Why I'll be holding my nose and and voting for Remain

I really don't like the EU. In simple terms the EU is a neoliberal stitch-up, a club for the corporations. The fiscal waterboarding handed out to Greece, following on from the imposition of a 'technocratic' premier in Italy was just about the last straw for me. The punishment of Greece was essential pour encourager les autres, to prevent Portugal and Spain and any other Eurozone countries trying to break free from the iron grip of neoliberal austerity. These events made it clear to me that the EU as it stands has no respect for democracy - period. 

Whatever the Remain campaign say about the environment and workers' rights I have no doubt that there will be more pressure to water down the relevant European directives in the future. That is inevitable unless the whole direction of travel of the EU can be changed. Neither am I confident that protests in the EU will be able to stop TTIP. I'm also very pissed off with the pitiful campaigning of the Remain groups, including those of my own party the Greens, because it's relentlessly negative. Has-been politicians like Tony Blair and John Major and 'experts' are constantly wheeled out of their cupboards to warn us of the impending armageddon if we leave. Where are the positive reasons for remaining? Can't they think of any?

Clive Lewis, Labour MP at Another Europe is Possible on 4 June Manchester

I'm also with Suzanne Moore in that I think that the almost unanimous support for remain from the establishment is proving a huge turn off for many. I her excellent article today in the Guardian she says:

"But I sense that, for many, a strange game is being played out whereby voting leave is not seen as such an enormous gamble. Much of England is ready to roll that dice; this part of England, so often despised, demonised and disrespected by those who claim to represent it, does need to be spoken for. This England will not do as it is told."

I agree with her, I too suspect that many people will simply stick up two fingers to the establishment and the EU and take that leap in the dark. 

So why am I voting for Remain on June 23rd? Its because I'm a socialist and socialists are internationalists, because I want to build solidarity with the left and oppressed groups across Europe, because it's the best way to deal with climate change and the refugee crisis and because I'm willing to join Diem25 and have one last shot at making the EU democratically accountable to the people.

If we do come out of the EU there will undoubtedly be a crisis but crises are the stock-in-trade of neoliberal capitalism, we lurch from crisis to crisis anyway. Will I lose much sleep over it? - no I won't because the fight for social, economic and environmental justice will go on just as it always has done.

The EU is determined to crush Greece and enforce austerity

I intended to write this post prior to the Greek referendum but so much has happened recently I hadn't the chance to do it. The referendum result on Sunday was a stunning 61% for No or OXI. A massive rejection of austerity and an outcome which reverberated around Europe, and gave hope to all those who believe in democracy, and believe that democracy should determine how a society and economy should be run, trumping all other interests.

Before the referendum Caroline Lucas said at a Greece solidarity rally in London:

“Austerity isn’t only socially destructive, as we know – it is economically deluded as well. Greece’s government debt to GDP ratio hasn’t gone down as austerity was imposed, it has increased”

Of course she was right. The Troika's bailout and programme of so-called economic reforms, which entail cuts in pensions and worker's salaries, are intended to make the poorest pay for the economic ills of Greece and protect those who caused the global economic crash which opened the door to austerity in the first place  - the banks. In fact the bailout was never intended to help the Greek people but to protect French and German banks which lent recklessly to a corrupt Greek establishment so that they could buy German weapons and goods.

The Greek people voted OXI (no) in the referendum on the humiliating Eurozone offer

Greeks were threatened openly by the Eurocrats in the run up to the referendum, they were told that the financial taps would be turned off by the ECB and they would be ejected from the Euro. Now, in the aftermath of the referendum, it seems clear that unless Syriza accept humiliating conditions no better than those rejected by the Greek electorate, the threats will be carried out. The EU Goliath is determined to crush the Greek David to ensure that no other Eurozone country has the  temerity to even think that democracy can prevail against the interests of creditors. This is a foolish and short-sighted approach which has the potential to cause real and lasting damage both to the Eurozone and the EU itself.

The Syriza government is between a rock and a hard place but there is only one way out - default and a return to a Greek currency. In fact they should have already set up a parallel currency to the Euro to allow taxes to be paid and the economy to function. Their immediate problem is not solvency but liquidity. This is a very hard road but in the longer term it it offers dignity and hope to the Greek nation. The alternative is decades of debt-slavery in the Eurozone.

