The Greek debt crisis has had world markets in turmoil for months as the western world tries to come to grips with a sovereign debt crisis which is shaking the foundations of the Euro. Greece borrowed its way to a measure of prosperity which it couldn’t afford to repay. While many lunatics on the American Right keep using it as an excuse to cut federal spending the Greek and American situations have nothing in common. Greece cannot repay its debt while the U.S. can. Greece didn’t use its debt to finance tax cuts for the rich, corporate tax loopholes for corporations and to finance foreign wars as America did.
Bankers readily financed the Greek debt without, apparently, doing due diligence. The business practice of only lending to credit worthy borrowers got tossed out the window and now the banks want everyone else to pony up for their failures. Where is the banker’s responsibility in all this? When any business accepts risks they gamble on possibly losing their investment. These bankers made horrendously bad decisions issuing loans to Greece yet don’t accept responsibility for those bad moves. Why should world governments continue bailing out banks for bad business decisions?
Enough is enough.
This is called jumping from the frying pan into the fire. The G20 group announced today it is pledging one trillion dollars to the World Bank and International Monetary Fund. I suppose they think giving this huge sum of money to two organizations largely responsible for the financial meltdown is going to help??? God help us all.
Britons rioted this week outside the G20 meetings protesting the very policies forced on countries by the IMF and World Bank which helped facilitate worldwide recession. The U.S. formed both institutions in order to force Friedman economics on countries all around the world. These varied from the brutal and bloody coups in Chile, Argentina, Bolivia to less bloody economic shock treatments in innumerable nations which caused austere economic hardship on billions of people.
Naomi Klein thoughtfully told this tale in her landmark book Shock Treatment. It is required reading in order to understand how Friedman economics have destroyed us. In spite of the absolute failure of that philosophy Obama appointed Friedmanites as his top economic advisers and as Secretary of the Treasury. Now the G20 solution is to use the two primary Friedmanite institutions to solve the problem? This is beyond insane.
Remember those violent demonstrations outside IMF, WTO, and World Bank meetings the last fifteen years? These were people who were educated about what was happening and outraged by it. Now, as millions more are educated about what has been happening we saw this week’s riots in London. When will we begin having mass public outbursts and demonstrations about what is going on? It is time for outrage.