?

What would you do different?

Europe, you state, “needs a new plan to deepen European integration”, but how does your idea of integration differ from the idea of removing fiscal control completely from the Greece state and handing it to an as yet undetermined new authority? Moreover, how does this differ from “neoliberalism” agenda that is already stripping European nation states of fiscal and monetary sovereignty?

You had a lot of rhetoric about placing priority on the needs of workers, pensioners and unemployed but — really — what does this mean? Do you or do you not intend to let the banks fail? Please, spare us all the Leftist rhetoric about “placing priority on the blah blah blah…”, and “popular struggles radically blah blah blah…”

I mean, really ARE YOU GOING TO LET THE FUCKING BANKS FAIL OR NOT! And if you let them fail, how do you propose to protect the Greece public from the effects of the financial system’s collapse? All in all, your message to Merkel is meaningless trash and bizarre given the fact you will actually have to run the country shortly.

Let me say this to you: the European Left are just a bunch of pussies. To put it in the words of Mobb Deep, an American rap group:

“You’re all up in the game and don’t deserve to be a player.”

The muthafuckas behind the crisis have been running Europe since the days of Rome. Do you seriously believe you are going to appeal to their humanity? These muthafuckas slaughtered 1,000,000 Iraqis — you think they care about Greece suffering? Frankly, Mr. Tsipras, I can’t understand it. Folks on the European Left think there are rules and keep calling for the ref. You are dumb fuckers. Let’s here what the guys behind the scenes think of your rules:

“That’s not the way the world really works anymore. We’re an empire now, and when we act we create our own reality.” –Spokesperson for the Bush administration

If that is not enough, Draghi told you today what the rules are:

RULE NUMBER ONE: “Revitalizing the cycle of debt is crucial to recovery.”

And

RULE NUMBER TWO: “It is necessary to reassure banks over the quality of their assets.”

What part of “Fuck You” don’t you folks on the European Left get? You just let that horrid little fucking piglet waltz into Greece like she is visiting one of the provinces. And your only fucking response is,

“This plan will succeed only if popular struggles radically change the balance of forces. These struggles have started already and have led to the rise of left and resistance movements throughout Europe. They keep alive democracy, equality, freedom and solidarity, the most important values of the European political tradition. These values must prevail. Otherwise Europe will regress to a dark past we thought gone for ever.”

What fucking balance? What fucking plan? Holding your fucking dick in your hand and jerking furiously is not a fucking plan. These muthafuckas got a plan for Greece — and it ain’t “democracy, equality, freedom and solidarity”.

Which is to say, Mr. Tsipras, we all know how this ends, if Washington has its way. Frankly, you will be dead or in hiding six months after you take office; so whatever the plan, it better be quick, painful as hell for capital and irreversible. That means, no matter what, you kill the banks first, and divide their carcasses among the population — you have to keep Germany, France, Britain and the US busy trying to save those fuckers on Wall Street, while you wipe out unemployment. It only takes two steps to do this:

  1. Renounce all Greece’s debt, public and private, and
  2. reduce hours of work by half.

Those two moves will immediately trigger the collapse of stock and bond markets world-wide and send those fuckers scrambling. You have to make these fuckers think they are staring into the face of GOD — and that she is pissed beyond all belief. Your aim should be a 1000 point loss on the SP500 the first fucking day in office.

Then you immediately turn to the question of producing contagion — the crisis cannot be limited to Greece; it must spread to Spain and Portugal, Ireland and Italy. Every time they think things can’t get any worse, you have to fuck them again. If a big stick will work in this situation, then you have to use a fucking sledgehammer.

Getting rid of public and private debt is absolutely critical to killing the banks — not one bank should survive anywhere. So, repeat after me

  1. RENOUNCE THE DEBT,
  2. SLASH HOURS OF LABOR,
  3. CREATE CONTAGION

That’s a fucking plan.