The ‘bailout’ or the ‘loan’: a veritable looting – at gunpoint

An analysis of the Spanish ‘bailout’ by John Brown.


The ‘bailout’ or the ‘loan’: a veritable looting – at gunpoint.

A cursory analysis of the general budgets of the State confirms for us the Leninist definition of the latter: ‘a body of armed men’. The figures speak for themselves (*):

-Education: €2.230bn

-Health: €3.974bn

-Citizen security and penitenciary institutions: €8.000bn

-Defence: €7.250bn

(*) Note that these figures correspond to the expenditure of the central State administration and do not include the expenditure of the autonomous communities in Education and Health (which is far greater than that of the central administration), which corresponds to competencies that are largely devolved, nor do they include the corresponding expenses for “citizen security” in Catalonia, Euskadi and Navarra. Let us keep these figures as a reference because it is the central administration that is taking on the loan/bailout.

The Spanish State (central administration) spends some €15bn in repression and population control, more than the double of education and health combined.

It is important to know what purpose these armed men serve, and what kind of distribution of wealth they guarantee in the final instance. This can also be clearly gauged from the structure of the State budgets. If we take into account that the Spanish State has requested a loan of €100bn to save the banking sector, we can make the following calculations:

€100bn is the equivalent of a little less than 10% of Spanish GDP (€1,063bn) and corresponds to nearly a third of Spanish public expenditure (€311bn). €100bn is nearly 50 years of the Education budget, or 25 years for Health.

In conclusion, in order to repay this loan, Spanish governments that accept the logic of indebtedness would have to eliminate public education and health for decades or privatise them altogether. There remains, naturally, another item from which public wealth can be transferred into private hands: pensions. These make up more than half of public expenditure: €172.38bn. In Russia, during the shock therapy, the brutal reduction in pensions or their mere non-payment caused a vertiginous fall in life expectancy due to the excess mortality among older people. The payment of the debt will therefore require a heavy reduction in pensions expenditure alongside those items that do not involve as much expenditure, but which are essential for a civilised life for citizens: health and education. Let’s not forget, of course, the mass privatisation of public assets.

As we can see, the “loan under favourable conditions” constitutes an authentic blood transfusion…made by Count Dracula to his victims.

It is urgent that we act: protecting ourselves with garlic and plunging stakes into the heart of the regime, by centring all the demands of social movements into a single one: the immediate non-payment of odious debt.

(Source data (in Spanish) here.)

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