Tariq Ali talks to James Meadway, radical economist, about the global economy, the failure of world leaders to effectively resolve the financial crisis in 2008, and the probability of another crisis occurring in the future.
"The ecological crisis is thus presented as a technical problem that can be fixed within the current system, through better ingenuity, technological innovation and the magic of the market. In this view, the economy will be increasingly dematerialized, reducing demands placed on nature. The market will ensure that new avenues of capital accumulation are created in the very process of dealing with environmental challenges.
Yet this line of thought ignores the root causes of the ecological crisis. The social metabolic order of capitalism is inherently anti-ecological, since it systematically subordinates nature in its pursuit of endless accumulation and production on ever-larger scales. Technical fixes to socio-ecological problems typically have unintended consequences and fail to address the root of the problems -the political economic order. Rather than acknowledging metabolic rifts, natural limits, and ecological contradictions, capital seeks to play a shell game with the environmental problems. It generates, moving them around rather than addressing the root causes."
The expanded asset purchase programme (APP) adds the purchase programme for public sector securities to the existing private sector asset purchase programmes to address the risks of a too prolonged period of low inflation. It consists of
Monthly purchases in public and private sector securities will amount to €60 billion.
They are intended to be carried out until the end of March 2017 and in any case until the Governing Council sees a sustained adjustment in the path of inflation that is consistent with its aim of achieving inflation rates below, but close to, 2% over the medium term.
Political Economy Research says buying Corporate Bonds is subsidising the rich and more cheap money for Banks is not helping small businesses and individuals but recapitalising Banks.
We also agree with Brian Denny of No2EU who says if you want to see what ECB solutions to financial insolvency looks like, study the strict conditions imposed on bailout countries such as Greece, Cyprus and other states. These include mass privatisation, abolition of trade union rights, pay cuts, vicious government spending cuts and massive structural adjustment in favour of monopoly capital. As the left-wing Cypriot party AKEL pointed out the people of Cyprus are paying a very heavy price for the “solidarity” of its so-called friends “The policies of the single economic governance on an EU level are destroying the sovereignty of the peoples and states for the sake of the interests of big capital,” he said. Brian Denny is spokesman for No2EU.com
Round table "Anti-crisis fiscal policy of the state in the interests of economic development of Russia".
The main report "To a new understanding of the function of the banking sector: the mechanism of productive credit creation and quantitative easing" was delivered by Professor Richard Werner, a leading international expert on central banks, the author of the idea of "quantitative easing."
Moderator of the event - Vladimir Yakunin, President of Russian Railways. Political Economy Research finds this presentation by Richard Werner in Moscow to be a very useful summary of dissonance between reality and bourgeois Political Economy in 21st century
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