Greece can lead the fightback against austerity in Europe

Today Greeks go to the polls to vote in one of the most important elections in the country's history. After seven years of grinding austerity imposed by the 'Troika', it looks like Greeks could be about to vote in Syriza, an alliance of radical leftists, who have pledged to write off some of Greece's debt and set the country on a new path. Of course, the media have played this up into some kind of showdown between the leader of Syriza, Alexis Tsipras, and the European Union, in which Greece will almost inevitably have to exit the Eurozone.

But exit, or Grexit as the media love to call it, is not inevitable. Given the suffering the Greeks have had to endure with unemployment hitting a high of 28%, 50% youth unemployment and wages falling 12% year on year, it wouldn't be surprising if the Greeks wanted to leave the Eurozone and go back to the Drachma - but they don't. And why should they? They are as much a part of the Eurozone as any other country and still remember having had a currency that was almost worthless.

In simple terms the Greeks are being portrayed as the feckless ne'er-do-wells who are being bankrolled by the industrious, hardworking Germans but this is a false picture. Entry into the Euro for Greece was political not economic, and the Euro was always bound to create problems for the Greek economy. Couple that with a corrupt government and reckless lending by German and French banks - so that Greece could buy German goods - and its not easy to see that Germany did very nicely out of this Euro-arrangement at the expense of the Greeks. All that has now been conveniently forgotten. Thus I heard on The World This Weekend today a half-baked analysis of Greek 'wrongdoing' - essentially Greek bad, German good - as the BBC lined up pundits to criticise Greece and Syriza. With reporting on this level we might as well be living in the Soviet Union.

Its as well to remember that after the Second World War the Germans were mired in debt and struggling economically just as the Greeks are now, that is until 1953 when the London Debt Agreement was reached and half of Germany's debts were written off. This is often credited with starting the 'economic miracle' which transformed the German economy with output doubling between 1953 and 1963.

We know that austerity in Europe is designed to protect banks from going under at the expense of the people. These are the same banks that contributed to the global economic crash of 2008. Its absolutely unacceptable that people should be made to pay for the epic failures of financial capitalism. We need a programme of Green quantitative easing in Europe for investment in energy efficiency, renewables and public transport, getting millions back into meaningful work. That, not debt-driven austerity, must be the future. Here's looking forward to a Syriza majority government and the start of the historic fightback against austerity.

Will Hollande beat the EU austerity stitch-up?

Good news for all those on the left of politics who want to fight the neoliberal austerity programme being forced onto the people of Europe by the EU! -  Francois Hollande has been elected President of France on an anti austerity ticket and the Greek parties New Democracy and PASOK who collaborated in the EU, IMF and  ECB bankers carve-up of Greece have been battered in the latest elections.

The problem remains that the European neoliberal elite of politicians, bankers and corporations who run the EU are committed to crushing all democratic attempts to derail their austerity programme, which is designed to protect banks and bondholders at the expense of ordinary Europeans. As I've blogged before, previous attempts by the people of Europe to stymie this elite have been defeated. The Irish, French and Dutch people tried and failed to block the European constitution (we were told it wasn't really a constitution) in referendums but the attempts were in vain.

The Euro-elite have a way of dealing with the inconvenience of democratic decisions - they make you vote until you give them the required answer. This has happened in Ireland - twice. Now that Hollande has been elected and the Greek pro-austerity parties have been humiliated, you can be sure that Brussels and Berlin will be working overtime to ensure that their plans can't be derailed.

The obvious answer in Greece, as it has been in other European countries before, is to make the Greeks vote until they come up with a pro-austerity choice. New Democracy has failed to form a coalition, lets hope that SYRIZA can do it, if they can't, its likely that the `Greeks will be required to vote once again. As for Hollande, we can only hope that he is serious in bringing about real change, and even if he is, then he may be bullied into submission for all we know.

Need the European elite worry about the inconvenience of democracy ?

