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The Saker
A bird's eye view of the vineyard

offsite link Moveable Feast Cafe 2022/10/04 ? Open Thread Tue Oct 04, 2022 17:00 | herb
2022/10/04 16:00:02Welcome to the ‘Moveable Feast Cafe’. The ‘Moveable Feast’ is an open thread where readers can post wide ranging observations, articles, rants, off topic and have animate discussions of

offsite link Update from Andrei (hopefully the last related to Hurricane Ian) Mon Oct 03, 2022 20:10 | The Saker
Dear friends This will be my last hurricane-related post (God willing!). Tomorrow my family and I will finish moving the objects we can salvage from the house. But on Wednesday

offsite link Update from Andrei Sat Oct 01, 2022 21:36 | The Saker
Dear friends We found a home to stay. We have workable Internet. Best of all, a neighbor told us that in his opinion our house might be fixable, but it

offsite link ?Biden? Fulfilled a Promise on Nord Stream 2 Sat Oct 01, 2022 20:48 | Leo V.
For those who haven’t seen this footage being reposted the past few days, ”Biden” promised to put an end to Nord Stream 2 on February 7, 2022.

offsite link Moveable Feast Cafe 2022/10/01 ? Open Thread Sat Oct 01, 2022 05:30 | herb
2022/10/01 04:30:01Welcome to the ‘Moveable Feast Cafe’. The ‘Moveable Feast’ is an open thread where readers can post wide ranging observations, articles, rants, off topic and have animate discussions of

The Saker >>

Public Inquiry
Interested in maladministration. Estd. 2005

offsite link Formal complaint against Robert Watt Anthony

offsite link RTE bias complaint Anthony

offsite link Fergus Finlay and the maternity hospital ‘gotcha’ trap Anthony

offsite link Irish Examiner and fake news Anthony

offsite link Labour Party: The unvarnished truth Anthony

Public Inquiry >>

Human Rights in Ireland
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offsite link UN human rights chief calls for priority action ahead of climate summit Sat Oct 30, 2021 17:18 | Human Rights

offsite link 5 Year Anniversary Of Kem Ley?s Death Sun Jul 11, 2021 12:34 | Human Rights

offsite link Poor Living Conditions for Migrants in Southern Italy Mon Jan 18, 2021 10:14 | Human Rights

offsite link Right to Water Mon Aug 03, 2020 19:13 | Human Rights

offsite link Human Rights Fri Mar 20, 2020 16:33 | Human Rights

Human Rights in Ireland >>

Lockdown Skeptics

The Daily Sceptic

offsite link Forecasters are Predicting a Cold Winter in Europe Tue Oct 04, 2022 13:12 | Noah Carl
According to the Financial Times, weather forecasters are predicting that Europe will get a cold winter with relatively low wind and rainfall. This does not bode well for the continent's energy crisis.
The post Forecasters are Predicting a Cold Winter in Europe appeared first on The Daily Sceptic.

offsite link The End of Doctors? Freedom to Ignore What the Government and Pharmaceutical Industry Say Should Wor... Tue Oct 04, 2022 11:12 | Dr Frank Mercy
A dangerous new law in Australia, if passed, will ban medically trained doctors from expressing any opinion that goes against what Government health bureaucrats determine to be in the 'best interests' of the public.
The post The End of Doctors’ Freedom to Ignore What the Government and Pharmaceutical Industry Say Should Worry Us All appeared first on The Daily Sceptic.

offsite link Lockdowns Have Left More Than a Third of Young People Feeling Their Life is Spiralling Out of Contro... Tue Oct 04, 2022 09:00 | Will Jones
More than a third of young people feel their life is spiralling out of control following years of Covid restrictions, a study has found, confirming the immense harm inflicted on the young.
The post Lockdowns Have Left More Than a Third of Young People Feeling Their Life is Spiralling Out of Control, Study Finds appeared first on The Daily Sceptic.

offsite link MPs Urge High Street Stores to Bring Back Female Changing Rooms Following Surge in Women Suffering S... Tue Oct 04, 2022 07:00 | Will Jones
MPs are urging major high street stores to scrap unisex changing rooms following a surge in women suffering sexual assault and harassment and traumatic encounters with men.
The post MPs Urge High Street Stores to Bring Back Female Changing Rooms Following Surge in Women Suffering Sexual Assault and Harassment appeared first on The Daily Sceptic.

offsite link News Round-Up Tue Oct 04, 2022 02:26 | Will Jones
A summary of all the most interesting stories in the past 24 hours that challenge the prevailing orthodoxy about the virus and the vaccines, the ?climate emergency? and the supposed moral defects of Western civilisation.
The post News Round-Up appeared first on The Daily Sceptic.

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The current debt crisis

category international | public consultation / irish social forum | opinion/analysis author Sunday August 07, 2011 19:07author by Paddy Hackettauthor email rasherrs at eircom dot net Report this post to the editors

What is the solution?

Throwing more debt, in the short or long run, at the problem will not solve the problem. At most it merely alleviates or postpones the problem. This is precisely because the source of the problem does not lie within the process of circulation (i.e. money and credit spheres). It is contained within the production process­­­.

