Tuesday, June 4, 2013

The Coming Mass Strike Upsurge of 2014-2015

Webster Tarpley
May 30, 2013

Where are we in the unfolding of the current world economic depression, and what can we know about the events that lie ahead? The US Memorial Day holiday weekend provides the occasion to venture some answers to these questions.

The current world economic depression reached critical mass in the autumn of 2008. The world derivatives panic of that year and the bankruptcy of the British and US banking systems was then followed in 2010 by a European banking panic, which has been disguised as a sovereign debt crisis. That European banking crisis continues to the present day, made worse by brutal and stupid austerity policies imposed by the International Monetary Fund, the European Central Bank, and the European Commission. With the US and European economies depressed, the slowdown has spread across the world to impact Brazil, China, and India.

No country has so far been able to turn the corner from depression to broad-based recovery. Japan is currently using high-risk competitive evaluations to end decades of stagnation, but this has been punctuated by signs of financial panic. The supposed success story of Iceland, touted especially by Keynesians, has been exposed as a big lie by the recent election there, which revealed a population driven to desperation by a massive collapse of its standard of living – to the point where voters were willing to bring back the hated right-wing parties responsible for the pre-crash orgy of speculation.

The unfolding of the current depression is roughly parallel to the development of the world economic crisis of the 1930s. Back then, the depression was triggered when Lord Montagu Norman’s Bank of England sharply raised the British discount rate in September 1929, sucking huge amounts of hot money across the Atlantic from New York to London, and resulting in the fabled US stock market panic of October 1929. That was followed by a European ranking crisis in the summer of 1931, which started with the Kreditanstalt of Vienna, then brought down the Danatbank and the rest of the large German banks, and culminated with the watershed default on gold payments by the Bank of England in September 1931, which destroyed the pound-based world monetary system of that era. The British debacle then provoked a panic run on US banks which accelerated during the 1932 and into the spring of 1933. By the time of Franklin D. Roosevelt’s inauguration in March of 1933, every bank in the United States had shut its doors. The Roosevelt Bank Holiday merely provided legal cover for those stricken institutions.

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