So conformist and robotic has been the acquiescence of Euro-politicians to neoliberalism and austerity that its tempting to think that they must have Euro-microchips fitted before they are allowed to take power. Lets hope that Hollande can avoid this fate. Whatever happens its clear that the European people, when they get a chance, want no truck with austerity, and the sooner the left can get its act together and respond to this the better. In the UK the Green Party have made a good start, but its time for others to stand up and follow.

Banker's bonuses: why we are being screwed

In September 2008 after the collapse of Lehman Bros bank it became obvious to economists and senior government officials that the world financial system was in danger of collapse, and that banks would be wiped out in the process. In the UK Gordon Brown's Labour government took action and bailed out Royal Bank of Scotland (RBS) and Halifax Bank of Scotland and pushed through a merger between HBoS and Lloyds TSB. In the process the taxpayer acquired 84% of RBS and 47% of Lloyds TSB. The full cost of the UK bailout taking into account Northern Rock and other banks was a whopping £1.2 trillion. The bailout was repeated in other countries, with the TARP, for example, in the USA, and lead to the stabilisation of the global banking system.

What is critical about this is that if the bailout hadn't happened all the banks would have gone bust - not just those who were directly bailed out by the taxpayer. Since 2008 'free' market apologists have tried to claim that banks such as Barclays and HSBC were always OK, as if they would not have crashed, but this is not the case, the fact is that the global banking system was saved by taxpayers.

Lehman Bros HQ

Up to the collapse of Lehmans a culture of huge bonus payouts had become the norm in banking, and in fact when Lehman's collapsed they were still trying to pay out $6 billion in bonuses. After the bailout the culture of huge bonuses continued even at taxpayer 'owned' banks, much to the dismay of the taxpayers themselves. The banking collapse lead directly to an economic collapse which in turn has lead to a sovereign debt crisis.In the process, the UK economy has contracted by 7%. Having paid for the bailout we are now paying for the crisis with the Coalition government's austerity programme. The cost is increasing unemployment, pay freezes, pension cuts  and an attack on the living standards of all but the wealthiest. Bad as things are in the UK, they are far worse in countries like Greece and Ireland, and the Eurozone is itself in danger of collapse.

What does all this tell us? It shows the power of financial capitalism and that our democracies are dominated not just by financial capitalism but also the other big corporations. In the West, which has been hardest hit, politicians have put the interests of financial capitalism above the rights and interests of their own people. The aim has been to preserve the capitalist system and to continue 'business as usual' at all costs, even though it is obvious that the austerity programme in the UK and elsewhere isn't working, at that it will probably make things worse rather than better.

The latest manifestation of the row about bankers bonuses centres around Stephen Hester who is the CEO of taxpayer 'owned' RBS. He was awarded £963,000 in shares as a bonus this year, despite the fact that RBS is still struggling and 33,000 employees have lost their jobs. David Cameron claims there is nothing the government can do about this but that is clearly not true. The Independent revealed that there is nothing in Hester's contract that would prevent the government denying him a bonus. There have been claims that the RBS board would have resigned but so what? They are not the only people who can run a bank. The fact is that the government is taking sides and its not our side, its the bankers side. They are putting the interests of capitalists above our interests. RBS is clearly not being run in the national interest. The bank should be fully nationalised and turned into a green national investment bank to make the loans that  businesses need to help create jobs. That is something that RBS and the other private sector banks are failing to do.

A Tory driven ideological class war attack on British workers won't promote growth

It was bound to happen here, as it did in Wisconsin and other American states. First the capitalist class, or 1% if you prefer,  creates a crisis, a crisis of financial capitalism which nearly brings down the world economy. It does so through its ideology, neoliberalism; which means destruction of public services by privatisation; letting the banks and corporations run riot through deregulation; and the looting of natural assets by corporations through globalisation. Then, using their tame politicians in the UK, USA and Europe, it makes the middle and working classes and unemployed, the 99%, pay to bailout the banks and save the skins of the bankers. This is privatising the gains and nationalising the losses. Socialism for the rich, capitalism for the rest of us.

So the banks get saved but there is still a big problem because much of that debt incurred by the banks has now been transferred to governments and taxpayers leading inevitably to a sovereign debt crisis, which is where we are now. The Eurozone crisis has been triggered by the sovereign debt crisis brought about by the banking crisis. Still with me? We are nearly there.

