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As elites brasileiras, tidas por Darcy Ribeiro como das mais reacionárias do mundo, nunca aceitaram Lula porque pensam que seu lugar não é na Presidência, mas sim na fábrica produzindo para elas. A nossa imprensa comercial é obtusa face ao novo período histórico que estamos vivendo. Por isso abomina também a diplomacia de Lula.

Turkish Prime Minister Recep Tayyip Erdogan's handling of the Gaza crisis has brought him into the spotlight - and his country into the centre of regional politics. Patrick Cockburn reports

The EU faced the biggest test in its history last night as it launched a last-ditch effort to save the euro, amid acute fears that markets could unleash a fresh attack on the currency on Monday.

As fears grow that Europe could face a full-blown financial crisis, potentially damaging the economy in the United States, investors are abandoning risky bets in the financial markets and rushing for safety instead.

Europeans have grown accustomed to seeing government workers shut down their countries when provoked. At this time of huge deficits from Washington to the smallest towns, government workers in the U.S. also face significant cutbacks.

"Those who make peaceful evolution impossible make violent revolution inevitable."- John F. KennedyThere's one thing for sure: 2008 isn't anything like politics as usual.The corporate media (with their unerring eye for the obvious point) is fixated on the narrative that, for the first time ever, Americans will likely end this year with either a woman or a black man headed for the White House. Bloggers are telling stories from the front lines of primaries and caucuses that look like something from the early 60s - people lining up before dawn to vote in Manoa, Hawaii yesterday; a thousand black college students in Prairie View, Texas marching 10 miles to cast their early votes in the face of a county that tried to disenfranchise them. In recent months, we've also been gobstopped by the sheer passion of the insurgent campaigns of both Barack Obama and Ron Paul, both of whom brought millions of new voters into the conversation - and with them, a sharp critique of the status quo and a new energy that's agitating toward deep structural change.There's something implacable, earnest, and righteously angry in the air. And it raises all kinds of questions for burned-out Boomers and jaded Gen Xers who've been ground down to the stump by the mostly losing battles of the past 30 years. Can it be - at long last - that Americans have, simply, had enough? Are we, finally, stepping out to take back our government - and with it, control of our own future? Is this simply a shifting political season - the kind we get every 20 to 30 years - or is there something deeper going on here? Do we dare to raise our hopes that this time, we're going to finally win a few? Just how ready is this country for big, serious, forward-looking change?Recently, I came across a pocket of sociological research that suggested a tantalizing answer to these questions - and also that America may be far more ready for far more change than anyone really believes is possible at this moment. In fac

The fundamental problem that much of the world faces today is that investors are overreacting to debt-to-GDP ratios, fearful of some magic threshold, and demanding fiscal-austerity programs too soon. They are asking governments to cut expenditure while their economies are still vulnerable. Households are running scared, so they cut expenditures as well, and businesses are being dissuaded from borrowing to finance capital expenditures. The lesson is simple: We should worry less about debt ratios and thresholds, and more about our inability to see these indicators for the artificial - and often irrelevant - constructs that they are.

Businesses have had at least 25 to 30 years near complete certainty -- certainty that they will pay lower and lower taxes, that they' will face less and less regulation, that they can outsource to their hearts' content (which when it does produce savings, comes at a loss of control, increased business system rigidity, and loss of critical know how). They have also been certain that unions will be weak to powerless, that states and municipalities will give them huge subsidies to relocate, that boards of directors will put top executives on the up escalator for more and more compensation because director pay benefits from this cozy collusion, that the financial markets will always look to short term earnings no matter how dodgy the accounting, that the accounting firms will provide plenty of cover, that the SEC will never investigate anything more serious than insider trading (Enron being the exception that proved the rule). So this haranguing about certainty simply reveals how warped big commerce has become in the US. Top management of supposedly capitalist enterprises want a high degree of certainty in their own profits and pay. Rather than earn their returns the old fashioned way, by serving customers well, by innovating, by expanding into new markets, their 'certainty' amounts to being paid handsomely for doing things that carry no risk. But since risk and uncertainty are inherent to the human condition, what they instead have engaged in is a massive scheme of risk transfer, of increasing rewards to themselves to the long term detriment of their enterprises and ultimately society as a whole.

The most dangerous myth, and one repeated daily in much of the major media, is that these troubles on both sides of the Atlantic are a result of a "debt crisis", and can only be resolved through fiscal tightening. The United States is not facing any public debt crisis at all, with interest payments on the debt at just 1.4% of GDP. Some eurozone countries do have a "debt crisis" - for example, Greece. But this is only because the European authorities have failed to take the necessary steps to resolve it, and have, instead, made it worse by shrinking the economy. In other words, there is no legitimate economic reason for a sovereign debt burden - even an unsustainable one - to result in years of economic stagnation and high unemployment. If the debt needs to be restructured because it is not payable, as in Greece, then that should be done as quickly as possible and with enough debt cancellation to make the resulting debt burden sustainable - as Argentina did with its successful default in 2001.

The point of all of this is, if you add up all of the MBS-related liability out there, the banks as it stands are facing an Armageddon of claims from all sides. It can't possibly be less than a trillion dollars, and it's probably much, much more. But the Obama administration's current plan is to let them all walk after paying a few shekels apiece into a $20 billion kitty.

Since America's political and media class steadfastly ignore this glaringly obvious point, it's nice (albeit self-interested) of the Chinese to point it out for us.  As we endlessly hear about a massive debt crisis, the current President has started one optional war that has already exceeded its estimated costs, plans to continue (if not escalate) two more, is drone-attacking a new country on a seemingly weekly basis, expands sprawling covert military actions in still other countries, builds new overseas detention facilities, all while offering only the most modest, symbolic and illusory "cuts" in military spending.  The alleged need to slash the financial security of American citizens -- and the notion that America faces a severe debt crisis -- would be more persuasive if the country didn't continue its posture of Endless War and feeding the insatiable, bloated National Security State (to say nothing of the equally insatible and wasteful Drug War and its evil spawn, the increasingly privatized American Prison State, which the Obama administration is expanding as aggressively as the War on Terror).

Greece faces unacceptable conditions for a new bailout. If it defaults, the US had better be ready for the economic shock. The European authorities are playing a dangerous game of "chicken" with Greece right now. It is overdue for US members of Congress to exercise some oversight as to what our government's role is in this process, and how we might be preparing for a Greek debt default. Depending on how it happens, this default could have serious repercussions for the international financial system, the US economy and, indeed, the world economy.

So, yes, we face a threat to our capitalist system. But it's not coming from half-naked anarchists manning the barricades at Occupy Wall Street protests. Rather, it comes from pinstriped apologists for a financial system that glides along without enough of the discipline of failure and that produces soaring inequality, socialist bank bailouts and unaccountable executives. It's time to take the crony out of capitalism, right here at home.

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