Just when you think the credit crunch may be past the worse, along comes another bank, or two, or three, going bust and the financial system is thrown yet again into crisis. And as each crisis hits, governments rush in with our billions, to keep the whole financial sector from collapse.

So much for all that crap preached for years about the need for market discipline under which uneconomic companies are allowed to go to the wall. It would seem that the iron laws of the free market only apply to coal mines. The banks are allowed to play by another set of free market rules, in which the well connected are allowed to make billions from corrupt deals, then when it all starts to fall apart, we pay the price with rising unemployment, falling living standards and repossessions. In the words of the old song, it’s the rich who get the pleasure and the poor who get the blame.

Dear DA,

There’s a new threat to workers organisation stalking the British labour relations scene. Employers are increasingly turning to U.S. style management consultants that “specialise in union avoidance and preventative industrial labour relations”. At least, that’s how the Burke Group describes itself. The Omega Division, an arm of Burke, was last year called in by Lion Capital, owner of Kettle Foods, in its attempt to prevent the T&G/ Unite from organising workers at its Norwich plant. The Burke Group has also been consulted by T-mobile and Virgin Atlantic.

Dear DA,

Even without really understanding the current “financial 9/11”, one can pick up a sense of fear, panic and uncertainty.

Blame for the crisis is attributed to “greed and fear”…or insufficient regulation…or too high bonuses paid to financial whizz kids…or irresponsible lenders pushing cheap loans…or irresponsible individuals accepting them…and so on.

But the crisis also needs a deeper structural analysis of how financial markets have changed over the past 2-3 decades – because it is these changes that lie behind the current financial meltdown, particularly those changes associated with “new financial instruments” and “vehicles” such as derivatives and private equity.

Dear DA,

The EU is currently developing a new 5 year strategy for justice and home affairs and security policy for 2009-2014. The proposals set out by the shadowy “Future Group” set up by the Council of the European Union include a range of highly controversial measures including new technologies of surveillance, enhanced cooperation with the United States and harnessing the “digital tsunami”. In the words of the EU Council presidency:

Every object the individual uses, every transaction they make and almost everywhere they go will create a detailed digital record. This will generate a wealth of information for public security organisations, and create huge opportunities for more effective and productive public security efforts.

Dear DA,

I just wanted to thank your reviewer in DA43 for turning me on to Naomi Klein’s Shock Doctrine. I couldn’t agree more with the comment that “the sheer scale of abuses detailed…is simply jaw-dropping”. For one who felt hardened to the ways of the capitalist world, this account of sheer cynicism, corruption, double standards and outright lies was still something of an eye opener.

I’d also like to leave your readers with one thought for the current climate. If the Shock Doctrine thesis holds water then maybe the recent financial meltdown is only the latest shock that will provide yet more massive pickings for the free market vultures. Emergency bail outs of banking systems need massive borrowing on the international money markets. The IMF for one, as Klein so clearly shows, will demand something back on top of the years of debt repayment. If the past is anything to go by, then we’re going to see more sell offs of state owned assets.

Free market theory argues that hedge funds,…currency speculation, private equity firms and the other obscene money making machines are somehow vital to…the economy…. [This] is a joke. They contribute nothing…and are merely a means by which the super-rich get even richer. Real economic wealth is created by the working class who…create the goods and services that are vital to society…

(from Hedging their Bets, DA39 summer 2007)

Almost totally lacking in regulation – that is, until the recent “stable door bolting” emergency restrictions against “short selling” and betting on declines in financial markets – hedge funds and their ilk have constantly moved trillions of dollars around the globe searching for ever higher returns and leaving economic chaos in their wake. And so it has proven yet again.

"Direct Action is a notion of such clarity, of such self-evident transparency, that merely to speak the words defines and explains them. It means that the working class, in constant rebellion against the existing state of affairs, expects nothing from outside people, powers or forces, but rather creates its own conditions of struggle and looks to itself for its means of action." - Emile Pouget

What is it?

Class matters in Britain today. It always has, but for a long time the media and politicians have pretended that the real divisions in this country are among those who work or are on benefits. I disagree and instead hold that the real differences are between those who own and control the economy and those of us who don’t. Put it like this: the country is run in the interests of that tiny elite. The public face of that elite are often politicians, whose parties claim to be different but actually share more than they differ. We had thirteen years of Labour government, acting in the interests of that elite, despite their rhetoric. Who did well? Bankers and financiers, property developers, management consultants, PFI owners. Who didn’t? Almost everyone else, particularly if they didn’t benefit from rising house prices.

Northampton Solidarity Federation joined the small protest in Northampton town centre today against the budget cuts.  The protest was centred on the uk uncut protest and focussed on the contradiction between cutting welfare and services on the one hand whilst allowing the rich, and large businesses to avoid, legally and illegally, billions in pounds of taxation.

This discrepancy lies at the very heart of our economic system and the politics which go with it.  When push comes to shove we see that all works for the benefit of the rich and the workers pay the cost.  Welfare is cut: are tax avoiders chased,  are tax loopholes closed?  Bankers crash the economy with their greed for bonuses, are they chased down and held to account?  Of course not: that's not how the capitalist system work:, run by the rich for the rich.

Trade Unions let us down again!