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Sunday, 2 August 2015

Debt; The New Universal Weapon

Went to a very interesting talk by Spyros Marchetos a Greek professor today at Bradford's 1 in 12 club (30 years of anarchism and going strong, a brilliant institution).

The amount of debt in the world vastly exceeds the amount of real value ( as produced by the global GDP) by a huge factor.  This debt which exists as electronic information in between banks and other financial institutions can be used as a weapon against any country that steps out of line.   Because elected governments are now allowed to convert private debt ( especially losses made by banks) into public debt (which we the public have to repay).  How was this slight of hand allowed to become 'normal' practice?

Because every country is 'in debt' this can happen at any time anywhere.  The total UK debt if you total private domestic, business, financial services and government debt is far higher than Greece's debt. It could be 'called in' at any time eg when Jeremy Corbyn is elected as Prime Minister (I started watching A Very British Coup (1988) which hypothesises a Left Wing labour government winning an election in the 1990s, recently and couldn't continue, too raw to take.)

In Greece the constitution is clear that the loans imposed by the IMF are illegal and should not be repaid.  Much like Wonga were forced to write off their more irresponsible lending.  The UK has no constitution, there wouldn't even be a constitutional objection here.

Marchetos said the EU is now totally in the grip of the bankers and German bankers specifically who wield the debt weapon without any democratic control whatever.

Almost none of the 'loans' made to Greece by the IMF or Eurozone actually went to Greece. Most effectively never left Germany but Greeks are being told to pay them back.

I asked if the rise of alternative currencies and economies in Greece will be an effective defence against this debt/money weapon and he said they weren't significant. They might enable people to keep themselves alive but will not present an effective national alternative. On this I disagree because internet enabled economies are embryonic but showing great potential.

We cannot play in this capital debt game. The cards, the odds, the field is stacked against us. We have to play a different guerilla game where the B52s of the IMF and ECB cannot find us to bomb us back into submission.


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