Agreement of People website

Sign here if you support the campaign for a real democracy

Our blogs


AWTW FacebookAWTW Twitter

Your Say



Spain's voters disenfranchised by markets

There can be only one winner in Sunday’s general election in Spain. And it won’t be the voters, many of whom are so disillusioned with the country’s political system that they seem set to stay at home in droves.

Even though the discredited Socialist Party (SP) looks likely to hand over the reins of state power to the right-wing People’s Party (PP), the financial markets are closing in. They know that the PP has no policies to tackle the country’s budget deficit or the growing debt crisis in the regions and is winning with anti-SP rhetoric.

So yesterday, the effective interest rate on Spanish government borrowing soared beyond 6% into what is considered the danger zone. Mariano Rajoy, the PP leader, will find himself in the firing line next Monday morning when Moody’s, Standard and Poor, Goldman Sachs and the other predatory operators in the financial markets move in.

In a mass sell-off of government bonds on Tuesday, investors’ fears spread beyond Italy and Spain to triple A-rated France, Austria, Finland and the Netherlands. Neil Williams, chief economist at UK fund manager Hermes, said “Markets are losing patience so they are going for the jugular, which is the core countries and not the periphery.”

In dealing with the crash of 2008 governments, central banks and global agencies added many trillions to the global accumulation of credit and debt, yet the growth the system needs to pay it off has not been forthcoming.

The “recovery” has now given way to a contraction. So the interest can never be paid, let alone the inflated capital, at least while forms of parliamentary democracy – however enfeebled – stand between the corporations, financial markets and living conditions of ordinary people. These must all be swept away in futile attempts to minimise the impact of the crash of 2011 on profits.

After a weekend of frenetic activity, two non-elected US trained economists have been appointed to spearhead the next round of assaults on the population of Europe. Mario Monti has been installed as replacement for the odious Berlusconi, and Lucas Papademos is the new prime minister of Greece, which includes anti-Semitic, far right LAOS – the Popular Orthodox Rally Party in its provisional government.

They’ll all be getting their instructions from the “Frankfurt group” which includes the International Monetary Fund, Germany’s Chancellor Angela Merkel, France’s President Nicolas Sarkozy, a bevy of European Union officials, with Barack Obama, USA and Hu Jintao, China’s President lurking threateningly in the background.

Every one of the now 7 billion occupants of the 200 or so states is directly and immediately affected by the unfolding of the interacting social, financial, economic, political and ecological crises of humanity and its planetary home. In Britain, youth unemployment has hit a record high of 1.016 million, as the overall jobless total rises to 2.62 million in the midst of a recession deepened by spending cuts.

The ruling classes everywhere fear any challenge to their rule, concerned that they might inspire others into revolt. Peaceful protests claiming the authority of the 99% find themselves confronting the forces of the state in its many forms. The brutal clearance of Zucotti Park won’t be the last to be seen of Occupy Wall Street. The Corporation of London has restarted legal proceedings against Occupy LSX, and its maturing programme of discussions on the economy, democracy and the state.

Amongst the most recent, but shortest-lived of the occupations, Cardiff, delivered one of the clearest objectives so far: “The monetary market system itself must be replaced with a resource-based economic model where everyone’s needs are provided for free.”

The collapse of the eurozone, the appearance of mass unemployment, the attacks on pensions, services and welfare, demands the alternative called for in Cardiff. On November 30, millions will strike in Britain against the government’s attack on public sector pension rights. To maintain the momentum, trade unionists should seize the initiative and create people’s assemblies in every community to carry the struggle forward towards a new political and economic democracy.

Gerry Gold
Economics editor
16 November 2011

Bookmark and Share

Your Say

Jonathan says:

Importantly put: correct analysis is a basic necessity to organising. With the latest driving down of what is available to central government in Holland by the increased rate of borrowing from the markets one can see where this is going. Today, 17th November is the anniversary of the shooting down of students in Greece. The Corporate state would normally carry with it some semblance of populism – dead. The Ruling Class crisis being switched to be paid for by the mass of those in employment and the growing mass of unemployed carrying with it the populist message of 'we are all in it together' – dead. All previous crisis of capital drove down the wealth as a whole and with it the share of each section of society; this is not the case here. As part of the very system put in place in the early 80's and especially with the 'Big Bang' devises methods to carry on centralising wealth in few and fewer families even during the worst of crisis: though not one can look at it in terms of War Profiteering.

