The Deluge Begins?

In between my studies, socialising and keeping up with the local blogosphere and news I have, of course, like most others been keeping an eye on the developing present crisis of the capitalist system. I am trying to find the time to review it and get down my analysis into a relatively short piece to post here, along with my thoughts of its impact for our people and what can be done. I’m not sure how long that will take me, as I have essays and stuff due as well which kind of takes priority funnily enough.

I’ll briefly say that I have been rather amused at the government leaders who just yesterday were ardent defenders of free-market capitalism seem to now be retreating to a broadly Keynsian social-democratic position. From my reading of the various press statements from Downing Street, the Francophone Convention in Quebec, Brussels and various articles here and there in prominent newspapers, I get the impression that a meeting will be convened shortly after the US election. This meeting will be as far as I can gather vey similar to the one at Bretton-Woods that led to the development of, amongst other things, the IMF and the World Bank. I reckon they will be looking at primarily overhauling – or re-tooling – those institutions in light of this current crisis.

What this means is hard to foresee. I get the impression that we will probably see attempts to strengthen globalisation (free trade), but I’m not sure yet. I’ll have to finish reviewing the current crisis and the newer statements before I can make a better stab at it.

Meanwhile, there have been some interesting and less-reported incidents that I think are in need of greater knowledge.

One of these is some comments coming from Westminster. Tony McNulty, a Labour Cabinet Minister was quoted as saying that: ”[The UK] will be the precursor to how deep and how long the recession will be”. He added: “We’re slowly getting to a stage where the slowdown may well turn technically into recession and then we’ll be talking about the nature and depth of the recession.” Another interesting comment from Westminster came from Colin Burgon, the Labour MP for Elmet: “What I see is the invisible hand of the market putting its hand into the pocket of the taxpayer and taking £50bn away and maybe putting two fingers up as well.”

From the union workers I have spoken to here – and I might add there is alot of industrial action lately in Scotland, with more on the horizon – the general sentiment has been along the lines of ‘So, New Labour is for socialism after all – socialism for the rich only;’ and ‘Don’t these fat cats preach to us about personal accountability all the time? Why don’t they practice what they preach? F@”$%*”!’ Suffice it to say there isn’t much sympathy for these ‘Masters of the Universe’ or much popular support for the bail-outs. At least not that I’ve found to be the case.

Much more disturbing, and all the more important have been a number of articles in the US media that I’ve been following. They really bring home what would appear to be the more immediate trickles of a possible deluge. I’m not going to comment on them here, maybe in subsequent postings, but I really think they need to be read to get an idea of what all this white-collar crime from Wall Street is translating into on the ground.

Suicides from financial crisis cause concern

Economic Depression Suicides a Myth?

The Suicide Solution

Deputy serving eviction notice foils suicide

Mentally Ill Man Shot to Death

Police Say Renter Pulled Pistol on Deputies Serving Eviction Notice

Prime time for evictions: A local sheriff’s deputy finds himself on the front lines of foreclosure crisis

Middleburg Standoff Over Foreclosure

Owner of foreclosed home found dead after telling mortgage company of suicide plans

Police resolve standoff peacefully

Police: Bay City couple victims of murder-suicide

Four arrested at Roxbury eviction protest

In Roslindale, a dream foreclosed

Maybe the above are isolated incidents. Maybe they are a beginning of something bigger. I don’t know. What I do know is that this system sucks, and the more I study economics here the more I find it to be totally irrational and crisis ridden, with their economist ideology being essentially one of capitalist utopianism.

Advertisements

6 thoughts on “The Deluge Begins?

  1. Yes, I found that slightly amusing. The bookseller is right though, Das Kapital is one heck of a read. I’ve pretty much read over all of vol. I, but only a handful of chapters of vol. II, and barely a third of vol III and the Grundrisse. They are useful, but I would reccommend a smaller book as an intro to Marxist economics, as well as recognising that he was writing of an abstract ‘perfect’ capital, and there have been developments since that he could not possibly have foreseen. I believe the core aspect of his work (basically the bit on the labour theory of value, surplus labour and the broad dynamic of capital) are quite applicable, but one needs to avoid being too dogmatic towards the text as a whole.

    But one does feel we are moving into an interesting period. I can’t envision a return to Stalinist type communism, but the New Left, or rather democratic socialsim (socialism for the 21st century…) is going to increase in scope shortly.

  2. It seems every day there is something new that should be added to this thread.

    I came across this article on the BBC concerning the tragedy of a broker and his wife in India:
    http://news.bbc.co.uk/1/hi/world/south_asia/7683442.stm

    And the BBC also has an interesting and personal account of ‘Hotel Honda’ about an American bank employee who lost his job and is struggling to cope with the fallout of this crisis:
    http://news.bbc.co.uk/1/hi/business/7681978.stm

    Also, over at CNN there is a poll indicating the level of discontent within the US population towards the bailout. Reading the figures one gets the sense that people do feel that it is a bailout for the rich while more could and should be done to help the working people (note the positive support for the one aspect of the plan that does just this):
    http://money.cnn.com/2008/10/21/news/economy/paulson_poll/index.htm?cnn=yes

    It also appears that plans to hold a global meeting to review and reform the global capitalist system in light of the growing crisis of capitalism is beginning to take a more concrete form.
    http://news.bbc.co.uk/1/hi/business/7684740.stm

    I am still working on the article of my understanding of this crisis and what the fallout will be, as well as what this means for Bermuda. I’ll keep posting on this thread other articles that I think are of interest.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s