The European Commission has been forced to rebuff a proposal by the Eurozone’s new bailout fund, the ESM, that Greek assets be transferred to a new Luxembourg-based special purpose vehicle as a part of a wider privatisation scheme. The proposal, mooted by Finland in 2011, and on the radar of the IMF, was aimed at cutting through “Greek bureaucracy”…
Come again? Cypriots discover the debt jubilee? Well yes actually, that is basically how depositors at Cypriot banks have been treated by the Troika, even if the decision to grab up to 9.9% of cash deposits to finance a bail out of the finance sector is being presented as a tax or levy. To understand this we…
On Wednesday night prime German television channel ARD broadcast undercover reportage concerning the treatment of foreign workers at Amazon’s huge distribution warehouse near Bad Hersfeld in central Germany. State parliamentarians called the report “unspeakable”, “shocking”, “beyond the pale”, and the Left Party spokesperson stated:
“We call on the state government to carry out promptly and with all at its disposal checks of the complainant’s social security fraud, the use of an apparent neo-Nazi security company through Amazon and the inhumane placement in a so-called ‘resort’”.
Bad Hersfeld backs up against the old border with East Germany at the point, the Fulda Gap, which the US determined was the prime strategic entry point for Soviet forces in any invasion of Europe. As a consequence this wooded up-country became a backwater of barbed wire and checkpoints after the war. It is here that Amazon has had built one of its massive distribution centres for Germany, and it is here that undercover reporters infiltrated.
A group of German trades unions, academics, and militants have attempted to seize back the clock as a powerful mode of political expression with their “Wealth Clock”. It seems to be a direct response to the relative success of the US’s National Debt Clock, instituted in the late 80s by property developer Seymour Durst, in impressing into the public consciousness the claimed urgency of dealing with the US national debt, as a route to neoliberal austerity measures. Leaving aside the many arguments that can be levelled against Durst’s fears, the image of a constant up-ticking of a national debt has had its echoes in European states, not least Britain and Germany as flag-bearers for austerity.
From 15 November 2012, a part of the Occupy Movement in the U.S. led by Strike Debt will be operating a “Rolling Jubilee” which their website describes as:
“A bailout of the people by the people.
We buy debt for pennies on the dollar, but instead of collecting it, we abolish it. We cannot buy specific individuals’ debt — instead, we help liberate debtors at random through a campaign of mutual support, good will, and collective refusal.”
David Graeber, for example, has been tweeting about this enthusiastically and the Rolling Jubilee Facebook page has a picture of Slavoj Zizek holding the linked “Strike Debt” logo and a statement claiming that he too supports the campaign. My initial reaction to the plan was open-minded bemusement and a question which I see keeps recurring on the Rolling Jubilee FB page: “How does this work?.”
The Amendment of the German Bankruptcy Act,1 which came into effect six months ago, has opened the door to widespread abuse alleges the industry association VID, which claims to represent more than half of liquidators. “A few influential and wealthy creditors now threaten to dominate proceedings”, the VID chairman Christoph Niering said in Berlin. “In addition,…
Martin Wheatley, British financial regulator charged with solving the LIBOR crisis, has returned from his Crusade carrying, we are told, a splinter of the True Cross which he assures us is capable of procuring miracles. Not common or garden miracles involving the lame, Galilean fish stocks, or talking asses, no. Something really impressive: announcing the actual…
Yesterday’s publication of further dismal GDP data for the UK is an opportunity to reconsider its basis as the justification for many aspects of the current neoliberal order. Bracketing out the question of whether economic growth is a valid lodestar for any just society, there comes the old but under-frequented question1 about what constitutes growth and…
In my previous post I asked somewhat rhetorically what else banks had felt able to do during the credit crunch if the belief had arisen that “market stability” (sc. bank survival”) trumped criminal law. The U.S. Securities and Exchnage Commission (“SEC”) has obligingly provided an example. Yesterday (19 July 2012) the Securities and Exchange Commission charged…
What’s the difference between Monaco and the City of London? One is a micro-territory governed by absolute fiat, hollowed out by property speculation, gambling, and the concealment of great crimes of wealth, and the other is Monaco. In case your wondering, Monaco does have branches of HSBC and Barclays, and, if you need anything tricky sorting out,…
As partners and associates of 190 equity partner US law firm Dewey & LeBoeuf filed out of their 6th Ave. New York office, cardboard boxes of desk clutter in hand, one could not help noticing the similarities with the images of the collapse of Lehman Bros. The superficial similarity is not merely ostensible, however; the reasons…
At this week’s UK Treasury Select Committee hearing on the Budget of 2012, attendees were invited to draw parallels between George Osborne’s view of economics and the military stratagems of Field Marshall Haig. It seems that the British Chancellor of the Exchequer has followed Haig in believing that the best way to confound one’s enemies…
Greg Smith’s resignation letter in the New York Times yesterday, announcing a bridge-burning departure from his position as Executive Director of Goldman Sachs’ Equity Derivatives Division (Europe, Asia, Africa) certainly brought Wall St. to a relative halt. GS cancelled conference calls and the Goldman Flacks (PR goons) were rounded up to pour scorn on Mr. Smiths allegations as “unrecognisable”.
The importance of the letter was not so much it’s revelation of a eat-what-you-kill culture in which clients are the main course, not even the contention that somehow GS had changed culture — it hadn’t any more than any other investment bank since the Big Bang. The letter was important because it effectively took GS clients’ faces and slammed them against the restaurant window, through which they could now see their GS contact engaged in anthropophagia between raucous tales of how the current dish had of its own volition signed up to sit on the plate […]
The inevitability with which global markets would fall off their to-date unrealistic levels did nothing to mollify the depth and panic of the spasms. It has become a truism that nothing in the structure of international finance has changed, save that the losses of private banks had been socialised, leading to the great weight of legal…
The suffering spreads Our notional executive’s assumption about how industry would help the banks and the economy out of the Credit Crunch was in one element correct. Borrowers had bailed out the banks, but it was only by means of workers’ redundancies, the stripping of the products of their labour, and in not a few cases an…
At whatever time our industrial borrower first took on the credit agreement with which it found itself, in 2009, chained and broken before its financial masters, it is likely it only had a vague inkling that anyone beyond its relationship bank was, or was to be, involved. It is an issue that depends on the size of…
With the Credit Crunch in the finance sector now causing deleterious effects in the ‘real’ economy (see Part 1), concerned Finance Directors (“FDs”) turned to their relationship banks with a view to agreeing how best to muddle through what appeared to be a temporary dip caused by a problem in the arcane world of credit derivatives. Initial conversations…
In this series of four articles this week I examine the course of the Credit Crunch from the perspective of the interface between the hyper-financialised world of collateral debt obligations and securitisation, and the more familiar world of industrial corporate debt. It is at this nexus that many of the subsequent developments in the world economy can…