Now, it was kinda prescient that C4 televised Michael Moore’s “Capitalism: A Love Story” as on Monday the Con/Dem alliance will be announcing details of the imminent vicious and deep public sector cuts. David Clegg (you may know him by another name) stated that the “move is painful but necessary’… Translated that means everyone else will be suffering from the consequences of casino capitalism and bank bailouts …and not the very people/institutions that created this economic crisis. In a phrase, “we must all feel the pain”… does the Con/Dem alliance also share the pain? I don’t think so, they will be happy to empathise from a safe distance.
“Ahead of Monday’s announcement of the details of £6bn in cuts this year, Mr Clegg said the squeeze was necessary to “bring sense” to the public finances.He said the coalition government would have to “hold its nerve” over tough decisions and attacked what he said had been irresponsible spending by Labour.”
Two important questions asked in Moore’s film were simply, “Where did the bailout money go, and can we get it back”? No on both counts. In the States back in late 2008 during a dying Republican administration, Treasury Secretary Hank Paulson (btw former CEO of Goldman Sachs) handed out bits of blank paper to banks who, literally were cap in hand, desperate for a bailout and being asked to fill out on a piece of paper the amount of cash. And the scary thing is, no one knows where the cash went as the banks were under no obligation, apparently, to state where the money was going. The banks suckered everyone, and global capitalism knew…but didn’t give a damn. BTW: a $20 million fee to a private contractor who supposedly kept a track of cash handed out. But hey, don’t worry about the further complications such as this specific contractor being in receipt of one of the handouts!!
And what it amounted to was a blatant act of day light robbery committed by a colluding Treasury, aided and abetted by a greedy bunch of bankers (known as the Big 9) getting their sticky corrupt paws on billions and billions of dollars. And some of these banks didn’t even need the cash but were told to take it! There’s honour amongst thieves but not banking!
There were seemingly no controls, just the stipulation of getting the money out to these banks asap. Plus no accounting was provided by the banks…it seems.The bailout was one big massive slush fund for the banks with their casino style investments. Why was this allowed?
Where the hell did the original bailout cash go? There are junkets galore, bonuses, buy-outs yet who is paying for this economic shock crisis? Well, it certainly aint the banks…or the neoliberals who got us into this fine mess in the bloody first place as we can see tomorrow when the likes of bourgeois wealth-friendly George Osborne unveils plans to slash and burn the public sector.
The scenario during the bailout in the States is pretty similar to the one over here. Again, nobody knows where the cash went. Why didn’t they leave the big banks to go under, it would have cleared them out of the system, it would have been traumatic but it would not have left this big deficit hole which we are all experiencing the pain…though not the banks and certainly not global capitalism (which is alive, thriving and exploiting the rest of the 95% while the remainder 5% do very nicely indeed)
Come the revolution!