In response to the sovereign debt crisis governments in the UK and Europe implement austerity programmes, ostensibly to bailout government debt, particularly in Greece and Ireland. But its not the poor old Irish and Greek taxpayers who are being bailed out, the money is being used, once again, to bailout French, German, Spanish and Greek banks. So taxpayers have been shafted twice, first in the bank bailout and secondly by austerity - which is just another bank bailout.

To top all this the right wing politicians who are the friends of the bankers and the 1%, are now using the crisis to try and smash workers rights. In the USA, in Wisconsin, the Tea Party backed Governor Scott Walker has used the deficit to not only slash services but to try to deny unions their collective bargaining rights. Now in the UK today we hear that the government is contemplating undermining workers rights by making them easier to sack and limiting further their already limited rights to an Employment Tribunal. This crude, class war attack on workers is being carried out in the pretence that it will encourage growth.

The real irony is that the rising unemployment, increasing poverty and lack of growth in the UK are a direct result of this government's austerity programme. Economically, this government is already a complete failure and its only to be expected that it should dishonestly try to pin the blame for that failure on working people and the unemployed, that, after all, is what class war is all about.

Neoliberalism is threatening to bring down the economies of the USA and the EU

What we are witnessing with the Greek tragedy that is unfolding is something worthy of Euripides, or, in a more contemporary form, Shakespeare. Greece is being torn apart by the Eurocrats, headed by  Sarkozy and Merkel, in their desperate attempts to preserve the Euro-empire. The Greek Prime minister, Georges Papandreou, offered a way out of the situation, by giving the Greeks a chance to vote against the bailout, but the self serving  political class in Greece look like scuppering this appeal to democracy by looking after their own skins and  bending the knee to the Eurocrats and the IMF.

Georges Papandreou

What is so ridiculous about all this is that the EFSF, which is supposed to bailout Greece, and is primarily intended to save French and German banks, is doomed to failure. It cannot work because the more austerity that is imposed upon Greece the less likely it is to be able to repay its debts. The Greek economy has already undergone a 15% contraction, and more austerity can only make this worse. As deficit reduction bites harder, the more it will contract the Greek economy, making the debt ever harder to pay off. The Greek economy is in a death spiral and the actions of the Eurocrats are self-defeating. As the situation gets worse, Greece will become more ungovernable. It may even become a failed state, and the likelihood that other EU members like Italy will begin to slide into the abyss will be increased.

The neoliberal-EU project enshrined in the Lisbon treaty has not only failed, but has seriously damaged the fabric of European societies.  Neoliberalism has wreaked similar havoc in the USA. The result is that once powerful western economies are now going cap in hand to China, which is a totalitarian waged slave-labour state, for financial handouts. The madness is complete, but the Eurocrats are so blinkered and institutionalised that they cannot see they are in danger of destroying the EU altogether.

There is only one solution. Let Greece default and leave the Euro, and then build the reconstruction of Europe through investment in the real economy, in infrastructure, and in jobs, through a Green New Deal. The Icelanders held a referendum which lead to a default, and an exit from debt-slavery, and the Greek people deserve the same chance.  Meanwhile, destructive neoliberalism must be chucked in the dustbin of history - where it belongs.

Yes to a referendum on the EU!

According to Paul Cotterill on the Liberal Conspiracy blog Caroline Lucas, the leader of the Green Party,  has outflanked Labour on the issue of a referendum on the EU. He is right. Outflanking a gauche and leaden-footed Labour leadership isn't difficult these days. Labour is completely hamstrung by its New Labour legacy, and because of its complicity in privatisation and austerity it is incapable of challenging the most dangerously reactionary government in a century.

Caroline said: "I support a referendum on our membership of the EU because I am pro-democracy, not because I'm anti-EU - and because I want to see a radical reform of the way Europe operates. The EU has the potential to spread peace and make our economies more sustainable, and to promote democracy and human rights, at home and throughout the world. But it must urgently change direction, away from an obsessive focus on competition and free trade and towards placing genuine co-operation and environmental sustainability at its heart."

