28 Oct 2021

Floods in Greece expose the fatal consequences of climate change and austerity policies

Katerina Selin


Heavy rains led to devastating floods across Greece in mid-October. Based on the number of emergency calls, the fire brigade estimates that almost 2,000 houses were flooded across the country during the storm named “Ballos.” Most affected was the Attica region and the Greek capital, Athens.

The flood of water turned streets into rivers, swept away hundreds of cars and caused power cuts in several districts. Areas of the island of Euboea were also affected, where catastrophic fires had raged in the summer. A 70-year-old farmer died in the floods on the island. Last weekend, following heavy rainfall, flooding occurred again on the island of Corfu, with houses, shops and fields inundated in a number of villages.

Despite previous warnings from scientists, the government did nothing to protect the population from the floods. Instead, it reacted with the same criminal negligence and ignorance it has shown with regard to the COVID-19 pandemic and the country’s recent forest fires. The aftermath of the storm once again revealed the glaring deficiencies in flood and disaster protection and the widespread unsafe and cramped construction and dilapidated infrastructure which prevails in Greece—a result of decades of austerity policies.

On social media, scenes from the northern Athens district of Nea Philadelphia shocked viewers. A video shows students rescuing themselves from their flooded school via a makeshift bridge of desks and chairs. The images were reminiscent of natural disasters in developing countries. “Welcome to the Middle Ages or Greece 2021,” commented one Twitter user.

Many tweets linked the school flooding to the government’s recent attacks on public education, which led to tens of thousands of teachers and students going on strike just days before the storm.

The affected school complex houses a primary school, a kindergarten, a high school and a lyceum. While the students essentially rescued themselves, the fire brigade arrived later to pump out the water. “We cannot possibly drown in our own schools!” the Nea Philadelphia student committee declared in an angry statement to the government. They said the students of the lyceum have been taught in makeshift classrooms made out of shipping containers for 10 years.

“You bear a great responsibility! You, previous governments and of course all municipal authorities up until today. You have not taken any action for years because our safety and health cost money. Today’s pictures from a school just a few kilometres from the centre of Athens prove these are not random events. It is criminal decisions that leave us unprotected.”

On the Monday after the storm, students, together with the parents’ association, protested in front of the local town hall, demanding immediate action and funding to repair the damage to the school and better protection in future from floods and earthquakes.

The students also demanded the reversal of the announced merging of hundreds of classes across the country, which will result in even more students being crammed into small, often dilapidated classrooms. This will not only increase the spread of COVID-19, it will also make rescue operations more difficult in the event of floods, fires or earthquakes.

As videos from the student newspaper Foititikos Kosmos show, the ground floor of the Athens School of Fine Arts was also flooded, forcing students to flee the building. In the Faculty of Philosophy at the National and Kapodistrias University of Athens, rain began to drip through the ceiling during lectures. Flooding also occurred at the University of Western Attica and the University of Crete.

Ιn the northern Greek city of Thessaloniki, a road collapsed, causing a bus carrying 15 oil workers to fall into a hole. Fortunately, the passengers were not seriously injured. In southern Athens, near Stavros Niarchos Park, dozens of people had to rescue themselves from a bus that had become stuck in a flooded road subway and was submerged in muddy water.

Passengers wade through rainwater after a bus got stuck in a flooded underpass, October 14, 2021 (AP Photo / Thanassis Stavrakis)

The flood disaster was entirely predictable. Meteorologists and scientists had predicted that there would be heavy rainfall and flooding in the autumn, exacerbated by fierce forest fires during the record heat of the summer which had stripped away vegetation which would normally impede the flow of water and limit landslides.

“With fires, we always know that there will be flooding afterwards. This is the norm,” Nikos Belavilas, a professor at the National Technical University of Athens and head of the Urban Environment Laboratory, told Open TV. He says it was fortunate that not too much rain fell on burnt areas—otherwise the damage would have been even greater.

Experts consider the recent storm to have been of medium strength and expect even greater torrents of rain in the near future, an eventuality for which Greece is completely unprepared. Researchers have long warned that extreme weather events will increase with climate change.

Dimitris Pirounakis, the president of the Greek Environmental Federation, explained in an interview with the website News247: “One of the effects of climate change in Greece is that we will have more droughts in the future, resulting from long periods without rain. But when it rains, the intensity will increase, leading to more flooding.”

The danger was pronounced, especially in scorched areas such as northern Evia, he said. “Forests can prevent large amounts of water from flowing into the cities but due to the forest fires the cities are no longer protected from rainwater. Combined with deforestation and anarchic and unsustainable construction in cities (building on watercourses), this is what has happened. And that was just the beginning. Unless the necessary measures are taken to rebuild and prepare for floods, there will be very big problems in future.”

Clogged and partly dried-up rivers like the Kifissos in Athens, blocked drains and sewer manholes, a lack of street cleaning and an overall lack of stormwater infrastructure have quickly led to mudslides flooding streets, Pirounakis said.

In recent decades, there have been repeated flood disasters in Greece, which have had a disastrous impact on the lives of the working class due to the governments’ austerity policies under the dictates of the European Union and the International Monetary Fund. In 2017, when the pseudo-left Syriza (Coalition of the Radical Left) party was in office, 23 people died in floods in Mandra, a town in western Attica.

At the time, the WSWS explained that essential public sectors such as urban planning and flood protection were being systematically undermined. These included the dissolution of the Public Corporation of Urban Planning and Housing (DEPOS), the relaxation of building regulations as part of the government’s privatisation policies since 2011, and the abolition of the Organisations for Regulatory Planning and Environmental Protection in the cities of Athens, Thessaloniki and Ioannina in 2014.

