The author is no radical economist, but he is a honest critic of the capitalist system. In this piece he gives us the details on how Standard and Poor's and other financial rating agencies act as enforcers for capitalist interests, and thereby cause the devastating effects we are witnessing daily in our local communities.
Localities are pressured when their rising debt levels lead to a financial stringency. Banks pull back their credit lines, and urge cities and states to pay down their debts by selling off their most viable public enterprises. Offering opinions on this practice has become a big business for the ratings agencies. So it is understandable why their business model opposes policies – and political candidates – that support the idea of basing public financing on taxation rather than by borrowing. This self-interest colors their “opinions.”