Caroline has called this exactly right. We need to challenge the lack of democratic accountability and neoliberalism of the EU. Most people don't want us to leave, but this is a Europe of austerity, dominated by the ECB. The way the Greeks and Irish have been humiliated is appalling, and all to bail out French and German banks. That is unacceptable. We need start a movement to liberate the EU from the dead hand of neoliberal failure, and make sure that the Green Party is at the forefront of that movement.

We can win the economic argument - so lets do it!

"Its the economy stupid!" - it sure is. The economy is just about all we hear about these days, and its no wonder, because we are going through the biggest economic crisis of capitalism since the Great Depression. But the problem we have is that the neoliberal right are in the ascendancy, they have the power. This means that the response to the economic crisis is the same as it was during the Great Depression. Does this mean we have learnt nothing in the past 80 years? To some extent yes, but the real problem is that the same kind of people are in control now as were in control in the late 1920s - capitalist corporations and the politicians who support them. The Great Depression lead to immense hardship and deprivation for people around the world. In America, the slump, despite the uplift given by Roosevelt with the New Deal, lasted over a decade until the end of World War II. It was the massive US spending during the war economy that lifted the whole world out of the Great Depression. Without that lift the world economy would probably  have remained stagnant for many more years, possibly decades.

In the mid 1930s  the economist John Maynard Keynes explained that in a economic slump governments needed to take counter-cyclical measures to revive the economy. In other words, you don't cut spending in a recession - you increase it. But Keynes's ideas were ignored then - just as they are being ignored now. Then as now, for reasons of class, politicians preferred to cuts jobs and welfare rather than increase spending or increase taxes on the rich - who could have afforded to pay more. Belt tightening was, as usual, forced on the poorest in society.

So where does that leave us? The sovereign debt crisis which is now engulfing Europe and the USA is a direct result of the banking crisis known in the UK as the 'credit crunch'.  This crisis would have brought down the world economy, if it had not been for the fact that the state intervention, both here and abroad, propped up the faltering world private banking system. The resulting losses (costs) were nationalised and the gains (profits) remained in private hands. The people who caused the crisis got away free whilst ordinary people picked up the tab, bailing out the banks, and paying by losing their jobs, homes and pensions.

But that was only round one. The debt form the economic crisis didn't just  disappear - it became the sovereign debt which is crippling Ireland, Greece, Spain and Portugal, and which now threatens the USA itself with debt default. So, the people are  being made to pay for the crisis a second time around. The name of the game now is austerity. Yet more cuts in welfare and more jobs losses - all to protect the same people  - the private sector, the banks and bondholders - financial capitalism. But as Keynes showed more cuts and austerity won't fix the problem - it will make it worse. That means the best we can hope for in the UK and Europe is economic stagnation, continuing high unemployment, and increasing hardship and poverty. The result is that your children will inevitably be poorer than you are and your grandchildren will be poorer still, in a society blighted by homelessness and inequality.

In the UK we have our own austerity crisis. The Chancellor of the Exchequer,  George Osborne, has taken a reckless ideological and political gamble with our economy by instituting savage austerity cuts of £81 billion. His aim is to use the debt crisis as cover to slash the welfare state - which is something the right have always hated. He is hoping that the economy will recover enough so that he can announce tax cuts before the next election. he believes this will win the next election for the Tories. That is why the Tories wanted a fixed term five year parliament - because they need at least 5 years for this ideological economic gamble to have a chance to work.

So, if the economic policies being followed by the EU, in Greek debt crisis for example, and in the UK government aren't working, why are they being followed? The answer is simple - neoliberal ideology. This is class war politics. The lesson of the past thirty years is that the capitalist class and their politicians have allowed a world economic crisis to develop by following neoliberal 'free' market dogma, by deregulating financial capitalism (the banking and shadow banking system). Now they are exploiting the outcome of that crisis, and using it to roll back all the democratic gains made by working people in the last century. 

So what does the left do about this? Well, we have to win the economic argument. That is essential. We have to explain to people how the failed 'economic' policies of the neoliberalism got us here. We have to explain how the crisis has been exploited to benefit the people who caused it. We have to debunk the myths about the benefits of the unregulated 'free' market. But most of all, we have to show that we have an alternative which can create jobs and prosperity. That is what the Green Party did in its 2010 election manifesto. We showed that  by investing in creating one million green jobs, and by building housing, by improving public transport, by controlling the banks, and by growing our economy in a sustainable way, we could lift the UK out of the economic crisis it is in.

