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A second financial crisis?

Richard Murphy of the Tax Justice Network and Tax Research UK has an excellent opinion piece in the Guardian, discussing the likelihood of a renewed crash in the world economy.

He is sceptical of the Eurozone’s crisis-fighting arrangements, agreeing with the general ‘kicking the can down the road’ diagnosis.

Anyone who thinks we are out of the crisis has to be seriously misguided. And as for those agreements, to shift world war metaphors, think of them as being something equivalent to Chamberlain’s Munich deal with Hitler – simple exercises in staving off the inevitable.

He also focuses on the split between the real economy and the financial economy, blaming the latter for draining  resources from the constructive economy.

the refusal of the owners of this wealth to engage it constructively in the economy has been a contributory factor to underinvestment, stagnant real wages, and the rise in what has effectively been enforced borrowing by far too many households struggling to make ends meet

Ultimately, he argues that to resolve this crisis the State must exert itself to tame the feral financiers.

There is only one way out of this – and that is to bring feral finance back under control.


Posted in News.