Financial crisis has been with us since 2007. Not much is changing. Have the established forms of capitalism failed? Chris Smith urges us to think about the economy from a progressive perspective.
Global capitalism continues to lurch from one crisis to the next, just as any good Marxist account of reality tells you it is destined to do. The US, the world’s largest economy and lynchpin of global capitalism is having its credit rating downgraded for the first time in its history. Whether this downgrade by one ratings agency turns out to be as universally damaging to the workings of Continue reading
Our intrepid Harry Rafal delves into the depths of news to bring you the week’s five (actually six, but who’s counting?) stories that you may have missed.
The events that have unfolded in Norway last week rightfully occupied the headlines at the beginning of the week, supplemented as the week progressed with news of the demise of Amy Winehouse, the sluggish growth of the British economy and the stalemate in the US debt crisis, so here are the five news stories you may have missed if you were fretting over whether Continue reading
By bailing out every nation too big to fail, we have created a monster too big too save. And if the European Union collapses, will it take down the USA and China with it? Asks Ventilator Blues.
What a mess we have gotten ourselves into. Our financial system has been exceedingly well cudgelled by this interminable crisis if not instigated by, then certainly triggered by the collapse of Lehmans. The result of this was a mad rush to prevent the entire economic order collapsing around us and blind dumb governments waving their bailout stick at huge bankrupt straw donkeys because they were too big to fail. This meant, I think, that the governments believed that the whole world would go to pot if Barclays et al decided to diversify into liquidation as the profit quanta suffered catastrophic devaluation – or however Murdoch Jnr would say it. Continue reading
The weak Greek economy is to be bailed out once again. Instead of allowing the Euro to crumble, the Germans fight to keep the Euro together. There is evidence of strong economies upholding weak: West Germany sustained the East, the West of Turkey sustains the East, London sustains the North. But the strong Euro nations cannot sustain the weak ones because they do not share a culture, identity or language, writes David Vaiani.
So, once again, EU leaders have clubbed together to bail out the Continue reading
Hartz IV is Germany’s divisive welfare programme. It involved the consolidation of unemployment and welfare benefits. Some argued the new singular benefit was too low. However, the programme still encourages people to live off benefits when they are able to work. What with bailing out Greece, can the Germans also sustain its current benefits system, asks Helena Miteyko.
The Hartz concept is a term for the Commission’s proposals “Modern Services in the labour market” which was held in Continue reading
The important thing for Europe is for it to be defined once and for all. Churchill called for a United States of Europe, Schuman created the gradual approach, and de Gaulle opposed any federal encroachment. And this was only the beginning… In short, do we want a federation or a confederation? In this blog we consider the impact of the possibility of Greece defaulting, and this author suggests its eventual removal from the Eurozone, as well as setting out guidelines for future similar situations.
In the short term, the EU needs to make sure if any country is in danger of defaulting, or exceeds limits on its deficit, that there are systematic measures taken. Also, in much the same way as there are limits on deficits, there should be limits on debt given, so that countries know what awaits them. Continue reading
Cry “Havoc! And let slip the PIGS and Greece” as Shakespeare would have written had he been around. The travails in Greece certainly have all the hallmarks of a tragedy in the artistic sense but beyond that all sense pretty much disappears.
Hubris, pride, incompetence, bathos, comeuppance, despair but enough of Ed Milliband’s leadership election, all these wonderful traits can be discerned from afar with great satisfaction by the average Brit who has always thought that there was something deeply flawed by the European currency project. Continue reading