Friday, 22 July 2011

EU's WHORE: SECOND BAILOUT OF GREECE

Is Greece the EU's equal partner, a protectorate, a semi-colony, a chronic financial dependency, or EU's first whore? It seems that the European public debt crisis limited to the periphery but inching toward the center has led the EU to open an official brothel in which Germany and France will reduce Portugal, Ireland, and to a lesser degree Spain, Belgium and Italy, perhaps other lesser EU members into whores as well? Not that they were not so in a sense before the debt crisis, but now the red light is at the door!

What does the second bailout for Greece mean? To the stock markets of the world, it meant a huge rally from 20 through the 22 July 2011. For the average citizen, however, it means that most Western nations will continue to suffer declining living standards for the rest of the decade and beyond, while the debtor nations will suffer much sharper declines to the degree that they will experience structural change in the shrinking middle class. WHY?

Because Asia has cheap labor and the West must compete globally to remain strong; because China will overtake the US in a few years and China is hungry for global economic hegemony, which is the foundation for political and military hegemony. This means that governments agree with corporations that demand downward pressure on labor values so that they keep their profit margins high.

Greece is the world's test case because it uses a reserve currency and it is a member of an economic bloc in which the two-tiered system - strong creditors led by Germany and weak debtors led by Greece - will define the new European Union. In short, the second-tiered states have surrendered their sovereignty to the first-tiered states, thus we are back in the Age of New Imperialism, 1870-1914, the age followed by two global wars.This is not to suggest that we are headed for global wars, given that the nature of global economic competition today is a form of warfare that reduces or eliminates the sovereignty of debtor nations on the periphery, but it does not have the same impact on debtor nations in the metropolis.

No sovereignty for Greece entails 3.5% interest - no borrowing from private sector for a number of years, probably until 2020, but what guarantees are there that there will not be yet another bailout in two to five years.  And why has not the Greek government collected 37 billion euros that 10,000 of the wealthiest Greeks owe, according to the Ministry of Finance; the same 10,000 Greek millionaires that the second bailout helps to strengthen? The euro takes a temporary breather from market pressures; EU multinational corporations will take control of the rest of the Greek economy, such as it is, that they do not already own, and that includes lucrative public assets from banks to lottery agencies; the taxpayers of the creditor nations will have to contribute to the Greek (all of periphery EU) bailouts so their living standards will decline; and Germany and France will be more competitive with US and China.

What if China, as the largest US creditor imposed the exact same conditions that Germany and France imposed on Greece and by extension on Ireland, Portugal and to a lesser degree on Spain and Italy? What if China held America hostage until it reduced it into a financial protectorate? Would such a plan make the US China's equal partner, financial dependency, protectorate or China's whore in the same manner that Greece is EU's whore? Maybe it would not if China had a development component for the US economy, as the EU does have for Greece and periphery so that foreign corporations could help stimulate economic growth that would enable the debtor to pay the creditor.

But what if the Chinese payment plan imposed on the US had at least a 30-year horizon, possibly as long as 50 years, which would mean that American labor values would be depressed for at least a generation to benefit the creditor? Living standards in the US would be determined by China. And what if both creditor and debtor along with the entire financial world (Deutsche Bank, HSBC Holdings, and other banking giants - 30 firms that signed up to swapping their Greek bonds for notes backed by European countries at a cost of 79 cents on the dollar) hailed the 'bailout agreement' as a resounding success for the 'markets' and of course for society that is subservient to the markets?

Well, this is exactly the kind of plan that the EU devised on 21 July 2011. We live in a new world where large banks and financial firms determine who lives and how in the entire world. We live in a world where depriving countries of their sovereignty and reducing countries into whores and citizens into serfs. We live in a world that watches Somalians die of famine and disease, at a time that we have enough food supply to feed 12 billion people, but it is more profitable to let them die of starvation. Oh well, as long as the individual has free will and thought... but wait, does the individual even have that or is it determined by the various institutions whose role it is to buttress the unjust status quo and convince the public to accept it and see it as Paradise on earth. 

No comments: