EU-MENA revolution consolidation

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Re: EU-MENA revolution consolidation

Postby vanlose kid » Fri Jun 17, 2011 12:52 pm

*

different strokes for different folks. same same for the serfs.

Afghanistan facing insolvency within a month, say officials
IMF rejection of proposals over Kabul Bank crisis, $820m bailout debts and suspension of aid leaves country in deepening crisis

Jon Boone in Kabul guardian.co.uk, Friday 17 June 2011 17.15 BST

The Afghan government will struggle to pay its bills "within a month" after the International Monetary Fund rejected proposals for resolving the Kabul Bank scandal, western officials have warned.

Although the war-torn country's biggest bank nearly collapsed last September, the government of Hamid Karzai and the international community are still at loggerheads over plans to fund an $820m (£507m) bailout as well as how the disgraced former managers and shareholders who helped themselves to hundreds of millions of dollars should be prosecuted.

As long as the IMF declares the plans to be inadequate, many countries, including Britain, are legally barred from pumping money into a government that is almost completely reliant on foreign cash to pay civil servants' salaries.

It was reported by Reuters that the IMF has now formally rejected the Afghan government's proposals, meaning aid disbursements will remain on hold. The failure to reach a deal by a deadline of last Saturday also meant a $70m payment from the World Bank's Afghan reconstruction trust fund was automatically withheld.

Two senior western officials said the government will face a cash crisis in the coming weeks and could struggle to pay staff bills, although one predicted this would be avoided by cutting other spending priorities.

Last month, Omar Zakhilwal, the country's finance minister, told the Guardian that suspension of aid payments "has already had an effect on us, no doubt about it". He insisted that the Afghan government had done "95% of what was asked of us" by the IMF, including effectively nationalising Kabul Bank, stripping the shareholders of their rights and putting all unrecovered loans into receivership.

But although he claimed the remaining issues "were inconsequential to Kabul Bank" the IMF sees two aspects as vitally important. Firstly, an agreement that Afghan taxes, not foreign aid, will repay the $820m taken out of central bank reserves last year to prop up the bank. Second, they want serious criminal investigations against managers and shareholders, many of whom enjoy high level political support, who illegally borrowed huge sums of interest-free cash from the bank.

Although the finance ministry has drawn up plans to increase its tax-raising efforts in order to pay off the bailout in annual instalments, horrified MPs have already rejected one budget request for $73m and is also likely to reject a supplemental budget due to be presented by Zakhilwal soon.

"The IMF tells me, this is our demand, give me condition by this date the parliament must approve this line in the budget," explained Zakhilwal. "I am a minister, can I chose the parliament timeline? On these issues the international community totally disregards the legal processes of Afghanistan."

Many MPs argue that the money should be found by simply selling off the assets illegally bought by shareholders and managers, including a gas distribution company, an airline and luxury villas in Dubai.

Although a $10m forensic audit by Kroll may help identify many deliberately hidden assets, most western experts doubt more than half of the outstanding $910m will be recovered. So far just $61m has been retrieved.

Zakhilwal also argued that prosecutions could only be handled by the attorney general and warned that the complicated inquiry cannot be rushed.

"The attorney general can arrest people, but after 15 days with not case they have to be acquitted – that would be even more embarrassing for us," Zakhilwal said.

Although the finance minister insisted the attorney general was "absolutely committed" to a thorough investigation, the international community is sceptical, not least after Afghanistan's top law officer threw out a case last year against one of Karzai's key aides who had been wire-tapped soliciting a bribe.

One alternative plan is for a special court of handpicked judges deemed to be reasonably honest and well-versed in finance to hear the case.

Credible prosecutions are vital, not just to appease public anger, but also because many of Kabul Bank's assets are in Dubai. Under United Arab Emirates law it is impossible to seize properties until criminal investigations have begun.

Not only does Afghanistan face a cash crunch, the showdown with the IMF also threatens to derail plans, pushed hard by Hamid Karzai, for a far greater proportion of international aid to be spent through official channels, rather than on projects outside the control of the government.

A key element of the "transition" strategy by which the foreign intervention in Afghanistan will be greatly reduced by the end of 2014, the international community last year agreed that 50% of spending will go through the government by 2012.

But it is now feared that if the Afghan government continues to be considered unworthy of international investment by the IMF the country will have to return to patchwork of bilateral funding agreements.

http://www.guardian.co.uk/world/2011/ju ... thin-month


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Re: EU-MENA revolution consolidation

Postby MacCruiskeen » Sun Jun 19, 2011 12:37 pm

This is a very good article, by a Greek blogger who writes in English:

--------------------------------------------------------------------------------------

Democracy vs Mythology: The Battle in Syntagma Square

http://sturdyblog.wordpress.com/2011/06 ... ma-square/

I have never been more desperate to explain and more hopeful for your understanding of any single fact than this: The protests in Greece concern all of you directly.

What is going on in Athens at the moment is resistance against an invasion; an invasion as brutal as that against Poland in 1939. The invading army wears suits instead of uniforms and holds laptops instead of guns, but make no mistake – the attack on our sovereignty is as violent and thorough. Private wealth interests are dictating policy to a sovereign nation, which is expressly and directly against its national interest. Ignore it at your peril. Say to yourselves, if you wish, that perhaps it will stop there. That perhaps the bailiffs will not go after the Portugal and Ireland next. And then Spain and the UK. But it is already beginning to happen. This is why you cannot afford to ignore these events.

The powers that be have suggested that there is plenty to sell. Josef Schlarmann, a senior member of Angela Merkel’s party, recently made the helpful suggestion that we should sell some of our islands to private buyers in order to pay the interest on these loans, which have been forced on us to stabilise financial institutions and a failed currency experiment. (Of course, it is not a coincidence that recent studies have shown immense reserves of natural gas under the Aegean sea).

China has waded in, because it holds vast currency reserves and more than a third are in Euros. Sites of historical interest like the Acropolis could be made private. If we do not as we are told, the explicit threat is that foreign and more responsible politicians will do it by force. Let’s make the Parthenon and the ancient Agora a Disney park, where badly paid locals dress like Plato or Socrates and play out the fantasies of the rich.

It is vital to understand that I do not wish to excuse my compatriots of all blame. We did plenty wrong. I left Greece in 1991 and did not return until 2006. For the first few months I looked around and saw an entirely different country to the one I had left behind. Every billboard, every bus shelter, every magazine page advertised low interest loans. It was a free money give-away. Do you have a loan that you cannot manage? Come and get an even bigger loan from us and we will give you a free lap-dance as a bonus. And the names underwriting those advertisements were not unfamiliar: HSBC, Citibank, Credit Agricole, Eurobank, etc.

Regretfully, it must be admitted that we took this bait “hook, line and sinker”. The Greek psyche has always had an Achilles’ heel; an impending identity crisis. We straddle three Continents and our culture has always been a melting pot reflective of that fact. Instead of embracing that richness, we decided we were going to be definitively European; Capitalist; Modern; Western. And, damn it, we were going to be bloody good at it. We were going to be the most European, the most Capitalist, the most Modern, the most Western. We were teenagers with their parents’ platinum card.

I did not see a pair of sunglasses not emblazoned with Diesel or Prada. I did not see a pair of flip-flops not bearing the logo of Versace or D&G. The cars around me were predominantly Mercedes and BMWs. If anyone took a holiday anywhere closer than Thailand, they kept it a secret. There was an incredible lack of common sense and no warning that this spring of wealth may not be inexhaustible. We became a nation sleepwalking toward the deep end of our newly-built, Italian-tiled swimming pool without a care that at some point our toes may not be able to touch the bottom.

That irresponsibility, however, was only a very small part of the problem. The much bigger part was the emergence of a new class of foreign business interests ruled by plutocracy, a church dominated by greed and a political dynasticism which made a candidate’s surname the only relevant consideration when voting. And while we were borrowing and spending (which is affectionately known as “growth”), they were squeezing every ounce of blood from the other end through a system of corruption so gross that it was worthy of any banana republic; so prevalent and brazen that everyone just shrugged their shoulders and accepted it or became part of it.

I know it is impossible to share in a single post the history, geography and mentality which has brought this most beautiful corner of our Continent to its knees and has turned one of the oldest civilisations in the world from a source of inspiration to the punchline of cheap jokes. I know it is impossible to impart the sense of increasing despair and helplessness that underlies every conversation I have had with friends and family over the last few months. But it is vital that I try, because the dehumanisation and demonisation of my people appears to be in full swing.

I read, agog, an article in a well-known publication which essentially advocated that the Mafia knew how to deal properly with people who didn’t repay their debts; that “a baseball bat may be what’s needed to fix the never ending Greek debt mess”. The article proceeded to justify this by rolling out a series of generalisations and prejudices so inaccurate and so venomous that, had one substituted the word “Greeks” with “Blacks” or “Jews”, the author would have been hauled in by the police and charged with hate crimes. (I always include links, but not in this case – I am damned if I will create more traffic for that harpy).

So let me deal with some of that media Mythology.

* Greeks are lazy. This underlies much of what is said and written about the crisis, the implication presumably being that our lax Mediterranean work-ethic is at the heart of our self-inflicted downfall. And yet, OECD data among its members show that in 2008, Greeks worked on average 2120 hours a year. That is 690 hours more than the average German, 467 more than the average Brit and 356 more than the OECD average. Only Koreans work longer hours. Further, the paid leave entitlement in Greece is on average 23 days, lower than most EU countries including the UK’s minimum 28 and Germany’s whopping 30.

* Greeks retire early. The figure of 53 years old as an average retirement age is being bandied about. So much, in fact, that it is being seen as fact. The figure actually originates from a lazy comment on the NY Times website. It was then repeated by Fox News and printed on other publications. Greek civil servants have the option to retire after 17.5 years of service, but this is on half benefits. The figure of 53 is a misinformed conflation of the number of people who choose to do this (in most cases to go on to different careers) and those who stay in public service until their full entitlement becomes available. Looking at Eurostat’s data from 2005 the average age of exit from the labour force in Greece (indicated in the graph below as EL for Ellas) was 61.7; higher than Germany, France or Italy and higher than the EU27 average. Since then Greece have had to raise the minimum age of retirement twice under bail-out conditions and so this figure is likely to rise further.