The consequences of these policy shifts are also pointed out by Aris Kalantidis, professor of urban planning at Manchester Metropolitan University, who told News247 that the replacement of the independent regulatory agency in Athens by a ministry-affiliated and opaque agency, meant that de facto planning and oversight no longer exist.

While Greek politicians often refer to global climate change in general terms as a natural phenomenon in order to avoid their own responsibility for the consequences, the reality is that the rapid destruction of the planet makes immediate action all the more urgent.

Huge financial, technical and human resources must be invested immediately in public infrastructure, disaster prevention, scientific research and the fight against climate change. Families affected by forest fires and floods must receive comprehensive compensation and support.

The implementation of these measures, however, are incompatible with the capitalist profit system and the agenda of its political representatives. The ruling class in Greece and around the world acts in the interests of the banks and corporations, pumping billions into military budgets and pushing ahead with privatisation and cuts in key public sectors.

Germany’s reopening policy leads to surge in COVID-19 infection rates

Tamino Dreisam


Germany’s COVID-19 incidence rate, which is the number of people per 100,000 inhabitants infected within seven days, has exploded over recent days. Within a week, it rose from 75 infections per 100,000 inhabitants to 118, an increase of about 50 percent. The number of daily new infections increased to more than 23,000 on Wednesday. The number of cases is significantly higher than at the same time last year.

The number of people infected with COVID-19 requiring intensive care has also been rising steadily since the beginning of October. There are currently 1,622 COVID-19 patients in intensive care. There were 150 new hospitalizations registered for the day on Monday. The incidence rate for hospitalization is 2.77 per 100,000 inhabitants. Around 70 people are succumbing to the virus every day.

The sharpest rise in infections has been recorded in the state of Thuringia, which is governed by a Left Party/Social Democrat/Green coalition. At 224 infections per 100,000 inhabitants, the incidence rate is more than twice the national average—an increase of 85 cases per 100,000 people compared to the previous week. At 7.72 per 100,000 inhabitants, the incidence of hospitalization is also well above the national average.

Like last year, schools and kindergartens in particular are once again central sources of infection. The age group with the highest infection rate is 5- to 14-year-olds, with an incidence rate of 224 per 100,000 people, followed by 15- to 34-year-olds with an incidence of 138. The number of outbreaks in schools increased sharply from early August to early October, directly due to the opening of schools without adequate safety measures.

Over the last four weeks, there were 166 outbreaks in kindergartens and 758 in schools. The figures for the last two weeks are incomplete due to late reporting, meaning the true number of outbreaks is likely even higher. At the end of September, the number of outbreaks in schools reached a new high of 243 per week. An outbreak results in an average of five infections.

Despite this catastrophic situation, all parties in Germany’s federal parliament are in favor of further dismantling protective measures. Health Minister Jens Spahn (Christian Democrats, CDU) repeated his call on Sunday to end the “epidemic situation of national importance” when it expires on November 24. This decision will remove the legal basis for most of the protective measures against the spread of COVID-19.

This corresponds to the interests of all parties of the ruling class. The liberal Free Democrats and far-right Alternative for Germany have long been in favor of an end to the remaining public health measures, but the nominally “left” parties are also open supporters of the policy of mass infection.

The Greens are calling for a “transitional arrangement” once the “epidemic situation” comes to an end. Keeping the “epidemic situation” unchanged is the “wrong answer,” they claim. SPD parliamentary group leader Rolf Mützenich told the Redaktionsnetzwerk Deutschland (RND) that the SPD was also not aiming to extend the “epidemic situation.” According to Die Welt, the Left Party is also calling for an end to the “epidemic situation.”

Leading representatives of the Left Party, such as party founder Oskar Lafontaine, or the former parliamentary group leader Sahra Wagenknecht, are working with right-wing COVID-19 deniers and are calling for an end to all protective measures in the form of a “Freedom Day.” The state governments in which the Left Party is involved are already systematically dismantling public health measures.

The unions also support the reopening policy. Maike Finnern, chairwoman of the Education and Science Union (GEW), campaigned in comments to the RND to keep schools open in autumn and winter. “If the prevention path is continued consistently, the schools can remain open,” she cynically declared. In fact, the GEW supports the current moves to dismantle the last remaining mitigation measures. “We expressly welcome the fact that the masks are falling,” said Bernd Schauer, GEW State Director of Schleswig-Holstein, in response to the news that the state would scrap its mask mandate in school classrooms.

With the dismantling of the last remaining safeguards, the established parties are creating conditions for mass death on a scale that will surpass the tens of thousands of fatalities recorded last winter.

Scientists around the world are warning of the dangerous consequences these policies will have. “The Delta variant is so infectious that the unvaccinated are infected very quickly, and this is especially due to the seasonal effect when everyone goes inside,” warned Christian Karagiannidis, the scientific director of the intensive care register of the German Interdisciplinary Association for Intensive Care and emergency medicine (DIVI), in an interview with Deutschlandfunk.

He dismissed the official propaganda that it is possible to open everything up because of the high vaccination rate, warning that the policy threatened to overwhelm ICUs. “On the one hand, we are seeing a very significant increase for about ten days with considerable growth rates in the incidence rates ... and the incidence rates are still extremely closely linked to admissions to intensive care, and that causes us great concern,” he said.

The situation in hospitals is already worse than at the same time last year. There are currently over 1,500 COVID patients in intensive care, compared to 360 in autumn 2020. The number of free beds was 8,000 last October. Currently, only 2,500 beds are free.

