The underlying cause of this finacial crisis is the falling long term rate of profit around the world. Following WWII it was at 8%. By the 70's it had fallen to 3% and now its about 2%. The capitalist class has put off the inevitable by attacking working peoples unions and wages. Call it what you want "Thatcherism, "rogernomics", Bill Clintons attacks on the social wage. The cuts havn't been deep enough to turn the rate of profit around foir the capitalists. So for the last 20 or so years there has been an explosive growth in derivatives ($450 Trillion at last count) and other forms of pretend money that exists only on hard drives. Property bubbles etc fueled by middle class greed.
Its all going to come to tears sooner than later. The middle classes everywhere will be ruined first and lose the lot. Pension funds, life savings, equity in property - and thats before the real panic starts.
The next crash will be much worse than 1929 because the penetration of the capitalist market is throughout the 3rd world and also the people of the former soviet union etc are not protected.
The biggest banks in the world hold most of the derivatives. Morgan Stanley, etc, the home of old money. So this problem goes to the heart of capitalism.
The fall will be devastating to the billions of working people who will learn that capitalism and democracy are not the same thing. The middle classes will go mad as a prior post mentioned. Facism, attacks on immigrants, strong man regimes, yep - will see it all.
Working people will get a chance to sort this out. We no longer have the stalinist thugs pretending to be communists and misleading every political opportunity for working people from the late 1920's. Hitler would have never come to power with out the idiocy of stalin. Spain would have had a succesful revolution. The social democrats are politically bankrupt and are just todies for the filthy rich. We also have the cuban revolutionaries as a fantastic example of what working people can achieve when they hold state power.
Bring it on.
Link here:
http://observer.guardian.co.uk/comment/story/0,,2170289,00.htmlIt's a good way down the page.