8 August 2008
“Some greed is necessary to keep capitalism going. But too much greed will bring it down. Even Adam Smith, the father of [capitalist] economics, understood that capitalism requires some degree of trust.” — ‘BLAME THOSE GREEDY BANKERS’ Robert Reich, of the University of California at Berkeley, and a former US labour secretary.
The global crisis of capitalism is ‘explained’ as being the “credit crunch” and all the fault of bad loans made by banks and mortgage lenders, but is this really the truth or are we being misled by a complicit corporate/state media? You might have noticed that when the ‘sub-prime’ mortgage fraud broke, the UK media were telling us that it was a “US problem” and couldn’t affect us, and indeed, they still refer to it in these terms as the initial cause of the credit crunch. The truth however, lies elsewhere. There’s a programme on Brit TV called ‘How did they do that?’ that explains how for example, they put the lead in pencils, so it occurred to me that it’s a perfect metaphor for ‘explaining the credit crunch’ and the associated ills of capitalism, so how’d they do that, allegedly explain that the cause of the economic crisis is the so-called credit crunch? Like what happened to all the credit, where’d it go? Continue reading