[lbo-talk] bail out: four 'european' questions

dredmond at efn.org dredmond at efn.org
Tue Sep 30 10:54:45 PDT 2008


On Tue, September 30, 2008 1:21 am, moominek at aol.com wrote:


> 1) Is it at all a debate about state intervention "in principle" in
> US-Congress?

Nope. The Republicans bawl about socialism, because they're the worst socialists of them all - just look at our $1 trillion annual war budget, pure socialism for the military-industrial complex.


> 2) Isn't some kind of special legislation needed, because the FED is
> already so engaged in stablizing the financial markets, with quite a
> lot of special assets in the balance sheeds?

Yes. The Fed is "pushing on a string" - banks have stopped lending to each other, and now rely exclusively on the Fed to intermediate loans. It's the fiscal equivalent of a heart attack: whatever other problems the patient has - and there are plenty - if the circulation goes, the patient dies. The bad debts blocking the system need to be expunged somehow.


> Can we think of
> any plan in with broader nationalization of financial firms - or including
> sharp taxing of Wall Street - to reach this aim?

Hell yes. A Tobin tax on speculation, a hefty income tax on the rich, bailing out homeowners instead of bankers, and most of all, nationalizing all these damn brokerages, banks, funds, etc. Take 'em over!


> 4) Is this conflict about the bailout at all an interior problem of the
> US?

Nope. This is the most visible expression yet of US imperial decline. The US depends on China, Japan, Russia and petro-states to finance its massive current account deficit. You won't hear a word of this in the mainstream Anglo-American press, but that's the reality of the situation.

-- DRR



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