We do not have a market economy any place on this planet, anywhere, no where, no near! People should stop blaming capitalism for all the woes of the world! It is essential to approach the current trends from a totally different paradigm if we truly want to understand what is really going on.
We live in a world where people have been taught to believe that wealth can be created by merely printing digits on papers and calling it money. In such a system, the money can be abused by the organism of the central banks and its connected firms that service their own needs first while the vast majority of people are left to deal with higher cost of living. Very basic and common sensical right!
Now, after a decade of easy money binges and speculative excesses, the world economies are trying to reset on a rightful path; and that means ridding the system of its errors and enabling right market prices to be adjusted according to the real supply and demand mechanism. This imply " BANKRUPTCY" for the institutions that have engaged in malinvestments and overinvestments like the big wall street banks and the big corporations.
Bankruptcy, while healthy for the system and capitalism in general, can be quite frightening for the revered institutions that have been in place for decades if not centuries. Bankruptcy represent the end of an age of grandeur and respect and, it also mean poverty and loss of prestige for their managements! Ooops!!!!!!!!
So, rather than allowing the bad apples to be cut off and the market to reset on a new footing, the governments of Europe, the USA, Japan, China, Dubai, and many other places have created a too big too fail paradigm: FASCISM! Fascism is nothing but the alliance between the corporate elite and the State! It is mercantilism!
In a fascist economy, the needs of the State are serviced first while the people are coerced into sacrificing their rights and their standards of living. This new paradigm is called " AUSTERITY MEASURES"! Austerity for whom one might ask? Most States in Europe ( where the debate is in full fledge) have protected the firms and corporations that were exposed to the real estate mania! These were primarily German, French, British, and Italian banks! Now, a lot of individuals had been misdirected by the easy money policies that caused the speculative buying and selling of housings and condos; these individuals had to fill for bankruptcy or sell their properties below their original purchasing prices.
But why are the big guys, the " BIGGER FOOLS", being protected? LET THEM FAIL, LET THEM GO BANKRUPT! The people of Greece, Spain, Italy, Ireland are being asked to accept the austerity package that include a whole host of " benefits cuts" and salary reduction...etc. What is not said is that these measures are only put in place in order to refinance the bankrupted banking system that is on the verge of total collapse! People must be sacrificed while the banks must be saved, by any means and all means! That's wrong!
Everybody must suffer from austerity, not solely the masses of people who are seeing the purchasing power of their money deteriorate and their jobs prospect dwindle while the bankers continue to pay themselves huge bonuses! Austerity should be implemented for all who have been involved in the erroneous speculative mania! That consequently means that the governments and the banks should be the first one to be cut and reduced in order to enable the individual to allocate their resources and capital into more productive settings.
As a matter of fact, by allowing the " banking and corporate viruses" to go bankrupt, the people would actually benefit in the longer run as the currency will strengthen and high interest rate will drive people to save and rebuild the capital necessary to reconstruct the economy.
Austerity for all, especially for the State and the Banks!
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