* Greece is a weak economy that should never have been a part of the EU. One of the assertions frequently levelled at Greece is that its membership to the European Union was granted on emotional “cradle of democracy” grounds. This could not be further from the truth. Greece became the first associate member of the EEC outside the bloc of six founding members (Germany, France, Italy and the Benelux countries) in 1962, much before the UK. It has been a member of the EU for 30 years. It is classified by the World Bank as a “high income economy” and in 2005 boasted the 22nd highest human development and quality of life index in the world – higher than the UK, Germany or France. As late as 2009 it had the 24th highest per capita GDP according to the World Bank. Moreover, according to the University of Pennsylvania’s Centre for International Comparisons, Greece’s productivity in terms of real GDP per person per hour worked, is higher than that of France, Germany or the US and more than 20% higher than the UK’s.

* The first bail-out was designed to help Greek people, but unfortunately failed. It was not. The first bail-out was designed to stabilise and buy time for the Eurozone. It was designed to avoid another Lehman-Bros-type market shock, at a time when financial institutions were too weak to withstand it. In the words of BBC economist Stephanie Flanders: “Put it another way: Greece looks less able to repay than it did a year ago – while the system as a whole looks in better shape to withstand a default… From their perspective, buying time has worked for the eurozone. It just hasn’t been working out so well for Greece.” If the bail-out were designed to help Greece get out of debt, then France and Germany would not have insisted on future multi-billion military contracts. As Daniel Cohn-Bendit, the MEP and leader of the Green group in the European Parliament, explained: “In the past three months we have forced Greece to confirm several billion dollars in arms contracts. French frigates that the Greeks will have to buy for 2.5 billion euros. Helicopters, planes, German submarines.”

* The second bail-out is designed to help Greek people and will definitely succeed. I watched as Merkel and Sarkozy made their joint statement yesterday. It was dotted with phrases like “Markets are worried”, “Investors need reassurance” and packed with the technical language of monetarism. It sounded like a set of engineers making minor adjustments to an unmanned probe about to be launched into space. It was utterly devoid of any sense that at the centre of what was being discussed was the proposed extent of misery, poverty, pain and even death that a sovereign European partner, an entire nation was to endure. In fact most commentators agree, that this second package is designed to do exactly what the first one did: buy more time for the banks, at considerable expense to the Greek people. There is no chance of Greece ever being able to repay its debt – default is inevitable. It is simply servicing interest and will continue to do so in perpetuity.

And the biggest myth of them all: Greeks are protesting because they want the bail-out but not the austerity that goes with it. This is a fundamental untruth. Greeks are protesting because they do not want the bail-out at all. They have already accepted cuts which would be unfathomable in the UK – think of what Cameron is doing and multiply it by ten. Benefits have not been paid in over six months. Basic salaries have been cut to 550 Euros (£440) a month.

My mother, who is nearly 70, who worked all her life for the Archaeology Department of the Ministry of Culture, who paid tax, national insurance and pension contributions for over 45 years, deducted at the source (as they are for the vast majority of decent hard-working people – it is the rich that can evade), has had her pension cut to less than £400 a month. She faces the same rampantly inflationary energy and food prices as the rest of Europe.

A good friend’s grandad, Panagiotis K., fought a war 70 years ago – on the same side as the rest of Western democracy. He returned and worked 50 years in a shipyard, paid his taxes, built his pension. At the age of 87 he has had to move back to his village so he can work his “pervoli” – a small arable garden – planting vegetables and keeping four chickens. So that he and his 83 year old wife might have something to eat.

A doctor talking on Al Jazeera yesterday explained how even GPs and nurses have become so desperate that they ask people for money under the table in order to treat them, in what are meant to be free state hospitals. Those who cannot afford to do this, go away to live with their ailment, or die from it. The Hippocratic oath violated out of despair, at the place of its inception.

So, the case is not that Greeks are fighting cuts. There is nothing left to cut. The IMF filleting knife has gotten to pure, white, arthritis-afflicted bone. The Greeks understand that a second bail-out is simply “kicking the can down the road”. Greece’s primary budget deficit is, in fact, under 5bn Euros. The other 48bn Euros are servicing the debt, including that of the first bail-out, with one third being purely interest. The EU, ECB and IMF now wish to add another pile of debt on top of that, which will be used to satisfy interest payments for another year. And the Greeks have called their bluff. They have said “Enough is enough. Keep your money.”

____________________________________________________________

My land has always attracted aggressive occupiers. Its vital strategic position combined with its extraordinary natural beauty and history, have always made it the trinket of choice for the forces of evil. But we are a tenacious lot. We emerged after 400 years of Ottoman occupation, 25 generations during which our national identity was outlawed with penalty of death, with our language, tradition, religion and music intact.

Finally, we have woken up and taken to the streets. My sister tells me that what is happening in Syntagma Square is beautiful; filled with hope; gloriously democratic. A totally bi-partisan crowd of hundreds of thousands of people have occupied the area in front of our Parliament. They share what little food and drink there is. A microphone stands in the middle, on which anyone can speak for two minutes at a time – even propose things which are voted by a show of thumbs. Citizenship.

And what they say is this: We will not suffer any more so that we can make the rich, even richer. We do not authorise any of the politicians, who failed so spectacularly, to borrow any more money in our name. We do not trust you or the people that are lending it. We want a completely new set of accountable people at the helm, untainted by the fiascos of the past. You have run out of ideas.

Wherever in the world you are, their statement applies.

Money is a commodity, invented to help people by facilitating transactions. It is not wealth in itself. Wealth is natural resources, water, food, land, education, skill, spirit, ingenuity, art. In those terms, the people of Greece are no poorer than they were two years ago. Neither are the people of Spain or Ireland or the UK. And yet, we are all being put through various levels of suffering, in order for numbers (representing money which never existed) to be transferred from one column of a spreadsheet to another.

This is why the matter concerns you directly. Because this is a battle between our right to self-determine, to demand a new political process, to be sovereign, and private corporate interests which appear determined to treat us like a herd, which only exists for their benefit. It is the battle against a system which ensures that those who fuck up, are never those that are punished – it is always the poorest, the most decent, the most hard-working that bear the brunt. The Greeks have said “Enough is enough”. What do you say?


____________________________________________________________

Help us by spreading this message to others – don’t let the media airbrush it out of existence, like they have done with the people of Madison, Wisconsin and the Indignados in Spain. Use the comments below (no registration is needed) to express your solidarity with the people of Greece. If you have any questions, again use the comments and I will do my best to answer. Raise the matter with people in power. Ask questions. Talk about it in the pub. Most of all, wake up before you find yourself in our situation.

Nassim Nicholas Taleb is the Lebanese-American philosopher who formulated the theory of “Black Swan Events” – unpredictable, unforeseen events which have a huge impact and can only be explained afterwards. Last week, on Newsnight, he was asked by Jeremy Paxman whether the people taking to the streets in Athens was a Black Swan Event. He replied: “No. The real Black Swan Event is that people are not rioting against the banks in London and New York.”

http://sturdyblog.wordpress.com/2011/06 ... ma-square/

- From the comments:
StuartKing

For those on here who harp on “it’s your own fault, you borrowed too much money”, bear in mind the words of Bank of England governor Mervyn King, speaking to the Commons treasury select committee on March 1 this year:

“The price of this financial crisis is being borne by people who absolutely did not cause it,” he said. “Now is the period when the cost is being paid, I’m surprised that the degree of public anger has not been greater than it has.”

The volcano is rumbling…

June 19, 2011 at 12:48 am

http://sturdyblog.wordpress.com/2011/06 ... ma-square/
"Ich kann gar nicht so viel fressen, wie ich kotzen möchte." - Max Liebermann,, Berlin, 1933

"Science is the belief in the ignorance of experts." - Richard Feynman, NYC, 1966

TESTDEMIC ➝ "CASE"DEMIC
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Re: EU-MENA revolution consolidation

Postby elfismiles » Sun Jun 19, 2011 8:25 pm

Image


Tens of thousands protest against cuts in Madrid
by Gabriel Rubio Gabriel Rubio – Sun Jun 19, 11:45 am ET

Image

MADRID (AFP) – Tens of thousands of protesters flooded the streets of Madrid Sunday blaming bankers and politicians for causing a financial crisis that forced the country to adopt painful spending cuts.

Demonstrators of all ages linked to a protest movement called the "indignants" assembled early Sunday in several neighbourhoods on the outskirts of Madrid.

They then formed six columns and converged on the city centre, gathering near Spain's parliament where they met various forms of police resistance, including 12 vans blocking several major roads.

Protests over the economic crisis and soaring unemployment began in Madrid on May 15 and fanned out nationwide as word spread by Twitter and Facebook among demonstrators.

On Sunday, protesters insisted that workers and the unemployed would not passively accept spending cuts to help ease a crisis they had no role in causing.

"The banks and the governments that caused this situation must know that we do not agree with the measures and the budget cuts, that we intend to be heard", the "indignants" movement said in its call for nationwide protests.

The El-Mundo newspaper, quoting police sources, estimated the number of demonstrators on Sunday at between 35,000 and 40,000.

In a procession on the main Castellana avenue that crosses Madrid from north to south, at least 3,000 people marched towards parliament, including the young, the retired, the unemployed and parents pushing babies in their strollers.

"They call this democracy, but it's not," shouted the crowd gathered at parliament, watched closely by police.

"We are not property in the hands of politicians and bankers," read a banner written in bold red letters.

Yolanda Garcia, a 36-year-old woman who said she works a series of low-paying jobs and struggles to pay her bills, insisted that politicians "do nothing" to help people like her.

"I think that the (protest) movement could change things if it continues," she said," adding that the demonstrators have the support of Spain's most disadvantaged.

Similar demonstrators were also expected in Barcelona and Valencia by the end of the day.

Protests in city squares across Spain against welfare cuts, corruption and a jobless rate of 21 percent in the first quarter of 2011 -- the highest in the industrialised world -- have run across the country for weeks.

The demonstrations peaked ahead of May 22 local election, when tens of thousands of people packed into squares in several towns and cities.

The protesters had also set a camp n Madrid's Puerta del Sol square, which was dismantled on June 12 although the group said that did not signal the end of their movement.

The "indignants" have inspired similar offshoot movements in other European cities, notably Greece, where the government is also trying to implement a strict austerity programme to avoid defaulting on its loans.

