Example Of Church Anniversary Program

Revenge of the markets
ENRIQUE GIL CALVO

08/06/2010

-Madrid newspaper El Pais

Well regardless, the English economy is starring as a scapegoat what may be called the second round of the credit crisis being experienced by Western capitalism. Allegedly, we are the new sick man of Europe ,

to the extent that threaten to ruin our credit rating and our large size determines that a possible bankruptcy English drag it to the euro. All this has unleashed an epidemic of hysteria both media (the

blogs the Salmon Press in scandal rivaling those of the tabloids) and financial (other bags are shaken English volatility while sinking into free fall) and political (in panic, the rulers conspire in the fall Ecofin in the most sterile cacophony). So it seems to be fulfilled the prophecy of Child Becerra, the economist who predicted the crash

2010.

Financiers have donated to the States with the help of the press.

The fatalism of the people is explained by the fear spread by certain newspapers.

What's happening? A plausible explanation is understood as a new phase in the war between the states and markets for the current credit control capitalism. As is known, the energy that drives the post-industrial economy is the credit flow: a flow forming dams that when speculative bubbles tends to overflow flooding his debts insolvent real economy. And so it happened again this time with the credit crisis to which I referred earlier, has completed a two-step process. In its first round, initiated in 2008 with the bubble subprime mortgages, caused the

crisis was the huge private debt refinancing impossible. To remedy this, the public treasures came to the rescue of private markets: it proclaimed a state of emergency was declared war against the crisis, the economy was nationalized, suspended the laws of supply and demand, debt endorsed private and public security of the State and injected unlimited liquidity at zero.

Thus was laid the foundations of a debt bubble that now has just exploded in his hands. It is what is happening during this second round in which everything happens exactly the opposite two years ago. Insolvent debt now impossible to return or refinance the debt is not private but public treasures accumulated by the state. And those who come to her rescue to refinance are now private markets themselves, which underwrite government bonds issued by states in crisis.

But with one big difference between the two rounds, and is that in two years ago endorsed the zero-interest private debt to facilitate their rescue soon, while One in the second round of public debts subscribe to market prices. That is, an interest rate so high that in the English case can be characterized as usurious, prolonging the duration of the debt crisis until hell freezes over. All this according to the laws of supply and demand in the second round, unlike the previous one, has not been suspended, but confirmed by the new Washington consensus imposed by the markets. How to explain this strategic shift? Very simple: the balance of power between markets and states has reinvested its sign, recovering those hegemonic predominance over them. As I said, this credit crisis is a battle of power between states and markets the first round resulted in the temporary victory for those in 2008-2009, while the second round is if the defeat of the debtor countries by their creditors markets .

be recalled that just two years ago it was said that neoliberalism had died and that the State Controller Keynesian back on track to control the markets and bring them to power. It was the time when the blame for the crisis seemed to us private investors (banks, hedge funds

,

etc.), while the rescuers were public authorities, state regulators, Keynesian rescue, etc.. Well, it was just a dream that lasted just one term. Today realism imposing the credit and who is back on track the victorious creditor market, demanding draconian conditions on the debtor State. So, who now seem to be the villains in this story are not the markets but governments insolvent and deficient, especially if
PIGS.

And it returns the ideology of the budgetary adjustment and fiscal consolidation: The New Washington Consensus IMF imposed a voluble, generous yesterday Keynesian, neoliberal strict today.

But the real victims of both credit crisis are the same: the ordinary people who paid with their massive unemployment yesterday and today with the pay cut and a freeze on pensions. And its real beneficiaries are also the same: lending investors, who always gain, since they would be rescued when debtors zero interest while being enriched with usurious interest when creditors. A qui
prodest?

unequivocal.

But if this is so obvious, how come nobody is questioning this state of things, accepting it with fatalism? There are two economic factors, in turn connected to each other, that explain it well. The first is the media treatment of the crisis, which has naturalized

a process as unbalanced and unfair to make it seem logical and necessary. And this has been getting the media fear in people's bodies, so leaving her paralyzed with panic unarmed and willing to let you do and be done.

is the media frenzy to which I alluded at the beginning, induced by the repeated publication of financial disclosures shocking (a la Caja South's bankruptcy threat to the euro),
and generating an artificial climate of uncontrollable catastrophe that spread to his water-herd effect

(herd effect)

all alike: both those who make decisions at random incoherent (if our leaders, Merkel to Zapatero, who yesterday ran to rescue private debts today run to cut spending to pay off public debts) and the disjointed citizens who suffer with astonishment and helplessness, with no signs of resistance to the counterproductive political tension and anger barren union.

The other factor is discrimination pure and simple credit. The first Christian prayer is the forgiveness of debts, but it only applies in a perverse way, as it says in the parable of Matthew: "Whoever has more, you will. And who has not, all will be removed

" . Well, with the debt crisis happens the same: to certain privileged debtors (the Protestant Anglo-Germans) were redeemed their debts at very low interest rate, while the stigmatized (by Catholics and latinomediterráneos) are required refinance usurious interest rate.

is the case with government bonds, which are discriminated against not because of its quantitative indicators, but by disqualifying bias as fallacious as unjust, punishing the English bond compared to Dutch or British (as reported in these pages Xavier Vidal-Folch): all for being a PIG in place of a

WASP. Which determines that in the euro area are resurrecting the old national currencies, now transvestite as titles for each state treasury.

But this is also lending discrimination operated by the media definition of reality, they are Anglo-Saxon media, not the credit rating agencies , those making their judgments performative stigmatizing perceptions of country risk. Is again the effect

-media pack, because if you

says the Financial Times,

all other means reproduce and amplify it, including PIGS.

Enrique Gil Calvo is Professor of Sociology at the Complutense University Madrid. 06/08/1910

the country