A new stage in the euro crisis
By Peter Schwarz | WSWS.org
Reading the latest headlines on the euro crisis, one experiences a feeling of déjà vu. Like last summer, the rating agencies are lowering their ratings, interest rates for government bonds are rising to astronomical heights, and governments are announcing new austerity measures. Only this time Spain has supplanted Greece, whose economy is just one fifth the size of Spain’s, as the focal point of the crisis.
Despite the billions in bailouts and trillions injected by the European Central Bank, as well as round after round of austerity measures, the euro stands closer to the abyss than ever before. “We believe that Europe is sleepwalking toward a disaster of incalculable proportions,” 17 leading European economists warn in a report published this week.
It would be naïve to attribute the worsening of the crisis to a purely technical response by the markets to rising public debt in Southern European countries. Even the Financial Times’ editorial on Wednesday acknowledged that Spain’s public debt is “well below the euro zone average,” and that “there are no underlying economic reasons to feel differently about Spain now than a week ago”. Nevertheless, interest rates on ten-year Spanish bonds have risen far above the critical level of 7 percent.
Behind the onslaught on the euro lie fundamental class interests. The international financial oligarchy that dominates the financial markets and stock exchanges will not rest until all the social gains won by the European working class after World War II have been destroyed. In their eyes, collectively agreed upon wages and workers’ rights are illegitimate restrictions on their wealth, as is government spending on education, health, pensions, public services and infrastructure.
A definite pattern has been established. First, the rating agencies downgrade the creditworthiness of a country, which results in an increase in the interest it must pay on its debt. The country falls into a debt trap and turns to the European Union (EU) and the International Monetary Fund (IMF). These institutions, dominated by the major international banks, guarantee the creditors’ loans and dictate drastic austerity measures to the country. It slides into recession, the debt continues to rise, there follow further austerity diktats, and the recession deepens—until the welfare state is destroyed and the working class is ruined.
Read the full article at: wsws.org
The eurozone’s religious faultline
Government by the Banks, for the Banks: The ESM Coup D’Etat in Europe
The Gang of Four: Presidents propose power of eurozone authorities over national governments
Latest News from our Front Page
Virginia TV Shooter Said, "Jehovah Spoke To Me That I Should Take Action"
What causes a guy to go off the plantation enough so that he would murder in cold blood, two of his former colleagues? Guesses are abounding, such as racial tension, mental illness, psychotropic prescription drugs, narcissism, etc. What about the angle of how a destructive religious cult shaped him in his formative years, so that later in life, he would ...
Invasion into Macedonia from Greece - Border Mayhem
Description from video page: These are the desperate scenes at Greeceâ€™s border with FYR Macedonia as overwhelmed security forces made sporadic attempts to stem the flow of invaders heading northwards.
Riot police set off stun grenades and hit invaders with batons but that did little to stop them passing into FYR Macedonia.
Skopje had declared a state of emergency on Thursday (August ...
RamZPaul: TV Reporter Murdered Live On Air
Youtube description: The gunman responsible for the live on air shooting of reporter Alison Parker and cameraman Adam Ward said part of his motivation for the attack was Parker making “racist comments.”
Vid that killer made:
(note the actual shooting vid is being censored fast)
Jesse Benn advocating "White Wounding: just weeks ago:huffingtonpost.com
White House Pushes Race War, Then Blames Guns For Flanagan's "Race War"
"You want a race war (expletive)?" Asked shooter
The Obama administration is blaming guns for the WBDJ-TV shooting, even though the shooter, Vester Flanagan, was influenced by the White House’s race baiting.
The White House has been falsely insinuating that racism is the dominant factor behind numerous events over the past several years, even those that didn’t involve race at all, and ...
How Google Destroyed the Internet
The internet was created to resolve a simple problem: in communications networks, any central node through which all messages passed was vulnerable to attack or takeover. To counter this, engineers designed a network where any node would pass messages to other nodes, routing around any damage.
Then came commerce and the democratization of the internet.
Under this model, frightened sheep flock to ...
|More News » |