Let’s think back over what our governments have done for us in the last two years.
Have governments been able to deliver on Bank reforms? No.
On deceasing bank leverage? No.
Setting limits to bonuses? No.
On breaking up too-large-to-fail banks? No.
On limiting their size in any way at all? No.
On setting up a fund for use when a large bank goes bankrupt? No.
Have any of the bank reform bills in the US been passed? No.
How about in the UK? No.
Has any government got any bank to reveal the extent of their losses? No.
Have they made the banks mark their assets to a reasonable market price? No
Have they got the banks to tell them what model the banks are using to come up with their mark-to-model pricing? No.
OK. Never mind. Moving on to stuff the governments do control.
Has any government begun any of its ‘exit strategy’? No
Any stimulus withdrawal? No.
Got their money back on their investment in the bailed out banks? No.
Managed to stop bailing out banks and other institutions yet? No.
Have the amounts of the bail out at least got smaller? No – BIGGER.
Have they been careful not to monetise debt by printing? No
Have they stuck to their principles about NOT investing in worthless junk bonds from banks and nations? No.
Have they safe-guarded the currency upon which we all depend for our livelihoods? NO!!
Are the banks and financial experts worried about any of this? NO!!
They LOVE IT.
Are they worried about anything AT ALL?
YES.
They worry that, and I quote, “…there are still doubts on whether the peripheral countries can deliver on austerity,” said Gavan Nolan, Vice president at Markit.
So that’s their worry. That is what the financial class sees as the proper and apparently ONLY role of government. DELIVER ON AUSTERITY.
That is what your government is for. Welcome to your future.
That "deliver on austerity" – worry is very well observed, understood and quoted to the maximum effect, but that which preceeds it is close to rambling. Please be more reticent and self critical for our common good, now that we enter this critical phase and we need all good men aboard, sound and sane. Remember, you are our intellecual leader….
OK Lars,
Point taken.
Excuse my harsh wording yesterday: Just to let you know, I did send a link to your blog to a member of the European Parliament in Strasbourg.
I know that it is grasping at straws, but who else can intervene on behalf of the little folks of Europe, when their non-elected leaders and ECB burden them with the banks' rotten assets and give away their future welfare?
No offence taken Lars,
Sometimes its good to be pulled up and told to do better.
And as you say these are dark days. Our leaders are quislings. Who will stand up. I will. You will. Who else?
Again; careful about the wording. You want to be taken seriously in the highest places.
As a Norwegian, I can tell you that 'quisling' (Norwegian "statesman") has a connotation of puppet (regime) for a foreign occupying power.
Our situation looks more like a class struggle.
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". Now, isn't that the amazing power of ideology (in Marx' sense)?
I agree with your analysis. And accept your advice to be careful. But please believe me, Lars, I would never use the word quisling in front of a Norwegian without thinking about it carefully.
I think the financial class is an occupying power. They are also a class and so a Marxist analysis works for me. But I want to emphasise the betrayal of fellow countrymen and women. The selling out to an occupying force and their ideology. I think our political class are quislings who have willingly sold us to an occupying force and ideology. They betray us and it does not make it better by telling us it is for our own good.
Well, but in that case you use 'occupying power' metaphorically – and anybody can point to the evident fact that this is just rhetoric and not literally true.
That may soften the blow of your words compared to a realistic depiction of what goes on. Some will even discard the content altogether if the metaphors are too far-fetched.
I was once very surprised to see your comment on the Guardian having been deleted by the moderator. I thought, how can that be possible with a cold rational voice like that of Golem XIV? I any case, the content of your message was lost that day, and I for one am sorry not to have got it.
What has impressed me with your writing, is your rational reasoning from the same set of hard facts and analyses that the financial classes refers to in their actions in the marketplace, but with a democratic and enlightened perspective: You speak like a citizen (think Greek city state, where free men had the leisure to take actively part full time in the state's affaires).
You uphold the reputation of the dissenting citizen.
OK Lars,
You win. Less rhetoric and metaphor and more rational analysis. Is the new post any better?
Yes, excellent Golem XIV-quality. I don't know the least thing about China, but the fact that their economy and growth is real estate and ever raising prices of same, speak volumes. My simple thinking has been that at one time or other, they too may want their money back, maybe because they have some trouble back home. Not necessarily will that happen at a time suitable to the debtor nations wanting to roll over debt.
Good also that you seek to enlighten us on what, where is next phase, which leads me to:
The EU prop-up fund + ECB purchase of sovereign debt have baffled the markets for a moment in an "is it true?"-pose.
I wonder if it is true. To become true, it must be pushed through, in 27 capitals. I doubt that the finance ministers meeting for the Greek bail-out on Sunday had the power of attorney in their pockets for committing their countries to yet another and much bigger one.
I guess the details are being hammered out now in Bruxelles before the members will know exactly what they have signed up to. Bruxelles may want to stall on that one, and not move before markets again demand one more dose of posturing.
It was hard enough the first time with the Greek money.
Details presented from Bruxelles: In-fighting in capitals and among capitals may occur and throw more jitters onto those sensitive beings, formerly masters of the universe, now unfortunate victims of adverse circumstanc, in short the banks, and then we're off again….
I think the class analogy is spot on. Reading Chapter 25 of Capital Vol 1. again reminded me how the mechanics of accumulation and dispossession connect today to the 19th century quite clearly.
And regarding your style of writing, i see both critical reflection and sharper more punchy posts like this as a good way to get across your knowledge. As you do both together on here i wouldnt go wholesale on the Lars approach. You need both.