The Crisis, Bailouts, Quantitative Easing, Tapering and Class War
Since 2009 the US state has been undertaking Quantitative Easing (QE), which has involved the US state creating $ 85 billion a month, effectively electronically printing money out of thin air, and linking this to the “purchasing” of paper assets like US government bonds and also more importantly mortgaged backed securities from banks, hedge funds, private equity firms, and asset management companies, which lost their value when the capitalist crisis hit hard in 2008. Through this, these financial institutions and banks have been given up to $ 85 billion a month for the last five years. Much of this money has been used by these corporations to increase their speculative activity, including speculating on government bonds sold by the likes of the South African, Brazilian, Argentinean, and Turkish states. Now the US state has been looking to start tapering QE and speculators as a result are exiting these government bond markets. As this article explores it will probably not be the ruling class (capitalists and top state officials) that suffer the worst convulsions associated with tapering, although they may be affected, but the working class in countries such as South Africa, Brazil, Indonesia, India, Argentina and Turkey. This article examines why and how this could take place, how ruling classes from different countries are trying to protect themselves; and why and how the working class will in all likelihood be worst hit. In order to, however, understand how the class war around QE is unfolding it is important first to look at the role states have played during the crisis, along with the competition that exists between states.
Read more: The Crisis, Bailouts, Quantitative Easing, Tapering and Class War
Nkandla: Is it just Zuma’s greed?
The Public Protector’s report on Nkandla has again unleashed a storm of anger. Radio shows and newspaper columns have been filled with people complaining about the state spending vast sums of money on upgrading the President’s private residence. Rightfully they have pointed out that it is wrong that the state spent R 248 million on the project – money which could have been spent on housing, healthcare and service delivery for the public.
But when it comes to analysing why Nkandla could happen and what it represents, however, most of the analysis has been shallow. In fact, the analysis of why the Nkandla scandal happened and what it symbolises has often taken on racist undertones or has merely been put down to the personal greed of Jacob Zuma. While Zuma has been mired in corruption scandal after corruption scandal, Nkandla points to far larger problems than simply the character of the President or his propensity towards corruption. In fact, it points towards problems associated with capitalism, its neoliberal variant, class rule, and the state.
Read more: Nkandla: Is it just Zuma’s greed?