On that double-dip recession

There is a greater context to the recession (being the declining rate of profit). In terms of actions, though, we have to note government action around the height of the winter crash stabilised the situation, but at the cost of serveral knock on effects:

Fears that the global economy is poised to sink back into recession after a brief spring rally took centre stage as leaders of the G8 gathered in Italy for their annual summit today.

The G8 was due to discuss Barack Obama's plan for a crackdown on oil speculators amid concerns that the recent increase in crude prices threatens a double-dip recession. After falling from a peak of $147 a year ago to a trough of $35 at the turn of the year, oil prices rose above $70 a barrel last month.

We see something similar going on in terms of bankers bonuses, an example:

City accountancy firms are putting proposals to investment banks that would see high-earning bankers avoid the full impact of the new top rate of income tax on their bonuses.

The accountants Grant Thornton are believed to have contacted clients offering ways of cutting employees' tax contributions by as much as 40 per cent. There are other accountancy firms offering similar services and the fact that the service is being touted in a year that will see some bankers receive huge payments after a busy few months in the City is likely to cause consternation at the Treasury.

It comes in the week that Alistair Darling will publish his White Paper on banking reform, much of which is expected to concentrate on the way bankers' bonuses are paid.

With all the money doled out to the banks there is now the question of how it will be used and who will actually stump up (of course, the government doesn't actually have £500 billion in the kitty, it just says it will at some point). As far as 'they' are concerned it seems the working class will have to pay, in particular public sector workers.

If you follow mainstream economics you end up chasing your own tail. Why is there a recession? Lack of effective demand due to the withdrawal of overextended credit. Why was credit overextended? To cover the gap in effective demand? OK, How do we respond to a recession? We must raise profit levels. How can we do that? Cut wages and jobs, cut and/or privatise public services. Won't that reduce the level of effective demand?

Uh....................