FAST FIVE: Varoufakis Exposes The EU's COVID Class War

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The unshackling of finance in the early 1980s, following the elimination of capital controls left over from the Bretton Woods system, enabled enormous trade imbalances to be funded by rivers of money created privately via financial engineering.

The main difference between them is that China maintains huge levels of investment through a domestic credit bubble, while Germany's corporations invest much less and rely on credit bubbles in the rest of the eurozone.

For example, when the Greek state went bankrupt in 2010, the austerity imposed on most of the Greek population did wonders to restrict investment in Greece.

By contrast, the EU recovery fund's fixed allocation to member states will turn them against one another, as the fixed sum to be given to, say, Italy or Greece is portrayed as a tax on Germany's working class.

Strengthening the solidarity of Europe's oligarchs is not a good strategy for empowering Europe's majority.

Categories: ZH