Monday, June 22, 2015

Time to kick the moneylenders out of the temple

Today a remarkably farsighted piece by the ABC's business editor is up at The Drum, It's not Greece being bailed out - it's the banks.

"The paupers of Greece are bailing out the Junkers of Europe" as one facebook commentator pithily summed it up.

And this mess of apparently unwise loans has sunk its creeping roots into Australia too, as the Treasury has bluntly pointed out

I'm not sure I'm so optimistic as Verrender on one point though. He says "this week could mark the beginning of the end of the great monetary experiment". Why this week? Why not the 2007 GFC?


I think most banksters don't care if they create a bubble that bursts and precipitates crisis. A few will fail, but even they will have their nest eggs stashed in the Cayman Islands or somewhere like that.

It's true that the behaviour of the ruling class can appear to destabilise the system that we all live in. It would be a mistake to think they care about that, or anything much besides enriching themselves individually. Individually, not as a class.

Banksters, capitalists - the definition implies cut-throat competition among themselves, at least as much as conspiracy or class war against the lower classes. They used to have political parties that would reliably balance the competing interests of the whole business class, but neoliberalism seems to have increasingly led to these parties being captured by the dirtiest players: the big banks.

Capitalism has always had its regular crises, no-one's convincingly demolished Marx on that, it's just now they manifest most publicly through the finance sphere rather than manufacturing or capital goods, for example. And on an average 7-9 year cycle, it's certainly time for another.

Why didn't the last cyclical crisis, the GFC, mark the end? Because we haven't kicked the moneylenders out of the temple yet. Greece's left government is having a go at that and lets support them.

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