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THERE’S ONLY ONE THING LEFT TO SETTLE: OUR ACCOUNTS WITH CAPITAL AND ITS STATE:
A REPORT ON RECENT STRUGGLES IN GREECE – MARCH 2010

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In periods of crisis, such as the current period of overaccumulation crisis, capitalists use the politics of “public debt” in order to devise new ways to intensify exploitation. In contrast with capitalist upturns when the private debt is increased, downturns are characterized by the increase of the “public debt”. Private investment in state bonds ensures profits which are extracted from the direct and indirect taxation of the workers, aiming towards interest repayments, and leading, ultimately, to the reinforcement of the banking sector capital. Therefore, the “public debt”, contrary to what is usually said, provides help to private capital and, in this respect, should be counted in its profits.

Moreover, in the last 20 years, the “public debt” tripled in 20 out of 27 countries of EU because of massive expenditures for bailing out the financial sector. This is money that was not given through loans to (non-banking) private capital for productive investments. Furthermore, public borrowing was done and continues to be done on terms that exceed by far the average profit rate, making investments in state bonds far more profitable than investments for the creation of production units, and, all the more so, since this kind of investment is exempted from the risks of class struggle in the sites of production.

The global economic recession of the previous years, which is the most recent manifestation of the permanent crisis of reproduction of global capital in the last 35 years –a crisis interrupted only by temporary recoveries– inevitably affected domestic capitalist accumulation. However, apart from the consequences of the reduction of global economic activity to the exports of greek capital, especially in the shipping and the tourist sectors, it became also the peg for the revelation of the permanent crisis of exploitability and disciplining of the proletariat.

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