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Monday, May 3, 2010

Greece and Spain like Latvia, Portugal to tax the rich instead.

There's a nice article of economist I. Esnaola at Gara today, illustrating how the "rescue plan" of the IMF-EU tandem is a recipe for disaster. It is exactly the same "medicine" Latvia got in 2008 and things have only got worse for them since then: growing unemployment (even higher than Spain!), "growth" of -18% in a single year, and all without being able to stop public deficit from running wild at all.

That's exactly what they want to impose to Greece, just that the Greek people seem much less sheeply than Latvians and may just send IMF, EU and everything of the like to the trash bin in the process.

Spain does not seem to need an IMF package: it is already applying one: on its own will nearly all state income is reliant on a growing VAT (consume tax, now to be raised to 18%) and from tobbacco, alcohol and gasoline special taxes. Meanwhile the wealthy enjoy the best deals, what makes Spain unable to collect enough money for its expenses.

Instead, the only conservative government of the three South European countries, that of Portugal, has decided to tackle the tax crisis by raising taxes to the wealthy segment, up to 45%. It's clear that they are the only ones who know how to deal with the budget crisis: redistributing and not just loading the scales against the working class even more.


Kepler said...

Why does Greece have such big problems and Germany not? Why
do Greeks want to stop working
several years before the Germans
but still want to get German
money to pay their debts?

On the other side: why can't the German government force German banks to become more involved in bailing out Greece as they have a lot to play in the Greek bonds?
(but then: why did the Greek government have to get into so many debts in the first place for so long?)

Is Spain's state apparatus so bloated with unproductive functionaries as Greece?

Maju said...

I presume Greeks want German salaries, German pensions, German welfare state and German ability to decide if the euro goes up or down. Because if the euro is overvalued, hyper-strong against all other currencies that is because it benefits the German economy (specially) by allowing them to buy cheap oil, raw materials and semi-assembled components outside EU, finish them up in Germany and resell to Greeks and other Europeans at inflated prices.

For Germany it is not good at all that Greece or other German markets are saturated by the extreme solidity of the euro. The euro must be devalued, because Greece is just the tip of the iceberg.

Though it may not help after all, because look at Britain with their weak pound and similar situation.


Anyhow, in the specific case of Greece, there is a clear case of elite conspiration to ripoff, including Greek politicians and company owners and international banks (mostly from USA but obviously with the implicit approval of all EU financial popes). And the main victim is the Greek people and very possibly the EU as economical-political project of the continental bourgeoisie.

The logical thing to do is to bring the culprits to court and expropriate their assets to pay for the debts. Exactly as Iceland should have never took over Icesavings without a clause of bankruptcy first.

The state, the public accounts cannot be given away to save private fortunes. That's the biggest ripoff of all and can only lead to total disintegration of the social order. The state, the public representation (at least in theory) can and often must instead intervene private business for the good of all (or most).

In this case it's clear that the Greek authorities are failing to tackle the issue and hence losing all legitimacy. Instead they have given away the country to the representatives of creditors: the IMF and the UE.

This is an even bigger ripoff: we first rob the people in the worst banana republic style ever and then we sell away, not an island as insultingly some fascist German papers suggested, but the whole nation!

All Greece sold to IMF slavery in account of the debts contracted by some Greeks with the complicity of all the imperial oligarchy!

Can't you see that? Can't you see how Latvia has become in just another "plantation" for oligarchs of EU and the Empire? How tiny Iceland is struggling to keep some sovereignty in a similar case? How the vultures are projecting how to do the same in other countries such as Portugal, Spain, Italy, Ireland, the very United Kingdom, etc.

Finally the veil of bubble-aboundance that Capitalism has relied on for publicity purposes for the last several decades is off. No costumes anymore: the Emperor is damn naked! This is what the Capitalist roulette has produced. Bank wins always.

Unless people fight. Then the people can win and banks lose.

But no free lunches, not anymore indeed. We will have to fight and fight hard because it is the last stand of Capitalism and will attack with all. It is already attacking with all.

It's not us who invented class struggle: we just have to defend our lives against the continuous and every day more brutally obvious armed robbery by the organized Capitalist elites and their institutional mercenaries.