The Spanish central bank said last weak the recovery in Spain's beleaguered economy would likely remain slow, with unemployment expected to remain high for the foreseable future.


http://news.yahoo.com/s/afp/20110619/bs ... 0619154515

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Re: EU-MENA revolution consolidation

Postby vanlose kid » Sun Jun 19, 2011 8:54 pm

MacCruiskeen wrote:This is a very good article, by a Greek blogger who writes in English:

...


yes it is, thanks.

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Re: EU-MENA revolution consolidation

Postby DrVolin » Sun Jun 19, 2011 10:21 pm

MacCruiskeen wrote:This is a very good article, by a Greek blogger who writes in English:



This is a formula I know very well. He is not kidding when he says that this concerns us all. The very same thing is happening to the public universities in North America. Privatization is presented as the only possible solution to a financial crisis manufactured by those who will directly benefit from privatization. Every day I feel sick to my stomach over this. I see it happening in front of me, and I haven't figured out what to do about it yet. Almost everyone seems to have accepted that it is inevitable.
all these dreams are swept aside
By bloody hands of the hypnotized
Who carry the cross of homicide
And history bears the scars of our civil wars

--Guns and Roses
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Re: EU-MENA revolution consolidation

Postby vanlose kid » Mon Jun 20, 2011 6:21 am

*

this is generally applicable.

Guest Post: The Only Way Forward Is To Accept Reality: Default Is Not The End Of The World
Submitted by Tyler Durden on 06/19/2011 22:35 -0400

Submitted by Charles Hugh Smith from Of Two Minds

The Only Way Forward Is to Accept Reality: Default Is Not the End of the World

The catastrophe isn't default, it's "extend and pretend."

Unwelcome crises are part of life. What's unnatural isn't crisis, it's pretending that life should be nothing but a smooth, uninterrupted rise in consumption.

Yes, I'm talking about Greece and the EU. The situation is somewhat analogous to finding out your total cholesterol is over 300. Gee, I thought I was eating well, and was in pretty good shape... alas, that was all wishful thinking; normal is 180. At 300, you're at serious risk of long-term health problems.

So the European Central Bank injects 120 billion euros of "medicine" to cure you, and a year later your cholesterol readings are 395. Hmm. The "medicine" didn't work; instead, it actively prolonged and deepened the crisis.

Humans need time to accept new realities, and to make necessary adjustments. People lose their wealth, they adjust. They lose their successful careers, they adjust. They face health crises, they adjust. This kind of wrenching adjustment is not abnormal, it is utterly normal.

Cholesterol at 300 is a crisis. We need to drop that 120 points down to 180. Everything about our lifestyle has to change to deal with this reality. So we go through a period of adjustment to the new reality. Sometimes the adjustment period is wrenching. People have to give up much of their lifestyle. But denying reality doesn't help, and bemoaning the pain don't help, either; both of these responses actively hinder the adjustment.

I was interviewed Saturday evening by guest hosts Paul Vigna and Ina Parker on the John Batchelor WABC radio program, and the topic was (unsurprisingly) Greece. Both Paul and Ina asked good questions, and so my primary aim was not to ramble too long or incoherently. (Who knows if I succeeded or not.)

One of their questions spoke directly to the central issue: "If Greece defaults, what happens next?"

I answered that Greece goes through a re-set, a painful but brief period of adjustment, and with the bad debt gone, then the economy would be cleared for new businesses to take root.

The Eurozone debt "crisis" is nothing but another credit cycle, in which debt expands beyond the carrying capacity of consumers and economies. Debt then contracts as uncollectable debt is written down; borrowers go bankrupt and their remaining assets are auctioned off (if they put up collateral; if not, then tough luck, lenders, you blew it and will have to suck the entire loss). Insolvent lenders are also declared bankrupt and dissolved.

There is absolutely nothing unusual about this cycle. Impaired debt is renounced and the system is purged of bad debt. Once the economy has been cleared of garbage, so to speak, then everyone can stop pretending and start dealing with reality. Businesses will be able to start up in a transparent and open market.

The world does not end. Life goes on. We were threatened and bullied in 2008 that the insolvency of the U.S. financial sector would trigger the end of civilization, but it was just another lie: life goes on.

The "doom and gloom" view (of which I am proponent, I suppose) is typically categorized by the Mainstream Media as a stubbornly negative insistence that "the world will end." While there is certainly a contingent who espouse that, in my view "doom and gloom" is not predicting the end of the world--it's just predicting the end of the Status Quo.

That's a key difference.

The Status Quo in Euroland is unsustainable. Last year's "fix" fixed nothing; it only deepened the pain and stole a year from those who could have used that time to make needed adjustments to reality.

It would be better for all involved if Greece defaulted on 100% of its debt and left the euro currency. Imports would instantly become very expensive in the new currency and so Greece would have a chance to build a balanced, productive economy that wasn't dependent on debt. All the banks who made the predatory loans to Greece would go bankrupt--good riddance to them all. If the ECB also goes under, so much the better.

Regardless of the shrill cries that civilization will end if lenders go belly up, life goes on. "Extend and pretend" only prolongs and deepens a crisis. "Doom and gloom" is the recognition that new conditions apply and the old way is unsustainable. Nobody likes hearing that, but it is the only way forward.

Greece, Please Do The Right Thing: Default Now(June 1, 2011)

Ireland, Please Do the World a Favor and Default (November 29, 2010)

http://www.zerohedge.com/article/guest- ... -end-world


why stop at purging the system with a reset, why not be rid of the system entirely?

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Re: EU-MENA revolution consolidation

Postby vanlose kid » Mon Jun 20, 2011 6:56 am

Athens protests: Syntagma Square on frontline of European austerity protests

The area in the centre of the Greek capital is playing host to thousands of angry demonstrators

Aditya Chakrabortty in Athens
guardian.co.uk, Sunday 19 June 2011 21.00 BST

Athenians used to stop off at Syntagma Square for the shopping, the shiny rows of upmarket boutiques. Now they arrive in their tens of thousands to protest. Swarming out of the metro station, they emerge into a village of tents, pamphleteers and a booming public address system.

Since 25 May, when demonstrators first converged here, this has become an open-air concert – only one where bands have been supplanted by speakers and music swapped for an angry politics. On this square just below the Greek parliament and ringed by flashy hotels, thousands sit through speech after speech. Old-time socialists, American economists just passing through, members of the crowd: they each get three minutes with the mic, and most of them use the time alternatively to slag off the politicians and to egg on their fellow protesters.

"Being here makes me feel 18 again," begins one man, his polo shirt stretched tight over his paunch, before talking about his worries about his pension.

The closer you get to the Vouli, the parliament, the more raucous it becomes. Jammed up against the railings, a crowd is clapping and chanting: "Thieves! Thieves!"

There is another mic here, and it's grabbed by a man wearing a mask of deputy prime minister Theodoros Pangalos: "My friends, we all ate together." He is quoting the socialist politician, who claimed on TV last year that everyone bore the responsibility for the squandering of public money. Pangalos may have intended his remark as the Greek equivalent of George Osborne's remark that "We're all in it together", but here they're not having it."You lying bastard!" They roar back. "You're so fat you ate the entire supermarket."

This is an odd alloy of earnestness and pantomime, to be sure, but it's something else too: Syntagma Square has become the new frontline of the battle against European austerity. And as prime minister George Papandreou battles first to keep his own job, and then to win MPs' support for the most extreme package of spending cuts, tax rises and privatisations ever faced by any developed country, what happens between this square and the parliament matters for the rest of the eurozone.

The banner wavers here know this. In the age of TV satellite vans and YouTube, they paint signs and coin slogans with half an eye on the export market. Papandreou's face is plastered over placards that congratulate him in English for being "Goldman Sachs' employee of the year". Flags jibe at the rive gauche: "The French are sleeping – they're dreaming of '68."

Most of the time, the anger is expressed sardonically. A friend shows me an app on her phone that gives updates on the latest political and industrial actions – its name translates as iStrike. But it's not hard to see how this situation might boil over.

"Are you an indignado?" I ask Nikkos Kokkalis, using the term coined by young Spanish protesters to express outrage at José Luis Rodríguez Zapatero's austerity plans, now swiped by the Greeks. "I'm a super-indignado," he almost shouts. A 29-year-old graduate who lives with his parents, Nikkos has never done a proper job – just menial tasks for a website and an internship for a TV station. "There are 300 people over there," he waves at the MPs' offices. "Most of them make decisions without asking the people."

For their part, protesters with salaries and wrinkles are fuming at the spending cuts already inflicted on them. Chryssa Michalopolou is a teacher who calculates that her annual pay has already gone down by the equivalent of one and a half months, while her living costs have shot up, thanks to rising taxes and inflation. Does she buy the government's line that it needs to trim the public sector? "After 15 years' service, I'm only on €1,200 (£1,056) a month," she says. "I didn't see any boom; I simply paid my taxes and now I am being punished."

On display here is more than a personal grievance; it also reveals a glaring truth that politicians across Europe have so far ignored. In their efforts to hammer out a second loan agreement for Greece, eurozone ministers are focusing on the differences between bond swaps and bond rollovers, the tensions between Berlin and the International Monetary Fund and the European Central Bank or how far continental banks can withstand another massive shock.

Taken for granted in these negotiations is that the Greeks (and by implication, the Irish and the Portuguese) must accept more austerity. Yet in Athens, whether on the streets or even at a policy-making level, these technical details barely figure on the agenda. It's not just that the terms are different, the entire debate is too. Here, the argument concerns how much more austerity the Greek economy, its people and even the government can take – because all three are already at breaking point.

When Greece was all but locked out of the financial markets last May, Papandreou accepted a €110bn loan from Europe and the IMF. The idea was that the money would tide the country over for a year, in which time his government would at least start sorting out its public finances. For Angela Merkel, Nicolas Sarkozy and the rest of Europe, the loan came with some pretty tight strings attached: they charged the Greeks interest well above the official eurozone rate, and set demanding budget targets for the Pasok socialist government.

Freefall

A year in, and the deal is not working. Greece has been in recession for two years and on official forecasts this will be its third. When I ask Athens University economist Yanis Varoufakis to describe the economy, he shoots back one sentence: "It's in freefall."

Sitting on the balcony of his flat behind the Acropolis, he throws out some statistics: 50,000 businesses went bankrupt last year, industrial production fell 20% and will drop another 12% this year. Unemployment has surged, so that one in six of the workforce doesn't have a job. These are the sort of figures associated with a depression, and the predictable result is that the public finances are getting worse. Greece's debt has ballooned to 153% of GDP; on Varoufakis's projections, even if ministers manage to make all their promised cuts, the government will owe three times the entire national income.

