- js reader version
- view hidden posts
- tags and related articles
by Harald Schumann
Wednesday, May. 12, 2010 at 4:23 AM
The private indebtedness brought about by unscrupulous financial managers mainly in the US was almost completely transferred to state budgets.
EMERGENCY BRAKE FOR SPECULATORS
German President Horst Koehler admits politics fails because of the financial lobby. No one reacts. That is frightening.
By Harald Schumann
[This article published 5/4/2010 in: DIE ZEIT is translated from the German on the Internet, http://www.zeit.de/politik/2010-05/notbremse-fuer-spekulanten,]
German President Horst Koehler has been strikingly radical regarding the financial industry. In 2008 he described the global capital market as a “monster.” Now he even speaks of “dominant finance capitalism.” Profits are increased without regard for the well-being of nations. “A few had profits but the general public had to bear the losses.” At the same time he admits politics’ failure before the power of the financial lobby – but no one reacts.
This is frightening. German chancellor Merkel and her troop could not document this better since they still always deny the true dimension of the crisis. The continuous incorrect operation of the financial system deeply violates our sense of justice and undermines the fundamentals of our democracy. In year two after Lehman, the cardinal error of “bailing out” the financial system is now manifest. The private indebtedness brought about by unscrupulous financial managers mainly in the US was almost completely transferred to state budgets. The creditors, those who made available the money for the misguided speculations, and the organizers of the credit bubble in the investment banks did not have to take over one cent.
As a result, the crisis states have now accumulated such massive debts that these now become a trouble spot. Greece is only the beginning. Measured by its deficit, the US is hardly in a better position. But the government always refuses the insight that both sides – debtors and creditors – are responsible for every debt overload. Instead of negotiating in time with banks and insurance companies that pocket good risk-premiums in Athens through deferring payments and reducing the debt burden, Merkel and her EU colleagues postpone the problem until nothing is left than to transfer triple-digit billions in risks to the taxpayers to avert possible chaos in the Euro-zone. Thus speculators are invited to bet on the next ransom program. This is bound to go wrong.
Therefore applying the emergency brake is vital. First of all, the Euro-governments could prohibit trade with unprotected credit default swaps. That would take away the most important instrument from currency speculators. A procedure for an orderly state insolvency to deter further debt overload is necessary. What has been common in the rest of the economy since time immemorial – a transactions tax – must be prescribed to the financial branch. If financial transactions were taxed at only 0.05 percent, an urgently necessary 200 billion euro would come annually to the state treasury in the EU.
However the financial lobby warns the money business would then move to other regions. Without global agreements, the project would be useless. That is nonsense. Banks need accounts with the European Central Bank for business in the euro. If they evaded the EU laws abroad, the Euro-states could simply withdraw their licenses. No international bank could afford exclusion from the world’s largest domestic market. If the German chancellor wanted to enforce the often invoked “primacy of politics,” she could actually accomplish this together with France’s president Nicholas Sarkozy. The applause of the voters would be certain.
MEMORANDUM 2008: SHORT VERSION
Redistributing Income, Work and Power: Alternatives to Serving the Upper Class
MEMORANDUM 2008 - CRISIS UNDERRATED
Without increasing internal demand, the upswing based on replacement-investments and exports cannot continue. Without reduced working hours, adequate jobs will not be created in a world of reduced work volumes, rationalization and information technology.
SEVEN LOOSE PIECES OF THE WORLD JIGSAW PUZZLE - Subcomandante Marcos 1997
VIDEO: MIGUEL D'ESCOTO, FORMER PRESIDENT OF THE UN GENERAL ASSEMBLY 2009-2010, interviewed by Amy Goodman on Democracy Now, April 26, 2010
ATTAC AUSTRIA CATALOG ON DEMOCRATIZING THE FINANCIAL MARKETS
"THE QUIET COUP" BY SIMON JOHNSON
MARC'S TRANSLATIONS ON WAR AND PEACE
Report this post as:
LATEST COMMENTS ABOUT THIS ARTICLE
Listed below are the 10 latest comments of 1 posted about this article.
These comments are anonymously submitted by the website visitors.
GUIDE TO REBEL CITY LOS ANGELES AVAILABLE
lausd whistle blower
Help KCET and UCLA identify 60s-70s Chicano images
UCLA Luskin: Casting Youth Justice in a Different Light
Change Links April 2018
Nuclear Shutdown News March 2018
Join The Protest Rally in Glendale on April 10, 2018!
Join The Protest Rally in Glendale on April 10, 2018!
Spring 2018 National Immigrant Solidarity Network News Alert!
Anti-Eviction Mapping Project Shows Shocking Eviction Trends in L.A.
Steve Mnuchin video at UCLA released
Actress and Philanthropist Tanna Frederick Hosts Project Save Our Surf Beach Clean Ups
After Being Told He's 'Full of Sh*t' at School Event, Mnuchin Demands UCLA Suppress Video
Resolution of the Rent Strike in Boyle Heights
What Big Brother Knows About You and What You Can Do About It
Step Up As LAPD Chief Charlie Beck Steps Down
Our House Grief Support Center Hosts 9th Annual Run For Hope, April 29
Don’t let this LA County Probation Department overhaul proposal sit on the shelf
Echo Park Residents Sue LA Over Controversial Development
Former Signal Hill police officer pleads guilty in road-rage incident in Irvine
Calif. Police Accused of 'Collusion' With Neo-Nazis After Release of Court Documents
Center for the Study of Political Graphics exhibit on Police Abuse posters
City Agrees to Settle Lawsuit Claiming Pasadena Police Officer Had His Sister Falsely Arre
Professor's Study Highlights Health Risks of Urban Oil Drilling
Claims paid involving Pasadena Police Department 2014 to present
Pasadenans - get your license plate reader records from police
LA Times Homicide Report
More Local News...
What does the Quran Say About Islamic Dress??
Biodiversité ou la nature privatisée
The Market is a Universal Totalitarian Religion
Book Available about Hispanics and US Civil War by National Park Service
The Shortwave Report 04/20/18 Listen Globally!
The Republican 'Prolife' Party Is the Party of War, Execution, and Bear Cub Murder
Paraphysique de la dictature étatique
Book Review: "The New Bonapartists"
The West Must Take the First Steps to Russia
Théorie générale de la révolution ou hommage à feu Mikhaïl Bakounine
The Shortwave Report 04/13/18 Listen Globally!
“Lost in a Dream” Singing Competition Winner to Be Chosen on April 15 for ,000 Prize!
The World Dependent on Central Banks
Ohio Governor Race: Dennis Kucinich & Richard Cordray Run Against Mike DeWine
March 2018 Honduras Coup Again Update
Apologie du zadisme insurrectionnel
ICE contract with license plate reader company
Black Portraiture(S) IV: The Color of Silence...Cuba No...Cambridge Yes
Prohibiting Micro-Second Betting on the Exchanges
Prosecutors treat Muslims harsher than non-Muslims for the same crimes
Amy Goodman interview on cell phone safety
Mesa, Arizona police officer kills unarmed white man
Israeli leaders should be prosecuted for war crimes
Paraphysique de l'autorité
Two Podcasts on fbi corruption
Fbi assassins assault & try to kill DAVID ATKINS
More Breaking News...