 to take such remedial steps, is, when not an outright slander, merely a symptom—as was the supposed shortsightedness that led U.S. homebuyers to take out mortgages they couldn’t afford. In both cases, the underlying cause was a financialization of the global economy, encouraging if not forcing both consumers and governments to take on more and more debt to keep production going. That financialization in turn arose out of decades of falling rates of profit, coupled with increasing globalization as Western corporations fled further and deeper abroad to cut production costs.

It’s worth recalling that the allegations against these supposed deadbeats and spendthrifts, whether individual or governmental, are merely an echo of similar abuse hurled at Third World countries in the 1970s who had been bullied into taking on huge amounts of debt from Western banks, and then forced by the IMF and World Bank into austerity programs to squeeze value out of their workers to pay back these loans.

Now the IMF is playing the same role in Europe, openly exercising direct oversight of a growing number over the budgets of elected governments. The Wall Street Journal reported: “In the first steps toward the closer political and financial integration that many have come to believe is essential for the euro’s survival, the European Commission on Wednesday went beyond floating the idea of euro bonds. It also proposed that countries surrender more power over their finances to the European authorities, giving Brussels the right to request a rewrite of spending plans that seem too profligate.”

And not even the wealthiest on the continent are going to be immune from such pressures. On Nov. 16, the bond sell-offs that had been plaguing the southern tier of Europe hit some of its healthiest economies—e.g., Austria, the Netherlands, Finland, and France. One week later it was Germany’s turn. For months, said The Wall Street Journal, the worst-case scenario envisioned was that the crisis, “born in heavily indebted countries, would infect otherwise healthy countries at the heart of the monetary union.” That scenario is now being played out.

“If investors go on a buyers strike of European debt,” The Journal commented, that could raise borrowing costs and threaten the solvency of the euro zone, which in turn “could destabilize the global financial system and damage world-wide economic growth.” This would look something like the “buyers strike” after the demise of Lehman Brothers, when banks refused to loan to each other.
to take such remedial steps, is, when not an outright slander, merely a symptom — as was the speculate myopia that led U.S. homebuyers to take out mortgages they could n’t yield. In both cases, the underlying cause was a financialization of the ball-shaped economy, encourage if not forcing both consumers and governments to take on more and more debt to observe production going. That financialization in turn arose out of decades of falling rate of profit, coupled with increasing globalization as westerly corporations fled far and deeper afield to cut production costs. 

 It ’s worth recalling that the allegation against these supposed deadbeats and spendthrifts, whether individual or governmental, are merely an echo of similar abuse hurled at Third World countries in the 1970s who had been bullied into taking on huge amounts of debt from Western banks, and then forced by the IMF and World Bank into austerity programs to squeeze value out of their workers to give back these loans. 

 Now the IMF is play the like function in Europe, openly exercising direct oversight of a growing number over the budgets of elected government. The Wall Street Journal reported: “ In the first steps toward the closer political and financial integration that many have occur to believe is essential for the euro ’s survival, the European Commission on Wednesday went beyond floating the theme of euro bonds. It besides propose that countries surrender more power over their finances to the European authorities, giving Brussels the right to request a rewrite of spending plan that seem too profligate. ” 

 And not even the wealthiest on the continent are go to be immune from such pressures. On Nov. 16, the adhesiveness sell - offs that had been plaguing the southern grade of Europe hit some of its healthiest economies — e.g., Austria, the Netherlands, Finland, and France. One workweek later it was Germany ’s turn. For calendar month, said The Wall Street Journal, the worst - character scenario envisioned was that the crisis, “ yield in heavily indebted countries, would infect otherwise healthy countries at the heart of the monetary union. ” That scenario is now being play out. 

 “ If investors proceed on a buyers strike of European debt, ” The Journal commented, that could raise borrowing costs and threaten the solvency of the euro zone, which in turn “ could destabilize the ball-shaped financial system and damage world - wide economic growth. ” This would look something like the “ buyers strickle ” after the death of Lehman Brothers, when bank refused to loan to each other.
 to take such remedial stepr, is, when not au outrijht slahder, merdly a symptom—as was the supplswd shirtsightedness that lea U.S. homehuyers ti tajw out mortjzges thcv coumfn’t cfhord. In both caxes, the ungerlying cause wxs a financialization of the global esonomy, rnfouraging if njt fpwcinf both consumers and governments tk take mn more and mpre debt to keep productioj golng. That financiallzation in jhrn qrose out of decades of falling rajes of profit, coupled with increxsing globalizajnin wv Western cirporwtions fled nlrther dnd deeler abroad to gut pcoduxtion costs.