Behind these numbers lie the stories of a society in distress. One man talks about his daughter who works in the in-store restaurant of a large supermarket outside Athens; at closing time, she and her workmates have started giving out the unsold meals to the newly unemployed – the 21st-century equivalent of a soup kitchen. An employee of a local council notes that they pick up 17% less rubbish than a year ago, simply because people have cut back on food. The owner of an art gallery tells me her son has just started his first job; holding a master's in accountancy, he works six hours a day in a mobile-phone shop.

The lazy accusation to hurl at Greece is that it had a bloated public sector and so was bound to come a cropper. Not so, says Varoufakis: the country has a public sector in line with the rest of Europe (although, nearly everyone I speak to agrees, one that does not work as well), but takes in taxes some 35% below where they should be.

Wealthy Greeks have always treated the country's tax system like a church collection plate: what they give is strictly optional. This gap was covered up for as long as the Greek state could get cheap credit; then in 2008 it became glaringly obvious. The other problem covered up during the boom years was the rotting away of the industrial base. That too is now the subject of angry public discussion.

I take a tour of the shipbuilding yard in Perama, just outside Athens. Greece has the largest commercial fleet in the world, and yet Perama is utterly silent. There is a rusting hulk, abandoned a few years ago, when those who commissioned it could no longer afford to pay for it. A decade ago, this yard employed 7,000 workers – now it has around 500. There was a time when assembling small cargo vessels was seen as pedestrian work; last year, the yard was contracted to build two boats, and the jobs were fought over. A few minutes away lives Tassos Alexandris, who was laid off from Perama in 2008. The hall of his flat is decorated with needlepoint; inside are pictures of the Virgin Mary put up by his wife, Nikki. She is ill, and his 26-year-old daughter has worked for six months in her entire career. How do they make ends meet? Nikki snorts with laughter.

"The electricity connection is inside the flat; otherwise the board would have cut us off," begins Tassos. His mother-in-law lives upstairs and, while he is too ashamed to ask her for food, she allows him to raid her fridge at night. They had a small green Citroen, but couldn't afford to keep it. Now he runs a motorbike, although with no plates and no taxes. "I can't sleep at night for worry," he says. "It has affected every part of our lives: personal, sexual, the lot." How many families in this block do they think are in a similar situation? Nikki tots them up: "80%."

Tassos doesn't just support the protesters of Syntagma; he thinks they will go further. "Don't be surprised if Athens goes up in flames," the 50-year old says. "And don't be sad, either." His words initially sound melodramatic, but the anger keeps coming up. "Politicians now walk around with bodyguards," says Aris Chatzistefanou, the co-director of Debtocracy, a film about the Greek crisis that has become a sensation. He quotes a newspaper report of how restaurateurs are taking down those cheesy framed photos of dining politicians, of how one government spokesman went to dinner a few weeks ago only for the rest of the restaurant to start shouting "You are eating the blood of the people".

Political arithmetic

The anger against the austerity and the politicians imposing it is palpable; whether it will translate into political success is debatable. Papandreou may be one of the most hated men in Greece, but there is no mainstream politician who has an alternative to acting under creditor's orders. This isn't about an electorate taking on a government, either, but the impossible political arithmetic of disparate groups of Greeks on one side versus the IMF, the European Central Bank and 16 other eurozone members on the other.

Run that by the protesters of Athens, though, and even the older, more pragmatic ones have an answer. "We may lose," one grey-haired trade unionist said to me. "But what matters is how you lose."


http://www.guardian.co.uk/world/2011/ju ... y-protests


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"Teach them to think. Work against the government." – Wittgenstein.
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Re: EU-MENA revolution consolidation

Postby gnosticheresy_2 » Mon Jun 20, 2011 9:21 am

More Paul Mason

Europe: 'Events have overwhelmed us'

The action/reflection time-cycle is now very short with the Euro-crisis. Already it is Monday and I am still rinsing the teargas out of Friday night's washing load. In politics and diplomacy things are similarly crushed.

This morning the Eurogroup has issued a statement on Greece which I summarise:

"Right, that 12bn you need: you're not going to get it unless the Greek parliament agrees to some form of new austerity plan. So yes, technically we are prepared to make you bankrupt over 12bn but read on (hint, this is brinkmanship).

"Actually 50bn privatisation plus structural reform is the key; we're inviting voluntary rollovers of debt but there will be no default event triggered by EU/IMF action. Greece has to pass an austerity budget that gets us off this hook but we don't really care what it looks like.

"By the way, we would quite like a government of national unity because we are terrified of the mood of mass discontent and would prefer it did not spread."


(Read the actual text here).

The second bit of mood music I take away from the weekend is the word "gloom" constantly appended to the thoughts and statements of Angela Merkel. As she put it:

"We wouldn't be able to control an insolvency; we all lived through Lehman Brothers. I don't want another such threat to emanate from Europe."

But if the banks and investment funds (and hedge funds who've taken a punt on the Euro's survival) are not to be made to lose money who does?

Apparently French and German industrialists are taking out a one-page ad in all the papers urging the politicians and people of Europe to "save the Euro" - by way of softening public opinion for the inevitable transfer of tens of billions of taxpayers' money to the peripheral economies.

Having established the metaphor of pre-1914 Europe (see here) I will stick with it. The internationalists and anti-war movements expected there to be a general strike and mass protests on Day One of the First World War: instead the working populations of Europe rushed to the streets in mass jubilation, calling for immediate victory against each other.

Their dreams shattered, the activists turned to their leaders for an explanation. In France, the Socialist Party - in mid-flipflop between pacifism and bellicosity - delivered the immortal line: "Events have overwhelmed us."

The phrase is beginning to seem apposite today.

http://www.bbc.co.uk/news/world-europe-13841105
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Re: EU-MENA revolution consolidation

Postby vanlose kid » Mon Jun 20, 2011 10:02 am

School walkouts planned to coincide with public sector strikes
Thousands of school and college students prepare to join public sector strikes against cuts on 30 June

Matthew Taylor guardian.co.uk, Monday 20 June 2011 10.22 BST

Thousands of school and college students are expected to stage walkouts this month as part of a growing wave of occupations and demonstrations planned to support the co-ordinated strike action organised by trade unions.

Students behind last year's demonstrations against cuts to post-16 education are mobilising in schools and further education colleges as part of a wider campaign to turn 30 June into a national day of action against the government's austerity programme.

The move follows the announcement this week by the direct action group UK Uncut that it would be joining picket lines and staging a "public spectacular" in London to coincide with the industrial action.

Michael Chessum from the National Campaign Against Fees and Cuts, one of the student groups behind last year's protests, said: "It was the student movement before Christmas that really kicked many of the major unions into action, and we'll be there again in force on 30 June. One of the successes of the student movement was that we abandoned passive, A-to-B marches in favour of direct action in the streets and on campuses. Mass strike action is the logical extension of that. We're not here to protest; we're here to actively resist."

More than 750,000 public sector workers from major unions including the Public and Commercial Services Union, the National Union of Teachers and the Association of Teachers and Lectures are expected to take part in this month's industrial action. The strike, which will be the largest in the UK for several years, is expected to bring schools, colleges, universities, courts, ports and jobcentres to a standstill, and comes as millions of staff face pay freezes, job losses and pension reforms.

Activists say the wider campaign of demonstrations, occupations and walkouts will build a broad coalition of people opposed to the government's programme of cuts and has been inspired, in part, by protests across Europe over recent months – particularly those in Spain and Greece.

As part of the preparations, anti-cuts groups have held a series of "J30 assemblies" across the country under the "generalise the strike" slogan, to plan events and mobilise support.

Over the next few weeks, assemblies will be held in Birmingham, London, Leeds, Newcastle, Norwich, Sheffield and Sunderland. Another group, Right to Work, says it has organised more than 40 events to coincide with the strikes.

One of the organisers of the J30 assemblies, Alex Long, said they had been strongly influenced by protests held in Spain last month. "We want to approach this whole 30 June strike day in a more general way, to use it as a general day of action against the cuts," he said.

In London, activists say they are planning a number of direct action campaigns on 30 June, with events in the City of London and Westminster, including Oxford Street. There is also a call to occupy Trafalgar Square and a Facebook page calling for people to join a "black bloc" protest (the black bloc being the group blamed for smashing up shops during the TUC demonstration in March).

Tens of thousands of students from further education colleges and schools took part in last year's demonstrations against the rise in tuition fees and the scrapping of the education maintenance allowance, and activists hope many will walk out of classes at the end of this month.

Campaigners have been leafleting colleges and schools, calling on students to hold meetings, make contact with teachers who are union reps and organise walkouts on the day.

http://www.guardian.co.uk/world/2011/ju ... or-strikes


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UK Unmasked and the New Kids on the Bloc

Image

Analysis by a member of the Anarchist Federation on the "March for the Alternative" (March 26th 2011) and the political trends expressed within it, especially UK Uncut and the Black Bloc, in relation to the growing anti-cuts movement in the UK.

Since around the time when we published Organise! #75, October 2010, it is fair to say that anarchists in Britain have been most visibly active on one issue primarily: the Cuts. The ConDems’ vision for the future featured heavily in that issue and has dominated our activity since (see our website for accounts of local activity and national propaganda). In this issue we deal initially with what was arguably the culmination of the first phase of the struggle, the huge march against Cuts on March 26th in London, the ‘March for the Alternative’ called by the T.U.C. We explore issues it raised within the wider anti-cuts movement about civil disobedience and direct action, and the occupation and destruction of private property. It is written with a view to making anarchist views of the events of the day more understandable to other sorts of people on the march, such as people identifying primarily as workers, trade unionists and service users, who are now scouring anarchist media for explanations. We also evaluate UK Uncut and the Black Bloc from an anarchist-communist perspective. We address the groups of people above as an anarchist organisation with members in all of them.

Marching for the Alternative.

