News reports indicate that G7 and central banks will be holding emergency meetings to address ANOTHER crisis.
What can they possibly be discussing and do you think your interests will be represented at these emergency meeting? Hell no, but the oligarchs will certainly be represented.
We are witnessing an economic system that generated the Global Financial Crisis simply shifting crisis from one sector to another sector. Never really fixing the problems - just avoiding pain for those with money and power. And the problems we see in Europe are not the same as those in U.S but the resulting policies will be.
The problems in Europe, while instigated by the Global Financial Crisis, are systemic and inherent to their monetary system. Essentially, with the Euro or European Monetary Union there are countries issuing debt in a currency (Euro) that they don’t control. It becomes incredibly burdensome over time, and particularly in a recession, for a country to pay its debt obligations in currency it doesn’t control. But what is happening is not at all different to what happened in Wall Street bailout. Big European banks that hold the debt of countries like Spain, Greece and Italy don’t want to take ‘haircuts’ on the debt. Instead, what we are seeing is that people of these indebted countries are paying the price in the form of austerity - severe cuts to social programs and pension programs.
The problem in U.S. is a different one. Right now, we have a political crisis. We have a political system hell bent on addressing issues, such as deficit and federal debt, that are not crises. The real crisis is a jobs crisis. The debt/deficit fiasco is manufactured crisis but the results will be same as what many Europeans are experiencing now - DEEP AUSTERITY. Yes, this means cuts to many programs that help poor and working class Americans including Social Security, Medicare and Medicaid.
But this deep austerity will be sold as ‘shared sacrifice’ by politicians. ‘Shared sacrifice’ is a campaign slogan or a lie to cover up what is really happening. There will never be ‘shared sacrifice’ when we have millions of foreclosures, millions of home mortgages underwater, 25 MILLION people either unemployed or underemployed and 44 MILLION on food stamps. And nothing in Washington being discussed to address these problems. However, there is more talk of cutting programs. Some would argue but there are tax increases for top tax brackets. Yeah, so! Impact of cuts to programs such as Social Security, Medicare, Medicaid and the like will be far more painful to those affected than a small tax increase on top incomes - in other words this NOT ‘shared sacrifice’.
This DEEP AUSTERITY is really a symptom of our economic system. Our political system is really a reflection of our economic system. An economic system characterized by huge income inequality and little to no economic mobility. The consequences of this are what we see in our political system - a plutocracy where polices are determined by what is best for those with money (consider the piece of propaganda - top incomes are the ‘job creators’) and big corporations. This is also a major reason why we see the shift of crisis from one sector to another - the global financial crisis was instigated by financial sector and was quickly moved to government sector via $13 TRILLION bailout. Now, a manufactured debt/deficit crisis is being used to eliminate help for those who need it or move much of the government sector functions to the private sector through privatization. Bottom line is that political system and the economic system behind it are not working for poor and working class families.
It’s time to change that. Since our political system is a reflection of our economic system. The place to start is our economic system. Time to start creating new economic institutions that will support the challenge to and the eventual down fall of our current economic system. Economic institutions that encourage increased community wealth, increased democracy and increased economic opportunity for people. There are plenty of ideas/visions for this New Economy - just look up people like Gar Alperovitz, David Korten, David Schweickart. There are others. Don’t be fooled - there are alternatives.
