Money talks. Politicians know this. But what they seem to have overlooked is that when you owe it, it insists.
That is where we are now.
So far this morning. Strauss/Kahn head of the IMF has said the EU needs to be economically integrated with a central fiscal power. What is important is not whether you or I agree or disagree with him. What is striking is that he feels it his place to and purview to give us advice and think we should take it.
Yesterday an expert from Henderson Global Investors said the ECB would have to buy €420B in eurozone government debt if it wanted the markets not to collapse again. At the same time Jeffries, a major global securities and investment banking group, wheeled out their chief European financial economist. Mr David Owen for him to tell us that, buying this debt would have to be done by QE. “The ECB … have no choice but to cross another red line by taking the next step of QE.” You hear that? We have no choice. Credit Suisse agreed, “We believe that the ECB has no other option.” – (said on May 5th)
While yesterday Mr Miles Templeman, the director general of the UK Institute of Directors (IoD), said: “Political reform is an issue, but for this subject to overshadow the urgent necessity of creating a government that can deliver deficit reduction, demonstrates a lack of statesmanship from some of our politicians that is unacceptable under the economic circumstances”.
Let’s parse this last quote to find it’s essential message. ‘Political reform is an issue, but for this subject to overshadow the urgent necessity of … deficit reduction… is unacceptable….” Political reform is just AN issue. Deficit is necessary. In fact we have a timetable for it in mind and its urgent. And to disagree with us is “unacceptable”.
We have a coalition in this country. We have one in every country. Our politicians are merely the junior partners. The bond markets is in charge now.
The capitalists have really come back with a vengeance:
They have in 2 short years managed to claw back what the workers had gained over a century, by indebting the welfare states to their benefit, so that the social security the state was to provide now is in jeoapardy.
And it's all being done in the name of "the common good". What more is, it imposes itself with the power of the laws of nature; we have no choice, according the "experts" (objective, no personal interest) that you quote.
Now, isn't that the amazing power of ideology (in Marx' sense)when you witness journalists carry their message, no questions asked?