Increased Government Debt
Government debt is mostly held by the private
institutions of
the financial oligarchy. In lending money to
governments, the dominant
oligarchs of the ruling elite benefit in several
ways.
The
rich can park their money in a safe haven for a
short or long term and
even receive interest for doing so. This is
particularly important for
the rich during crises such as the current
COVID-19 pandemic when other
investments are risky or they have pulled money
out of the stock market
and have excess cash on hand.
The government in
turn provides bailouts and buys company paper
securities that are not
saleable at a particular time to private buyers
because of the risk
involved. The oligarchs have it numerous ways!
This is the
public-private partnership in action to serve the
rich.
The government
receives money from this private borrowing that it
then uses in
pay-the-rich schemes as handouts to the financial
oligarchy and its
businesses. Examples are the handouts to large
corporations during the
pandemic or the federal government's $4.5 billion
buyout of the Trans
Mountain pipeline and the Alberta government's $7
billion injection of
funds into the Keystone XL pipeline project.
Neither of those projects
could raise private investment funds. Government
money is routinely
used to finance large infrastructure projects in
which the biggest
private construction and management companies
participate and gain
guaranteed profits.
The existence of government
debts is used for propaganda purposes to reduce
spending in social
programs that directly benefit the people.
Governments and their
mouthpieces in the media screamed that they needed
$60 billion yearly
to service the public debt held by the financial
oligarchy, which
constrains and even contracts spending in social
programs. It is a
self-serving farce for which the people are made
to pay because the
decision-making power is not in their hands.
The
necessity to borrow from private interests is
presented as the only
alternative for governments to raise money as the
financial oligarchy
considers taxation of the value its workers
produce within its private
business interests as detrimental to the economy.
A compliant media it
controls do widespread propaganda for this
regressive view.
This article was published in
Volume 50 Number 34 - September 12, 2020
Article Link:
Increased Government Debt
Website: www.cpcml.ca
Email: editor@cpcml.ca
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