Erranter, a fiscal conservative, is in the comments attempting to justify the deficit reduction going on in the developed world:
But either way the fear of defaulting on debt is one of the main reasons for cuts, if not the reason. I think the UK is alright, mainly for historical reasons, along with Japan and the US, even if they went over 100 percent, but “newer” economies such as Spain and Greece don’t have as much credit history to back themselves up and are therefore making the cuts to show that they’re serious about fiscal stability.
Japan’s is one of the highest on Earth – it is ~216% of GDP. Has their bond rating been creamed yet, and have they been afflicted with mass capital flight? Are investors unwilling to invest in Japan and therefore not doing so? Of course not. So I wonder about all of this.
Erranter is right though. It’s the investors and bond markets who are calling the show here. The governments are making the cuts because they are afraid that if they do not, they will get hit by the investors via the bond markets. It’s not justifiable in the US or UK, it hasn’t happened in Japan, but I can’t speak of elsewhere.
Shall I point out what is going on here? The international investor class (the internationalist rich who are the enemies of every poor and middle class person on Earth) are ordering national governments around and telling them what to do. National sovereignty is gone. Nations no longer even rule themselves. They are ruled by the international elite rich who pursue their own interests.
So really what we have now is an International Dictatorship of the Rich, and all of world’s nations live under this dictatorship as subjects.
Apparently the dictatorship has told many world governments that social democracy is unsustainable and therefore needs to go. Not surprising, as they’ve always hated it anyway. And apparently governments are starting to obey. The rich, the world media and the elites could not be happier. They have hated social democracy since the day it was born and have spent the last century plotting ways to destroy it. Now maybe they found one.
What this points out, I think, is that capitalism sucks! I’ve been saying this over and over on this site, but few seem to listen to me. The World Capitalist Class has told the nations of the world that social democracy has to go. It’s actually blackmail. If you don’t get rid of it, we will cut off your loans and investment and drive you to the poorhouse.
So we can have one or the other, capitalism or social democracy, but not both. I don’t want to live in a world like that, and I don’t want to live under a capitalist regime like that.
Fuck it. I’m outa here. Try something else.