Category Archives: Debt

Achikha in Hebrew, “your brother,” but where is he now?

Oh, yeah, it was all planned — I’d write about the 52nd anniversary of the attack on the USS Liberty by Israel, the subsequent cover-up, and alas, half a century of Israel and the Jewish state of Mind holding sway over much of the Western world, certainly here in the USA and Canada. Big impetus to analyze other false flags, yet, life gets in the way. Teaching youth in special education — kids with interventions, behavior plans, learning and retention plans. If only the elites and not so elite knew what is going on in America, in the classrooms, with overtaxed teachers, parents that are checked out and famished for their own self-agency and self-worth.

Image result for photo of USS Liberty

Kids in high school, needing mentors, and then, bam, first graders with all sorts of learning blocks. More and more kids with physical ailments. And, well, the beat doesn’t go on, if you know what I mean. High school kids who don’t know the history of Israel, Nakba, and certainly nothing about the Vietnam War, Korea, WWI & II, and, the USS Liberty?

Emancipation from stupidity, though, is not the purview of the poor and misbegotten and hick and small-town worker. It goes to the top, elite (sic) folk in media, education, board rooms. You won’t hear anything about the murders of those sailors by Israel. No eye for an eye by Yankees or rebels.

Fifty two years, on June 8, 1967, Israel attacked the American naval vessel USS Liberty in international waters, and tried to sink it.

After checking the Liberty out for 8 hours – and making 9 overflights with Israeli jets, within 200 feet … close enough for the pilots and the sunbathing Liberty sailors on deck to waive at each other.

Yet the Israelis attacked it with Mirage fighter jets, torpedoes and napalm. The USS Liberty suffered 70% casualties, with 34 killed and 174 wounded.

The Israeli attack spanned two hours … as long as the attack on Pearl Harbor. The air attack alone lasted approximately 25 minutes: consisting of more than 30 sorties by approximately 12 separate planes using napalm, cannon, and rockets which left 821 holes in the ship. The Israelis fired 30mm cannons and rockets into the boat.

Oh, and the media, oh the media, covering up so much about the attack. And a commission, launched in 2003, yet there is nary a word in the Mainstream Media, and we wonder why?

Liberty

Capitol Hill, October 2003. It is a historic occasion. An independent, blue-ribbon commission is to release its findings from an investigation into an internationally significant 36-year-old attack on a US Navy ship that left more than 200 American sailors killed or wounded.

The commission consists of:

  • A former ambassador to one of the US’s most important allies
  • A US Navy rear admiral and former head of the Navy’s legal division
  • A Marine general, America’s highest ranking recipient of the Congressional Medal of Honor and the former Assistant Commandant of Marines
  • A US Navy four-star admiral, former Chairman of the Joint Chiefs of Staff (the highest military position in the country), former Chief of Naval Operations, a World War II hero, and the only Naval admiral to have commanded both the Pacific and the Atlantic fleets

The excellent group, If Americans Knew, largely spearheaded by Alison Weir, covers this abomination:

This extraordinarily high-ranking commission was reporting on the 1967 Israeli attack on the USS Liberty. Many analysts believe that the Liberty attack could be Israel’s undoing – at least as far as US support is concerned – if Americans knew the facts about it.

But they don’t. Here’s why:

A search of hundreds of the largest news media in this country indexed by Lexis-Nexis does not turn up a single US newspaper that mentioned this commission, a single US television station, a single US radio station, a single US magazine. While it was mentioned in an Associated Press report focusing on one of the commission’s most dramatic revelations, Lexis reveals only a sprinkling of news media printed information from this AP report, and those few that that did failed to mention this commission itself, its extremely star-studded composition, and the entirety of its findings.

Apart from a few members of the alternative press and the excellent Washington Report on Middle East Affairs (not indexed by Lexis), this commission might as well not have existed as far as most of the US media is concerned – and therefore, the American public.

For two documentaries on the Israeli illegal attack and murders of US sailors,  go here, and here!

Then, I was going to riff with some “new” FBI documents released, on the Dancing Israelis, and I am not talking about “I wish I was a rich man” Zero Mostel.

Newly Released FBI Docs Shed Light on Apparent Mossad Foreknowledge of 9/11 Attacks, by Whitney Webb

New information released by the FBI has brought fresh scrutiny to the possibility that the “Dancing Israelis,” at least two of whom were known Mossad operatives, had prior knowledge of the attacks on the World Trade Center.