Karagiannidis also denied official claims that COVID-19 was “less severe” for young people. He gave two reasons for this. Firstly, “the severity of the disease is of course extremely high and the burden on the intensive care units due to cases requiring ventilation is enormous.” Secondly, “because the young people survive longer, the occupancy on the wards is kept high for a very long time.”

What’s behind Tesla’s $1 trillion market valuation?

Gabriel Black


On Monday, Tesla, the leading electric car company, owned by Elon Musk, achieved a market valuation of over $1 trillion. Tesla now joins Apple, Google, Facebook, Microsoft and Amazon among the ranks of corporations whose market capitalization has surpassed the $1 trillion mark.

Tesla stock surged Monday upon the announcement that rental car giant Hertz was buying 100,000 Teslas for its rental fleet. As a result, the personal fortune of Musk, already ranked as the world’s richest person at $271 billion, rose another $36 billion on that day alone.

The spectacular rise of Tesla’s valuation is a testament to the illusory character of present-day capitalist growth, spurred by endless sums of money funneled by governments into financial markets. Tesla’s rise is also an indication of a general shift in the productive forces toward renewable energy, along with increasing automation.

In the deal reached between Tesla and Hertz, the latter said it would buy 100,000 Tesla Model 3 cars as part of its plan to go electric. The deal is being subsidized, according to reporting by the Wall Street Journal, by a 30 percent tax credit expected to be passed as part of the budget bill currently under discussion. Additionally, it is expected that half of these 100,000 vehicles will be made available to rent to Uber drivers.

Tesla’s stock price was already on the rise before the Hertz announcement. Between October 11 and October 25, Tesla’s share price went vertical. It rose from $791 to $1,024 under conditions of a general upward trend in the markets in the first half of October. But even this pales in comparison to the last two years.

Before the pandemic hit, in February 2020, Tesla’s share price reached a high of $180. Today, less than two years later, it is above $1,000.

Its market capitalization has skyrocketed. At the beginning of 2020, it had a total valuation of around $80 billion. Now it has surpassed the $1 trillion mark.

For comparison, Toyota’s market capitalization has essentially remained flat from 2017 to the present. For almost all this time, it has been valued at around $200 billion. This is despite the fact that Toyota is tied with Volkswagen as the largest car company by revenue. Toyota takes in $250 billion each year. In contrast, Tesla made just $31.5 billion last year.

Toyota produces about 10 million vehicles a year, compared to Tesla’s production volume of less than 1 million.

The extraordinary growth of Tesla’s stock has cemented Elon Musk as the richest man in the world. This comes from both his massive stake in Tesla and his ownership of SpaceX. Forbes ranks Jeff Bezos as the next wealthiest man, at $198 billion.

What stands behind this extraordinary and seemingly bizarre explosion in the value of Tesla?

There are at least three major forces at work.

First, the world’s financial markets are awash in unimaginable amounts of money. This may seem surprising to the vast majority of working people, who are struggling to meet their basic needs and facing surging gas and grocery costs. But in the realm of high finance, there is money in super-abundance.

Governments and central banks have been pumping vast sums of money into the markets since the 2008 financial crisis. The US Federal Reserve led the way by adopting the policy of “quantitative easing,” a euphemism for electronically printing trillions of dollars in order to buy toxic asserts from the banks, depress interest rates and drive up stock prices. This policy has been intensified over the last two years, as governments and central banks sought to stave off a financial crisis and economic slump—perhaps without precedent—in March 2020.

Nearly every leading capitalist power is pursuing the same policy.

At present, in addition to keeping interest rates near zero, the US Federal Reserve is funneling $120 billion into the financial markets every month.

The resulting debt bubble threatens to implode. Financiers and central bankers around the world are nervous, and rising commodity inflation and working-class struggle compound their fears.

Tesla has benefited from this environment. With endless cash but few opportunities to profitably invest in traditional industries, finance has rushed toward companies that could disrupt existing markets. Tesla has the potential to do this through its edge in electric vehicles.

The second factor is the shift toward renewable energy technologies. Capitalist profit and national interests make impossible the allocation of resources and the international coordination required to seriously address the climate crisis. But there is a definite movement by capital to transition away from fossil fuels.

Ten years ago there were fewer than 0.1 million electric vehicles globally, according to the International Energy Agency (IEA). In 2020, that number had multiplied by over 100, surpassing 11 million vehicles. Even without new climate legislation, the IEA expects the global number of electric vehicles to rise to 137 million by 2030.

This is a significant shift in auto, one of the world’s largest industries. The shift falls far short of what is required to save the planet from the impact of climate change, however.

To meet net-zero carbon emission goals by 2050, the number of electric vehicle sales would have to be 358 million by 2030, according to the IEA. (It should also be noted that electric vehicles must have a carbon-neutral supply chain to truly stop emissions. The minerals and materials required to build these cars rely still on a largely fossil fuel-based production and distribution system).

Tesla remains a global leader in electric vehicles, its sole product. It currently boasts a 520-mile range in its newest model.

A third major component of Tesla’s expansion is its bet on new, massive, state-of-the art facilities for electric vehicle, battery and solar production.

Tesla’s original factory in Fremont, California, sits on the site of a former General Motors and Toyota joint venture—the New United Motor Manufacturing plant, which dates back to the 1960s. The World Socialist Web Site previously published an exposure of the grueling, unsafe conditions there.

