Tuesday, June 21, 2011

To default or not to default- to hell with the lies of the IMF and their (w)banker mates.

Whilst events in Athens unfold and resistance through joint industrial action at home and elsewhere is building up, we are being fed lies by politicians and those in the media that Greeks defaulting on their debt would cause disaster. The Con Dems, bankers and IMF are causing disasters and they expect everyone just to lie down and take it. Well as we all know, there is an alternative to the IMF dictates.  

Remember the damage the IMF has caused South American, African and Asian countries over the past decades? Well for those that opted for defaulting on their debt, in most cases, GDP actually increased soon after.However in nearly all cases, any economic recovery was only achieved through raising the rate of exploitation, poverty and ecological disasters, mimicing the very policies that the IMF wanted to impose on them anyway with or without defaulting.

The issue is what type of economy and economic policies should be adopted following default. Obviously not the free market, supply side privatisation programmes, based on a low wage economy that many then pursued at the expense of their own people and the environment.

Replacing international bankers exploiting their economies with local spivs and speculators is not the answer either. Whilst the flight of capital continues and the price of gold rises, clearly the Greek workers need to address the issue of socialisation of resources and capital, with the taking back control of the means of production  to protect jobs and services, default or no default.

“Some countries benefit from defaulting on their debt” according to today´s Daily Chart in the Economist see below and here - “Uruguay, Russia and Indonesia did quite well after their respective defaults.”
The German and French banks who´ll be on the receiving end of the so-called “haircut” will not be so happy about this, ( SHAME), nor the will be the US firms who have sold insurance on Greek government debt (CDS) to worried investors.

We are continually being warned of the cantagion effect that a Greek default might trigger in Ireland, Portugal and worse Spain and worse still Italy!  What they really mean by this is their concern about the effect it may have on the speculators in those countries, who have made rich profits during the good times and now want the people of those countries to pay the price for their failures. They are more worried about an international fightback of the World's oppressed against all the bankers, corrupt politicians and dictators.An international resistance may result in a world without the IMF and the profiteers!

Yes to supporting the default option but no to the cuts and bankrupt free market supply side policies of tax cuts, rising uemployment and worsening living standards to keep the rich rich. The answer is an eco-socialist world, not a world based on international capitalist exploitation and barbaric wars of destruction.

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