[This is such an extraordinary week. So many economic writers are focussing on a very narrow range of financial crises. However, the structural problems that created this catastrophe need also to be addressed quickly.]
** The provision of essential goods and services has been left to ‘market’ demand.
Today’s news: Chesapeake Energy CEO Aubrey McClendon said Tuesday he would not be surprised if US drillers dropped hundreds of rigs in the next couple of quarters due to lower natural gas prices.
** Inflation has been inappropriately treated as a monetary phenomenon with policy implementation resulting in world-wide recessions.
[Inflation] “became a problem which had to be treated, but by means other than those recommended by Dr Friedman and his colleagues. So they decided, because they thought it was a monetary phenomenon, which it wasn't, that the way to cure it was to crack down on the monetary system to tighten money and raise interest rates. And they had a little go at it in 1974-75, and they brought on a little recession, at least in our part of the world. And then in 1980-81, Paul Volker, who was at that time the Chairman of the Federal Reserve Board in Washington, and who had become a disciple of Dr Friedman, said, 'We will put this to the test'. And so he brought on a horrendous recession which was virtually world-wide…”
** The functioning of critical domestic institutions is dependent on the inflow of foreign capital.
“…The fact is that Henry Paulson and this economic team and this failed administration in terms of economic policy, they have to say whatever they can about this money because without that foreign capital we have institution after institution that is simply insolvent.”
** Finance capital is monopolized.
“No bank in the world will loan to a country blacklisted by the World Bank. To obtain funding from any bank, developing world governments must adjust their policies (called structural adjustments) to the dictates of the IMF/World Bank/NAFTA/ GATT/WTO/MAI/GATS/FTAA/military colossus. It is specifically under the imposed structural adjustment rules of that colossus that protections for the fast developing nations were withdrawn. Not only is the developing world locked within the parameters of the decisions of international capital, if any developed world government veers from the prescribed path, enough capital will flee to turn the economy downward, the politicians (not the subtle finance monopolists) will be blamed and—to maintain themselves within the good graces of the voters—the politicians will bend to the wishes of capital, even if it is to the detriment of the nation of their birth or of the world.”
 Tuesday, September 23, 2008
Credit Crunch Hitting the Oil Patch
 Paul Hellyer, former Deputy Prime Minister of Canada, talking at a conference, 'Reclaiming Democracy', in Sydney
 Lou Dobbs 2/4/08 "America being sold to foreign governments"
Submitted by Kim Berry on Mon, 02/04/2008 - 21:31
 Chapter 11. Emerging Corporate Imperialism, from the book, Economic Democracy; The Political Struggle for the 21st Century.