FBI Docs Shed Light on Apparent Mossad Foreknowledge of 9/11 Attacks

The USS Liberty all over again, but this time, more than 3,000 killed in the so called September 11, 2001 “attacks,” and then countless millions killed, maimed, imprisoned, starved, renditioned, and sickened through the coalition of the killing, err, willing. Here, read on for this unrecognized commemoration of the death of all those sailors!

Yet, in either scenario, Sivan Kurzberg had simulated the burning of the World Trade Center the day before the attacks took place. That the FBI concluded that Kurzberg was party to a Mossad surveillance operation at the time of his arrest would then suggest that Israeli intelligence also had foreknowledge of the attacks.

Notably, the relevant section of the FBI report that asks “1. Did the Israeli nationals have foreknowledge of the events at WTC and were they filming the events prior to and in anticipation of the explosion?” is redacted in its entirety, suggesting that the FBI did not determine the answer to that question to be an emphatic “no.”

And, Benjamin Netanyahu, knew what would happen ahead of the September 11, 2001 attacks. What an ally, what a great Israel First Nation this place has become the past 70 plus years!

One of the detained “Dancing Israelis,” Omer Marmari, told police the following about why he viewed the September 11 attacks in a positive light: ” Israel now has hope that the world will now understand us. Americans are naïve and America is easy to get inside. There are not a lot of checks in America. And now America will be tougher about who gets into their country.”

Then, I got derailed watching the dramatization of what happened during, around, and in the case of the Central Park Jogger and the railroading of 5 innocent youth of color who were tried, prosecuted and found guilty (slammed into prison) through the New York media, through the pigs in the police force, with the assistance of the bigger pigs in the DA’s office, all aided and abetted by the New York Post, dozens of other newspapers, and the biggest pig of them all, Donald Delirium Tremens Trump.

It’s just disgusting,” sighs Ava DuVernay.

The Oscar-nominated filmmaker and TV showrunner is discussing the role of President Donald Trump in the Central Park Five case, wherein five teenage boys of color—Korey Wise, Antron McCray, Yusef Salaam, Kevin Richardson, and Raymond Santana—were falsely convicted of the 1989 rape and vicious assault of Trisha Meili, a white investment banker, and subsequently spent up to 14 years in prison.

At the time Trump, then a PR-hungry NYC real estate baron who occasionally served as his own publicist, sensed an opportunity for some headlines and inserted himself into the case, inflaming racial tensions with frequent comments to news programs along with newspaper ads, purchased for $85,000, calling the boys “crazed misfits” and urging the state of New York to “bring back to the death penalty,” essentially calling for their pre-trial execution. He concluded: “Maybe hate is what we need if we’re gonna get something done.”

More shenanigans with elite New York white Jewish culture, the prosecutor in that lying case, Fairstein, who went on to make money with trashy crime novels. To this day, like fourth grade mentally challenged Trump, she too believes the lies, her own:

And it’s another felon who plays this Fairstein —

Felicity Huffman and Linda Fairstein, former head of the sex crimes unit of the Manhattan DA's office.

And then, the other elite Jewish white woman who also prosecuted the case, Elizabeth Lederer.

As The Times noted, Lederer has a lengthy legal history of unchallenged cases, despite the fact that she’s largely known for her involvement in the Central Park Five’s case. Lederer is no longer discussing the case in public; she did not comment on the petition in 2013.

Though Lederer has made virtually no public comments on her role in the case since the trial ended, archived articles show the trial was an emotionally charged affair, for obvious reasons. The Los Angeles Times notes that Korey Wise, one of the Five, said to Lederer after he was given his sentence, “You’re going to pay for this. Jesus is going to get you. You made this . . . up.”

Elizabeth lederer

I guess I am on a roll, here, since someone sent me this about another Jewish white elite female, this time with the US Supreme Court, Ruth Bader Ginsburg. She first sent me a month ago the Netflix info tag on Ginsburg’s life vis-a-vis a CNN documentary, RBG and then the film, On the Basis of Sex:

But no amount of swag or hagiography can obscure the fact that, while Ginsburg is responsible for a great number of landmark legal decisions, her legacy may be sorely tarnished by one truly terrible one: refusing to retire when President Barack Obama could have named her replacement. That decision came into stark relief this month when Ginsburg fell and broke three ribs—and half of the nation took a collective gasp. Women took to Twitter to offer the justice a rib.

The broken ribs must have mushed her here, for sure, as this old lady just put a few million feet in her mouth:

Supreme Court Justice Ruth Bader Ginsburg praised Justice Brett Kavanaugh in her prepared remarks at Friday’s Second Circuit Judicial Conference. She noted that after Kavanaugh was confirmed the number of female Supreme Court clerks reached an all-time high, given his staffing choices.