economy financial+crisis budget+deficit obama unemployment jobs credit+cards debt social+security personal+finance capitalism deficit bailout mortgage mortgage+crisis economic+crisis wall+street+bailout new+economy retirement+savings job+guarantee credit+unions deficit+hawks economic+stimulus cooperatives health+care+reform financial+regulatory+reform income+inequality federal+debt financial+conglomerates tarp financial+oligarchy 401k worker+cooperatives gdp debt+management new+normal money scams fiat+currency economic+growth federal+reserve wages globalization savings stimulus neoliberal consumer+protection unemployment+rate tax+cuts wall+street middle+class investing consumer+debt investments china financial+planning credit+card+debt debt+settlement federal+deficit democrats republicans stocks government+spending negative+equity risk foreclosure budget taxes consumer+spending cfpa ira class+war inflation jobs+report financial+bailout fiscal+policy evil pete+peterson health+care financial+literacy jobs+crisis foreclosures move+your+money full+employment modern+monetary+theory stock+market neo-liberal checking economic+policy u.s.+treasuries job+growth bonds economic+mobility bank+of+america foreclosure+fraud net+worth u.s.+treasury+securities class+warfare bankruptcy mortgages derivatives goldman+sachs great+recession debt+consolidation eu keynes gold fico+scores refinance credit+scores real+estate debt+crisis banking+system mortgage+foreclosure financial+regulation financial+crisis+inquiry+commission deficit+commission debt+servitude krugman federal+budget de-regulation solidarity free+trade wisconsin income+tax refinancing debt+collection loan+modifications trickle+down+economics financial+stability+plan poverty retirement working+class currency monthly+budget wills economics #finreg tbtf estate+planning consumer+credit gold+standard debt+ceiling auto+industry president+obama center+for+responsible+lending mutual+funds innocent+fraud aig life+insurance personal+income market+fundamentalism consumer+financial+protection+agency trade+deficit banking identity+theft cash+flow compound+interest fraud too+big+to+fail fdic state+of+the+union predatory credit+rating+agencies credit+reports fallacy money+market+mutual+funds afl-cio fox move+money predatory+lending refund+anticipation+loans jobs+data moody's revolution tax+reform uaw employment principal+reduction roger+ailes close+banking+accounts countervailing+powers tax+refund debt+forgiveness lehman+brothers cornel+west exuberance denmark propaganda banking+services john+k.+galbraith monetary+policy option+arm mortgage+loan+modifications subprime+mortgages corporate+profits disposable+income national+infrastructure+bank corporate+welfare u.s money+manager+capitalism birth+certificate fundamentals living+wage output+gap success consumption interest+rates greece quantitative+easing political+system john+mccain minimum+wage new+democrat+coalition two+americas ltcm universal+health+care income+distribution household american+recovery+and+reinvestment+act oligarchy two+economies frontline senate+democrats eurozone debt+commission haymarket existing+home+sales jobless+recovery carried+interest john+edwards income regulations ben+bernanke california+budget catfood employee+ownership paladino robert+reich mark+to+market budgets payroll+tax euro chicago+idea fannie+mae housing+market cowards slavery dollar sector+balances gmac life+settlements tax+holiday ireland mlk fierce subprime bad+bank bullshit target+date+mutual+funds argentina free+markets united+states now savings+plan alan+greenspan deficit+errorists payroll+tax+holiday phone+scams financial+regulations national+debt time+value+of+money cost+of+unemployment ponzi+schemes swipe+fees savings+bonds shadow+banking+system fica+tax madison paulson future+value pensions fed+audit debit+cards credit+markets fair+debt+collection+practices+act tax+code #wallstreetscam great+divergence warren+buffett treasury+department present+value tax+deal cooperative+economy predatory+home+lenders cash cdo walker ppip job+loss 20-year+mortgage obama+tax+deal short+sales liquidity u.s.+debt poverty+rates conservatives home+buying economic+purgatory long+term+unemployment vicious+cycle cash+management treasury+securities detroit+schools home+closing banks deficit+hawk american+capitalism bartering emergency+savings efca debt+hysteria online+scams income+taxes investment inequality community+gardens economic community+banks debt+to+gdp recession austerity email beige+book mortgage+modifications yuan risk-return investment+advice estate investment+yields happy+year finreg hyman+minsky american+dream malicious+software deflation corporate+bailouts federal business+roundtable cooperation dot+com+bubble leading+economic+indicators deferred+annuities bailouts economic+policies balancing+checkbook alternatives returns housing+bubble chris+dodd lei fixed+rate+annuity lobbyists debt+is+evil disability+income+insurance scam fiscal+sustainability home+mortgage insurance variable+rate+annuity corporate+tax+breaks credit+card+law deficit+spending tina balance+check+book credit+report teach-in currency+manipulation bill+gross foreclosure+rescue+services gross+domestic+product race+to+bottom big+banks marx june+jobs+report general+motors economic+indicators budgeting financialization warren+mosler washington+consensus emergency new+capitalist+manifesto bank+fees credit+card minsky tips open+auction lost+decade financial+genocide republican+budget human+capital direct+deposit reaganomics overdraft cfpb galbraith social+security+cards geithner commercial+real+estate direct+jobs+program civil+disobedience balance etf economic+justice barack+obama worker+ownership personal+consumption treasuries protests gas+prices obama+administration destruction citizens+united outlays wall+street+bailouts exports household+debt fallacy+of+composition securities+laws save public+option living+standard unions july+2011 unemployment+benefits imports card+act fallacies emergency+funds deductibles strategic+defaults keynesian wiped+out productivity+ralph+nader new+era+windows laid+off citigroup financial+sector foreclosure+gate auto+loans human+capitalism savings+tip financial+reform arra free+credit+report chicago money+market+accounts unemployment+insurance fox+news+channel