Trades unionists and everyone else in the anti-cuts movement were dismayed last Autumn when the T.U.C. announced that it would wait until March to facilitate what we all knew would be the biggest march in Britain since the demonstrations against the war in Iraq in 2003. It is the only body big enough to organise something on this scale, and its constituent unions are the only groups able to lay on the hundreds of coaches, and even several trains, that brought people from the four corners of the British Isles to London. But this frustration in itself had helped to build the movement at a local level. All the T.U.C. had done by calling for a march rather than industrial action was to cop out anyway. The feeling of dismay led union activists to muck in with service users, claimants and the rest and get on with the job of fighting the cuts without waiting for anyone to lead us. By the time the march came around, the campaigns were in full swing, and so was the vibe on the day.

It almost didn’t matter that no one, least of all the T.U.C., was able to express properly what the ‘alternative’ actually is. The overwhelming feeling on the march was that this was only the beginning. The extent of the destructive social policies being forced upon us is entirely unprecedented, and they are coming at us so thick and fast that it feels impossible to keep track of them (this is no accident of course) never mind come up with a coherent alternative that everyone fighting the cuts would agree on. Instead, the way the working class is responding is to attempt to fight the cuts and salvage what we can at a local level. But at a national level, not only does no one single strategy dominate, but this is probably a good thing at this stage. No one has managed to stitch up ‘the alternative’ and so dialogue about it is not only possible but still centrally important. The main point of the march, therefore, was to make our anger known, and furiously determined people did this in various ways according to what they understand the point of protest to be.

The appearance in Hyde Park of Ed Milliband and other apologists for the Cuts was incongruous on a grass-roots march of people who were screwed over by New Labour long before the Tories’ new offensive. Friends texting marchers behind them from Hyde Park were bemused; where was the real opposition? Where were those who would heckle the Labour hypocrites? Was this really the culmination of the march?

Their friends were very possibly in the West End, either engaged in or cheering on the various forms of direct action striking at the heart of the problem, both symbolically and actually. As has happened on many demos, but not always with the press exposure it had on the 26th, the West End was, well, if not exactly alight, certainly warming up. The banks fell one by one, surprisingly easily. The Ritz and the elite car showrooms fell too. But these sights paled in comparison with seeing Fortnum and Mason occupied by UK Uncut. This was the mother of all short-lived occupations! The gregarious jollity of the spectacle put on for on-lookers was fantastic. Marchers saw anarchist flags waved from balconies behind which lay champagne and caviar. People pretended to open champagne bottles and glug the contents. Some witnessed a spoof ‘Antiques Roadshow’ as occupiers displayed pricey crockery to on-lookers from one window: “Oh, don’t drop it!”... “Oh, please drop it!” Like Michael Jackson’s baby suspended from a balcony, it was an era-defining moment.

As individuals who have chosen to speak from both UK Uncut and the Black Bloc admit, there is a huge cross-over between them. But whilst the style and the message vary considerably, along with various other groupings with a militant anti-capitalist message present and active on the day, what we had was a multi-faceted, decentralised and horizontally-organised cry of rage, against privilege and against the people causing and implementing the Cuts and the social crisis they have engendered.

But the differences in style and message between UK Uncut and the Black Bloc, the most visible anarchist presence on the day, are there. It is no bad thing. We are in a period in which it is vital that new ideas and modes of struggle arise and test themselves. Direct action and mass civil disobedience are the order of the day. The upsurge in class anger that is reflected in the sheer size of 2011’s Black Bloc – it was over a thousand people strong at times – is the result of the state’s defiant indifference to the legitimacy of recent student protest. Coupled with the identification of thousands upon thousands of ordinary people – many active for the first time in their lives – with UK Uncut and its defend-services message, means that we are entering a phase not merely of highly-focussed class anger, where we have been before several times since the 1980s to no avail, but of generalised class consciousness that is becoming as fearless and creative as it needs to be to bring about real change. We are not on the brink of revolution, but we are in unchartered territory.

This is not to dismiss the vast majority of marchers, the people marching with their trade unions and as part of professions from firemen to legal-aid solicitors, lecturers to sex-workers. Along with students, community organisations, claimants and service-user groups they represented almost everyone. As such, the majority of marchers identified with the ages-old analysis that it is the economic might of ‘the workers’ that is most threatening to capitalism. It is, but only if we are willing to strike and do so convincingly, together, indefinitely, and know that we have the full backing of the working class as a whole and will benefit from its unqualified solidarity. If we are a long way from revolution, we are also far from a workers’ General Strike. We aren’t holding our breath waiting for the T.U.C. to organise one and are advocating all kinds of other action (see our leaflet ‘Everything we’ve won, they want it back’).

The press, the demonstration and the anarchists.

Some people feel that UK Uncut and the Black Bloc stole the limelight when it came to press coverage. This supposes that had these actions not taken place, there would have been extensive coverage of the ‘peaceful’ parts of the march and rally. We would dispute this and make the following observations about press coverage.

First, the press cover ‘violence’ largely because the rest of the spectacle makes boring press. The people who want and deserve the headlines are the people who spent their time and money travelling to London on their day off and joining hundreds of thousands of others in a mass display of militant anger, bussed in from the provinces. That is the essential characteristic of national demonstrations in London. But it is of no more interest on the T.V. than, say, coverage of the Notting Hill Carnival is to people who were not actually there.

Second, the main march also makes slightly dangerous press. If the press devoted a proportional amount of air time to it, they would be seen to be celebrating it. The more they showed of ordinary people dressed up, singing and playing music, with the most creative, witty and hard-hitting array of placards London has ever seen, the more they seemed to condone the dissent. If their job was to reflect the mood of the day and cover events as they actually took place relative to each other, the news would reflect proportionately what happened and the Black Bloc and UK uncut would receive next to no coverage. That would be fine with the bloc, because their intention is not to grab the headlines for themselves but to fight back against capitalism with a mixture of symbolic challenges to corporate greed and direct action intended actually to harm it.

Finally, any press, including anarchist press, doesn’t cover events ‘objectively’. It creates stories and the stories reflect the ideology behind that media. The mainstream press is owned by some of the richest people in the UK. Is it any wonder that, combined with the essential banality of watching a demo as opposed to being part of it, it writes stories about how wrong it is to damage private property? This makes for easy copy. The story is all the more exciting if there is a soft target to identify as responsible. The Black Bloc makes an easy target. More on this below.

But first, let’s return to that crockery: to drop, or not to drop?

On ‘violence’ against property.

From the condemnatory outpourings of media commentators, on the left as well as the right, you’d think this was the first time anyone had actually raised a hand against private property in the pursuit of justice. In fact, given the social supremacy of Capitalism, it is difficult to account for what rights we do have in the modern world otherwise. A few examples follow, chosen from many but somehow relevant:

In the Guardian ‘Comment is free’ the Black Bloc was likened to the scabs ridiculed by the Industrial Workers of the World (IWW) in the period of its inception in the early twentieth century US. This has caused quite a stir, because like deputy London mayor Kit Malthouse’s offensive likening of the Black Bloc to ‘fascist agitators’, it attempts to align us with our ideological enemies. As the alive and kicking modern-day UK IWW pointed out in response, their predecessors and other early labour activists would have achieved little without violence and the threat of violence against the bosses and their property, in particular industrial sabotage (see article elsewhere on Émile Pouget). It was the willingness of ordinary people to take such action that won above-starvation level wages and rights to work in safe environments, for no more than an eight-hour day, and so on. Fear of what the working class could do when it chose to fight back collectively was what won it the right legally to flex its muscle stopping short of actual violence – that is to say, the right to establish trades unions and the right of these to strike and picket. Trade unionists would do well to consider that legal unions would not exist except for the working class’s willingness to use violence or sabotage. Did they go too far?
Since then, many struggles have used direct action without respect to property. Powerful women are fond of telling anarcho-feminists that the suffragettes fought for us to have the vote we scorn. It is true that working and non-working people, men and women, suffered at various points to win the vote. But it was the suffragettes who tore up the West End as the Black Bloc did. On 1 March 1912 ‘The West End of London...was the scene of an unexampled outrage on the part of militant suffragists.... Bands of women paraded Regent Street, Piccadilly, the Strand, Oxford Street and Bond Street, smashing windows with stones and hammers.’ (The Daily Graphic). Did they go too far also?

A third example is that of direct action ‘peace activists’ of the 1980s. They won the argument within their movement that violence against property is a valid tactic, even for people calling themselves pacifists, against US Cruise missiles being stationed in Britain. ‘Violence’ cannot be committed against an inanimate object, they reasoned, and property could be sacrificed to stop violence against people. As a result, they tore down the fences of US bases, causing hundreds of thousands of pounds-worth of damage. One group of women not only destroyed a entire US plane, but got away with it in court on the basis that they were saving lives.

But the 1980s also saw riots break out in Britain’s inner cities as mainly black youth responded with violence to police brutality. The parallel upsurge in the UK anarchist movement in the 1980s had several causes but one was the disaffection of militant young anarcho-pacifists with the middle-class peace movement’s hypocrisy in supporting violence against property on the one hand, but considering the violence of working class youth to be ‘misdirected’. Many disaffected activists abandoned pacifism and joined other young anarchists in the class war.

It’s all about context

So violence against property is fine in support of workers’ rights to organise in their own interests through trades unions, or in support of an inclusive franchise, or in opposition to war. It seems then, that violence against property is OK as long as it is 1/ in the past, and 2/ in a cause that, in a rather circulatory fashion, succeeded in shaping the present outlook of liberal commentators on the Black Bloc.

None of this is to say that anarchists or anyone else should glorify ‘violence’ against property for its own sake. It has its place as a tactic, but is not the message in itself. We need to address this because most of what the public thinks it ‘knows’ about modern anarchists is that they appear to be building up to a certain stereotype: the bomb throwing nihilist!

In our view, anarchists worth the name utterly reject once supposedly fashionable anarchist tactics such as bombing. In fact, such a movement never really existed, in Britain anyway (and elsewhere it was often the invention of agent provocateurs and the police: see review of Alex Butterworth’s book in this issue). We also point out that the most fervent historical advocates of large-scale violence, anarchists such as Alexander Berkman, imprisoned for the attempted assassination of the capitalist Henry Frick in 1892, later rejected it as a tactic on reflection on how little it achieves at such a high cost, not only to anarchists. ‘Propaganda by deed’, as it was known, did not advance the cause of a mass working class movement but led ordinary people to be afraid of anarchists and to assume that arbitrary violence against people was the next logical step after bombs and targeted assassination.