Quote: “Justice Kavanaugh made history by bringing on board an all-female law clerk crew. Thanks to his selections, the Court has this Term, for the first time ever, more women than men serving as law clerks. Women did not fare nearly as well as advocate. Only about 21-percent of the attorneys presenting oral argument this Term were female; of the 34 attorneys who appeared more than once, only six were women.”

Amazing, the death star of American elites, east coast Ivy League Lepers —

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Ginsburg, what a work of nothing! And the sad sack demon-crats march her out as some hero!

MANY OF US who watched Thursday’s Senate hearing spent much of the time cataloguing Supreme Court nominee Brett Kavanaugh’s lies. After hours of testimony, during which Christine Blasey Ford answered questions about her alleged sexual assault, the financing behind her lie detector test, and whether she was really afraid of flying, viewers were treated to more hours of testimony from Kavanaugh, a federal judge who struggled to give a single straight answer.

Kavanaugh strained credulity when he argued before the Senate Judiciary Committee that the “Devil’s Triangle” — a phrase that appeared on his high school yearbook page — referred to a drinking game, a definition which, before Thursday, you’d have a hard time finding anywhere. (It actually refers to a sex act involving two men and a woman). He also unabashedly claimed that the term “boof” is a reference to “flatulence,” rather than other butt stuff, and that “ralph,” which means to vomit —implicitly from the overconsumption of alcohol — was a reference to Kavanaugh’s weak stomach.

I guess all of this speaks to a bit of sensitivity around white patriarchy/matriarchy and white dominance, eating away at the soul of us, the 80 percent. I guess I have to square how it is that an elite super minority and so many in that tribe are superior to anyone else on the planet, in their own minds at that, has held sway over much of my own life in education, social services, journalism, and publishing.

This is observation, but in today’s Stephen Miller-Alan Dershowitz  world, with all the backing of the ADL, anyone who dares point out the elitism and the tribalism and the power clique that defines American Judaism, well, the old canard, anti-Semite, comes popping out of clicking tongues.

Something raw, now that I am working to help a veteran who ended up renting an apartment in Wilsonville, Oregon, at age 70, with an amputation from the knee down, and using a wheelchair. He has major eye problems, which have led to vision and pain in his eyes. He is in an apartment that has two steps that prevent him from using a flat surface to go in and out of the abode. He’s fallen twice on sod, trying to maneuver the wheelchair to the parking lot. He lives alone, doesn’t drive and knows no one at the apartment complex. I got him services while working as his social worker in that nefarious place, the Starvation Army.

He is virtually at the whim of people to come and help him get out of his apartment landing onto cement. He has medical appointments several times a week, a long trip from Wilsonville to the VA in Portland.

The apartment complex is being run by the largest multi-family property management company in the USA (self advertised) called Pinnacle Property Management. I have sent letters and emails to upper management, but to no avail. So has he. The discussion about accommodations — putting down a flat walkway from his sliding back door, about 20 feet — has turned into a case of this multi-billion dollar outfit telling him they will do it but at a charge of $5,300. We are being talked down to by the Portland office, some lower ranking person who has zero empathy for the situation, but is clear to cite in reverse logic the state of Oregon’s fair housing laws, which she uses to protect her asinine attitudes.

He’s on a fixed income and was homeless. The idea that the apartment complex is now managed by this outfit, so the owner(s) can hide behind their skirts, is typical of the American Penury Society. They’ve cited fair housing laws in an Orwellian way — “If we put in the walkway at our expense for your client, that would be unfair to other tenants . . . . Then everyone asking for us to pay for an accommodation we’d have to oblige.”

I’ve advocated for the veteran since this veteran is non-confrontational and is traumatized at having to be apartment-bound for more than two months with no end in sight. I have told these nefarious folk that, (a) a new concrete pathway for the only ground floor apartment with a two-step situation would be an enhancement to THEIR property in perpetuity. Then, (b) I explained the obvious: Anyone renting the apartment in the future, when my veteran leaves, would have the advantage of having some handicapped accommodation in the case of a wheelchair bound tenant, or an injured tenant or someone in need of a walker or crutch or cane, or even a family with a newborn in a carriage.

Since I was already stewing around the Dancing Israelis and the Jewish State of Israel’s attack on our own people, sailors; and since the Central Park Five were prosecuted by two Jewish women, well, I was traumatized a bit. I looked up the management of Pinnacle, and alas, the higher ups — many of them — are self-proclaimed practicing Jews:

Eric Schwabe, Executive Vice President – Western Division

Woody Stone, Executive Vice President – Eastern Division

Jason Straub, Systems Training Manager

Deb Kopolow, Regional Vice President

Avery Solomon, Vice President – Client Services

Seth Kaplan, Regional Marketing Director

You know, none of the above people have replied to my respectful and clear emails or letters asking them to be both ethical and community orientated when thinking about my former client and now my friend.