I published a piece on this site some time ago in which I argued that that the solution to the problem manifesting itself as a Euro zone crisis is in fact a crisis located within the capitalist process of production itself. Recent developments confirm the truth of this thesis. Despite the recent solution launched by the EU the problem continues to persist assuming different and even more acute and universal forms. This is because the EU solution is essentially confined to the process of circulation of capital. It is not a solution concerned with the production process. For over twenty years the ruling class has sought to overcome the problems of capitalism by influencing the circulation process: increasing debt through the expansion of the credit system. Even the potential threat of the working class is sorted out by throwing debt at the problem. This is why the welfare or nanny state is so large in Ireland and the radical Left so weak. The ruling class provides the working class particularly the less educated and cultured layers of it with goodies: such as welfare benefits in the form of income supplements, fuel subsidies, medical cards and unmarried mothers’ income. But the resources to pay for all of this have their source in borrowed money. It is for this and other reasons that the Irish working class is so passive and unquestioning.


The same applies to other aspects of capitalist life. Many capitalist companies continue to exist because they are supported by the state through various forms. Under a normal healthy capitalism, if I can use such language, these companies would not exist. Only the stronger capitalist companies would survive. Today there are lots of (bubble) companies existing because they are propped up by a mountain of debt. But the ruling class, by throwing credit at the problem, merely delays the day of reckoning. The day of reckoning has now come. The nature of the class struggle will probably take on a different form as will the working class itself. Hopefully it will lead to the realization of communism.


Much of the radical Left/Right falsely posit the source of the current capitalist contradictions as existing within the process of circulation of capital. This is why it persistently confines itself to solutions that are grounded in the process of circulation of capital. They focus on money, credit, spending, taxation and commodities. Each one of these forgoing forms is necessarily confined to the sphere of circulation. Consequently they cannot provide the key to the solution of the Euro crisis let alone the current world capitalist crises. Much of the radical Left/Right are acting like King Canute. The crisis of capitalism is the crisis of the radical Left. It is also a crisis of consciousness, organisation and leadership within the (if today I can suggest the existence of such a phenomenon) working class movement.The Euro currency crisis, today, has found its extreme expression, economically and politically, in Ireland and Greece spreading into Spain and Italy. The Greek social system is enormously indebted to such a degree, that it cannot sell government bonds to acquire credit with which to meet the cost of running the state. Consequently the Greek ruling class is being forced to seek loans from the EU under extremely strict conditions that will, in the short term at least, further hinder growth. These austere conditions involve enormous privatisation of state companies and large cut-backs in state spending. Much of this austerity package will entail job losses, diminished incomes and reduced welfare benefits. Even this forthcoming Euro loan will not go near getting Greece out of its financial and economic problems. At most it may merely temporarily alleviate the financial problem. This punctuated policy amounts to death by a thousand cuts.Some  commentators mistakenly argue, Constantin Gurdgiev and Brian Lucey, that the better approach is a comprehensive deal now that sorts out Greece's problems once and for all. This, they claim, must involve  debt forgiveness and presumably economic restructuring. They argue that a piecemeal approach can only but prolong the crisis leading in the future to an even more devastating situation. This, they claim, can only intensify the problem thereby rendering the collapse of the Euro more likely. This event will have widespread ramifications.


The EU tops, and their subalterns, argue that their punctuated policy is the best policy in the circumstances. By staging financial help to Greece accompanied by the imposition of belt tightening it appears that the EU hopes to protect the Euro. The overall fear among the European bourgeoisie is the collapse of the Euro and its ensuing impactNeither policy can solve the crisis. The Euro crisis is the result of a much deeper dynamic.The problem has its source in the failure of capitalism to produce sufficient absolute surplus value to compensate for the falling general rate of profit --the regulator of the capitalist economic system. Resisting this ongoing falling volume of surplus value will not be sorted out by throwing more debt (paper) at the problem. At most this just postpones the crisis leading consequently to an even more devastating crash.The solution has to be the production of more surplus value. This economic problem is lodged within the production process --not in the circulation process. This means that transformation must take place within the process of production. Consequently this leaves only two options open.The capitalist solution: A massive development and investment of technology on an unprecedented scale leading to an enormous increase in the rate of surplus value and thereby a corresponding enormous increase in the volume of total surplus value produced.The communist solution: A revolutionary transformation of the production process involving the abolition of capital and thereby the valorization process. Under these latter conditions the production process will exist to serve popular needs.Throwing more debt, in the short or long run, at the problem will not solve the problem. At most it merely alleviates or postpones the problem. This is precisely because the source of the problem does not lie within the process of circulation (i.e. money and credit spheres). It is contained within the production process­­­.


In short all rhetoric by elements within the Left (SWM, SP, WP etc) calling for more spending is merely a call for more debt to be thrown at the problem which, in a sense, is ironically  the very source of the problem. It is precisely just what right wing commentators such as David McWilliams, Constantin Gurdgiev and Brian Lucey are clamouring for too.

Related Link: http://paddy-hackett.blogspot.com
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