10:53 am in Uncategorized by GREYDOG
Posted by greydogg, 99GetSmart
* IT’S BUSINESS THAT REALLY RULES US NOW
Lobbying is the least of it: corporate interests have captured the entire democratic process. No wonder so many have given up on politics
By George Monbiot, The Guardian
It’s the reason for the collapse of democratic choice. It’s the source of our growing disillusionment with politics. It’s the great unmentionable. Corporate power. The media will scarcely whisper its name. It is howlingly absent from parliamentary debates. Until we name it and confront it, politics is a waste of time.
The political role of business corporations is generally interpreted as that of lobbyists, seeking to influence government policy. In reality they belong on the inside. They are part of the nexus of power that creates policy. They face no significant resistance, from either government or opposition, as their interests have now been woven into the fabric of all three main political parties in Britain.
Most of the scandals that leave people in despair about politics arise from this source. On Monday, for instance, the Guardian revealed that the government’s subsidy system for gas-burning power stations is being designed by an executive from the Dublin-based company ESB International, who has been seconded into the Department of Energy. What does ESB do? Oh, it builds gas-burning power stations.
On the same day we learned that a government minister, Nick Boles, has privately assured the gambling company Ladbrokes that it needn’t worry about attempts by local authorities to stop the spread of betting shops. His new law will prevent councils from taking action. […]
* BANKOCRACY: FROM THE VENETIAN REPUBLIC TO MARIO DRAGHI AND GOLDMAN SACHS
By Eric Toussaint, CADTM
From the 12th century to the beginning of the 14th, the Knights Templar, present in much of Europe, had become the bankers for the powerful and had taken part in the financing of several crusades. At the beginning of the 14th century, they were the main creditors of the King of France, Philip the Fair. Faced with a debt burden that was straining his resources, Philip the Fair eliminated both his creditors and his debt by demonising the Knights Templar, accusing them of many crimes |1|. Their Order was outlawed, the leaders executed and its assets seized. Its army (fifteen thousand men, including one thousand five hundred knights), its patrimony and its credits to rulers failed to protect it from the power of a State set on eliminating its main creditor.
During the same era (11th – 14th centuries) Venetian bankers were also financing the Crusades and lending money to the powerful of Europe, but they manoeuvred much more deftly than the Knights Templar. In Venice, they took control of the State by founding the Venetian Republic. They financed the transformation of the Venetian city-state into a veritable empire including Cyprus, Euboea (Negroponte) and Crete. They made use of a clever strategy to gain lasting wealth and guarantee reimbursement of their credits: they decided to drive the Venetian state into debt towards the banks they owned. They were the ones who set the terms of the loan contracts, as they were at once bank owners and rulers of the State.
While Philip the Fair had an interest in physically ridding himself of his creditors to be free from the debt burden, the Venetian State reimbursed the debt to bankers in cash. The latter came up with the idea of creating public debt titles that could circulate between banks. This was a step towards the establishment of financial markets |2|. This type of loan is the precursor to the major form of State debt as we know it in the 21st century.
Today, seven centuries after Philip the Fair crushed the Knights Templar, the bankers of Europe, just like their Venetian or Genovese forebears, clearly have nothing to fear from governments. […]
* PONZI AUSTERITY: A DEFINITION AND AN EXAMPLE
By Yanis Varoufakis, yanisvaroufakis.eu
For a while now I have been arguing that Europe’s policies for reducing the public debts of fiscally stressed member-states can be described as a Ponzi austerity scheme. In this post I attempt precisely to define ‘Ponzi austerity’.