Greece has accepted its fate and will institute draconian austerity measures mandated by the IMF including massive layoffs and pay cuts designed to destroy their economy. The more permanent damage however will be done by a new “independent” agency set up to liquidate any public assets the transnational corporations find attractive.
This isn’t a new scam, the IMF has been looting and pillaging the third world for more than thirty years but this is its first big haul in Europe. The right wingers are constantly squawking about how we must learn from the failure of Greek socialism and institute austerity here or become just like Greece. “They ran up huge debt you know!” In fact their debt is only 50% of GDP which is lower than most countries in this “modern financial services” dominated world economy. [ people are pointing out that the current "official" percentage of debt is 143% but this includes paying 18% interest that has ballooned the debt and a shrinking GDP that drives up the ratio]
The rude awaking for the right (and really for most Americans) would be to find out that the thing we have in common with Greece is not “socialism” but that we too have a phony debt crisis brought on by the same Wall Street criminals. The goals are the same, the same austerity is already being forced upon us with the goal of crashing the economy and here too public assets are being sold off to transnational corporations.
The most likely scenario is that they will pull back from the brink of total collapse in the US and simply maintain as much pressure on the middle class as will be tolerated but no real recovery will be allowed. Middle class wealth will continue to drain away and the average standard of living will continue to decline until the whole concept of a “middle class“ will go down the memory hole. (the chocolate allotment has always been 2.5 grams)
Even now almost no Americans grasp the concept of wealth. A house (even if you can afford one) is not an asset but really a liability and a 401(k) is a cruel joke. They sold these things as a substitute for the pension plan and all they are is a way for Wall Street to harvest more middle class wealth passing it to the rich and to the “managerial class“ (remember that term).
In the olden days before 1981 the average American aspired to real wealth. To own a business or a farm, to become a professional with their own practice or a tradesman with ongoing business that could be passed on to the next generation. If one chose to work for a big company or the government then a pension could be counted on. Today the entire country is being Walmartized where nobody holds any real wealth and considers themselves lucky to make enough to live on until being cast aside.
This will also be a rude awaking for many of the Republican base who sold the family business after generations in exchange for a large stack of paper. They may be living well now but only until the next flash crash wipes them out. If they are still hanging onto real wealth they might consider what happened to all the car dealers wiped out in the “reorganization” of GM and Chrysler. The Republican plan was that all of them would be wiped out, Obama saved most of them but they still won’t vote for him, he’s a socialist.
The “managerial class” I mentioned earlier are the well paid people who make all this happen. The hedge fund managers, the corporate executive who oversees Mergers & Acquisitions, the media celebrities who get 8 figure salaries to lie to us convincingly that we are all capitalists and the liberals who built this country are “dangerous” and “hate America”. History is rewritten on a daily basis and facts are just opinions to be contradicted with talking points.
The Soviet Union had a “managerial class”, technically there were no “rich” people in the USSR but the people at the top lived like they were rich while working people got uniform poverty and called it socialism. Here the “managerial class” is well on its way to having everything under the control of the “corporate state” as opposed to the “Soviet State” but the outcome is the same. The working people will have the same uniform poverty but call it “capitalism”. www.prairie2.com