Didn't Marx say somewhere that the only capitalist phenomenon that the
bourgeoisie would nationalise, is debt? Can anyone help with the quotation?
The story below is about the bourgeois state having to step in to supervise
the writing off of vast sums of dead capital, in order to ensure the
continued circulation of the economy and hopefully renewed exploitation of
the workers and accumulation of capital once again. But if it does not
destroy enough old capital or depress wage rates sufficiently it will be
difficult to start accumulating again. Attempts to persuade the masses that
their purchasing power is greater than it is, appear to be futile.
Chris Burford
London
November 14, 2002
Japan poised to nationalise bank From Anatole Kaletsky in Tokyo
AT LEAST one of Japan's "big four" banks is likely to be forcibly
nationalised next month, in a move that will cost shareholders billions of
pounds. The nationalisation will probably be precipitated by a "symbolic"
bankruptcy of one of Japan's 30 most indebted companies before the end of
the year.
These stark predictions were made yesterday by Hiroshi Okuda, chairman of
the Keidanren, the powerful Japanese industrial association, which includes
the main banks among its members. Mr Okuda, who is also chairman of Toyota,
the world's second largest carmaker, suggested that the controversial move
will follow from the much tougher accounting standards, introduced on
October 30.
Mr Okuda seemed relaxed about the prospects of a large-scale bank failure
and expressed confidence that the Government would be able to cope with the
consequences without damaging the Japanese economic recovery, which was
confirmed by firmer than expected GDP figures published yesterday.
Mr Okuda, whose organisation has been closely involved in the Government's
contingency plans for a financial crisis, said the Prime Minister,
Junichiro Koizumi, was now "strongly supporting" major reform of the
banking system.
Under reform plans published last month, Japanese banks would be forced to
make much more stringent provisions than in the past for non-performing
loans (NPLs) to insolvent and struggling borrowers.
The total value of NPLs in the Japanese banking system is generally thought
to be at least Y50 trillion ($400 billion). If the losses resulting from
these new provisions reduced a bank's capital to below the level mandated
by the Bank for International Settlements (BIS), the Government would
inject new capital and take control. This process would amount to a forced
nationalisation, wiping out or massively diluting existing shareholders.
Mr Okuda said that all of Japan's "big four" banks would survive the reform
process, but the question was "whether they will be privately owned or
nationalised". He added ominously that "of the four major banks two are
very solid, but two are fragile".
While Mr Okuda refused to identify the banks in these two groups, analysts
are virtually unanimous that the two "solid" banks are Mitsubishi Tokyo
Financial and Sumitomo Mitsui, while the two weaker institutions are UFJ
Holdings and Mizuho Holdings, the world's biggest bank in terms of assets.
Asked to explain why the banking crunch could come as early as next month,
Mr Okuda explained that the rigorous new credit assessment regime could
quickly drive one or more big borrowers into bankruptcy and this would
threaten their bank lenders.
- Re: Japan poised to nationalise bank Chris Burford
- Re: Japan poised to nationalise bank Charles Jannuzi