mercredi 20 mai 2009


There is a surface contradiction in the IMF's advice to the British Government. The main poit is that "[t]he sharp increase in public sector borrowing and contingent government liabilities, together with continued financial sector fragility, are significant vulnerabilities. In these circumstances, a severe shock has the potential to disrupt domestic and external stability." Meaning, of course, that the UK is practically broke and one more tihng could really do for us.
The causes of this financial turbulance are known well enough - neo-liberalism of the last 30yrs., general tendency of recessions inherent in capitalism etc. - but the government decided to spend its way out of this current down-turn in giving money to the banks thus increasing the financial difficulties that are now apparent. Thus, it is curious that further on in the report "The Fund praised the government for its "bold and wide ranging" response to the recession and the global financial crisis, noting that "aggressive actions" had averted a systemic breakdown."

What you did was good, well done but it increased in the chances of not surviving any future knock and that's bad.

What the capitalist class will do to dissolve this contradiction, naturally, is to make sure public services are cut and not that taxes for the rich will increase. They say, kindly that "it is up to the government to decide whether the emphasis should be on tax increases or spending cuts to reduce the deficit, it privately believes that action to cut public spending is a more effective and durable method of bringing the state's finances back to health," [my emphasis] as if New Labour (the current pathetic tax hike of the last budget notwithstanding) needed any encouragement there.

When will revenge happen?