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Credit Crunching

By Phil Thornton


Now that the US Federal Reserve has bailed out the entire American financial system from a 30s style collapse and the in the UK the FSA and Bank of England are desperately attempting to bolster the banking and mortgage sector, the capitalist myth has been exposed for what it is. Capitalism is not a science, it’s a con-trick and while Gordon Brown continues to peddle the ‘global downturn’ excuse, what is clear is that the Thatcherite/Reaganite ‘de-regulated’ financial industry that was meant to take ‘bureaucracy’ and ‘red tape’ out of the system because it was an ‘unnecessary burden on business’ has done what it always would do. It has sought to maximise share dividends and bonuses not based on any long-term economic model of success but on unsustainable risky gambling. All these defenders of the monetarist mantra that ‘the market will decide’ knew they were lying, knew that they were camouflaging their own greed by attempting to hoodwink the public into believing that a de-regulated and aggressive banking system benefitted everybody, that the so-called ‘trickledown’ effect would generate more money in the pockets of Joe Public. Ofcourse this never happened  just as all those privatisation schemes were never meant to benefit this mythical ‘small share holder democracy’ and ‘increase competition’ but to create new cartels that paid out billions to the very men and women who sat both in the Houses of Parliament on the boards of the very companies they took away from national ownership.


Wall Street, Threadneedle Street, the FTSE, The Dow Jones and all the other bogus ‘stock exchanges’ do not exchange stocks, they exchange abstract values based on non-existant stocks, just numbers and lights, smoke and mirrors, Wizard of Oz economics. Numbers go up, numbers go down, fires burn forests down, storms blow over farms, food prices go up, oil goes down, people whisper, people cheat, markets panic, politicians get scared. There’s too much invested in the capitalist myth for it to fail, so all these hidden billions suddenly available to the Bank Of England and the American Federal Reserve that can’t be spent on rebuilding the ghettoes or health care or pensions, because ‘the country can’t afford it’ is there to bail out Northern Rock and Fannie Mac and Freddy May (or was it Fanny Craddock and Brian May?) and AIG.  So, stick your credit crunch bullshit where the sun don’t shine Brown.  New Labour? Same old capitulation to the City Boys who’ll pay your wages once Westminster gets too tough for you.  










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