Translated "Avante!" article by Jorge Cadima, Member of the International Department
2016 begun with a new worldwide market crisis. Despite the fluctuations, it is clear one is before a new convulsion amid the international financial system. There exists an unquestionable fact: the peoples’ misery policies, but of subsidies for the great financial capital (the so-called Quantitative Easing – QE programmes, the USA central bank seeks to currently reduce), promoted upon 2008, did not resolve the major problems of the world capitalist system: debts and speculative bubbles were aggravated, not having stirred the productive economy. But world capitalism does not work anymore without the presence of easy money injections in its veins. William White, the BIS (Bank for International Settlements) ex-economist-in-chief (“ the bankers’ bank”) and a current OECD leader clearly says: “ At the moment, the situation is worse than in 2007. Practically, all our macro-economic ammunitions were used […]. Debts carried on growing during the last eight years and achieved such levels throughout the world , becoming a serious source of problems. It is obvious that in the recession to come, many of these debts are not to be [paid], a non-comfortable situation for many of those who hold valuables” (in the Telegraph on-line, 2016.01.19). The journalist who obtained information on the statements on the World Economic Forum ‘s eve, in Davos, added that
“the QE and the USA Federal Reserve easy money policies and their counterparts” are a kind of “ addiction”, in which they spend today what they cannot, and end up by“ loosing the effect” and the day comes when “there is no money to spend tomorrow”.
“Easy money” only but existed for bankers and capitalists. Last week (2016.01.18), Oxfam, the British charity organization, published a report with the title “ An economy for the 1%”. By mentioning the financial giant Credit Suisse, in order to explain the richest 1% currently hold more wealth than the other 99% of the world population. Oxfam adds other impressing numbers: 62 individuals hold the same wealth as 3.6 thousand million people (half of the planet’s population), in 2015. Since 2010, these 62 multi-millionaires’ wealth increased 44%, whilst, for the poorest half of mankind, there was a 41% fall. Most assuredly, the crisis was not for all. There was no place for “repartition in sacrifices”, as the capitalism crisis was used to promote an authentic class plunder, which greatly fattened the great capital at the peoples’ cost. The state budgets were used to save bankers (the BANIF is the most recent example within our country), but the bankers do not even pay taxes to finance the state budgets. The Jornal de Negócios published ( in 2015.12.12) news on our country, entitled “ The 1000 families that owen all this (and do not pay taxes)”. Certainly it is not only our problem. Reuters said (in 2015.12.22) that “ Seven of the greatest investment banks, that operate in London, only paid off a few or none taxes in Great Britain, last year”. The seven mentioned financial giants had 5.3 thousand million dollars profit in the country, in 2014, but paid but 31 million, that is, less than 0,6% of their profits. And five out of the seven not even paid a penny. Whoever expects that the problem is to be resolved with “ more regulation” or “more Europe”, can wait. Among the seven mega-swindlers, is the Goldman Sachs, from where Mario Draghi, the European Central Bank president, is issued from.
The crisis new explosion, in 2016, ought to aggravate the existent very sharp contradictions amid world capitalism. Conscientious that a new “austerity” round for workers and peoples is a great opportunity for multimillionaires, is not compatible with democracy, freedom and peace, important sectors of the dominant class prepare repression, authoritarism and war. The only option for workers and peoples is to prepare and face confrontation.