I have looked at their internal documents, Propaganda videos and marketing web pages, and hands down, these people parade out a litany of BS about how humane and resident focused they are!

Pinnacle is a privately held organization that manages multifamily properties nationwide. Established in 1980, we are one of the largest multifamily management companies in the United States with a portfolio of over 172,000 units and 4,300 team members. Our clients include pension funds, private partnerships, international investors, insurance companies, lenders, special servicers, syndicators, government agencies and high net worth individuals.

I have come to my wits end, in this emotionally and economically cursing society, with the One Percent and the Point Zero One Percent having for too many centuries controlled the destinies of the masses. Having studied some of the Jewish tradition with radical Jewish friends 45 years ago, I am always T-boned by the unfeeling and usury-based prevailing attitudes of the rich, both gentile (goyim) and Jew or Arab Prince!

Here, some contradictions to the idea that money is the lifeblood of so many, especially the millionaires and billionaires — Mammon was an ancient god who used to be worshiped by pagans for riches, money and wealthy. Counterpoint to that:

The overarching Jewish attitude toward the poor is best summed up by a single word of the biblical text: achikha (your brother). With this word, the Torah  insists on the dignity of the poor, and it commands us to resist any temptation to view the poor as somehow different from ourselves.

The concept of human dignity is well-ingrained in Judaism. The book of Genesis describes human beings as created “b’tzelem elokim” in the image of God (1:26). At least one early Rabbi considers one of the verses expressing this idea to be the most important verse in the Torah (Sifra K’dosbim 2:4). The insistence that human beings are creations in the divine image implies that any insult to an individual, by extension, is an affront to God. In reminding us that the poor person is our sibling, the Torah emphasizes that, like us, this person is a manifestation of the divine image and should be treated as such.

A rabbinic story tells about a group of people traveling in a boat. One passenger takes out a drill and begins drilling a hole under his seat. The other passengers, quite understandably, complain that this action may cause the boat to sink. “Why should this bother you?” this man responds, I am only drilling under my own seat.” The others retort, “But the water will rise up and flood the ship for all of us!” (Vayikra Rabbah 4:6). The moral of this story is clear: one person’s destructive action may literally drown the entire community. But we might add that the inverse is also true: a single positive change may transform an entire community. Thus, the alleviation of poverty, even in the smallest detail, may help the community as a whole to flourish.

Yet Pinnacle or the Dancing Israelis or the New York prosecutors or any number of thousands of elites and money-grubbing individuals and corporations have zero understanding of the foundation of the golden rule or Gandhi’s sins

In 590 AD, Pope Gregory I unveiled a list of the Seven Deadly Sins – lust, gluttony, greed, sloth, wrath, envy and pride – as a way to keep the flock from straying into the thorny fields of ungodliness. These days though, for all but the most devout, Pope Gregory’s list seems less like a means to moral behavior than a description of cable TV programming.

So instead, let’s look to one of the saints of the 20th Century — Mahatma Gandhi. On October 22, 1925, Gandhi published a list he called the Seven Social Sins in his weekly newspaper Young India.

Politics without principles.
Wealth without work.
Pleasure without conscience.
Knowledge without character.
Commerce without morality.
Science without humanity.
Worship without sacrifice.

The list sprung from a correspondence that Gandhi had with someone only identified as a “fair friend.” He published the list without commentary save for the following line: “Naturally, the friend does not want the readers to know these things merely through the intellect but to know them through the heart so as to avoid them.”

Unlike the Catholic Church’s list, Gandhi’s list is expressly focused on the conduct of the individual in society. Gandhi preached non-violence and interdependence and every single one of these sins are examples of selfishness winning out over the common good.

It’s also a list that, if fully absorbed, will make the folks over at the US Chamber of Commerce and Ayn Rand Institute itch. After all, “Wealth without work,” is a pretty accurate description of America’s 1%. (Investments ain’t work. Ask Thomas Piketty.) “Commerce without morality” sounds a lot like every single oil company out there and “knowledge without character” describes half the hacks on cable news. “Politics without principles” describes the other half.

gandhi-social-sins

 

The Bankers’ “Power Revolution”: How the Government Got Shackled by Debt

This article is excerpted from my new book Banking on the People: Democratizing Money in the Digital Age, available in paperback June 1.