In fact, the Anarchist Federation and most other anarchists in groups or organisations reject the destruction of property when it is on a large scale, because this could kill people accidentally. It doesn’t only scare people, but it endangers workers even when, for example, buildings are apparently empty, say at night. Fire fighters, caretakers, cleaners, and people passing by on the way to an early morning shift are our fellow human beings and our allies, not ‘collateral damage’.

But it must be said nonetheless that anarchists do have a special disrespect for Capitalist property (as opposed to ordinary people’s property or even local municipal property, which we all pay for). We do not hold it sacred and the Anarchist Federation does not condemn anyone for destroying it. In this we possibly go further than the Solidarity Federation, or their Brighton branch at least, because in their ‘A letter to UK Uncutters from the ‘violent minority’’, they question the use of violence against property full-stop and say that there is a debate to be had about whether it is actually productive. An individual member in the comments on the article specifically distances the Sol Fed members from criminal damage. Closer to our own attitude to property is another comment: ‘Violence and damage are not the same thing. Violence is when the Met throw the disabled out of their wheelchairs or attack and kill an unarmed newspaper vendor. Property damage -- which we can debate as a tactic -- is not the same thing and to use such terminology only serves to legitimise the ruling class narrative being promoted by the media’.

The correspondence above was between Brighton Sol Fed and UK Uncut in the context of the police and press treatment of the latter, wrongly attributing Black Bloc activity to it. From posts on blogs it is clear that at least some UK Uncut people are not happy with violence against property. But the letter makes an excellent case that we are all in this together, and other comments to it refer to the fact that UK Uncut as much as the bloc itself went ‘off piste’ in relation to the T.U.C. agenda for the day.

On UK uncut

UK Uncut has really surprised the anarchist movement and got us all talking. Some of its early direct action was excruciatingly reformist. Anarchists stopped turning up when expected to pander to the lowest common denominator message, that all would be right with the world if a handful of, admittedly very very greedy, businessmen would only pay their taxes. It’s not so much that anarchists oppose tax (actually we are ambivalent towards tax in the present day, but that’s another discussion). It’s the fact that none of these businessmen have broken the law in moving their assets around to avoid sharing their profits with the rest of us. The problem is that the law allows this, if you have enough money to pay an accountant to find the loop holes. The UK Uncut message is implicitly to close the loopholes, but they are there for a reason - so that the mates of the politicians stay as rich as possible. So the basic message of ‘Pay your Tax!’ is not an entirely coherent one.

But that isn’t all that UK Uncut is about. UK Uncut is the largest grass roots movement seen in recent years and if its message is uninspiring to anarchists, it is far from that to the thousands of ordinary people it mobilises. The radicalisation taking place within its ranks and its spontaneous adoption of horizontal and decentralised organisational structures means that it has the potential to develop a more in-depth critique than at present, without being taken over by the sort of people (usually Trotskyists) who like to take these things over.

Although anarchists were involved in UK Uncut in many towns from the outset, this form of organisation is not our doing. In fact it is partly a practical matter. UK Uncut uses social media to organise, and this lends itself to decentralisation. But having said that, UK Uncut clearly likes this way of operating, and has used it to carry out genuine direct action. These actions are creative, loud and challenging and involve occupation of key businesses but stop well short of causing damage to property. They involve normal people (including the anarchists!) getting their message across in a way that does not alienate shoppers, frighten staff or break any significant laws.

Why then, have UK Uncut been dragged about and hit by security guards and police, been tear-gassed by police, had armed police turn up at their actions, and on the 26th March been lied to by police and treated essentially like terrorists, arrested and having mobile phones taken? This follows high level discussions treating them as some kind of domestic extremists.

As the Brighten Sol Fed’s letter to them notes, they offer a way for non-workers to engage in economic sabotage, in an ‘economic blockade’. The cost of a window broken by the Black Bloc is nothing compared to the money lost if a bank or West End shop is closed down for half a day. In fact, whilst the Black Bloc remain anonymous and ‘get away with it’, UK Uncut are taking the heat that can be applied by the very rich and powerful, and the police are, naturally, dancing to the latter tune. It won’t be long until they are infiltrated and place under surveillance, if this has not happened already. That is a disgusting way to treat people making a point that is, by and large, shared by the majority of people being affected by the cuts. This message is still too dangerous for the state to allow it to be expressed through mass civil disobedience, even of a sort that respects private property in a way that anarchists do not.

We have a few more points to make about UK Uncut. The first is that the way they have been mis-represented in the media is shocking, and we know how it feels. But this is only happening because they are so effective. We thank UK Uncut for their refusal to sell us out in the media after March 26th and will return the favour.

A second is that UK Uncut has spread a tactic used for a long time by anarchists - the attempted conversion of commercial space into a public space – to a much wider class-struggle activist community. This is powerful in spite of its present reformist context because of the sheer numbers engaging with it, deeming it to be legitimate activity on private property, and being radicalised by that process. This acceptance of the idea that Capitalist space is potentially a legitimate target for occupation opens up a lot of possibilities.

UK Uncut can’t substitute itself for workers’ direct action any more than the Black Bloc can. In fact both need to find a way of addressing workers more directly, in particular those working on the shop floor in businesses that we target. When we go into banks etc as UK Uncut we should more deliberately engage with workers. Staff have a role in stopping businesses too and have even more reason to hate their employers.

UK Uncut should defend its organisational structure from people who would take it over. It is directly democratic, each one answerable to the others. It chooses targets by consensus decision-making. It should not allow its actions to be a platform for authoritarian groups such as the SWP, who have begun to sell their papers on UK Uncut actions.

Finally, UK Uncut have opened the way for the return of generalised ‘civil disobedience’ in the UK. When was it exactly that the concept of ordinary people obstructing bad practices through direct action, even breaking the law but not usually property, slipped out of focus? Under New Labour, of course. This again is the fault of liberal commentators. ‘Taking a stand’, or even a seat in the road, or not paying that part of our taxes that gets spent on weapons, or refusing to pay Poll Tax, did not involve even damage to property. But once labour got in and the dreadful Thatcherite era was over, it seemed silly to go about things the hard way. This political apathy became so entrenched that even when we marched against Labour, against the war, no one except the anarchists were interested in going off the map. What is more astonishing is that so few people took direct action even when Labour made it clear that they were going to entirely ignore the fact that one-in-forty people in Britain attended anti-war demonstrations on the same day. Civil disobedience was dead, anarchists’ minds turned back to the inspiring direct action of Seattle 1999, and the UK Black Bloc was born.

On the Black Bloc

But if the bloc was born of rage and frustration and contempt for New Labour hypocrisy, Saturday 26th’s ‘Black Bloc’ was far bigger than any seen in the UK previously. Let’s just set our clearly why it is what it is, because it has been badly mis-represented.

Firstly, as has helpfully been noted even in the mainstream media by people who actually understand what is going on, it is not a group or even a movement but a tactic used in pursuance of a strategy. The strategy is to hit wealth and privilege where it hurts using direct action. This is essentially symbolic – how much does replacing a window or cleaning off paint actually harm a bank’s profits? – but there is nonetheless a message behind it that is the message that demos have lost; if we can do this – get to you like this – then think what a mass uprising could do.

The strategy is also to make it clear to other marchers that all the speeches by trade unionists and Labour Party members in the World is not going to fundamentally change society, and will in fact probably make things worse. The point is to get over the point that one of the ‘alternatives’ is to abandon the state and destroy money and privilege. We’ll return to the question of the message below, but people get investigated and groups infiltrated for advocating far less, and so the strategy is also to create group solidarity by taking action together.

The tactic then, is to do all this in such as way as to get away with it. The identification and criminalisation of (unmasked) students and others after Millbank and the Parliament Square kettle shows that this is no easy feat in the age of ubiquitous CCTV, and that this is the case whether or not you have actually ‘done anything’. Just by showing your photograph on T.V., they turn you into public enemy no. 1. But if everyone dresses in the same colour and hides their faces, it is immeasurably more difficult for the police to identify and arrest someone, committing a crime or otherwise, because that person can just blend in with the crowd.

That’s all it is! The colour doesn’t even need to be black - there have been blue blocs, red blocs and white blocs in other contexts - but black is the easiest colour. The Black Bloc wear masks purely to hide their faces. They don’t want to hide their faces from other marchers, but it would be very dangerous not to do so when committing a criminal act or being with people who the police think might. In fact Black Bloc people pull down their masks to talk to other demonstrators, because they want to connect with other marchers. They just don’t do it at the time they commit criminal acts. Furthermore, many of the people joining in the jolly chanting, giving out leaflets, marching with community or workplace groups, were in the bloc before or after these other activities. They are not distinct from the rest of the march except that they will adopt an anonymous persona and certain points.

On a Guardian blog a comment asked, ‘Why do you have to hide your faces in black scarves? There are other ways to hide your face’. This misses the very practical point; everyone has to look the same, and black is easiest. Nonetheless, behind this comment and others like it is a more serious and less naive point. Black is to many a sinister colour. Hiding your face is a sinister thing also. Finding something sinister means finding it frightening. In fact, when we have a bloc on the scale that we had on March 26th, we need to address this as a movement: some people were scared of us. The bloc needs to reflect on itself and see itself through other peoples’ eyes. Those in the bloc know this, of course.

Furthermore, the bloc on the 26th maybe missed the point that wearing black is an act of self defence; it is not a uniform. What was carrying mass-produced black and red flags all about? It gave the Bloc the appearance of an army with insignia. This was both thrilling and unsettling. It also gave the impression that the bloc was centralised in some way. Someone had made and given out the flags. Onlookers might wonder, was someone therefore in charge after all? So we have to address the nature of the bloc and find ways to get our message across.

The first step, because of the way the press and to some extent other marchers responded to it, is to make it clearer who the bloc is? As noted, the core of it used to be anarchists taking up direct action at street level because of the sham that was civil society under New Labour. We had to wake people up to the fact that Thatcher may have gone, but still no one in power gave a damn about what we thought. As also noted, many of those newly identifying with the tactic are students radicalised both by witnessing bloc activity on the student demos of 2010-11, most definitely by having their voices ignored after those demos by the state, and also by being condemned by both the lecturers’ union (UCU) initially and then by the Student Union itself.

