Phil Mirzoev's blog

Wednesday, October 26, 2011

How can the eurozone be saved by all these summits in the longer term?

What is the summit of the EC leaders about? Very simple: they're trying to figure out how much money they should 'print' through ECB and what proportion of the amount must be (can be reasonably safely) taken away from the taxpayers.
Just a bit of a recap: during the first decade of the 21th century German, French and British banks loaned trillions of euro to the Greek, Irish, Portugal etc banks and governments; the lion's share of those trillions settled in the pockets of the small capitalist elite who has the access to the money in the first place according to the beautiful system of the financial capitalism. Those countries went bust. And now the main headache of the so called 'leaders' or the EU is to decide who to refill the pockets of the banks-creditors by robbing 1. German and French taxpayer 2. Greek, Italian, Irish etc taxpayer. Their main problem is not Greek or German nation, their problem is the empty banks of course. (it makes perfect sense for the Greek to try to change Government and to get rid of euro as soon as possible, reintroduce and devalue their national currency, neither do I see any ethical problems with this). That's the European socialistic capitalism for you.
I am still very pessimistic about the prospect of the eurozone. I understand that they - those EU 'leaders' - can pump a substantial amount of taxpayers money into the commercial banks (though risking some kind of strike-back on the part of the ordinary people, whose money are used to save those banks but who don't get anything in return from them). They also can print some money. They can save one or more Southern countries from an immediate bankruptcy, BUT I cannot understand how on earth they can save TRUST of the market players in the whole system and in those bankrupt countries? Even with the success of the immediate rescue, who is gonna buy the Greek or Portugal treasuries in future? (except for highly speculative purposes).

Sunday, October 9, 2011

Occupy Wall Street is just the tip of the iceberg: social pact of the US is through

Occupy Wall Street is just the tip of the iceberg, only the start: the start of realization by the American people that 19th century capitalism and democracy have always been in conflict, and now in the 21th become incompatible completely. One voter one vote – one of the main democratic principles and requirements, which could never be further from the main realities and requirements of capitalism. Capitalism kills democracy. Americans realize that their state serves AGAINST their interests, that means against the nation (whether inadvertently or inadvertently – no matter).
All those corporations (especially financial ones and banks) have traditionally been pictured by the capitalism as the main feeding hand providing employment for Americans (who by the whole idea must feel themselves irredeemably indebted morally to those corporations up to the end of their life) and the main driver of the economy, society, science, technology - in one word nearly all of the American civilization. But now after the crisis struck it has transpired that it is the taxpayer - largely American people - who was FORCED by the STATE to save all those corporations (including also production corporations - all the auto-producers, which had been supposed before to be good and resilient because of the famous myth 'capitalism generates competition' and which turned out to be absolutely uncompetitive in the face of their much less 'capitalistic' competitors from Germany, Japan and South Korea). The record historic immorality and abomination of this situation is not only the fact, that those corporations don't take responsibility for their risks (the risks which were the main argument in favor of them having 'special' standing and powers in the society) and are saved at the expense of the ppl (whom they are gonna continue to rob right after coming around after 'near death experience') but because of POLITICAL capitalism, when the 'democratic' state helps those gamblers even in the hardest possible times. State is not even a neutral arbiter - NO! It's interests are dictated by corporations, not by American people, even in crises times and even with so called 'democratic' party at the helm. What is worth this kind of democracy? What is the social pact?! When the White House saved with the Americans' money those corporations at the peak of the crisis, those corporations didn't lift a finger to pay back in kind and save the aforementioned EMPLOYMENT, reduce foreclosures etc – ZERO responsibility, and quite understandably so. Rather on the contrary: they started to minimize the number of the very taxpayers working for them as well as their corporate taxes and got used even more the idea that taxpayer would save them in the last resort. Looks like one saves a bank with his money and then the bank comes and first thing takes away the home from that guy at a crisis time because of the overdue debt.
It is not only governmental, economic and capitalistic crisis, it is an unprecedented MORAL and IDEOLOGICAL crisis in the USA, because now it turns out de-facto that it's the wealthy who are saved and nurtured by the people and who give nothing in return and who are protected by the Government – parasitism in overdrive. The SOCIAL PACT of the American capitalistic model society is coming apart at the seams right before everyone's eyes: history in action. That's the 'too big to fail' problem for you.