I mean lets get this straight, the global financial system only exists because Governments (i.e. tax-payers) all over the Western World bailed out the failing banks in 2007. Without these bail outs the whole stinking bastard infested edifice of traders, bankers, brokers, hedge funders, bears, bulls and bollocks would have come crumbling down.
Thanks to the actions of governments (i.e. tax-payers) this entirely self-serving system has now stabilised and is looking at the debts of the governments that saved it’s sorry ass, and saying, well, I’m afraid these debts are simply not sustainable. The IMF as the enforcers of the global banking system then tells these same governments that they have to make such draconian cuts to pay off the debts,( that were taken out to save the financial system that the IMF is part of), that post-war notions of public services and welfare are being entirely wiped from the modern world. So literally the poorest in our societies are being told, not asked, told, at the point of a truncheon, taser and rubber bullet, that they have to pay with unemployment, ill-health and decimated public services in order to prop up the system that created the problem in the first place. It’s so magnificently Kafkaesque the man himself couldn’t have made it up!
This is not to mention that history is repeating itself almost exactly. After the 1929 Wall Street Crash governments all over the West responded exactly as they are now with massive cuts to public spending……the result? The Great Depression! Stability and growth were only restored to the West through the adoption of Keynesian economic policies of public spending and, God help us, by a World War that allowed governments to overide free-market ideology and impose a micro-managed economic model to serve the war effort. As a result during WWII the USA thrived but not because of rampant free-market capitalism but because of a highly managed mixed economy and a European style welfare state.
The ‘markets’ can insist on enforcing their discredited and literally bankrupt logic, onto Greece and the other failing economies of Southern Europe and eventually no one will have a job, no tax will be paid and no debts repaid. Then there will either be a revolution as millions of people refuse to live in poverty to allow the rich of the world to continue living in luxury, OR Western governments will once again recognise that the only way forward is a managed economy run on Keynsian principles. I could live with either outcome and I’ll lay money on one or the other.