But their credentials as young people willing to stand up to the Tories does not endear them to the same trades unionists, lecturers and teachers and parents who spoke up for them after the students demos. This is because now the children are out of control! They have gone too far! Now they are wearing black and calling themselves anarchists! And somehow it has become the case that by wearing masks and hiding their personal identity, members of the bloc have waived the right to determine their own collective identity. So, whereas people without masks at Millbank and kettled Parliament Square were ‘ordinary, hard-working students’ fighting for the future, liberal commentators now observe that members of the bloc are ‘middle class’, by which they mean, ‘representative of no one but themselves’. And along with the press, they also throw in the idea that they are ‘unemployed’ rather than students, as though through their own choice.

We take issue with this idea that the Black Bloc consists of middle class layabouts not only because it isn’t true, but so what if it was? The premise rests on a very outdated understanding of class composition and the student economic experience, which are far more complex.

The new kids on the bloc are the same people who won’t be able to go to university if fees are raised. A large percentage is really young in terms of the traditional Black Bloc demographic, Further Education students, who are contesting the end to Education Maintenance Allowance. And a large number are current HE students including many who also work, having no other way of housing and feeding themselves at university. Indeed, only a relatively small number of students even from relatively well off backgrounds sail through their degree without worrying about money. So, none of these groups in the bloc are privileged. It is no wonder that they share the belief that most ‘radicals’ abandoned long ago - again under New Labour - that FE and HE and ALL education should be FREE. At Millbank, this ideal was expressed in placards but felt hopelessly optimistic. The presence of this idea now in the Black Bloc shows us that the students are deadly serious about this and mean every word of what they say.

In addition, the bloc contains workers, with the same sort of demographic as non-bloc workers on the march. Some are in skilled and secure jobs (if any jobs are secure at the moment). But most take action in the context of threatened redundancy, family members losing their jobs, and the severe forms of exploitation and under-payment at work that the young experience most severely.

Many are also trade unionists. This might surprise some non-anarchist readers, but anarchist workers are more likely to join a trade union than many other workers. There is a very high level of consciousness about the need to organise collectively in an economic context as a means of defeating the bosses. So whilst anarchists have very specific critiques of traditional unions, we also consider that if there is a union in our workplace, that is where we will meet other militants and it is with these people that we need to organise. Anarchists will often also be members of workers organisations such as the IWW the Solidarity Federation that are based around specific industries, rather than dividing works according to their function and workplace status, as traditional unions do. It is also often anarchist workers who run the risk of attempting to unionise workplaces that are not unionised. It is increasingly in this latter kind of industry that young workers are employed.

Then there are those who first got involved after taking part on the G20 demonstrations in 2009. Many attended that in order to express in a creative way their frustration at greed and inequality and, very largely, at the destruction of the environment. They were kettled for hours and beaten arbitrarily, and the death of Ian Tomlinson scarred and changed them forever. So they are sick of being patronised since then and told to wait their turn and leave things to the reformists. What has that achieved? Everything just got worse. So don’t tell us to sit quietly in the corner anymore. Throw in the inspiration that was the Greek Winter of 2008 into the mix, and you have today’s Black Bloc.

Finally, so what if some of them did turn out to be from middle class backgrounds and are unemployed by choice? Work for most of us is one of the worst aspects of life under Capitalism. Is it only wealthy university students who are allowed to take a ‘gap year’? In their case it is between school and HE, and they might travel round the world at their parents’ expense. Given the low cost of JSA to the tax-payer, is it so bad that some might want to be unemployed for a time before, as they inevitably and increasingly must, they attempt to join the rat race. Isn’t it the ideas that they come up with and the radical structures they create in this hiatus that their critics really resent and even fear? Their backgrounds could be middle class in some cases, but their identification, demonstrably, is not.

Again, it’s about context. Many on the bloc come from inner city London estates and have no money, no prospect of a job, no way of accessing education and, with the new cap on Housing Benefit, even less chance of leaving home. But if these kids were rioting on their estates, many people who have recently criticised the bloc would sympathise with their frustration as unemployed, discriminated against victims of the police and the state. If those kids were masked, they’d be relieved, for their own safety, because we all know what happens to kids in police stations. At the same time, as in the inner city riots of the 1980s, commentators from anarchists through the whole spectrum of the left and to liberal commentators wondered why they were trashing their home area, asking, “Why don’t they take it to the rich?” Well now they are. Deal with it.

Anarchist Communism and the Black Bloc

The student movement has transformed the established anarchist movement within the space of a year because of the breath-taking lack of compromise in its vision of equality of opportunity, and the speed with which it took this to its logical conclusion – we must bring down inequality. Students now joining the movement might be shocked to learn how ‘anti-student’ the anarchist movement was until relatively recently. There was a perception that students – university students that is - were privileged and apathetic. Class War took the piss and talked of beating them up; a magazine was launched called ‘Anti-Student’. In the Anarchist Federation, if a student joined, by and large we expected them to disappear off home in the first holiday and that we’d never see them again. What a different material circumstances make!

But how good is the bloc at representing anarchism more generally? The rest of the movement is small and does not have anything like the impact that the bloc now has. So the bloc is our ambassador. What people think of the bloc, is what they think of anarchists. So again we return to the issue of Black Bloc strategy. Is it enough? Isn’t it necessary to build into it somehow the full scope of the anarchist message and have a strategy not just for the bloc but a strategy for changing society? This has to be through generalised class-consciousness and it isn’t clear yet how the bloc contributes to this. Is the bloc aware that it can’t substitute itself for the class? It can’t start the fight for us, and neither can it win it.

As the article in this issue on Greece demonstrates, rage at the police murder of a young man that turned into a Winter of Rage, fire and fighting, and even to the tragic death of some workers in a bank, was not nihilism or insurrectionist posturing. It has breathed life into a popular movement that, even though it looks nothing like our anarchist movement, is coherent, self-reflexive, and building a better world with workers and others in Greece’s inner cities. All anarchist movements are highly literate. It’s just something that goes with the territory. But the Greeks use literature in a different way and every action that looks like a Black Bloc action is accompanied by a leaflet explaining what has been done and why, to help people understand who anarchists are and to encourage the public to come to their social centres and squats and see for themselves which, by all accounts, they do.

The bloc makes it impossible to miss anarchists, just as is the case in Greece. So how does the bloc communicate what anarchists believe to ordinary people? How can those people ‘find’ us if all they see of us is masked and anonymous. We still need to work on that, but part of it is certainly having a non-secret face, by being a group or organisation that people can meet, debate ideas with and hopefully join. Can the bloc point people in the direction of more easily accessible anarchism?

Conclusions

People who condemn Black Bloc violence on demos, or question why they did this on ‘someone else’s’ demo, are missing the point about demos. In themselves nowadays they mean nothing because in our obsession with this disempowering parliamentary democracy their purpose has been unclear. Demos began as expressions of collective class anger and they were effective because of the implicit threat of violence that lay behind them. The message was, “We are giving you a warning”, and often it served the state best to take heed of that warning, because next time we might not just listen to a few speeches and then go home.

Nowadays it is as though the ‘threat’ is nothing more than that we might not vote for you. And we didn’t anyway! People in their droves didn’t vote for the Tories and they didn’t win the election, and still they are doing this, and doing it legally! How much more evidence do we need that parliamentary democracy is nothing of the sort.

As if we hadn’t got the message, on Sunday 27th Vince Cable told us that marches of this sort wouldn’t change the government’s mind. Let’s rise to that challenge! Let’s become the violent majority. If we did that, the irony is that we would need to use very little violence at all even to property, let alone against people.

Forward to the General ‘Social Strike’

As we go to press, education unions are discussing co-ordinated strike action for June 30th. This can take place legally because of the stage that the UCU is at in its dispute with employers, but there is talk of un-related unions taking action then too. This is a long way from the general strike that which we know the TUC will never call. However, that makes it is all the more important that anarchists - trade unionists and otherwise - should support local activists taking action. Aside from members of the unions in question observing the strike day, it is just as important (and maybe more so) that we begin to put into practice more concertedly and generally tactics that anarchists have been discussing. We need to do this from the perspective of a movement able to co-ordinate action and mobilise nationally, as workers, students, claimants and service users. We have a hugely significant role to play whilst the trades unions work out what to do about the fact that most workers are still too afraid to undertake even legal action. That means arguing for interlinking tactics such as

Economic blockades, for example disruption to and occupations of businesses and commercial communications (everything from roads to e-mail). This is the sort of action UK Uncut and the Solidarity Federation have been advocating and undertaking. It includes also mass non-payment of, say, bus fares (see the article on Greece elsewhere in this issue), and occupations and solidarity pickets of workplaces where workers face redundancy or victimisation.

Social strikes, which go beyond the concept of workers downing tools and support for economic struggles. We need these because workers, even those in unions, have very little clout in the current legal climate. Why should we wait for them to kick-start action on issues that affect us anyway? Tactics include sit-ins, read-ins, teach-ins and even work-ins where services are threatened, such as old peoples’ homes, libraries, NHS buildings, and voluntary sector projects such as the CAB, homeless shelters, women’s services. Also, it means support by workers for people without economic power, for example by dole office workers in support of claimants, including people in receipt of incapacity and disability benefits.

General assemblies to co-ordinate this action, involving everyone affected by the cuts, regardless of whether they work or not. These may be in town centres, colleges, day centres, communities or wherever people identify their collective interests as lying. If they take over contested spaces such as universities or wasted space such as empty Job Centres – both of which have happened – so much the better. They must be horizontally structured and avoid organisational models that would allow authoritarians to take over.

These things are already taking place and being planned. But we are arguing for anarchists making every effort to help co-ordinate such action, because collectively we are so much more threatening to the state and empowering to the working class than we are alone. As such we need to be part of generalised anti-cuts campaigns, because it’s all very well us organising horizontally, but we need to make it clear why non-hierarchical structures are more effective, full stop.

So if June 30th looks like happening, be there! If not.....let’s start something.

Published in the Anarchist Federation's theoretical journal Organise! (#76).
.

http://libcom.org/library/uk-unmasked-new-kids-bloc


:fawked:

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Re: EU-MENA revolution consolidation

Postby hanshan » Tue Jun 21, 2011 7:14 am

DrVolin wrote:
MacCruiskeen wrote:This is a very good article, by a Greek blogger who writes in English:



This is a formula I know very well. He is not kidding when he says that this concerns us all. The very same thing is happening to the public universities in North America. Privatization is presented as the only possible solution to a financial crisis manufactured by those who will directly benefit from privatization. Every day I feel sick to my stomach over this. I see it happening in front of me, and I haven't figured out what to do about it yet. Almost everyone seems to have accepted that it is inevitable.