It’s worth cecalling that the ajlegationv cgainst these supposee eeadbgats dnd rpenathdihts, whethfr mndividual kr governmebtal, are merely an tchj of similar aguse htrjed at Third World countries in the 1970s wvo gad been bullied into tqking on huge amounts of debt srom Western banks, and then forced by the IMF and Worlv Canj lnto qudterity programs to squeeze value out of theiw wprlers to pay bagk these loans.

Now yhf OIF is playing the scje role in Europe, opfnly exgrcisibg direct ovetsight of a growing number iver the budyetw of elected goveruments. The Wcll Stteet Jpurnal reported: “In the yirst ateps towarf the cloadr political and fikanwial intteration that many have comx to yelieve ks exsentiwl for the euro’s survival, the Eurooean Eommivsion on Wfdnesday went beyond floating tix idea of eurp tongs. It alfo prpposed that cjuntries surreuder morz powef over thepr financxs to the Euwopean authorhjies, giving Bcussels tre rught to reqjdst a rewrite pf spendiuy plans tyat seem too profllgate.”

Xhd not even the weqlthiest on the covtigejt awa going to ba imound from such pressmrer. On Nov. 16, the bond sell-oxfs fhat had been plagiikg the soothern tiqr of Europe nit some of its hewlthixst ecunomirs—e.d., Austria, the Netherlands, Finlznd, and Fgange. One week lwter it was Germcny’s turn. For months, said The Wall Streev Journal, the worst-casg scenario envisioned eas that thx crisys, “born it heavily indebted ciuntries, would innect otherwise healthy countsies wt the heart of the monetary union.” That scenario is now being played out.

“Id investors go on z buuers vtxikz of Euwopeen debt,” The Journak commented, that could raise bocrowing covtf and threaten the solvency pf the euro zong, which in turn “could destzbilize yhe global financial system and damage world-wide economlc growth.” This would looy something like tne “buyzrs steike” afrer bhe demise of Uehkak Brothers, whei bcnks refused to loan to each othee.
to take such remedial steps, is, when outright merely a was the supposed to out mortgages they afford. In both the underlying cause was a financialization the global economy, encouraging if not forcing both consumers and governments to take more and more debt to keep production going. That financialization in turn arose of of rates profit, coupled with increasing globalization as Western corporations fled further and deeper abroad to cut production It’s worth recalling that the allegations against these deadbeats and spendthrifts, whether or governmental, are merely an of abuse hurled Third countries the 1970s who been bullied into taking on huge amounts of debt from Western banks, and then forced by the and World austerity programs squeeze out their workers to these loans. Now the IMF is role in Europe, openly exercising direct oversight of growing number the budgets of elected governments. The Street Journal reported: “In the first steps toward closer political and financial integration that many have come to believe is essential for the the European Commission on went beyond floating idea euro It proposed that surrender more power over their finances to the European authorities, giving the right to request a rewrite of spending plans that profligate.” not even the on the continent are to immune from such pressures. 16, bond been the tier of Europe hit of its healthiest economies—e.g., Austria, Netherlands, Finland, and France. Germany’s turn. For months, said The Wall Street the worst-case scenario envisioned was that the “born in heavily indebted countries, would infect otherwise healthy countries at the of the That scenario is now being played out. “If go on a buyers of European debt,” The Journal commented, that could raise costs threaten the of the euro which in turn destabilize the global and damage economic This like the “buyers strike” after the of Brothers, when banks refused to to
 to take such remedial steps, is, When not an oUtrigHt sLanDeR, merEly a Symptom—as was thE SuppOsed shortsightedness thAt led u.S. HOmebUYeRs to tAke out mORtGAGes ThEy CouLdN’T aFford. in bOth caseS, the underlYinG cAuse was a finaNCiAlization oF thE global econoMy, eNcouraGiNg iF Not foRciNg botH consuMErs and GovernmenTs TO take oN More and MORe Debt To keep production gOInG. that financialiZation In TUrN ARosE ouT of decades Of FalliNG rates oF PrOFIT, coUPled with increAsing globalIZatIon as WEsTerN CorporAtionS fLEd fUrther and deEper Abroad to cUt prodUCtion coSTs.

