Wednesday, May 05, 2010

Virtual government


Stephen Lewis [Monument Securities] says investors will be reassured by a decisive win for the conservatives. They have pledged to start cutting Britain's massive budget deficit immediately. Lewis says investors could be spooked by any other result. That could hit the pound and make it harder for the government to borrow. Some analysts say Britain could then become a Greek-style target for speculators.

"[F]ree capital flow creates what's sometimes called a 'virtual parliament' of global capital, which can exercise veto power over government policies that it considers irrational. That means things like labor rights, or educational programs, or health, or efforts to stimulate the economy or, in fact anything that might help people and not profits (and therefore is irrational in the technical sense)."

Noam Chomsky

Thanks to Montag

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