Wind From Nowhere

Fool's Paradise at Davos

2012-02-02T15:09:00.005Z

George Osborne: King Fool

EXTRACT: Concisely summing up the new fiscal deal in Europe, [Angela] Merkel pronounced that the “debt brakes will be binding and valid forever”; from now on, “never will you be able to change them through a parliamentary majority”. Whoever you vote for, the EU bureaucracy wins. Merkel could not have made the fundamentally anti-democratic nature of the current EU set-up more clear: an elitist project run in the interests of capital at our expense. Not that genuine communists have any illusions in the ‘independent’ bourgeois nation-state: inside or outside the euro zone/SCG, or the EU, capital needs to attack the working class in order to salvage its system. A system that is suffering from chronic dysfunction.

All the evidence is that the banks and other financial institutions are hoarding cash - sitting on the money as the fiscal environment looks more and more dangerous. Perfectly rational, of course, for the viewpoint of the individual capitalist - totally advisable, in fact. But it is totally irrational for the system as a whole. The second great credit crunch remains a very real possibility.

2012-02-01T15:47:00.001Z

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2012-01-29T10:33:00.002Z

Entering the Danger Zone Again

2012-01-26T12:39:00.005Z

EXTRACT: In Greece, to the surprise of many, the government and its private creditors have not yet done a deal on debt repayment. European finance ministers are putting Greece’s private creditors under intense pressure to accept a lower interest rate than the 4% previously offered - take an even bigger write-down (‘haircut’) on their loans to Athens. Therefore they have rejected, or effectively vetoed, all the offers/arrangements that so far have been put on the table by the respective parties. Various ministers have strongly reiterated that it is absolutely essential for the Greek government and its private creditors to come to a final agreement in order for the European Union, European Central Bank and International Monetary Fund troika to release the next tranche of €130 billion bailout money for Greece - without which Athens will not be able to make €14.5 billion of loan repayments due in March.

Troika officials have called on both parties to reach a deal by the end of the week, which in reality is a demand that Greece’s creditors swallow the bitter pill and accept the fact that they are going to make a substantial loss. The ongoing impasse in Athens raises the dreaded fear of a messy or disorderly default by the Greek government, which in turn could see it crashing out of the euro and unleashing economic chaos across the entire continent - if not the entire world. At the very least, the disagreements on display at Athens could overshadow - even disrupt - the January 30 summit of EU leaders.

2012-01-26T10:45:00.001Z

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2012-01-21T12:33:00.001Z

Fishy Business

2012-01-21T11:19:00.000Z

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2012-01-20T09:39:00.001Z

Europe's Mutual Suicide Pact

2012-01-20T09:34:00.002Z

EXTRACT: The standard complaint from rightwing economists and politicians is that some countries and parties are not sufficiently committed to pushing though ‘reforms’ - by which they mean attacking workers’ rights/conditions and in general rolling back (or ideally dismantling altogether) the gains of the 1950-60s.

Hence the constant attacks on “labour rigidities” and so on. The ruling class wants to make a bonfire of workers’ rights in Europe, with Greece and Italy paving the way. Naturally, there is no alternative course of action if we want to cut deficits and produce healthy, growing, economies - shorn of all waste and inefficiencies. Tough decisions have to be made.

But this has revealed itself to be an unpleasant fantasy. The economics of masochists. Recession is looming over Europe and not even Germany is immune.

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A Man With Wreath (circa. 200-300 AD)

2012-01-15T12:04:00.002Z

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2012-01-15T09:35:00.001Z

Is it Him?

2012-01-15T09:34:00.001Z

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2012-01-14T09:33:00.001Z

I, Narcissus

2012-01-14T09:29:00.002Z

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2012-01-12T14:02:00.001Z

Of kings and Kims

2012-01-12T13:57:00.005Z

EXTRACT: The only real difference between the British and North Korean monarchies is that Pyongyang is new to the game of absurd ritual and dynastic pomp - the Koreans are just parvenus. Johnny-come-latelies. Just look at the Kims, for whom the height of Stalinist bling is a Rolex watch or Ray-Ban sunglasses. How tawdry when compared to the real thing. By contrast, our dear queen does it properly, draping herself from head to toe in an ostentatious display of gold and diamonds. And in this time of austerity we are supposed to be all in this together - tell that to the homeless and unemployed.
No, I’m afraid the idea that Britain is distinctively normal, sensible and rational in comparison to North Korea just doesn’t cut it - the constitutional monarchy is weird.
READ MORE

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Herbie the Fat Fury

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