The Neoliberal Economic Regime Is In Crisis, Marxist Author Relates

Nick Wright of 21stcenturymanifesto provides the Sitaram Yechury commentary:  “The governments rescued the corporate giants by building up a mounting debt of their own. Washington Post states, “the problem is not official profligacy but private bank lending to fuel a burst housing bubble; bailing out those banks is what broke the Irish government”. The governments that bailed out these corporates are now caught in the vortex of mounting debt. If corporate insolvency heralded the global meltdown and recession in 2008, in 2010 it is this sovereign insolvency that is threatening to snowball a deeper crisis. Thus, what had started as the crisis due to the insolvency of some corporates has now emerged as full fledged sovereign insolvency. Sovereign insolvencies were bound to occur given the manner in which capitalism chose to recover from the current recession.”

And continues:  “Instead of undertaking poverty alleviation measures and increasing the purchasing power of people, the governments are trying to manage their finances and prevent insolvencies by drastically cutting down on expenditures and significantly increasing their revenues. The former means that the livelihood standards of the majority of the working people is bound to deteriorate because there will be more cuts in the social benefit expenditures. The IMF sponsored ‘austerity’ packages introduced in many of the European countries are part of these efforts and these have resulted in drastic cuts to the social welfare budgets. IMF, which has given loans to many countries, imposed several conditions and had directed the governments to rein in their fiscal deficit. It had urged the governments not to succumb to the protests demanding the reversal of austerity measures. Moreover, it had asked them to get the annual budget approved by it before introducing it in their respective parliaments. This is nothing but a brazen attack on the sovereignty of the respective countries.”

(This is true, in announcing bailout agreements, the Leaders waived national sovereignty and instituted regional economic governance, where the word, will and way of the Leaders becomes sovereign, replacing Constitutional Law, as well as the traditional rule of law.  The Apostle John wrote of such in Bible prophecy of Revelation 6:1-2, where the First Horseman, rides forth globally on a White Horse, in conquest over mankind:  “I watched as the Lamb opened the first of the seven seals. Then I heard one of the four living creatures say in a voice like thunder, “Come!”.  I looked, and there before me was a white horse! Its rider held a bow, and he was given a crown, and he rode out as a conqueror bent on conquest.”  In these end time days, economic and political conquerors will arise, effecting bloodless economic and political coups, to establish regional oligarchies of state corporate rule.)

He continues:  “There is a catch 22 situation for global capitalism today. In order to appease finance capital by stabilising the currency and preventing inflation, countries are forced to reduce deficits and impose higher taxes.” (Greece and Ireland are prime examples.) This in turn means lower governmental expenditures (as higher tax revenue goes to finance deficit) depressing domestic demand and consequently depressing growth. This also means lesser resources in the hands of the governments to continue with stimulus packages. This further adds to depressing economic growth. Such economic slow down further discourages finance capital. This is the vicious cycle of capitalism and its crisis.”

Sitaram Yechury concludes: “The only way out is to struggle for a systemic change”.

Bible prophecy of Revelation 13, communicates that there will be no systemic change; there will only be an ongoing increase in the power of System of Global Corporatism, to be combined with the rise to power of a Global Sovereign and a Global Seignior, as I describe in article Three Beasts Are Rising To Rule Mankind.

I see no need to join the author in “the struggle for political alternative to capitalism, socialism has to be strengthened”.  Rather I see every need to be faithful to God’s Word, as presented in Luke 21:36, that is to To watch and pray always, that that I may be counted worthy to escape all these things that will come to pass, and to stand before the Son of Man.


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