Saturday, March 16, 2013

TWIN EXPLOSION: The Current Debt System has Reached it’s Expiration Date

At the end of the millennium, a perfect convergence took place between the forces responsible for today’s looming storm: Indebtedness, the rise of neoliberalism, the collapse of communism, the information revolution, globalization and the «liberation» of the banking beast.

Surplus countries of the Euro-zone do not seem willing to either limit their excessive surpluses (by increasing the wages of their employees, so that domestic demand will increase), or to transfer «resources» to the members running a deficit, nor are they willing to «mutualize» public debt, or allow the transformation of the ECB into an actual central bank of the Euro-zone (Euro-bonds, direct purchasing of bonds from member states etc.).

As a result, the vicious cycle of banks «rescuing» states and, later on, states rescuing banks will perpetuate – thereby....