Tesla, however, has built three “giga factories” in the last few years in Nevada, New York and Shanghai. It will soon open up two new giga factories in Texas and Berlin. It is rumored that several more are in the works, as well as additions to existing ones. Tesla boasts that the Nevada factory will in the end be three times the size of Central Park, making it the largest building and factory in the world. It will be topped with solar panels.

The giga factories are considered to be cutting-edge in terms of automation. Tesla has bought several leading automated machine companies over the last few years.

This will not make the facilities any less exploitative, but markets are betting it will give the company an edge.

Because major industries require significant capital investments in machinery and facilities, companies have to wait for the machinery to transfer its value to production before updating it. If they did not, they would not reap the full value from their large investment.

This can give newcomer companies, like Tesla, an advantage, because they are free to invest in the latest technology and the largest factories, having few pre-existing factories themselves.

Something should also be said of Tesla’s place as a “meme stock.” Elon Musk has created a “green,” “disruptive” entrepreneur persona that has attracted non-institutional investors.

The son of a mining magnate from South Africa, Musk has also demonstrated his capacity to ruthlessly squeeze his workers. He openly courted the far-right with his opposition to the most basic public health measures to halt the pandemic (to which California Democrats capitulated).

In summary, Tesla’s valuation is overwhelmingly fictitious. It is a gigantic bet, fueled by the general market frenzy, and liable—like the rest of the economy—to “pop.”

It is not impossible for Tesla to partially live up to the valuation that has been placed on it. The technology being developed at Tesla and other advanced technology firms can play a progressive role in the development of the global productive forces, but only if it is freed from the capitalist framework of private ownership and nationalism.

As economic pressures mount, Tesla and its counterparts will have only one surefooted strategy: further squeezing their workforce to extract ever greater profit, generating ever greater resistance from the workers.

Malaysia enters “endemic stage” of COVID-19 amid thousands of infections

John Braddock


Malaysia last week entered what Director General of Health Tan Sri Dr Noor Hisham Abdullah, described as the country’s “endemic stage” of COVID-19, as thousands of new cases continue to be confirmed every day. This will be a “new battlefield,” Noor Hisham declared, in which “all Malaysians have to be prepared to adapt to new norms.”

The “new norms” centre on the public accepting “social discipline.” Noor Hisham told Bernama, the national news agency: “We can only win this war if all of us, all Malaysians, collectively come together as part of our social responsibility to embrace standard operating procedures and guidelines set by the government.”

Last month, Prime Minister Ismail Sabri Yaakob warned that citizens had to learn to “live with COVID” because it “may not be eliminated fully.” Lockdowns were “no longer feasible,” he said, claiming that ongoing shutdowns would have “negative implications,” including for the mental health of Malaysians.

Oxygen tanks are prepared for patients in the hallway of an overcrowded hospital amid a surge of COVID-19 cases, in Surabaya, East Java, Indonesia, July 9, 2021. (AP Photo/Trisnadi)

The move is an official admission that the government is adopting the homicidal policy of governments around the world, that put the interests of big business over the health and lives of the population. It follows a period in which the Southeast Asian country, with a population of 32.7 million, endured one of the highest infection rates and deaths per capita in the world.

The lifting of restrictions began in mid-August, mainly for small businesses, even as tens of thousands of cases were being recorded daily. Now interstate and overseas travel has resumed and larger businesses such as hotels and the Langkawi holiday centre allowed to open up. Ismail claimed these steps would help speed up economic recovery and give people the opportunity to “improve their livelihoods.”

According to Noor Hisham, last week’s move was justified by an improvement in “key indicators” since the high point of the pandemic during the week of August 22-28. He claimed there had been a consistent decline in the number of daily cases, active cases, fatalities, cases treated in the intensive care unit (ICU) as well as the R-rate recorded over that period.

In fact, this only represents a partial, and temporary, improvement in a dire situation. When case numbers peaked on August 30, there were 19,268 new cases recorded, with a seven-day average of 21,799 infections.

On October 24, there were 5,666 cases with a seven-day average of 5,861. In all from October 11 to 24, there were 92,122 cases. Malaysia’s total case numbers are a staggering 2.43 million with 28,400 deaths. The current drive to “open up” is being undertaken while just 72.8 percent of the population has been fully vaccinated (94.6 percent of adults aged over 18).

According to local experts, the COVID-19 pandemic situation is “not yet over.” Manipal University College Malaysia Professor G. Jayakumar told the Straits Times it was “too early to make a definitive conclusion on the downward trend.” The increase in hospitalisation rates was a particular concern, including in the Klang Valley where it had increased 35 percent the previous week. Jayakumar also warned that waning vaccine immunity and the spread of the Delta variant could contribute to another rise in infections.

Molecular virologist Vinod Balasubramaniam from Monash University Malaysia said while the drop in infections was encouraging, Malaysians could “not afford to let their guard down.” He also said the country should expect a “sporadic rise” in cases with the reactivation of tourism and travel.

While both academics expressed vague optimism about the return to “normalcy” by the end of December, all the scientific evidence indicates this is not the case. Among other measures, schools in several states began a reckless reopening from October 3, with 50 percent of students on site at any given time.

School re-opening is taking place internationally with the aim of paving the way for parents to return to work to bolster businesses and profits. Everywhere the result has been a rise in infections among both teachers and students. In the United States, nearly 2 million children have been infected with COVID, with 6,523 hospitalized and 200 dead since July. Over 50,000 school age children in the UK are currently suffering from Long-COVID.

