Let’s talk a bit about these supposedly broke governments that have been reaching insolvency, and in cases like Iceland in 2006 and Argentina in 2001, have declared bankruptcy. It seems to most, as it would to anyone not ideologically retarded, that for all the public “brokeness” going on, there is always enough money for a bailout for some big bosses. Indeed, there’s never a shortage of money (or credit; whatever you want to call it) when it comes to buying up some big boss’ bad debt, or fleecing the public purse to provide him (them) with a fat tax cut so they can “create jobs” (see: off shore, low wage).
Funnier still, there never seems to be a shortage to pay for militaries to go fight wars so the boss(es) can make (or defend) profits in somebody else’s country. Now, you might think the above quite “natural”, but down here in reality we call that a “massive subsidy.”
So, again, using their undeterred by the boss’s propaganda and threatening posture vision, it may be hard to for public sector workers to swallow making the necessary cuts to save the government budgets. It might for a bit of the old divide and rule strategy. You know the one: pit the overpaid, lazy public sector worker against the realistic, hardworking (generally non-union) worker, while the boss makes off with the big money.
Getting back to Iceland’s bankruptcy in 2008, we see that it could have been worse. Argentina had adopted neo-liberal out-of-control capitalism before they headed straight to a total economic collapse. Ecuador was swindled by the IMF to nationalized its electric utility, the electric rates shot through the roof, people had less to spend for essentials which both caused further poverty and suppressed the economy and on top of that the government no longer had the revenues so it eventually either had to cut services or raise taxes to offset this. In many developing countries, IMF and the World Bank swindled them to open their borders to subsidized US agricultural dumping which decimated their local production, making them highly dependant on food imports and on agro-industrial oligarchy (ADM, etc). Monsanto’s been polluting the world gene pool with patented crop genes. The name of the game is suppressing autonomy of local populations and making them dependant on oligarchies for vital ressources like water, energy, food, money.
Credit Suisse Declares the U.S. a Riskier Investment Than Indonesia
By Megan Carpentier 2/12/10 1:47 PM Washington Independent
Amid fears that Switzerland might come to an agreement with the United States on banking privacy and tax evasion disclosures, Credit Suisse issued a report identifying those countries it determined to have the highest risks of default on their sovereign debts. Number 16 on the list was the United States, based primarily on its 2009 budget deficits and government debt.
Countries ranked less likely to default include corruptocracy Kazakhstan, less-than-reform-minded Indonesia, the debt-ridden Philippines and violence-ridden Colombia. By comparison, U.S. Treasuries prices are up today despite a new issuance this week.
Handy sovereign risk table
Posted by Paul Murphy on Feb 10 16:48.
Looks like Credit Suisse has jonied the conspiracy trying to undermine Spain.
Here’s a ranking of countries by perceived risk, taking into account things like current account balances, public and private debt, and CDS spreads. It comes from a note on the impact of sovereign risk on European banks, published on Wednesday by Jagdeep Kalsi, which you will find in the usual place.
Somehow the CS man has managed to rank Spain above the likes of Latvia, Ireland, Ukraine, Romania and Turkey in terms of riskiness.