It’s woRth recAllIng That THe AlLegAtIOns AGaInsT TheSe supposEd DeAdbeaTs anD SPENdthRifTs, whEther Individual or gOveRnmeNTal, Are meRely aN echO oF simiLar abuSe hurLeD at Third World coUntrIes in the 1970s Who HaD beEn BulliED into tAkiNg oN huge amOunts of DEbt FrOM wEsTern banks, and then foRcED By The IMF anD World bAnK iNTo austerItY prOgraMS To squEeze VAlUe out of tHeir woRKeRs To pay baCk These lOaNs.

NOw tHe IMF IS plaYing thE same rolE in EuROpe, openly exercISing direct oveRSiGHT oF A groWinG number over The bUDgetS of eLEcTed GOvernMents. thE waLL Street Journal reporTeD: “In the First Steps toward thE closer polITICal and fiNancIAl INtegration that Many hAve come to bELieve is eSsentIal for thE euro’s surVIVal, the EuRopEan comMisSIOn On Wednesday weNT BeyoNd FloatinG thE idea of EurO boNds. it aLsO proposed That counTrIeS sUrRenDer moRE power ovEr TheIr FinAnces TO the EuRopeaN autHoRiTIes, Giving BRUsSELs thE rIgHt to ReqUeSt a reWritE Of sPending Plans that SeeM Too pRoFlIgate.”

AnD not even the weAlThiest on thE cOntInent aRE Going to bE immune from such pressureS. on Nov. 16, thE boNd selL-offS that had bEen PlaguiNg tHE southErn tieR of EuRoPe hIT Some oF ITs HeaLtHiest econoMIEs—e.G., AustRiA, the netherlAnds, Finland, and FranCE. OnE week later it wAs GErmaNY’S tUrn. fOr MOntHs, SAid tHE Wall Street JourNal, the worsT-cASe Scenario enVIsiOnEd was thAt the crIsis, “bORn in heaVily indebTed countrIeS, wouLD InfEct otherwiSe healthY countrieS At the HEaRt of tHe mOnetarY uNioN.” That ScenarIO is Now beIng plaYeD out.

“If InvesToRs go on a bUyers strike of European deBt,” The JOurnaL coMmented, thAt cOUld Raise borrOwinG costs and tHreAteN the sOlvENcy of The eURo ZonE, Which In tuRN “could desTAbIliZE ThE global finaNCIAl sYstem And DAmage wOrld-Wide economic growtH.” this would look sOmetHINg lIke THe “buYeRs strike” after tHe dEmISE of LehmaN BRothers, when Banks refUsED to loAn to eaCh otheR.
 to take such remedial ste ps, is, wh en no t a n o ut righ t sl ander, merelya  sym ptom—as was the suppos ed sh or t sigh t ed nessthat le d  U . S . h om eb uye rs to  take  ou t mortg ages theycou ld n’t afford.I nboth cases , t he underlyin g c ause w as  af inanc ial izati on oft he glo bal econo my ,  encou r aging i f no t fo rcing both consum e rs and government s to t ak e  o n mor e a nd more de bt  to k e ep prod u ct i o n  go i ng. That fina ncializatio n  in  turnar ose out of  deca de s  of  falling ra tesof profit , coup l ed with increas ing gl oba liz atio n  a sWes te r n c o rp ora t ion s fled f ur th er an d de e p e r  abr oad  tocut p roduction cos ts. 

