I'll Protect you for the Hooded claw

As the economic crisis maintains its momentum despite the stock exchange displaying its usual bi-polar elements, there are worried glances by the neo-liberals as regards the p-word: Protectionism. This is anathema to the globalisation disciples like Brown, Blair etc yet although all the leaders are protesting against the possibility of bringing back national barriers there are several straws in the wind that shows the big capitalist powers are drawing up their drawbridges.

Sakorzy in France is trying to woo car business back from Slovenia - fellow EU member. As discussed below China have killed off the Coke deal: dead in the sugary water. American Congress puts Buy American steel clause in new public building projects. Oz politicians campaigning against the Chinese state owned metal company buying a huge stake of Rio Tinto mines. Even Britain which under Nulabour was arguably the most globalised part of the global economy - literally everything was for sale- hence why belief that Britain will suffer more than most other countries in recession is urging Banks to lend to domestic customers hence negating foreign investment.

Its all little bits and bobs just now but could mount up particuarly if populist politicians take up the mantle - sadly more likely than the left at the moment given the general weakness of socialism internationally.

In truth free trade was always a bit of a myth - witness the continual failure of the WTO talks but the shift is still significant, particularly ideologically.

In other news Hungary latest to lose PM cos of IMF austerity and Serbia need to go back for more cash with conditions.

As obsolete as...?

Doing my usual reading of my paper from the back business pages first - it's the only way to really understand the world - I came across a small bit about the way the economic crisis has hit Eastern Europe who were already up to their eyes in debt badly.

Our old friends the IMF as outlined in Naomi Klein's Shock Doctrine have got their claws into Hungary and Latvia and are eyeing up Serbia, Agencies are giving Latvia a junk rating for credit which is almost unheard of for a country. My pals Wullie and Jo were recently there and said that heavily armed cops were very visible. No wonder - there were riots in January not really reported anywhere but see here: http://www.youtube.com/watch?v=o6TNr1OVVrA

This has resulted in the PM resigning last week - surprisingly because the IMF told him to cut public expenditure and raise taxes. The IMF are still circling though so whoever wins an election if it is called expect them to be told what policies they have to implement whatever their policies were.

And yes I know that the photo is EMF but in my defence it is unbelievable....