Why Marxians are getting excited about the credit crisis

Are we all doomed?

Karl Marx knew a thing or two. Only six years after Charles Darwin published “The Origin of Species” Marx had worked out that capitalism needed two things to be fit to survive; growth and debt. Profits could only be created if someone, somewhere, borrowed money.

This dependency on debt meant that capitalism, viewed from a Marxist perspective, was doomed to periodic crises as human nature couldn’t self-limit. Credit binges would erupt from time to time, threatening the edifice of debt-fuelled consumption. More to the point each crisis would become larger and larger until, one day, capitalism would implode and the social economy would take its rightful place.

And so it has been since Marx first published “Das Kapital” in 1867: debt has accumulated in the corporate sector, the private sector and, most controversially, at the heart of western governments. Even the United States, supposed to be that most arch of capitalist economies, has racked up debts equal to its national income and now its annual interest bill is rising at an alarming rate.  We in the UK are not immune: soon our fourth largest government expenditure will be the interest we pay on our government debt.

As a Marxian you might even regard this phenomenon with some glee; the crisis of capitalism has passed from the private domain, through the banking system into our central banks and now is gathering within our government finances.  The conspiratorial nature of Marxist analysis even has it that Big Finance bullies government into borrowing, destructively transferring wealth from citizens to capitalists. This paradoxical behavior leads to the conclusion that the biggest enemy of capitalism is not the working classes but capitalism itself.

So Marx would have it that the third wave of the current crisis will be that a well-known national government will renege on its interest payments; someone is going to default as the jargon goes. The logical response would be to start reducing your debts and this is at the heart of those who see austerity as a social cost worth paying to stabilize national finances. But controlling national finances comes with a social cost. Witness the 27 per cent unemployment in Spain and the rioting on the streets of Europe.

So far politicians have tried to appease the markets at the expense of the people. This has worked for a time but now, with their survival instincts at full the throttle, the pressure is rising to change course. The IMF has told the UK coalition government to loosen the girdle it has placed around public finances whilst the first statement by the new Italian Prime Minister Enrico Letta has been to reverse some of the tax increases meant to control Italy’s chronic debts. Last week Spain decided to take the brakes off deficit reduction and Greece is heading in the direction of requiring another round of forgiveness and do I really have to mention Cyprus? Trouble is brewing at the heart of government finances – marx my words Karl might say….

A bust of Marx. Photograph: Getty Images

Head of Fixed Income and Macro, Old Mutual Global Investors

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“Trembling, shaking / Oh, my heart is aching”: the EU out campaign song will give you chills

But not in a good way.

You know the story. Some old guys with vague dreams of empire want Britain to leave the European Union. They’ve been kicking up such a big fuss over the past few years that the government is letting the public decide.

And what is it that sways a largely politically indifferent electorate? Strikes hope in their hearts for a mildly less bureaucratic yet dangerously human rights-free future? An anthem, of course!

Originally by Carly You’re so Vain Simon, this is the song the Leave.EU campaign (Nigel Farage’s chosen group) has chosen. It is performed by the singer Antonia Suñer, for whom freedom from the technofederalists couldn’t come any suñer.

Here are the lyrics, of which your mole has done a close reading. But essentially it’s just nature imagery with fascist undertones and some heartburn.

"Let the river run

"Let all the dreamers

"Wake the nation.

"Come, the new Jerusalem."

Don’t use a river metaphor in anything political, unless you actively want to evoke Enoch Powell. Also, Jerusalem? That’s a bit... strong, isn’t it? Heavy connotations of being a little bit too Englandy.

"Silver cities rise,

"The morning lights,

"The streets that meet them,

"And sirens call them on

"With a song."

Sirens and streets. Doesn’t sound like a wholly un-authoritarian view of the UK’s EU-free future to me.

"It’s asking for the taking,

"Trembling, shaking,

"Oh, my heart is aching."

A reference to the elderly nature of many of the UK’s eurosceptics, perhaps?

"We’re coming to the edge,

"Running on the water,

"Coming through the fog,

"Your sons and daughters."

I feel like this is something to do with the hosepipe ban.

"We the great and small,

"Stand on a star,

"And blaze a trail of desire,

"Through the dark’ning dawn."

Everyone will have to speak this kind of English in the new Jerusalem, m'lady, oft with shorten’d words which will leave you feeling cringéd.

"It’s asking for the taking.

"Come run with me now,

"The sky is the colour of blue,

"You’ve never even seen,

"In the eyes of your lover."

I think this means: no one has ever loved anyone with the same colour eyes as the EU flag.

I'm a mole, innit.