Tuesday, February 24, 2009

Paul Volcker: Capitalism will survive, but not all of it (Jim) by der Augenblick

at 2/24/2009 01:14:00 PM Posted by der Augenblick
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1 comment:

  1. KeithFebruary 25, 2009 at 10:30:00 AM EST

    If some people don't know Paul Volcker was the Chair of the Federal Reserve in the late 1970's and into the Reagan era. He is famous for "inflation fighting" he raised interest rates close to 20% and caused purposely caused a recession. This is a fancy way of saying that he is a class warrior.

    By raising interests ates he forced business to contract which meant workers weer laid off, this created competition among the working class for jobs and pushed down wages. Volcker's term as chair of the Federal Reserve was a crucial moment in the neoliberal counter-revolution that really takes off with Reagan.

    What is interesting about his remarks here is that we are in basic agreement about the facts and about what needs to be done to start recovering from the crisis.

    Volcker says "Financial Capitalism" must not exist in the form it took in the past. If we do nothing then the system will be re-organized and we will gain nothing, but if we start to organize ourselves and start to imposes losses on our enemies in the financial sector by organizing debtors alliances, defenses, and mass defaults then we will change the while political matrix and open new possibilities for revolutionary democratic advances.

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