credit crunch to cost $1 trillion - IMF calls for global "govt. intervention"

[Zurdito]

http://news.bbc.co.uk/1/hi/business/7336744.stm

[Ultra-Violence]

not good not good at all 1 TRILLION! wow
and in america at least the goverment is very lax about it theirs just letting shit happen expect for the tax rebate but what the hell is 300$ dolloars goana do when you lost your home?

[cyu]

From http://www.revleft.com/vb/lets-talk-global-t68730/index.html?t=68730

What really happens after a crash? Stock certificates and paper securities might go up in flames, but all the employees, technology, raw materials, and infrastruture are still right there. Products and services can still be produced at the same rate as before. If the capitalist economy is suddenly unable to produce products and services at the same rate as before, it's just further proof that the system was put together by idiots.

[Keyser]

The IMF is famous for and makes a name for itself for being a strident advocate of a rigid free market system where the state cannot intervene to educate children, protect the public's health or take measures to combat poverty, unemployment or hunger. The IMF has always made it's loans to all countries conditional on the basis of privatising education, healthcare, social security, pension and many other systems and services.

Yet the IMF it is calling for state intervention and for the public (you and me included) to have their tax money spent on propping up banks and investment firms that face bankruptcy, all of them only face this due to their lax lending practices and the actions of rogue traders.

In short the IMF says that public money should not be spent on educating people, saving their lives and giving them medical care but should instead be spent on the most parasitic sector of the economy and society.

[KC]

The fact that the IMF is supporting such massive state intervention is definitely telling of how profound this crisis is and how real the threat of an economic collapse is.

[ckaihatsu]

And on Monday, Mr Strauss-Kahn said that the need for public intervention to tackle the credit crunch at the global level was "becoming more evident" every day.

http://news.bbc.co.uk/2/hi/business/7336744.stm


Yeah, exactly -- in the wake of their liquidity / solvency / credit crisis they're looking to reach directly into public coffers in a pathetic attempt to resuscitate their floating casino. There's certainly no reason why the world should give a fuck -- I'd rather see more nationalizations of major industries, as in Venezuela, and watch the fuckers play hot potato some more....


Chris




--
___

YFI S Dis cussion B oard
ht tp:// discussion. newy outh .com

Fa vor ite we b si tes: chica go.indym edia. org, wsw s. org, ma rxist. com, rwor .org, lab ourstart .or g, fightba ckne ws .org, lab oraction. org, ifam ericansknew .org, subst ancenews . com, soci alismandliberation .o rg, wh atreally hap pened .co m, ple nglis h. com, moneyfile s.o rg/temp .h tml, inform ationcl earingho use .i nfo, blac kcom menta to r. com, na rconew s. com, tru tho ut. org, ra ven1 .n et

Ph otoi llustr atio ns, P oliti cal Di ag rams by Ch ris K ai hatsu
h ttp :/ /co mmunit y.w ebsho ts. co m/u ser /ck aihatsu/

M ySp ace:
ww w. mys pace .co m/ck aihatsu

Co uchSu rfing:
htt p:/ /tinyu rl.c om/ yo h74u

[ckaihatsu]

http://discussion.newyouth.com/index.php?topic=2591.msg21112

> Some historical periods are so dynamic that a person who lives to be fifty years old can remember sweeping changes that have come in his own lifetime. Such a time has been the last century of the modern age. Such a time, also, began in Europe in the eleventh century. A man could see new towns rise and grow before his eyes. He could observe new undertakings in commerce or government. It is hardly too much to say that all the cities that Europe was to know before the modern industrial era sprang up between about 1050 and 1200. The population of western Europe, which had been sparse even in Roman days, and which was even more sparse after 500, suddenly began to grow more dense about the year 1000, expanded steadily for two or three hundred years, and then, from the fourteenth century, did not again abruptly increase until after 1800. The people of the High Middle Ages did not develop the conception of progress, because their minds were set upon timeless values and personal salvation in another world, but the period was nevertheless one of rapid progress in nonreligious or "secular" things. It was a period in which much was created that remained fundamental far into modern times.

> Palmer & Colton, _A History of the Modern World_, p. 23



> Roubini then outlines the further stages in a financial meltdown – the commercial property market collapses, a bank goes bust, there’s a wave of corporate defaults. If it all comes to pass, “Total losses in the financial system will add up to more than $1,000bn and the economic recession will become more protracted and severe.” Roubini’s thoughts are no longer dismissed as ravings. Goldman Sachs economists now agree with him. Coming from the big business mainstream, they totted up total possible losses as $1,156bn

> When insufferably smug capitalist commentators come over all apocalyptic, then you know something’s really up with their system.

[...]

> Could this happen? Sure. Capitalism is out of control. It’s not delivering the goods. And it’s not just in the USA. The alarm and consternation that has greeted every bit of bad news from the States in Tokyo, London and Shanghai shows that (as we predicted in World economy in crisis - The financial panic: where are we now?) the idea that the rest of the world can decouple and float away on its own from the economic problems in the USA is a fantasy. Even if capitalism doesn’t fall over and crush you this time, it will always be a threat to the welfare and happiness of workers all over the world. It’s high time we got rid of it.

> http://www.marxist.com/us-slides-into-recession-whos-next.htm




Using the two excerpts above as bookends, I'd like to make the point that the very notion of stored value -- from past labor -- is predicated on there being something in the future to put it into, to invest in. Without a plan for putting the capital into motion there's no need in the present for the stored value, or capital -- it may as well not even exist.

The latest financial bubbles, in virtual real estate (dotcom), wars of aggression in the Middle East, telecom, energy, housing, food, and carbon credits, are all nonproductive sectors -- it's basically the capitalists' floating craps game looking for a venue to play in.

So what really separates us from life on the farm? Civilization itself is predicated on substantial innovations, massive works projects that serve as "the next big thing" for rulers to use as hype and as a carrot to lead us along into working for them.

I would argue that the past century or so was about four top-level developments in modern civilization which the bourgeoisie used to ensnare millions and then fight over in their world wars: industrialization, modernization, standardization, and digitization. Could these developments have been enacted in less destructive ways, without the bourgeoisie? Absolutely.

So what's after digitization? Should we wait around to find out, from the likes of corporate raiders? They're obviously not the desired leadership for any kind of decent future for humanity.


Chris






--
___

YFIS Discussion Board
http://discussion.newyouth.com

Favorite web sites: chicago.indymedia.org, wsws.org, marxist.com, rwor.org, labourstart.org, fightbacknews.org, laboraction.org, ifamericansknew.org, substancenews.com, socialismandliberation.org, whatreallyhappened.com, plenglish.com, moneyfiles.org/temp.html, informationclearinghouse.info, blackcommentator.com, narconews.com, truthout.org, raven1.net

Photoillustrations, Political Diagrams by Chris Kaihatsu
http://community.webshots.com/user/ckaihatsu/

MySpace:
www.myspace.com/ckaihatsu

CouchSurfing:
http://tinyurl.com/yoh74u