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Guess Who Benefits From Austerity Politics?

by ROB URIE
With so called “technocrats” being installed in Italy and Greece to lead governments through austerity programs, the discussion of who benefits from these programs and who pays remains largely in the background. When benefits are discussed they are usually couched in terms of systemic benefits under the guise that if the “system” benefits then everyone benefits. But the austerity programs being implemented straightforwardly benefit the large banks to the detriment of the citizens of these countries.

The banks see two benefits from austerity policies: the use of state power to enforce their claims that debts be repaid and they see asset prices driven down. The first goal is intuitive enough and it well explains why even in the U.S. government policies have been designed to facilitate debt repayment rather than to dismiss debts outright. No matter how malodorous the terms under which bankers lent the money, as long as borrowers can be forced to repay it, the banks benefit. And with sovereign debt, the “borrowers” being forced to repay the debt tend to be ordinary citizens who had little to do with incurring it and who just as likely saw no benefit from it.

The second benefit to bankers is less intuitive but more insidious. After all, why would banks want to see the value of the assets that are the collateral for the loans that they’ve made fall? The reason why is that the assets that the banks own are the loans that they’ve made and not the underlying collateral. As long as borrowers are forced to repay these loans the payments that the banks receive become worth more as collateral values fall because the money received will then buy more. Expand this idea to state assets in Greece and Italy and the banks can own water systems and roads from which they can extract fat incomes in perpetuity.

http://www.counterpunch.org/2011/11/18/who-benefits-from-aus...



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Let me guess before I read

Let me guess before I read the article:

Banks, the uber-wealthy, and politicians.

Edit: Yep. That was too easy.

Technocrat

is a term which essentially means "banker-politician".
It is the name they use to describe what we could call "puppets".

There's an entire ecosystem operating in the halls of power which is inhabited by these various forms of evil slithering parasites. Technocrats are just some of the ones that we are normally allowed to see. They are the ones which get dressed up in suits and ties, and emerge from the slime for public view.

Stunning Well done. This is

Stunning

Well done.

This is what the Ron Paul message is all about.
First and foremost...
If you're an American You Are Not -- I Repeat -- You Are NOT Free.

Since 1913 when Congress was manipulated into signing the Federal Reserve Act into Law we have be living in debt slavery & tax bondage to the FED/IRS Complex.
Ron Paul has been risking his life fighting for our freedom.
... No Congressman or President has ever attacked the FED/IRS Complex and lived to tell about it. Not one.
So Ron Paul is a bigger "hero" than anyone has imagined.
Ron Paul want to abolish slavery in America for ALL Americans!

Indeed

Indeed

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