The reality is that Osborne's reckless ideological gamble with our economy won't work, and when it fails, we have to be ready to strike. The next UK quarter figures are due soon. All the indicators are that they will be very poor - either very low growth, or no growth at all. That is the time we must put the boot it - and hard. People in the UK are beginning to waver in their support for cuts. In the past year support for the cuts has fallen from 69% to 55%, with 45% now against Osborne's savage cuts. Once the British people realise that Osborne's economic 'policy' isn't working the Tories economic competency will be finished. It is then that the Coalition will be in real danger. The Coalition government is a weak and divided government which has only survived because the British people have been conned into believing that it was acting in the national interest, to tackle the economic crisis. Cameron has already been severely wounded by the phone hacking scandal. Its hard to see how the government could survive similar damage to Osborne.

The reality is this; pensions and the welfare state aren't unaffordable; low taxes only benefit the rich; the state is not inherently a bad thing - governments can and should intervene to create jobs, build houses and protect the vulnerable; we can only have a better health service if it is provided by the public sector; privatisation means that you pay more for less; banks can be nationalised and brought under democratic control; co-operation is much more important than competition.

These are the messages that all those who oppose this government; UK-uncut, the Coalition of Resistance; trade unionists, and all the other anti-cuts groups need to get across, and get across soon. The only way we can slay this neoliberal system and get rid of this government is by winning the economic argument. Until we get on with the task of doing that we won't have the power to change things for the better and we won't be able to stop the deliberate destruction by this government of all the things which make this a society worth living in.

The phone hacking scandal exposes our sham democracy

I blogged a while ago about our sham democracy, the cosy carve up which means that whoever gets elected, the policies pursued by governments are always the same. The economic crisis caused by the collapse of the banks illustrated this really well, because that crisis lead directly to the sovereign debt crisis, and we have seen that successive governments in countries like Greece and Ireland have toed the party line, and swallowed the neoliberal medicine, to the detriment of the people who elected them. How ironic it is that the electorate in Greece should boot out an incredibly unpopular conservative government, only to replace it with a 'socialist' government which then proves to be even more unpopular, by kow-towing to the IMF and the ECB and introducing yet greater austerity.

So that's how it goes. You have an incredibly unpopular government, you boot it out and elect another government which then goes on to do exactly the same thing. There is only one way to break this cycle - vote for a party which is not neoliberal and has different policies. If that means voting socialist or green - do it!

So what has this all got to do with phone hacking? The essence is that the problems with the banks and Murdoch's media empire are the same - capitalist corporations which have too much power and are out of democratic control. Just as our politicians have ceded power to the banks, they have also ceded it to moguls like Murdoch. News International should never have been allowed to control 40% of the UK press. Sky should never have been allowed to build up a monopoly of satellite TV through exclusive rights to Premier League football. But it was allowed to happen, and in the process our democracy has been undermined and our body politic corrupted. This is what happens when you have unregulated capitalism and 'free' market fanatics in government. The sad reality is that there is no change in sight. Murdoch may have his wings clipped for a while, but the neoliberal juggernaut moves on, crushing decency, democracy and freedom in its path.

I'd just like to finish this post with two pertinent quotes from an article in today's Telegraph (my italics):

"There were those who believed that Murdoch had debased and debauched British public life, and there is indeed great evidence that this was the case. For example, the News of the World was a respectable – if racy – family newspaper before Murdoch brought it under his ownership. As we now know, it converted into a flourishing criminal concern that took an evil pleasure in destroying people’s lives."

"The bitter truth is that no major figure in British public life was prepared to take on and expose the Murdoch newspaper empire. Rival proprietors were silent. Senior public figures did not dare to speak out for fear of exposure and attack in the Murdoch newspapers. This is why, for more than a generation, Rupert Murdoch’s empire has been a spider at the heart of an intricate web that has poisoned British public life. "

Strange it is though that a paper which can see the shortcomings of Cameron and speak with loathing about Rupert Murdoch will be trumpeting the wonders of the 'free' market which is the real engine of inequality, poverty and the corruption it so rightly condemns.