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Published On:06 October 2013
Posted by Indian Muslim Observer

Crisis of Imperialist capitalism: US shutdown and Euro crisis

By Dr. Abdul Ruff

America and Europe continue to reel under the meltdown and shut-down.

The financial crisis in USA and Europe has weakened the global economy and finances., creating insecurity among nations and common people. The corporates, industrialists and mega rich can only remain in power and proceed with its reactionary attacks because no one confronts it politically on behalf of the people, the major voters. Their media are propagandising for “humanitarian” military interventions. They also propagate to establish the United Socialist States of Europe in place of EU..

On the one hand, the growing economic divide between Germany and France and the continuing crisis in Italy have upset the balance of power between the euro zone’s three largest economies; on the other, austerity measures by the regimes have undermined the very existence of less privileged people even with minimum benefits. .Five years of austerity policies have dramatically intensified societal tensions in Europe and unleashed a broad political crisis.

There is hardly a country in Europe continent with a stable government. Further budget cuts in cash-strapped municipalities, states and at the federal level, as well as increased military operations in global war zones, will be at the core of the next government’s agenda.

Economic criss has gripped the USA with a shut-down The ongoing government shut-down was triggered by the refusal of Republicans in the House of Representatives to approve a government funding bill that did not include a delay in implementation of Obama’s healthcare law. The indications show that the aim of both the Democrats and Republicans in negotiations to reopen the government and raise the debt ceiling will focus on major cuts to entitlement programs.

Social Security and Medicare are the most likely target of the White House. The discussions over unpopular cuts to those programs are largely taking place outside of public view. The US Treasury Department issued a report projecting that a default by the US government would lead to an economic downturn “comparable to or worse” than the crash of 2008 which could have a catastrophic effect on not just financial markets but also on job creation, consumer spending and economic growth.

Extensive rhetoric for nationalism leads to wars to loot wealth of nations and destroy productive forces. Western terrocracies, including Israel, want wars by imperialist methods for resources They s refuse to serve the interests of society as a whole in their countries or elsewhere.

Many banks in Europe remain threatened with bankruptcy. Countries like Greece still need new debt relief despite draconian austerity measures. Obviously, the euro crisis was put on hold during the German election campaign so that austerity programs and other social attacks do not dominate the election campaign.

The financial and political crisis in Europe has re-emerged with renewed intensity after the German federal elections. Now the big business leaders are demanding fresh austerity programs and labour market reforms even in the core Euro countries of the European Union: Italy, France, and Germany.

Despite deep cuts that have left over half of the Euro youth is out of work, while the average sovereign debt has risen from 88 to 92 percent of gross domestic product (GDP) in just one year. As the number of millionaires balloon and the stock markets reach new heights, poverty, unemployment and government debt are growing apace. Austerity measures are aimed to enrich the wealthy at the expense of the common people and the public purse. Having starved the European economy with devastating austerity measures, the ruling forces are demanding even more measures of belt-tightening.

Europe, the original custodians of socialist ideals, have already changed their philosophy to serve the capitalist interests.

[Dr. Abdul Ruff is Specialist on State Terrorism; Chancellor-Founder of Center for International Affairs (CIA); Independent Analyst; Chronicler of Foreign occupations & Freedom movements (Palestine, Iraq, Afghanistan, Pakistan, Xinjiang, Chechnya, etc.). He is also former university Teacher. He can be contacted at abdulruff_jnu@yahoo.com]

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Posted by Indian Muslim Observer on October 06, 2013. Filed under , . You can follow any responses to this entry through the RSS 2.0. Feel free to leave a response

By Indian Muslim Observer on October 06, 2013. Filed under , . Follow any responses to the RSS 2.0. Leave a response

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