The Straits Times reported considerable concern among parents and students over the school re-openings. Salina Saad said “given a choice,” she would not send her 18-year-old daughter to school yet, even though she is fully vaccinated. Muhammad Faiz Abdul Rahman, 19, is fully vaccinated but said he is “still worried about the COVID-19 situation.” Rahman said he was “nervous” about going back to school with cases still high.

The homicidal policy of “herd immunity” is being pursued by a crisis-ridden ruling elite, which is turning in an ever more reactionary direction. The current government, led by Ismail’s right-wing United Malays National Organisation, has only been in office since August. Ismail is the country’s third prime minister in less than four years after previous Prime Minister Muhyiddin Yassin, who took office in 2018, was forced to resign.

The political instability reflects rising popular discontent over social inequality, entrenched corruption, and autocratic methods of rule. Opposition intensified as a result of the Muhyiddin government’s gross mishandling of the pandemic, which saw extended lockdowns fuel massive job losses but without adequate assistance for the unemployed. The limited measures failed to reduce COVID-19 cases.

Restrictions in Malaysia, the world’s second-largest producer of palm oil prevented migrant labourers from travelling to plantations, raising prices of the edible oil used to make everything from candy bars and shampoo to biofuel. The shuttering of factories also contributed to the global supply chain crisis, with essential components for manufacturing, such as semiconductors, delayed.

The Malaysian economy expected to grow by only 3–4 percent this year. According to official statistics, GDP increased 16.1 percent in the second quarter of 2021 after four consecutive quarters of contraction. The growth was attributed solely to the low base recorded in the second quarter of 2020. The Department of Statistics warned that the latest short-term economic indicators signal that the economy “is anticipated to face challenges in preserving the recovery momentum.”

Muhyiddin’s resignation came after a strike by thousands of junior contract doctors over their fight for greater job security, followed by a series of protests organized mainly by young people in July and August. The #BenderaHitam (black flag) movement developed into a broad social opposition over the voting age, high unemployment rate among 15 to 30-year-olds—almost double the national average—stagnating wages, unaffordable housing and the lack of any real social safety net.

The movement erupted after lawmakers from the ruling National Alliance sought to discredit a previous social media campaign, #BenderaPutih (white flag), aiming to help people in need of food and other essentials, amid a surge in suicide cases due to job losses and slashed incomes. Tens of thousands of people have reportedly been involved in protest activities, including on social media and with public displays of black flags.

Police responded by launching an investigation into the black flag movement for purportedly harbouring alleged “seditious elements.” They detained at least 47 participants for questioning.

The protests initially centered on their demands for Muhyiddin’s resignation. However, the deepening opposition sentiment, while still at an early stage, coincides with movements elsewhere in Southeast Asia, especially in Myanmar and Thailand, as the pandemic continues to rage through the region’s combined population of 655 million people. The emerging class struggles will inevitably intersect with those of workers in the major imperialist centres.

Moody’s rating agency warns of “systemic risk” in private credit

Nick Beams


Stock markets continue to soar—Wall Street has reached new record highs this week—on the back of the cheap money provided by the Fed and other central banks but there are warnings of increasing dangers in what has become a growth area of the financial system.

The ratings agency Moody’s has issued a report that the private lending industry, which has grown to $1 trillion, was posing “systemic risks” as a result of its “explosive” growth.

“The mounting tide of leverage sweeping into a less-regulated ‘grey zone’ has systemic risks,” it said. “Risks that are rising beyond the spotlight of public investors and regulators may be difficult to quantify, even as they come to have broader economic consequences.”

Trader James McCarthy, foreground, works on the floor of the New York Stock Exchange, Thursday, Oct. 14, 2021. (AP Photo/Richard Drew)

The private credit market began to expand after the global financial crisis and its growth accelerated after the massive $4 trillion intervention by the Fed in response to the March 2020 crisis at the onset of the pandemic. It has provided a source of profit for investors who are seeking to increase their returns above those obtainable in the stock and bond markets.

Reporting on Moody’s findings, the Financial Times said, “leveraged buyout groups” had been “particularly active users of the industry, weaving private equity and private credit closely together in a debt-laden ecosystem.”

The head of leveraged finance research at Moody’s, Christina Padgett, said: “Private equity’s business model relies on leverage. We have become accustomed to leverage in the institutional loan and bond market. Now we are seeing a higher degree of leverage among smaller companies.... At the moment that is fine because interest rates are low but it introduces a higher degree of risk going forward.”

Moody’s is not alone in sounding a warning about the increased risks flowing from private credit. In a report published earlier this month S&P Global said private debt had emerged as a “new frontier for credit investors as they search for yield” with the market growing tenfold in the past decade.

“The growing investor base, a lack of available data, and the distribution of debt across lending platforms make it hard to know how much risk there is in this market—and who holds it.

“The expansion of the investor base could lead to heightened risk in the market if it leads to volatile flows of money into and out of the market,” it said.

Private credit is by no means the only potential source of instability.

In 2008, the epicentre of the financial crisis was the major banks and finance houses which were bailed out by the government with the provision of trillions of dollars of cheap money by the Fed. Regulations were introduced to strengthen their capital base, which supposedly were designed to prevent a repeat of the financial meltdown.

But there has been criticism that deregulation introduced by Fed chairman Jerome Powell has significantly weakened even those limited measures.

The criticisms came into public view during a Senate banking committee hearing at the end of last month when Massachusetts Democrat senator Elizabeth Warren told Powell she would not support his renomination as Fed chair, describing him as a “dangerous man.”

Warren said there were multiple instances where the Fed had relaxed financial regulation.

