Ireland’s experiment with “Anglo-Saxon Capitalism” is at an end. The simple facts are that, like the booms and busts in the USA & UK this was based on the myth that house prices will continue to rise and folks will never default on loans.
What’s this bail-out? That sounds nice of us all. But this is the global bond markets looking to make a buck by charging punitive rates of interest at which the government must borrow to finance its debts. Eurozone capitalists are terrified Portugal, Greece and Italy will default if the debt crisis infects the rest of the zone.
Any bailout simply gives more money to the banks. The beneficiaries of the Greek bailout in May were German and French bankers, not Greek workers. The crisis is that of Capitalism.
If an economy is in crisis, buyers of bonds become all-powerful. They demand a higher rate of return, or simply refuse to buy.
German chancellor Angela Merkel recently expressed a fear that there is a limit to the pain that can be imposed on Europe’s workers without provoking uncontrollable revolts.
The trillions that have been thrown at the bankers has clearly led to bankrupted countries and austerity cuts aimed at us ordinary folk.
It’s the good-old fashioned alternative that is needed now more than ever: workers should decide what is produced and invested.
NB This piece was written by Erik Horsebalm, but posted by Baby Face.