Bailout Package? No Thanks!

Well, another day of excitement and panic! The $700bn bailout plan was rejected by the House of Representatives. Well, not that we Marxists were too upset. This massive amount of money wasn't going to the much needed healthcare system, education etc. Nope, they weren't too interested in that at all. Bush and Paulson wanted to buy a huge amount of debt from banks and financial institutions so that they could return to 'normality' (making huge profits again!).

The American working and middle classes wouldn't tolerate the actions of the US government. Letters, emails, phonecalls, you name it, were flooding Congress demanding that this piece of rushed legislation be scrapped. The American people were not worrying that this package was the 'last hope' and a 'safeguard for taxpayers'. The class-conscious electorate knew that this 'package' was only going to benefit the rich and ruling class at the expense of the great majority of working-class people.

Its a sad fact that Paulson represents 1% of the population, those 450 billionaires in the USA and 3million millionaires who between them all own 25% of America's wealth. They were losing their money due to the credit crunch. So they demanded that the we should cough up the money for them.

What happens now? The US ruling class will keep trying to get the package passed and voted for. They might succeed. Capitalism has 2 paths. The vote fails and more banks collapse and the stock market will keep falling. America would be staring depression right in the face, just like the 1930's.

The second is that the vote eventually goes through. That will mean massive government spending to bail out the banks and huge printing of money to help the fat cats. That will mean inflation alongside stagnation of the economy in America, Britain and Europe.

So the alternatives are depression worldwide or stagflation worldwide. Americans are beginning to see the reality of capitalism.