“Over and over, you have acted to make our banking system less safe. And that makes you a dangerous man to head up the Fed, and it’s why I will oppose your renomination,” she said.

Warren, who has described herself as “capitalist to the bone,” is no opponent of finance capital and Wall Street. Her support for tighter regulation arises from the fear that another crisis on the scale of 2008, or possibly even larger, will lead to a deep-going economic crisis and the eruption of massive social struggles by the working class.

Warren’s criticisms received little support in the financial press at the time and there is general support for Powell’s reappointment which is under discussion in the Biden administration.

But this week the Financial Times chose to publish an opinion piece by Dennis Kelleher, the president of Better Markets, an advocacy group for tighter regulation and control of the banking and financial system.

Kelleher began by stating that Warren’s description of Powell was “accurate” and the deregulation he had supported over the past four years had “undermined the financial stability of the banking system,” moving “the US closer to future financial crises and bailouts funded by taxpayers, as happened in 2008.”

He said Powell’s actions had weakened regulations covering five areas: capital requirements, supervisions, proprietary trading, living wills to allow stricken banks to be safely unwound and the amount of liquid assets held by banks that are easy to sell.

Each of these rules had been significantly weakened, leaving the regulatory framework impaired and “materially reducing the resilience of the banks.” Deregulation had also made it harder for “regulators and the public to know the actually condition of the banks, making crisis planning and mitigation more difficult.”

He cited a dissenting opinion from Fed governor Lael Brainard on stress test changes which “gave a green light for large banks to reduce their capital buffers materially.”

Banks with assets of between $250 billion and $750 billion were no longer subject to rules applicable to “systemically important banks” despite some “still being large enough to cause systemic issues and contagion” and as a result “have much less confidence that any large bank can withstand a crisis.”

He said bans on proprietary trading—when a bank engages in financial activity on its own behalf rather than obtaining a commission from a client—had been weakened which encouraged “risk-taking and even gambling-like behaviour.”

“Not only did Powell’s Fed allow banks to engage directly in more of these types of activities, but they were also enabled to do more of it indirectly through investments on venture capital and loan finds, some of which have been shown to be unstable and unsafe.”

At present the vast accumulation of debt and financial assets is being sustained by ultra-low interest rates. But this regime is now coming under great pressure because inflation, far from being “transitory,” as maintained by Powell, is increasing at rates not seen since the 1970s.

The Fed seems almost certain to indicate it will start winding back its $120 billion per month asset purchases, probably early next year, when it meets next week. Powell has said that in his view it is “time to taper.” But he has insisted it is not time to raise rates because he is all too aware that such a move could trigger a landslide on the mountain of fictitious capital and debt which the policies of the Fed have created.

Thousands of teachers protest across Sri Lanka despite unions’ betrayal

Pradeep Ramanayake


Public school teachers and principals protested on Monday in major cities across Sri Lanka, as well as in the tea plantation districts and in the war-torn North and East, as part of their 24-year demand for higher wages. The main protest was held near the Colombo Fort Railway Station and involved more than a thousand teachers.

The demonstrations were called by the trade union alliance of teachers and principals, which includes the Ceylon Teachers’ Union (CTU), the Ceylon Teacher Service Union (CTSU), which is led by the opposition Janatha Vimukthi Peramuna, and the United Teachers Service Union, which is controlled by the pseudo-left Frontline Socialist Party.

Teaches protesting in the Colombo suburb of Homagama (Credit: WSWS)

The protests were organised by the unions following their betrayal last week of the 100-day national online teaching strike of about 250,000 teachers and principals. While the unions called Monday’s protests to try and cover-up their betrayal, the strong turnout demonstrated, once again, teachers’ determination to continue the struggle for better living and working conditions and in defence of free public education.

President Gotabhaya Rajapakse’s government has repeatedly rejected the demand for higher wages, insisting that it faced a deep economic crisis. But with the unions unable to end the strike, the government agreed to a small salary increase—one fifth of teachers’ original demand to be paid in four installments. Desperate to shut down the strike, the unions readily agreed but asked for it in one installment.

Last week, Prime Minister Mahinda Rajapakse told the union officials that the government would grant the meagre wage rise in three installments. The increase would be announced in the November budget, with the first installment in 2022.

The unions responded by falsely telling teachers that they “rejected” this offer, but then declared the online strike would end on October 21 and directed teachers to report for work in the primary departments of schools on October 25. The government had already announced the reopening of 5,000 primary sections in schools with fewer than 200 students from October 21.

On Monday, protesting teachers chanted for higher wages, an end to education privatisation, six percent of Gross Domestic Product (GDP) to be spent on education, full facilities for educators and students for online education, and no state repression of teachers.

The Rajapakse regime has intensified its privatisation of education and successive governments have slashed spending to about 1.5 percent of GDP. The government has also failed to provide facilities for online education to teachers who have been forced to pay for this from their meagre salaries. Teacher activists have been arrested by the police, on the orders of public security ministers, for organising protests.

Parents picking up their children from school (Credit: WSWS)

Demonstrating teachers on Monday in Kurunegala, the North-Western Province’s main city, surrounded Governor Raja Kollure’s office in protest against his call for striking teachers to be disciplined and their salaries cut. Kollure, who is president of the Sri Lankan Communist Party, was appointed governor by President Rajapakse. The Stalinist party, which is a partner in the ruling coalition, has a long history of supporting government attacks on social conditions and democratic rights.