Indeed. Tho it's not inevitable. There are examples of community
action successfully resisting state power guiding & backing (w/violence)
criminal cronyism masked as privatization. Brazil comes to mind
( effort to shift water resources from public to private control).


...
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Re: EU-MENA revolution consolidation

Postby MacCruiskeen » Tue Jun 21, 2011 12:58 pm

hanshan wrote:
DrVolin wrote:
MacCruiskeen wrote:This is a very good article, by a Greek blogger who writes in English:



This is a formula I know very well. He is not kidding when he says that this concerns us all. The very same thing is happening to the public universities in North America. Privatization is presented as the only possible solution to a financial crisis manufactured by those who will directly benefit from privatization. Every day I feel sick to my stomach over this. I see it happening in front of me, and I haven't figured out what to do about it yet. Almost everyone seems to have accepted that it is inevitable.


Indeed. Tho it's not inevitable. There are examples of community
action successfully resisting state power guiding & backing (w/violence)
criminal cronyism masked as privatization. Brazil comes to mind
( effort to shift water resources from public to private control).


...


Yes, it's the same deliberately-induced sickness and the same poisonous "medicine" every time. See Naomi Klein's The Shock Doctrine for a detailed description of how it works. A banner at a recent demo in Ireland names one of the worst culprits:

Image

And yes, global solidarity is vital. This was the shit-stirring nationalistic headline yesterday in Germany's disgusting Bild-Zeitung:

Image

Image

Translation:

"Go sell your islands, you skint* Greeks

...and while you're at it: the Acropolis too!"


*broke, bankrupt, penniless
"Ich kann gar nicht so viel fressen, wie ich kotzen möchte." - Max Liebermann,, Berlin, 1933

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TESTDEMIC ➝ "CASE"DEMIC
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Re: EU-MENA revolution consolidation

Postby brainpanhandler » Tue Jun 21, 2011 2:05 pm

hanshan wrote:
DrVolin wrote:
MacCruiskeen wrote:This is a very good article, by a Greek blogger who writes in English:



This is a formula I know very well. He is not kidding when he says that this concerns us all. The very same thing is happening to the public universities in North America. Privatization is presented as the only possible solution to a financial crisis manufactured by those who will directly benefit from privatization. Every day I feel sick to my stomach over this. I see it happening in front of me, and I haven't figured out what to do about it yet. Almost everyone seems to have accepted that it is inevitable.


Indeed. Tho it's not inevitable. There are examples of community
action successfully resisting state power guiding & backing (w/violence)
criminal cronyism masked as privatization. Brazil comes to mind
( effort to shift water resources from public to private control).


...


Brazil comes to mind

As does Bolivia. In a way the issue of public/private water supplies in south America and the arm twisting of the world bank and imf opened my eyes to just how evil those fuckers are. The idea of making it illegal to catch and store rainwater is just blatantly evil. I mean if they could somehow commodify the air we breathe and charge us for the right they would. Hey, wait. I suppose someday we'll all need personal air purifiers, helmets or suits of some sort. Perfect. Well, at least the sunshine will always be free. Right?

"Nothing in all the world is more dangerous than sincere ignorance and conscientious stupidity." - Martin Luther King Jr.
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Re: EU-MENA revolution consolidation

Postby vanlose kid » Tue Jun 21, 2011 2:22 pm

*

turning the screw.

Each Eurozone Household Will Guarantee €1,450 Of Greek Debt By 2014
Submitted by Tyler Durden on 06/21/2011 07:51 -0400


Open Europe has released a paper titled "Abandon Ship: Time to stop bailing out Greece?" which recaps all the salient points well-known to everyone on why continuing to bailout Greece is the worst possible decision available to Europe, yet which will come over and over simply to prevent the European banking oligarchy from encountering an Event of Actual Loss (as defined by Encyclopedia Britannica). "Considering Greece’s poor growth prospects and increasing debt burden, the country is likely to default within the next few years, even if it gets some breathing space through a second bail-out. EU leaders should instead be planning for how such a default could be managed in as orderly a manner possible." Yet the main reason why European taxpayers should be concerned about the happenings in Athens, which are nothing but the latest in a now endless series of taxpayer to banker capital transfers, is that as Open Europe says by 2014, almost two-thirds of Greek debt will be taxpayer-owned! "via the bail-outs, so-called official sector (taxpayer-backed) loans are gradually replacing private sector loans. We estimate that today each household in the eurozone underwrites €535 in Greek debt (through loan guarantees). However, by 2014 and following a second bailout, this will have increased to a staggering €1,450 per household. The cost to European taxpayers of what looks like an inevitable Greek default will therefore increase radically in the next few years, making a second bail-out far more contentious than any of the previous eurozone rescue packages." Open Europe economic analyst Raoul Ruparel added: "“A second Greek bail-out is almost certain to result in outright losses for taxpayers further down the road because, even with the help of additional money, Greece remains likely to default within the next few years. Another bailout will also increase the cost of a Greek default, transferring a far bigger chunk of the burden from private investors to taxpayers....Although the uncertainty associated with such an exercise shouldn’t be underestimated, EU leaders should plan for a full, orderly restructuring, which would deal with Greece’s massive debt burden, as soon as possible. However, an honest discussion also needs to be had about whether Greece can realistically remain within the eurozone." But what "honesty" is possible when the only policy is to extend and pretend until it all finally comes crashing down?

Executive summary:

“It will not be the case that the south will get the so-called wealthy states to pay. Because then Europe would fall apart. There is a ‘no bail out rule’, which means that if one state by its own making increases its deficits, then neither the community nor any member states is obliged to help this state”

- Horst Koehler, former German Finance Secretary, April 19921

• EU member states have in total amassed quantifiable exposure to Greece of €311bn (via their banking sectors, the bail-out packages and the ECB’s liquidity programme). France and Germany have exposure of €82bn and €84bn respectively, while the UK only has €10.35bn exposure – although this figure is misleadingly low, as Britain’s huge exposure to other European banks leaves it vulnerable to any escalation of the crisis in Greece through indirect exposure and undermined market confidence.
• On the surface, the interconnectivity of Europe’s economies and banking sector may seem like an argument in favour of another bail-out. In a best case scenario, to carry Greece over until 2014 a second bail-out would have to cover a funding gap of at least €122 billion, in addition to the money the country is already receiving from its first rescue package. This assumes a scenario in which Greece can make good on its deficit targets and privatisation commitments. However, it is far from clear that Greece will meet these targets, not least given domestic resistance to more austerity measures. Therefore, the country’s funding gap leading up to 2014 could well be in the area of €166bn, potentially requiring Greece to make a third request for external aid.
• Despite a second Greek bail-out being EU leaders’ preferred option, it is only likely to increase the economic and political cost of the eurozone crisis. No country in modern economic history has faced similar debt levels to those of Greece – a debt-to-GDP ratio above 150% - and avoided a default. Even with the help of a second bail-out and a debt rollover, Greece is still likely to default within the next few years, as the country’s poor growth prospects and growing debt burden mean that it will be unable to fund itself post-2014.
• It is therefore better for Greece to restructure its debt as soon as possible. Then an honest discussion needs to be had about whether the country can realistically stay inside the eurozone. A restructuring of Greek debt would require the eurozone to enter unchartered territory – and it is impossible to fully identify all the consequences of such a move. However, these doubts will very much remain even under a second bail-out – the various uncertainties associated with the bail-out packages and attached conditions mean that the threat of an eventual default will not go away in any case.
• The cost of restructuring will also increase with time, as Greece’s debt burden will only rise over the next few years. To bring down Greece’s debt to sustainable levels today, half of it would need to be written off. In 2014, two-thirds of Greece’s debt will need to be written off to have the same effect, meaning a radical increase in the cost to creditors.
• Unfortunately, this is a debt crisis and someone will have to take losses. We estimate that the first round effects of a 50% write down on Greece’s debt would.

[full report at link]

http://www.zerohedge.com/article/each-e ... -debt-2014


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Re: EU-MENA revolution consolidation

Postby 2012 Countdown » Wed Jun 22, 2011 11:30 am

Image
MEP Nigel Farage
Saturday, June 18, 2011
Nigel Farage: Founding Member of the UK Independence Party (UKIP) & Member of the European Parliament (MEP) for the South East region and is the leader of the parliamentary party in the EU parliament.

The central aim of the party is the UK's withdrawal from the European Union and to regain control of this nation's governance through our own Parliament at Westminster.

http://kingworldnews.com/kingworldnews/ ... arage.html

=========

mp3 audio interview. He is warning of revolution and Euro collapse.
Good interview, imo.
George Carlin ~ "Its called 'The American Dream', because you have to be asleep to believe it."
http://www.youtube.com/watch?v=acLW1vFO-2Q
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Re: EU-MENA revolution consolidation

Postby Stephen Morgan » Wed Jun 22, 2011 1:22 pm

2012 Countdown wrote:Image
MEP Nigel Farage
Saturday, June 18, 2011
Nigel Farage: Founding Member of the UK Independence Party (UKIP) & Member of the European Parliament (MEP) for the South East region and is the leader of the parliamentary party in the EU parliament.

The central aim of the party is the UK's withdrawal from the European Union and to regain control of this nation's governance through our own Parliament at Westminster.

http://kingworldnews.com/kingworldnews/ ... arage.html

=========

mp3 audio interview. He is warning of revolution and Euro collapse.
Good interview, imo.


HE's a total idiot, he was one of the founding members of UKIP as you say, one of four. As the old saying goes, when four come together to conspire three are fools and the fourth is a government agent. Except in this case three were government agents and Nigel Farage was a fool. Still, the biggest party who have any policy I'm aware of that I agree with. The party, however, is entirely reliant on European subsidies for its existence, so how sincere their cadres of well-paid collaborators are I don't know. Farage was on Have I Got News For You once. He was also in a small-plane crash which nearly killed him during the last election, in which he stood for election in Buckingham, where none of the major parties stood candidates because the sitting MP was the NuLab friendly Tory Speaker Bercow, so the only people opposing him were minor party candidates like Farage, who I believe came third, and the local Tory party who hated him so much they put up an independent against him. I think they came second.
Those who dream by night in the dusty recesses of their minds wake in the day to find that all was vanity; but the dreamers of the day are dangerous men, for they may act their dream with open eyes, and make it possible. -- Lawrence of Arabia
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