Tag Archives: Moody’s Analytics

Do you want to service your government’s debts forever?

At last the Torygraph comes out with an article that tries to make the Zombie Economy seem like a good thing.

The idea is to make slaves out of every working person in the UK, by ensuring that their taxes do not pay for services, but instead service the ever-mounting debts racked up by right-wing governments such as we have at the moment.

IMF economists cited research by Moody’s Analytics that suggested countries such as the UK, US and Canada could afford to live “forever” with relatively high debt shares compared with their pre-crisis averages.

… claims the Torygraph‘s Szu Ping Chan.

We can conclude that the so-called ‘developing’ nations were offered the same language by the IMF when it imposed ‘Structural Adjustment Programmes’ on them. These SAPs perform several functions as follows:

  • They enforce the sale of nationalised industries and resources (mostly to foreign-owned investors and governments.
  • They remove capital controls on money flowing into and out of the country.
  • They dictate the level of public spending.
  • They prioritise debt repayments and corporate welfare over infrastructure development and personal welfare (the good of a company becomes more important than the good of the people).
  • And they demand wage suppression and the restriction of labour unions.

As you can see, much of this is already taking place in the UK.

It is a way to force neoliberal economics onto a country without having to worry about getting the people to vote for it (even though, bizarrely, the UK did vote for it last month).

Kerry-Anne Mendoza’s extremely useful book Austerity: The Demolition of the Welfare State and the Rise of the Zombie Economy states: “Structural Adjustment Programmes are now being rolled out across Europe, disguised as ‘Austerity Programmes’ – to reorientate European economies toward servicing the debt economy. Central banks are lending to stabilise national economies that have been broken by the cost of bailing out other banks. The central banks make these funds contingent upon the national government imposing an Austerity programme.”

And you know what the worst of it is?

The whole point of the ‘Austerity programme’ is that you can never pay your way out of it.

Look at the amount of debt that George Osborne has racked up in just five years.

Source: Britain can afford to live with high debt ‘forever’, says IMF – Telegraph

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