Rajapakse’s decision to reopen the primary section of schools with less than 200 students, which was fully supported by the unions, is the first step towards the full reopening of all schools under conditions where COVID-19 is still sweeping across the country. From the outset, the unions, like education unions in the US and elsewhere, have backed the reopening of the economy and the schools, following brief lockdowns, placing the lives of thousands of teachers and students in danger.

Overcrowded classrooms in Sri Lanka and the highly-congested public transport system are creating the conditions for a rapid spread of COVID-19 across the island. Many students from poverty-stricken families with no income cannot even provide masks for their children.

At the Colombo demonstration on Monday, CTSU leader Mahinda Jayasinghe claimed that the teachers’ struggle had begun “a new round,” adding, “if our demands are not met in the next budget, massive action will be taken.”

Jayasinghe’s posturing is completely bogus. The government had already announced that it would only pay one fifth of teachers’ salary demand and in three installments. The systematic betrayal of teachers by the unions over the past 24 years means that Sri Lankan educators are among the lowest-paid public sector workers on the island.

The Rajapakse government’s forthcoming budget, irrespective of the teachers’ meagre pay rise, will see a full-scale assault on the social position of the working class.

Sri Lankan Finance Minister Basil Rajapakse has already directed all ministries to slash expenditure, including no salary incentives for employees or the hiring of new recruits. The government has also massively increased the price of essential commodities, greatly increasing the social hardships of workers and the poor. These measures will bring every section of the working class, including teachers, into struggle to defend their living and social conditions.

Education, health, postal, ports, railway and plantation workers have been involved in strikes and protests in recent months, indicating the emerging and socially explosive situation in Sri Lanka.

Several teachers spoke with the World Socialist Web Site during Monday’s protests.

A teacher from Maskeliya said: “The government has opened the schools without any safety measures in place for the COVID-19 pandemic, which is very dangerous for teachers and students. The rulers don’t bother about that but just want to break our strike. Most of our school students are plantation workers’ children, which in the present situation is a real burden for them to buy a mask for children.

“Teachers have to do everything, including school cleaning and other safety measures, to try and deal with the pandemic, and sometimes have to use their own money from their low salaries. The plantation trade unions are supporting the government and companies. Some of these union officials are ministers and don’t care about these things.”

A teacher from Agarapatana said: “This time teachers have united very strongly to win their demands. I’m a grade one teacher and my basic salary should be 90,000 rupees but all I get now is 40,000 rupees.

“Authorities are supposed to pay me about 4.8 million rupees in arrears but none of this will be paid. All other teachers face a similar situation. Today I met the parents of students from my school and I explained our struggle to them. They were very sympathetic. I agree with your proposal for organising action committees of teachers, students and parents in every school and that we must unite with teachers in struggle internationally.”

A teacher from Kandy said: “A majority of the teachers haven’t joined the trade unions and the reason is because the unions have not intervened among us regularly. I’m involved in this struggle because of the difficulties trying to live on my salary, which is about 50,000 rupees and is never fully paid. Like almost all other teachers a large part of my salary is deducted to pay off several loans.”

Greshan, a Colombo mathematics teacher, said: “We’ve been on strike for more than three months and what is finally happening now is what the government wants. Teachers have had to go back to work without any salary hike. Many teachers oppose the unions’ decisions. Given the magnitude of the government’s economic crisis, can we accept that they cannot allocate any money for the well-being of workers? It’s very clear that nothing can be won within the capitalist system.”

27 Oct 2021

Swedish Institute Scholarships 2022

Application Deadlines:

  1. To begin with, apply for a master’s programme at universityadmissions.se, between 16 October 2021 – 15 January 2022.
  2. Apply for an SI scholarship 10 February 2022, follow the instructions below.

Offered annually? Yes

Eligible countries: International students (especially from developing countries)

To be taken in (country): Sweden

Accepted Subject Areas: SISGP offers scholarships to a large number of master’s programmes starting in the autumn semester 2021. Check the list of master’s programmes that are eligible for SISGP.

About Scholarship: The Swedish Institute Scholarships for Global Professionals (SISGP) programme is part of the Swedish government’s international awards scheme aimed at developing global leaders who will contribute to the United Nations 2030 Agenda for Sustainable Development. It is funded by the Ministry for Foreign Affairs of Sweden and administered by the Swedish Institute (SI).

The programme offers a unique opportunity for global professionals to develop professionally and academically, to experience Swedish society and culture, and to build a long-lasting relationship with Sweden and with each other.

The goal is to enable the scholarship holders to play an active role in the positive development of the societies in which they live. Ideal candidates are ambitious young professionals with academic qualifications, demonstrated work and leadership experience, ambition to make a difference by working with issues which contribute to a just and sustainable development in their country in a long term perspective, and a clear idea of how a study programme in Sweden would benefit their country.

Priority will be given to applicants with a strong and relevant professional background and demonstrated leadership experience.

Eligibility/Criteria: Applicants must

  • have minimum of 3,000 hours of demonstrated full-time or part-time employment, voluntary work, paid/unpaid internship, and/or position of trust.
  • be from an eligible country
  • display academic qualifications and leadership experience.
  • be required to pay tuition fees to the universities, have followed the steps of university admission, and will be admitted to one of the eligible master’s programmes..
  • have demonstrated leadership experience from employment, voluntary work, and/or internship after high school studies.
  • Read more about the selection criteria, target countries, and eligible master programmes (in link below) before applying.

