On the Brink of the Abyss: The Imminent Bankruptcy of the Financial System by Alain de Benoist

Author:Alain de Benoist [de Benoist, Alain]
Language: eng
Format: epub
Publisher: Arktos
Published: 2015-03-11T04:00:00+00:00

All these choices are presented as being the product of developments against which one can do nothing, that is to say, as inevitable misfortunes. In reality, they are inevitable only in the ruling system — a system, for example, where the states should borrow at more than 3% from the banks, when these same banks are refinanced at rates fluctuating between 0.5% and 1%, by the European Central Bank (ECB) or the American Federal Reserve. This means, in the final analysis, that it is the markets which hold the key to the financing of states! Besides which these measures are doomed to failure since the countries that incur a major current deficit should, in order to respect their commitments in matters of debt, eventually come up with surpluses which they are today incapable of obtaining except by provoking a contraction of domestic demand equivalent to a deep and lasting recession. This is true most especially when their export capacities are reduced by the fact of the weakening of their competitiveness.

At the same time, of course, one forgets that the recent explosion in public debt is above all the consequence of the finance rescue plans and the recession provoked by the financial crisis of 2008.[161] ‘The growth of public debt in Europe and the United States’, a recent text recalled, ‘is not the result of expansionist Keynesian policies or of extravagant social policies, but much rather of a policy in favour of a privileged strata: the “fiscal expenses” ( lowering of taxes and contributions) increase the available income of those who have least need of it, who at the same time can increase their investments still more, especially in Treasury bonds, which are remunerated by interest from the tax deducted from all taxpayers. In sum, there is a mechanism of backward redistribution from the working classes to the wealthy classes being established via the public debt — whose counterpart is always private income.’[162] It is thus clearly the middle and working classes which are going to absorb the damages caused by the banks and the financial markets through the application of the old principle: ‘privatisation of profits and socialisation of losses’.

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