Communicator (communicator) wrote,
Communicator
communicator

War Cabinet

Here is a tough analysis by Will Hutton in the Observer (Guardian Sunday sister paper) of the current financial mess.

What needs to happen on top is an assault on the dark heart of the global financial system - the $55 trillion market in credit derivatives.... a market more than twice the size of the combined GDP of the US, Japan and the EU. Until it is cleaned up and the toxic threat it poses is removed, the pandemic will continue. Even nationalised banks, and the countries standing behind them, could be overwhelmed by the scale of the losses now emerging.


In the eighties mad radicals (like me) used to say 'Nationalise the banks'. This was thought equivalently loopy to saying 'the Ice caps are going to melt' or 'Selling off public property to pay for tax cuts might not be such a brilliant idea'.

If steps had been taken to head off these problems at that time, they could have been implemented gently, and in a controlled way. At this rate we are looking not at nationalisation of the banks but a mass mobilisation of a world economic system, of co-operating governments, imposing ultra-cautious clamps on the world economy. And once that is in place, these structures will be utilised to address the problems with climate and energy (and then food and water) that will become world crises quite soon. It will be a like a war government. And that's if we are lucky.
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