Monday, January 09, 2012
Great news: capitalism to lurch to new crises in 2012
The world crisis of capitalism will continue and deepen in 2012.
This is not the view of Marxists alone, but of many bourgeois economists and finance capitalists as well.
For example, Bill Gross, co-founder and co-Chief Investment Officer of the US multinational PIMCO (Pacific Investment Management Company) stated on January 6, 2012 that the “financial markets and global economies are at great risk” (Gross, Paranormal Economic Activity).
Gross should know: PIMCO oversees investments totaling more than $1 trillion on behalf of a wide range of clients, including millions of retirement savers, public and private pension plans, educational institutions, central banks, foundations and endowments, among others.
While world attention continues to focus on the eurozone countries, the fact that the United States is a geographically separate entity can no longer mask the intricate web of financial ties between it and Europe. Ultimately, the buck still stops in the USA.
Contradictions within the eurozone will continue to unravel. As economic commentator Stephen Bartolomeusz commented on January 9, “If the eurozone were to splinter, deep holes would be gouged in bank balance sheets across the region, requiring more massive taxpayer bailouts from economies that can’t afford them.”
The logical inference of his observation that capitalist “economies” can no longer “afford” to bail out the rich is that further attacks on the people are on the agenda.
Karen Maley, writing in the same day’s Business Spectator, pointed out that “eurozone countries will not be able to fall back on government stimulus packages to get their economies moving. Instead, economic activity will contract sharply as governments embark on a draconian tightening of budgetary policy aimed at eliminating budget deficits that range between 2 per cent and 12 per cent of GDP.”
“Draconian” indeed! As if the belt tightening imposed by the speculators and their governments have not already been draconian enough.
But with repression comes resistance. Rich lessons have already been learned throughout 2011 in all areas where capitalism and imperialism are in control. Or, based on the above, out of control.
Bring on the further unravelling of the crisis.
Away with the private ownership of the means of production, distribution and exchange…..