“We now believe that the Spanish economy’s shift away from credit-fuelled economic growth is likely to result in a more protracted period of sluggish activity than we previously assumed,” Standard & Poor’scredit analyst Marko Mrsnik said.
The credit ratings corporations are attacking a country for ideological reasons, Spain (and note a left wing-ish government) wants to run its economy in ways that interfere with the financier’s business, thus they pretend in some scientific objective empirical fashion the nation is downgraded, it is smoke and mirrors. This is a political campaign by global corporate capital to reorder our failing democracies into helpless profit centres for their predation.
What a disaster for the people of Greece.
And what a triumph for Standards and Poors.
Because let’s be clear – Greece will carry on. Its people will survive. With support from Europe democracy will prevail in a country that has seen dictatorship far too recently.
And this then is a crisis created, in the main, by bankers – who put in place too many of the strictures inherent in the Euro; by libertarians who promote the hatred of the states and the poor regard for regulation that has denied the Greek government so much of the tax revenue it is owned and by financial institutions who (as Goldman Sachs seem to demonstrate, time and again) just love just situations to make short term profit at cost to ordinary people.
The UK will likewise be managed, the IFS cuts campaign began yesterday, again posing as some objective scientific empirical truth, it is nothing of the sort-
there’s no such thing as independence. The IFS is financed to promote conventional economic thinking on the UK economy. That’s a particular, and extremely normative view of our reality appropriately called neoliberal economics that prescribes certain outcomes irrespective of circumstance. So, for example, neoliberal economics assumes government is bad and the private sector is good, so it prescribes cuts. And neoliberal economics assumes tax is harmful to private income maximisation – which is a very narrow definition of well being – and as a result automatically rules out the use of tax increases as a mechanism for rebalancing the government’s finances.