It ought to be noted that this is all over the interest on the debt – in no way the debt itself. There is no reason to doubt that Goldman Sachs and the likes have a war room by which they plan such as the consequences of the trap laid for both Greece and Italy. From wage slaves to debt slaves – jumping over benefit slaves it seems, indeed, another form is developing: what is developing is another form of resistance to what is confronted – so a correct definition of both the form of labour arising and the form of government implementing the coercive and repressive policies needs careful attention. To me this is better guide that something outside the ken of dogmatists has developed than any other form of research could have it. I know that spontaneity on its own will never achieve the very goals in even their immediacy needed to corral all in to Assemblies.

Nowhere in the history have ideas been the father of the deed – always it is the stirring of the new and the drawing forward of all historical achievements and their fine negation – a leap into the new:  'its maturing programme of discussions on the economy, democracy and the state .' this process now it has started in such wide sweeps and conviction of the importance of the old – and not this or that aspect of it can not be bludgeoned into submission. From the Occupations it is an essential to create what is called for here – Assemblies – there is no other logic to it beyond the fact it grabs attention. Then business can be set and addressed: and put into practice: a real measure of truth.

Science has reached an impasse – it too needs to think outside the box. Any 'legitimacy' of even method has gone – but note the base is always one of legality – 'It is the law'. A piece of paper is no relationship and to save the achievement of the past generations even those codified must be taken out of control of what is ultimately the state machine which has or is in the process of selling all its birthrights to the markets. If science achieved any breakthrough in this area or that Global Capital would subvert matters for profits – always for profits, it is for their religious and media representatives to look for a way to sell the morality or 'wealth for all' in this or that breakthrough or change in capitalisms needs. This sharp contradiction of who speaks for the '99%' needs addressed in a way not grasped fully. It is not a matter – now or even before – of negotiating, of 'their' taking others into account. Even the days of Reformism is past whereby the pressure exerted by a strong mass meant they would rather duck the confrontation: now wishes cut no turnips. Even while these leading families and their acolytes grab what they can the total pot, the way it functions and circulates collapses – not as in crisis as if it were a matter of word forms – it is disintegrating into a lower form. However that lower form appears to be a combined form of different human experiments. Even in crisis these pygmy epigons of Smith or Napoleon, of Tiberius Caesar or Charlemagne can't be creative; zilch, Nada. Not that the Nazi's were actually that creative just like Ian Duncan Smith - willing. Of course it is not for us either a moral question – to be precise here there is within the movements and the new world that beckons a completely new morality – no the Nazi's were distinguishable by that they dumped all the morality they were heir too: Germany was an advanced cultural county. In fact that distinguished them more so in their first tasks nationally was to smash all culture – and the organs of the working class.

Before each and every revolutionary period there exists a burst in the arts, sciences and in social upheavals. In fact the sciences come into sharp contradiction with the prevailing mode of production – and its prevailing social organisation. At times this is really sharp, and it is really the contradictions, whatever the stage or phase that drives this forward. This time, however, science is indisputable trapped inside a box of theoretical thinking so much so that various disciplines haven't even achieved the levels leaped to by Soviet Science on the back of Nationalised Property relations and the conscious application of Dialectical Materialism. It makes incremental forward movement tied to the cheque book – the prevailing method is pragmatism – empiricism in theory the needs of capitalism in practice. Of course in the spirit of contradiction this is nowhere more accessible in understanding than in the stifling atmosphere of Stalinism and in the example of the Lysenko School – but as is common knowledge a breakthrough in certain areas is taboo. It must not be thought that knowledge grows independently of social organisation: this leaves out of matters that it must precisely be the organisation of a greater and ever greater social being that releases both the resourcefulness of the planet in a significant and meaningful way but also releases the social abilities of the thinking being, expressed albeit in individuals, that allows for the ever greater insight into nature – of which we are a part and intensely, most importantly, speak now for the whole, and therefore the turning it to our own universal needs.

I would maintain that without Assemblies and what will be released from them: no hydrogen fuel.

Comments now closed

We do not store your name or email details, but may inform you if someone responds to your comment.

If you want weekly update messages please indicate and we will store your details in a secure database which is not shared with any other organisation.

Your name

Your E-mail
(we will not publish your E-mail)

Do you want Updates?

Anti-spam validation:compare< Please enter these letters>