The PMC Bank fiasco and the impending economic catastrophe

The Punjab and Maharashtra Cooperative Bank (PMC) fiasco is an indicator of the impending economic catastrophe. PMC is on verge of bankruptcy due to it lending 2,500 crore to real estate company HDIL, which went bancrupt pulling the bank down with it.

Now RBI has stopped the bank from doing any transactions, with a humanist angle that the account holders can withdraw a massive sum of Rs 1000 in next 6 months. In eyes of the central bank, the sum is enough for the people to meet their daily expenses!

Recently, the government gave 70,000 crores Rupees to various banks for their recapitalisation, an euphemism for bailing these entities out and giving them fund for another round of loans so that the high and mighty of capitalism can survive and keep floating.

But, what about the people? Well they would have to bear the brunt.

The simple Simons would say, how could the government control such events from happening. Aren’t all these catastrophes a side effect of market economy, something beyond the control of the government. And yes we say! Indeed behind all the acrobatics and somersaults being done by the Finance Ministry and the FM, the end motive is being served. Keep the rich afloat. The servility to the capitalists, is being performed with breakneck speed. But is not visible to our parliamentary leftists what to say of the Congress whose current crisis is the progeny.

The control methods are known and has been used in history, but such measures would cut into the obnoxious profit the capitalists are reaping undermining governmental thrall to them!

What is the solution to come out of this impasse.?

There is no solution as the problem itself is capitalism. The solution lies in Socialism.

In Socialism the measures would be:
1. To amalgamate all banks and nationalise them
2. Nationalisation of all means of production
3. Let the capitalists pay for their loan and if not appropriation of their entire assets, without compensation
4. Expunge and come out of all secretive commercial treaties
5. Workers control over the factories

Capitalism is the problem, Socialism is the solution!

*1 Crore =10 million

Author: Other Aspect

A Marxist-Leninist journal, based in India and aimed at analysing the contemporary world events from a Marxist-Leninist perspective.

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