London Calling
Above: The clash between a protester, and the fascist police.
Money, Money, Money….
The G-20; where finance ministers and central bank ministers get together from twenty economies. Collectively, the economies featured in the G-20 comprise 85% of global gross national product, 80% of world trade (including EU intra-trade) and two-thirds of the world population.
The G20 is made up of the finance ministers and central bank governors of 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the United States of America and the European Union.
It also features the International Monetary Fund, as well as the World Bank organisation.
A quick run down on those two organisations:
International Monetary Fund: is an international organization that oversees the global financial system by following the macroeconomic policies of its member countries, in particular those with an impact on exchange rates and the balance of payments. It is an organization formed to stabilize international exchange rates and facilitate development. It was founded in 1944.
World Bank: provides low-interest loans, interest-free credits and grants to developing countries for a wide array of purposes that include investments in education, health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource management. It was also founded in 1944.
“Democracy is always a struggle for justice against the powerful” - Tony Benn
Grab that cash with both hands and make a stash.
“In view of the objectives of the G-20, it was considered important that countries and regions of systemic significance[1] for the international financial system[2] be included. Aspects such as geographical balance and population representation[3] also played a major part.”
Above is an extract from the G20’s main website, regarding the criteria of the G20 and what the Governments involved aim to achieve. As you can see where I’ve highlighted in bold and underlined;
- Regarding the monetary economic system that the G20 Governments abide by, its very important.
- The international finance system are essentially, a global organisation that are made up of the World Bank, the International Monetary Fund, and the World Trade Organization as well as private institutions such as: Commercial banks (Natwest, Abbey National, etc).
- This refers to the location of the country and the quota of the population.
“In times of universal deceit, telling the truth will be a revolutionary act.” - George Orwell
Please allow me to introduce myself…
So what this means:
- $500bn for the IMF to lend to struggling economies
- $250bn to boost world trade
- $250bn for a new IMF “overdraft facility” countries can draw on
- $100bn that international development banks can lend to poorest countries
- IMF will raise $6bn from selling gold reserves to increase lending for the poorest countries
So from what has taken place, essentially the IMF is like an International bank, imagine like your local Natwest but on a global scale, they even have an overdraft fund and according to a clause in Point 19 of the communiqué, the IMF are about to print their own money. What’s also interesting is that the IMF plan to sell Gold reserves to attain money to aid the poorest countries, as well as print money - so we’re seeing the transition of wealth between real world, to the one that is attributed, and/or created.
I have a major concern with, what is essentially a global bank given that amount of power.
The Recession hits
2 million Unemployed, the average loaf costing £1.09, shops have gone into administration: both Zavvi, and Woolworths.
These are bleak times, in Hackney alone for every one Job available, there’s thirty applicants. Thirty.
The number of homes repossessed by the Council of Mortgage Lenders (CML), rose last year by 54% to 40,000.
Jobs are hard to come by, mortgage payments are getting harder to fulfill, food and utility bills are rising.
Those men will brake your bones, Don’t know how to build stable homes.
“Three elements are often mentioned in the British recovery: the abandoning of the gold standard in 1931, the adoption of higher tariffs and the devaluation of the pound.”
Forward to 2009, this is exactly what we are facing. Just looking briefly at the ’30s Recession, often referred to as “The Great Slump” in Britain, The similarities are worrying, but then goes to show me that all of it is false, by having a down turn economically it adversely effects millions of people. In doing so a “New world order emerges from chaos”, which given the recent cases of unemployment, people will willingly accept.
Slave to the wage.
A Brief Look at the Rise of Capitalism
Feudalism: the social system that developed in Europe in the 8th century; vassals were protected by lords who they had to serve in war)
Mercantilism: (an economic system (Europe in 18th century) to increase a nation’s wealth by government regulation of all of the nation’s commercial interests)
Capitalism: an economic system in which private individuals and business firms carry on the production and exchange of goods and services through a complex network of prices and markets. Although rooted in antiquity, capitalism is primarily European in its origins; it evolved through a number of stages, reaching its zenith in the 19th century. From Europe, and especially from England, capitalism spread throughout the world, largely unchallenged as the dominant economic and social system until World War I (1914-1918)
Rebel, Rebel…
Capitalism isn’t working, we have reached its limit, the G-20 has occurred as a final emergency to save Modern Capitalism. It’s unlikely even that will. People are losing their homes, their livelihoods, for what exactly?
For Profit Over people.
- Good Times, Bad Times - Sang Led Zeppelin, but in Capitalism, good times means your Bosses taking home the profit that you help achieve, and when we’re in an recession, you’re expendable!
- Monopoly - Property is own by the Bank, not you, a Mortgage is a lifetime debt, some are never even paid off, so when your property owns you, that’s not Freedom, it’s enslavement.
- Hierarchy - by its very nature is based on the rich (with capital) ruling the poor (without capital, just selling their labour)
- Capitalism rewards hard work - You remember that myth, that if you worked hard you’d reap what you sow, not only is that a lie it is a complete fallacy, a farmer who might work a 10 -15 hour day earns considerably less than a footballer who will earn more in a month than the Farmer will.
- Poverty - Billions for wars, a trillion alone was raised for the IMF, and yet millions are still in poverty.
The Alternatives to Capitalism:
I want you to spin the wheel of Revolution:
Anarchism: is the political belief that society should have no government, laws, police, or other authority, but should be a free association of all its members.
Socialism: An economic and political system in which private property is abolished and the means of production (i.e., capital and land) are collectively owned and operated by the community as a whole in order to advance the interests of all.
Communism: An economic system and theory of government in which all basic and non-basic industries are owned by a central government for the benefit of all citizens.
“It is only the dead who have seen the end of war.” - Plato
Oh, life is bigger, It’s bigger than you…
This is why I protested the G-20 meeting, because even in the 21st century, there is still poverty, hunger, famine, war, and injustice.
In the 21st Century: Capitalism is still the dominant global economy.
This needs to change, and with it, in time the world will; it won’t be perfect, but it’ll be beneficial to the needs of the planet and the needs of Humanity, not the wants.
Photos courtesy of Luke Christodoulou.
Sources:
Sullivan, arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall.pp. 488. ISBN 0-13-063085-3.
http://www.pearsonschool.com/index.cfm?locator=PSZ3R9&PMDbSiteId=2781&P
MDbSolutionId=6724&PMDbCategoryId=&PMDbProgramId=12881&level=4.
http://www.imf.org/external/np/exr/facts/glance.htm
http://news.bbc.co.uk/1/hi/business/7979483.stm
http://www.cyberessays.com/History/163.htm
http://www.youtube.com/watch?v=KbU_Po4sfnw
http://news.bbc.co.uk/1/hi/business/7979918.stm
http://www.guardian.co.uk/business/2008/oct/05/creditcrunch.marketturmoil1
http://wordnetweb.princeton.edu/perl/webwn?o2=&o0=1&o7=&o5=&o1=1&o6=&o4=&o3=&s=feudal+system
http://encarta.msn.com/encyclopedia_761576596/Capitalism.html
http://www.investopedia.com/articles/economics/08/capitalism-history.asp
http://www.anti-capitalist.org/
http://news.bbc.co.uk/1/hi/business/7304300.stm
http://question-everything.mahost.org/Socio-Politics/AnarchyCapital.html
