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 job+guarantee retirement+savings cooperatives credit+unions deficit+hawks economic+stimulus income+inequality health+care+reform financial+regulatory+reform worker+cooperatives gdp federal+debt financial+conglomerates tarp financial+oligarchy 401k money scams fiat+currency debt+management new+normal middle+class wall+street investing consumer+debt investments china economic+growth wages federal+reserve globalization savings neoliberal consumer+protection stimulus unemployment+rate tax+cuts risk foreclosure budget financial+planning credit+card+debt debt+settlement federal+deficit democrats republicans stocks government+spending negative+equity foreclosures move+your+money full+employment modern+monetary+theory stock+market neo-liberal checking economic+policy u.s.+treasuries bonds economic+mobility job+growth bank+of+america foreclosure+fraud taxes consumer+spending cfpa ira class+war inflation jobs+report financial+bailout fiscal+policy evil pete+peterson health+care financial+literacy jobs+crisis currency wills economics #finreg tbtf monthly+budget estate+planning consumer+credit auto+industry president+obama gold+standard debt+ceiling center+for+responsible+lending mutual+funds innocent+fraud aig life+insurance personal+income trade+deficit market+fundamentalism consumer+financial+protection+agency cash+flow banking identity+theft fraud compound+interest too+big+to+fail predatory fdic state+of+the+union u.s.+treasury+securities net+worth class+warfare bankruptcy derivatives goldman+sachs mortgages debt+consolidation eu great+recession 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 debt+collection income+tax refinancing loan+modifications financial+stability+plan poverty trickle+down+economics working+class retirement community+gardens economic community+banks debt+to+gdp recession austerity online+scams income+taxes investment inequality estate investment+yields happy+year finreg hyman+minsky american+dream email beige+book mortgage+modifications yuan risk-return investment+advice dot+com+bubble leading+economic+indicators malicious+software deflation corporate+bailouts federal business+roundtable cooperation returns housing+bubble chris+dodd lei deferred+annuities bailouts economic+policies balancing+checkbook alternatives disability+income+insurance scam fiscal+sustainability home+mortgage fixed+rate+annuity lobbyists debt+is+evil balance+check+book credit+report teach-in currency+manipulation bill+gross insurance variable+rate+annuity corporate+tax+breaks credit+card+law deficit+spending tina general+motors economic+indicators budgeting financialization warren+mosler washington+consensus foreclosure+rescue+services gross+domestic+product race+to+bottom big+banks marx june+jobs+report open+auction lost+decade financial+genocide republican+budget emergency new+capitalist+manifesto bank+fees credit+card minsky tips geithner commercial+real+estate direct+jobs+program civil+disobedience human+capital direct+deposit reaganomics overdraft cfpb galbraith social+security+cards personal+consumption treasuries protests balance etf economic+justice barack+obama worker+ownership wall+street+bailouts exports household+debt fallacy+of+composition gas+prices obama+administration destruction citizens+united outlays unemployment+benefits imports card+act fallacies securities+laws save public+option living+standard unions july+2011 laid+off citigroup financial+sector foreclosure+gate auto+loans emergency+funds deductibles strategic+defaults keynesian wiped+out productivity+ralph+nader new+era+windows money+market+accounts unemployment+insurance fox+news+channel human+capitalism savings+tip financial+reform arra free+credit+report chicago money+market+mutual+funds afl-cio fox move+money predatory+lending credit+rating+agencies credit+reports fallacy uaw employment principal+reduction roger+ailes close+banking+accounts countervailing+powers refund+anticipation+loans jobs+data moody's revolution tax+reform denmark propaganda banking+services john+k.+galbraith tax+refund debt+forgiveness lehman+brothers cornel+west exuberance disposable+income national+infrastructure+bank corporate+welfare u.s money+manager+capitalism birth+certificate monetary+policy option+arm mortgage+loan+modifications subprime+mortgages corporate+profits interest+rates greece quantitative+easing political+system fundamentals living+wage output+gap success consumption two+americas ltcm universal+health+care income+distribution household john+mccain minimum+wage new+democrat+coalition oligarchy two+economies frontline senate+democrats eurozone debt+commission haymarket american+recovery+and+reinvestment+act 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 subprime bad+bank bullshit target+date+mutual+funds argentina fierce savings+plan alan+greenspan deficit+errorists payroll+tax+holiday phone+scams financial+regulations national+debt free+markets united+states now savings+bonds shadow+banking+system fica+tax madison time+value+of+money cost+of+unemployment ponzi+schemes swipe+fees credit+markets fair+debt+collection+practices+act tax+code #wallstreetscam great+divergence paulson future+value pensions fed+audit debit+cards predatory+home+lenders cash cdo walker warren+buffett treasury+department present+value tax+deal cooperative+economy liquidity u.s.+debt poverty+rates conservatives ppip job+loss 20-year+mortgage obama+tax+deal short+sales cash+management treasury+securities detroit+schools home+buying economic+purgatory long+term+unemployment vicious+cycle bartering emergency+savings efca debt+hysteria home+closing banks deficit+hawk american+capitalism