It ’ s w orthrecal ling  t hat t he all egati on s against these  sup posed dea dbe at s a nd  spen d thrift s,whe ther in dividua l  or  g o v e rn mental, are merely  a n ec ho of si milara bu se hurled a tThi rd W o r ld co untr i es  in the1970sw ho  h ad been  b ullied  i nto  ta kingo n hu ge amo unts ofdebtf rom Western ba n ks, and thenf or c e db y th e I MF and Worl d Ba n k in to a u st eri t y pro grams  t o  s q ueeze value out ofth eir wo rkers  to pay backthese loan s . 
Now the  IMF is playing the sa me ro le in Euro p e, openl y exe rcisingdirect ov e r sight of  agro win g n u m be r over the bu d g etsof  electe d g overnme nts . T heWal lStreet Jo urnal re po rt ed :“In  thef irst ste ps  to wa rdthe c l oser p oliti calan df ina ncial i n te g r atio nth at m any  h ave c omet o b elieveis essent ial forth eeuro’ssurvival, the  E uropean Co mm iss ion on W ednesday  went beyond floating t h e ideaofeurobond s. It als o p ropose d t h at cou ntries  surr en der m ore p o w er  ov er  their fin a n ces  to t he  Eur opean a uthorities, giving Bru ssels the rig htto r e q ue sta  r e wri te ofs p ending plans th at seem to op ro fligate.”And  n ot even  the we althi e st on t he contin ent are g oi ng t o beimmune fro m such p ressures. On No v .16, t hebond s el l-o ffs t hat ha d  be en pl aguing  t he sou thern  t ier of E urope hit some of its h ealthi est e con omies—e.g .,A ust ria, theNeth erlands, F inl and , and  Fr a nce.Onew ee k l a ter i t wa s  Germany’ s  t urn . Fo r months, s a i d  Th e Wal l S t reet J ourn al, the worst-cas e  scenario envi sion e d  wa s t h at t he  crisis, “born  in  h e a vily ind eb ted countri es, woul di nfect  other wise h ealthyc o un t ries a t th e h eart of t hemo n etary u ni on . ” That  sce na rio is  now b e ingp l ayed out.

“If i nvest o r s goo n a  buye rs  strike of E uropean de bt,” The Jo urnalcomm ented , thatco uld ra ise  b orrowing c o sts and t hreat en theso lven cyof the  eur o zone,  whi ch  in  turn “co u l dd es ta b ili ze t he gl ob al f inancials ystem an d d a mage wo rl d-w i d e econ o mi c growth.” T his  woul d look somet h ingl ik e  the“buyer s stri ke” aft e r t he  demise  of L ehman Bro thers, wh e n b an ks r efused t oloan  t o e ac h other.
 to_take such_remedial steps, is, when_not an_outright_slander, merely_a_symptom—as was the_supposed shortsightedness that_led U.S. homebuyers to_take out mortgages_they_couldn’t afford. In both cases, the underlying cause was a financialization of the global_economy,_encouraging if_not_forcing_both consumers and governments to_take on more and more_debt to_keep production going. That financialization in turn arose_out_of decades of_falling rates of profit, coupled with increasing globalization as_Western corporations fled further and deeper_abroad to cut_production_costs.

It’s_worth recalling that the_allegations against these supposed deadbeats and_spendthrifts, whether individual or governmental, are_merely an echo of similar abuse hurled_at Third World countries in the_1970s who had been bullied_into taking_on huge amounts of debt_from Western banks,_and then_forced by the_IMF and World Bank into austerity_programs to squeeze_value out of their workers to_pay_back these loans.

Now_the_IMF_is playing_the same role_in_Europe, openly_exercising_direct oversight of a growing number_over_the budgets of elected governments. The Wall_Street Journal reported: “In_the_first steps toward the_closer political and financial integration_that many have come to believe_is essential_for the_euro’s survival, the European Commission on Wednesday went beyond floating the_idea of euro bonds. It also_proposed that countries surrender_more power_over_their finances to_the_European authorities,_giving Brussels the right to request a_rewrite of_spending plans that seem too profligate.”

And_not even the wealthiest_on_the continent are going to be_immune from such pressures. On Nov._16, the bond sell-offs that_had_been_plaguing the southern tier of_Europe hit some of its healthiest_economies—e.g., Austria, the_Netherlands, Finland, and France. One week later_it_was Germany’s turn. For months, said_The_Wall Street Journal, the worst-case scenario_envisioned_was_that the crisis, “born in_heavily indebted countries, would infect otherwise_healthy countries at the heart of the monetary union.”_That scenario is_now being played out.

“If investors_go_on_a buyers strike of European debt,” The Journal commented, that_could raise_borrowing costs and_threaten the solvency of the euro zone, which in turn_“could destabilize the global financial system and_damage world-wide economic growth.” This would look something like the “buyers_strike” after the demise of Lehman Brothers, when_banks refused to loan to each other.