Number of Scholarships: Approximately 300 scholarships will be awarded

Scholarship Value: 

  • Tuition fees: directly paid to the Swedish university by us
  • Living expenses of SEK 10,000/month
  • Travel grant of SEK 15,000 *
  • Insurance against illness and accident
  • Membership of the SI Network for Future Global Leaders(NFGL) – a platform to grow professionally and build your network while in Sweden
  • Membership of the SI Alumni Network after your scholarship period – a platform for continued networking and further professional development

* The travel grant is a one-time payment for the entire study period. The grant is not applicable to students already living in Sweden.

The scholarship does not cover:

  • Additional grants for family members
  • Application fee to University Admissions

Duration of Scholarships: The Swedish Institute Study Scholarships is intended for full-time master’s level studies of one or two years, and is only awarded for programmes starting in the autumn semester. The scholarship is granted for one academic year (two semesters) at a time. It will be extended for programmes longer than two semesters, provided that the student has passed his/her courses/credits.

How to apply: The application process consists of these steps.

  1. Apply for a master’s programme at universityadmissions.se
  2. Apply for a SISGP scholarship
  3. Notifications from University Admissions
  4. Announcement of 300 successful SI scholarship recipients

It is important to go through ALL Application requirements before applying for this scholarship

Visit Programme Webpage for Details

Generation Google Scholarship 2022

Application Deadline: 10th December 2021.

About the Award: The Generation Google Scholarship: for women in computer science was established to help aspiring computer scientists excel in technology and become leaders in the field. Selected students will receive a 7,000 EUR award (or local equivalent) for the 2022-2023 academic year. Scholarships will be awarded based on the strength of each candidate’s impact on diversity, demonstrated leadership, and academic background. The program is open to qualified students who meet all the minimum qualifications. Women interested in computer science are strongly encouraged to apply.

Type: Undergraduate, Graduate

Eligibility: To be eligible to apply, applicants must:

  • Be currently enrolled as an undergraduate or graduate student at a university for the 2021-2022 academic year
  • Intend to be enrolled in or accepted as a full-time student in a Bachelors, Masters, or PhD program at an accredited university in Europe, Middle East or Africa for the 2022-2023 academic year
  • Be studying computer science, computer engineering, or a closely related technical field
  • Demonstrate a strong academic record
  • Exemplify leadership and demonstrate a passion for improving representation of underrepresented groups in computer science and technology

Terms and conditions

The Generation Google Scholarship: for women in computer science is open to qualified students who meet the eligibility criteria. Women interested in computer science are strongly encouraged to apply. The scholarship award must be spent on tuition, fees, books, supplies and equipment required for the students’ classes at their primary university. Scholarship recipients must be enrolled as full time students for the 2022-2023 academic year. Enrollment will be verified after the winners are selected, and all scholarship payments will be made directly to the student to be used towards tuition and education-related expenses. We will withhold the award for any scholar who no longer meets the eligibility requirements and revoke the award for any scholar who does not maintain the eligibility requirements. Selected recipients will receive instructions from Google on how to receive the award. Failure to complete these steps by the specified deadline will disqualify recipients from receiving the award. Recipients may defer their award for up to one (1) year from the time of originally planned payment on a case by case basis as determined by Google. Google employees are not eligible to apply for Google scholarships. Persons who are (1) residents of embargoed countries, (2) ordinarily resident in embargoed countries, or (3) otherwise prohibited by applicable export controls and sanctions programs may not apply for this scholarship.

Eligible Countries: Countries in Europe, Middle East or Africa

To be Taken at (Country): Candidate’s University location in Europe, Middle East or Africa

Number of Awards: Not specified

Value of Generation Google Scholarship:

  • Selected students will receive a 7,000 EUR award (or local equivalent)
  • The scholarship award must be spent on tuition, fees, books, supplies and equipment required for the students’ classes at their primary university

How to Apply for Generation Google Scholarship: You will be asked to complete an online application which includes:

  • General background information (e.g. contact information and details about your current and intended universities)
  • Resume/CV
  • Academic transcripts from your current and prior institutions (if you have earned a prior degree)
  • One letter of reference from a professor, instructor, adviser or supervisor
  • Responses to four short essay questions
  • Recipients will be selected based on the overall strength of their essays and application materials compared to the entire applicant pool or respective peers (e.g. Bachelors students compared to other Bachelors students).

Essay Questions:

The five short answer essay questions below are intended to assess your computer science experience, demonstrated leadership, commitment to diversity, equity, and inclusion, and financial need. Each response to the five questions below should be 300 words or less.

1) How did you become interested in computer science, and what are your goals or aspirations when you think about pursuing a degree in this field? In your answer, please describe how your experiences have influenced the goals you have for yourself.

2) Please describe the most significant computer science project or research you have worked on, how you approached key technical challenges, and what you gained from the experience. It might have been a class assignment, a research project or work as an intern. If the project was team-based, specify your individual role and contributions in the project. Treat this essay as a technical report or research paper. Feel free to use tables, references, or figures.

3) Please give us one example of how you have exhibited leadership. Explain how you were influential, what you were trying to achieve and the impact you had as a result. These need not be demonstrated through formal or traditional leadership roles. Think broadly and examine the many ways you are having an effect on the members of your technical community, your university or your broader community.

4) What is a significant challenge that you believe women in the field of technology face and how do you see yourself as being part of the solution(s) to this challenge? Keep in mind that impact can happen in many ways and at different scales.

5) What impact would receiving this scholarship have on your education? Describe any circumstances affecting your need for a scholarship and what educational goals this scholarship will enable you to accomplish.

Deadline to apply: Friday, December 10, 2021 at 11:59 PM GMT

  • It is important to go through all application requirements in the Award Webpage (see Link below) before applying.

Visit Award Webpage for Details