rogue123
Joined: 23 Aug 2009
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Posted: Fri Oct 22, 2010 4:45 am Post subject: |
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First as History, Then as Farce:
The Euro Crisis Revisited
by Yanis Varoufakis
When the Crash of 2008 hit Wall Street, European capitalism was thrown into disarray. With the demise of the export-absorbing monster that was the US consumer market, what in 2003 Joseph Halevi and I called "The Global Minotaur" (see Monthly Review, Vol. 55), Europe not only lost a critical source of aggregate demand but also discovered that its own banks were facing meltdown as the American collateralized debt obligations (CDOs) bursting the seams of their vaults turned to ash. Despite the European gloating that this was an Anglo-Celtic crisis, and that its own banks had not been taken over by financialization's equivalent to a gold fever, the truth soon came out. When it did, the European Central Bank, the European Commission (the European Union's effective 'government'), and the EU member states rushed in to do for the European banks what the US administration had done for Wall Street: they pumped them up with quantities of public money the size of the Alps, so as to replace the 'departed'private money (the troubled derivatives) by fresh public money borrowed by the member states. So far, this seems identical to the US experience. Only there were three profound differences.... http://mrzine.monthlyreview.org/2010/varoufakis171010.html
and,
Schiff vs. Henwood on Economic Crisis
http://www.therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=5749 |
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