Thursday, September 25, 2008

BushBernankeBail-out: the choice

Help with the difficult choice before Congress.

The Stern Review said that the world needs to spend 1% of GDP annually to make a transition towards a zero-carbon economy, thus saving our planetary life-support systems and securing our descendants' future.

1% of the US GDP is about $138 billion.
So the American people have a choice:

for $700 billion they can either:

try to save Wall Streets' soaring assets for perhaps a couple of weeks, allowing free market finance mega-capitalists (banksters for short) to survive and lord it over us again, albeit for with tighter regulations,
buy 5 years of Green New Deal, (google it) which will create tens of thousands of jobs in the real economy, keep people in their houses, soften the energy crunch, reduce the atmosphere CO2 load, help save the quality of life of our children, grandchildren and great-grandchildren and so on,

That's the choice.

It is highly likely that the finance markets are going to crash anyway, because there is simply too much debt in the system.
Given a choice, the rule is: Always read the guarantee.

The BushBernankeBail-out (BBB) does not come with a guarantee. It might slow the demise of the patient for a couple of weeks, or even a couple of months, but the coming decline in the financial sector is going to have to run its course. The designers of the system, if they are honest, say the same. They believe that Government intervention in the money markets is taboo. Greens do not share this belief.

The financial markets are almost certainly going to collapse, and they will in due course (maybe a year) take the real economy in which you and I with it. Many good people, economists and non-economists are in the process of drawing together a recovery plan.

In contrast, the Green New Deal does guarantee a positive outcome. All money spent will go to good use (apart from any inefficiency or corruption in the institutions that run the programs).

So there is a choice.

America, you are a democratic country. In a democracy, the ultimate source of power comes from the people. That power comes through when the people are united in their opinions.

So, dear Americans, my dear, lovable, friendly, open, non-up tight American friends, this is your choice. Do you choose BBB, or do you choose GND?

Make your choice. Then just make sure you let your elected representative know your choice. Their telephone numbers are in the book.

with best wishes

Richard Lawson


I have sent this to my American friends and will shortly post it to the Green Network in the USA.

Added Sunday 28th, 18:36

Well, fat lot of good that did. They went ahead and did it anyway. So we must just hope for the best. I predict that Wall St will implode anyway, and so the$700,000,000,000 will be good money thrown away. It may delay the demise of the absurd system of generating profit through betting on the future price of commodities, and generating money by lending money out at compound interest with little orno constraint on how much you should lend out, but the $700 billion BBbailout will not save us from the crash.

If I am proved wrong, I shall say sorry and give £100 to Practical Action.

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