by Ranjit Singh Sidhu
It has been a few years since the great financial crash, which started when the US financial houses saw the products they created out of junk and sold as pure gold turn back to worthless junk. One by one they were either scarified or saved, with a notable survivor being one of the biggest culprits of all: Goldman Sachs.
We can look back and see how the contagion spread across the world leading to government after government instinctively cutting back spending, this in turn leading to an inevitable spiral down first to recession and then to a depression, every area of the globe entering a period of unrest.
In Europe one country, being bound by a financial accord that meant it was dictated economically by others, suffers worst of all. Unemployment had risen from 8% to 30%, it has also lost 42% of it’s economic output. With the old political order seen as failing the people turn to alternative radical parties. In just 3 years one party that polled 2.3% now is on the edge of power: It has 1.4 million members and stands on the edge of gaining power with 37% of the vote.
The party is the National Socialist Party, the country Germany in 1932 ,the financial crash that of Wall Street 1929 ( and yes, Goldman Sachs was pivotal in selling junk in that crash as well) .
On the 31st of July 1932 the Nazi party received 37.4% of the vote and became the largest party in the Federal Elections. The German people’s rising anger towards the financial reparations of the Treaty of Versailles had been shown a few years earlier when the referendum calling for the abolition of the ‘Law against the Enslavement of the German People’ received 94% of the vote.
As Syriza goes about building a government, Greece stands with 30% of its economic output gone since 2009, unemployment at 26% and youth unemployment at 50%. We must not be deaf to history and what can arise when economic destruction is imposed on a country.