So we can all sleep in peace according to Germany/France,- Greece will remain in the Euro club. Well if you have a liking for history you will know that Chamberlin came back from Germany before the second world war saying their would be peace in our time. It cannot, aint going to happen, Greece cannot pay its debts it is in a far worse situation then most of the other so-called “pigs” for various reasons mainly historical. So why keep them in the club, or for that matter the other debtor countries, not too, would cause a massive implosion of capitalism sending the world banking system into a total collapse. Money would not be available and your Euro/Dollar/Pound would be worth very little.
What are they doing, in a nutshell they are playing for time. If the above happens no one is safe, with a crash comes the return of nationalism/protectionism, as a”Polish minister said in ten years time wars”. This may seem like a throw away remark but one should look back at the thirties,nationalism/protectionism were the hallmark of the period, these are always the birth pangs of war under capitalism. Germany/France are aware that Greece cannot pay and in my opinion are badly trying to prepare for a default. Both Germany/France banking system are owed billions by Greece, somewhere in the region of 20 billion, not to mention other banks around the world, so how do you manage such a default beggars belief. Little plucky Finland already wants collateral from Greece, if they contribute to the second tranche of loans to Greece. So as one can see there is no cohesion among the “richer nations” Finland are grabbing what they can before others do.It is obscene a bit like peasants fighting over a piece of land of a dead peasant.Their is no such thing as an orderly default, the repercussions of such will have major effects around the globe on the banking system,hence on working people. All Germany/France are trying to do is protect themselves as much as they can so as to retrench in as much order as possible. As for the rest we shall be cut loose to the new market whatever that will be.
Crisis of Capitalism
Crisis under capitalism are endemic it has them every couple of years if you look at the last few decades,we had one in the eighties another in the nineties lasting a year or two mainly localized. This present crisis has now being running since 2007 starting with the fall of Lehman Brothers in the U.S. It is now in its fifth year and by now has wiped trillions off the stock exchanges world-wide with no sign of an end in sight. Individual capitalists are investing in gold not in countries, nobody wants to buy bonds i.e. the debts of countries, as their banks have being shown to be bankrupt,hence these go to the wall. This of course means the working people of these countries are forced to pay for the mess the banks created, while the speculators squirrel away their wealth. Can they resolve this particular crisis. It is unlikely without some major surgery the scenarios are Germany/France go for a new union with Finland/Holland/Finland maybe Poland ect. The “Pigs” depart and become the poor relations, a not very stable area of Europe with the poor of these countries immigrating to the richer Europe for work with all the tensions this creates. Not to be left out of the equation is the wounded beast the United States, at the moment in as deep a crisis as Europe with massive unemployment, not seen since the thirties. Whatever happens in Europe directly affects the U.S. banking system. It is no wonder the American finance spokesman is attending talks with European Union this friday trying to get them to do more to put a stop to this capitalist crisis. His problem they cannot. For all the talk of a world of equals,what it comes down to is the simple act of defending ones profits and in this regard countries are no different from large companies Can China/India/Brazil come to the rescue in essence no, all are tied hand and foot to the markets of Europe and the U.S. In the case of China not only by exports of goods but also by the amount of bonds it has bought from these indebted countries in particular the U.S. India/Brazil are tied in also through its exports. The world economy is now like a house of cards teetering on the brink. We are living through a period of seismic changes which will see a fundamental change in the way the world is ruled in the future. How that comes about has at this point not being determined. As working people we must fight for power or suffer the consequences.
As the song says “things can only get better” never believe songs, in this case it is worse they will get if we don’t fight back who knows where it will end.Our Polish friend is not too far off the mark even if it does sound alarmist The capitalist class is fighting hard to maintain their profits and to hell with everyone else as has always been the case. Now it is time for working people to defend and extend there power by calling and fighting for a new power based on the rule the only class which can rule society in the interest of the many and not the few.Cancel the debt create a public works program, not one penny to the bankers debt. If ever their was a lesson of the power of the banks it can be seen now. Their command over the economies of the world is obvious, “In their structure the banks express in a concentrated form the entire structure of modern capital. They combine tendencies of monopoly with tendencies of anarchy.” (Trotsky) We see this now the anarchy of capitalism, high prices/unemployment/wars. The only way to change this is to expropriate all private banks, concentrate all credit into one state bank which will also allow for proper economic planning and create jobs. This does not mean expropriation of small depositors on the contrary it will protect their deposits and enhance them. However for this to work the working class must establish a state-run by working people and this means taking power out of the hands of our own capitalist class. Not to go beyond the solutions offered by capitalism is to walk fully aware into the abyss capitalism is preparing for the working class of Europe and the world.
Finally the King really has no clothes.