Tag Archives: europe

Political Rants

New cold war on tap.

The full-court press is on. The Obama team has been channeling Bush/Romney for the past couple of weeks, delivering on the promise of a more aggressive foreign policy on several fronts, most ominously (in my humble opinion) in far eastern Europe, on the indefensible frontiers of U.S./European capitalism and military hegemony. Obama has announce that we will be taking part in NATO exercises in western Ukraine; roughly the equivalent of Russia or China or Iran doing the same in western Cuba, except that Russia has been attacked ruinously by foreign alliances via their western frontier twice over the last century. (The same, of course, cannot be said of us and our southern frontier.)

This is the threat to world peace?At the close of the Cold War, it was understood that expansion of NATO would be seen as provocative by Russia, but because Russia was in a weak position, their economy destroyed by massive privatization, shock therapy structural adjustment, guided by some of our Chicago-school fanatics, we felt free to ignore their concerns. That worked so long as our drunken ally Yeltsin was in command. But now that the extremely powerful Russian presidency (which we supported under Yeltsin) has been inherited by a sober ex-KGB officer, and the Russian economy has been lifted somewhat by oil revenues, they have found the confidence to voice their objections. And, of course, we’re shocked, shocked!

I’ve never been a fan of Putin (even when our government was), but if this “Russian aggression” as I’ve heard on radio and television for several weeks now, it’s not very, well, aggressive. Sure, they’re helping their allies in eastern Ukraine, now under attack from Kiev, just as we massively intervene on the side of governments and movements all over the world. Putin, for all of his foibles, at least has a definable national interest to invoke in Ukraine. What’s our excuse in Afghanistan, Yemen, Iraq, etc., etc.? Much more abstract, to say the least.

Why are we looking for this fight? And if we are, how can we accuse anyone else of being a threat to world peace?

Political Rants

Austeritarianism.

1 Comment

The international consensus on forced austerity was soundly rejected this past week in both Greece and France. That’s what happens when you let people speak their minds – they sometimes opt for inconvenient solutions. As much as I love Jon Stewart, even he got this one wrong – the Greeks are not political confusniks addicted to cradle-to-grave government benefits. Their financial train wreck is as much a function of wealth privilege over there as it is over here. When they went to the polls this past weekend, they chose the parties that opposed the Euro zone plan, both on the left and the right. That’s not surprising; the bailout basically benefits that country’s financial sector, at the cost of Greek workers. There have always been political groupings on the extreme left and right in Greece, so everyone went for the candidates who (a.) opposed the bailout and (b.) aligned with them politically, generally speaking.

The bankruptcy of what Greek and French voters rejected couldn’t be more obvious. Greece has gone through several cycles of austerity-driven budget cuts, massive layoffs, rate hikes, etc., and the result has been the same. Step 1: You cut budgets, you throw government workers out on the street, and there’s less money in the economy. Step 2: Lower aggregate earnings and consumer spending means less revenue into the government, which in turn widens the budget deficit. Step 3: The Eurozone demands more cuts.  Step 4:  see Step 1. Mix and repeat. Can you say “death spiral”? This is, in essence, what is happening in England and in the United States in slightly less dramatic fashion, though on a much grander scale since their economies are so much larger than Greece’s.

So… the people have spoken. And the markets are reacting. Not real fond of democracy, the investment community. It involves way too much uncertainty. The fact is, they are grappling with many of the same problems that are plaguing us. We had an overinflated housing market, blown up even further by derivatives speculation, then when the whole house of cards came crashing down, our deeply deregulated banking system left some of our largest financial institutions almost fatally exposed. Their crisis was in part precipitated by ours, but because they have a monetary union and not a political union, it seems like 20-odd different crises rather than one big conglomerated one. And just as austerity is lengthening the depression (yes, depression – ask Krugman) over here, it will bring only misery to the continent as well.

This system is obviously broken. Cutting spending may serve other political ends, but it will not fix the problem.

luv u,

jp