*****

The U.S. federal debt has more than doubled since the 2008 financial crisis, shooting up from $9.4 trillion in mid-2008 to over $22 trillion in April 2019. The debt is never paid off. The government just keeps paying the interest on it, and interest rates are rising.

In 2018, the Fed announced plans to raise rates by 2020 to “normal” levels — a fed funds target of 3.375 percent — and to sell about $1.5 trillion in federal securities at the rate of $50 billion monthly, further growing the mountain of federal debt on the market. When the Fed holds government securities, it returns the interest to the government after deducting its costs; but the private buyers of these securities will be pocketing the interest, adding to the taxpayers’ bill.

In fact, it is the interest, not the debt itself, that is the problem with a burgeoning federal debt. The principal just gets rolled over from year to year. But the interest must be paid to private bondholders annually by the taxpayers and constitutes one of the biggest items in the federal budget. Currently the Fed’s plans for “quantitative tightening” are on hold; but assuming it follows through with them, projections are that by 2027 U.S. taxpayers will owe $1 trillion annually just in interest on the federal debt. That is enough to fund President Donald Trump’s trillion-dollar infrastructure plan every year, and it is a direct transfer of wealth from the middle class to the wealthy investors holding most of the bonds.

Where will this money come from? Crippling taxes, wholesale privatization of public assets, and elimination of social services will not be sufficient to cover the bill.

Bondholder Debt Is Unnecessary

The irony is that the United States does not need to carry a debt to bondholders at all. It has been financially sovereign ever since President Franklin D. Roosevelt took the dollar off the gold standard domestically in 1933. This was recognized by Beardsley Ruml, Chairman of the Federal Reserve Bank of New York, in a 1945 presentation before the American Bar Association titled “Taxes for Revenue Are Obsolete.”

“The necessity for government to tax in order to maintain both its independence and its solvency is true for state and local governments,” he said, “but it is not true for a national government.” The government was now at liberty to spend as needed to meet its budget, drawing on credit issued by its own central bank. It could do this until price inflation indicated a weakened purchasing power of the currency.

Then, and only then, would the government need to levy taxes — not to fund the budget but to counteract inflation by contracting the money supply. The principal purpose of taxes, said Ruml, was “the maintenance of a dollar which has stable purchasing power over the years. Sometimes this purpose is stated as ‘the avoidance of inflation.’

The government could be funded without taxes by drawing on credit from its own central bank; and since there was no longer a need for gold to cover the loan, the central bank would not have to borrow. It could just create the money on its books. This insight is a basic tenet of Modern Monetary Theory: the government does not need to borrow or tax, at least until prices are driven up. It can just create the money it needs. The government could create money by issuing it directly; or by borrowing it directly from the central bank, which would create the money on its books; or by taking a perpetual overdraft on the Treasury’s account at the central bank, which would have the same effect.

The “Power Revolution” — Transferring the “Money Power” to the Banks

The Treasury could do that in theory, but some laws would need to be changed. Currently the federal government is not allowed to borrow directly from the Fed and is required to have the money in its account before spending it. After the dollar went off the gold standard in 1933, Congress could have had the Fed just print money and lend it to the government, cutting the banks out. But Wall Street lobbied for an amendment to the Federal Reserve Act, forbidding the Fed to buy bonds directly from the Treasury as it had done in the past.

The Treasury can borrow from itself by transferring money from “intragovernmental accounts” — Social Security and other trust funds that are under the auspices of the Treasury and have a surplus – but these funds do not include the Federal Reserve, which can lend to the government only by buying federal securities from bond dealers. The Fed is considered independent of the government. Its website states, “The Federal Reserve’s holdings of Treasury securities are categorized as ‘held by the public,’ because they are not in government accounts.”

According to Marriner Eccles, chairman of the Federal Reserve from 1934 to 1948, the prohibition against allowing the government to borrow directly from its own central bank was written into the Banking Act of 1935 at the behest of those bond dealers that have an exclusive right to purchase directly from the Fed. A historical review on the website of the New York Federal Reserve quotes Eccles as stating, “I think the real reasons for writing the prohibition into the [Banking Act] … can be traced to certain Government bond dealers who quite naturally had their eyes on business that might be lost to them if direct purchasing were permitted.”

The government was required to sell bonds through Wall Street middlemen, which the Fed could buy only through “open market operations” – purchases on the private bond market. Open market operations are conducted by the Federal Open Market Committee (FOMC), which meets behind closed doors and is dominated by private banker interests. The FOMC has no obligation to buy the government’s debt and generally does so only when it serves the purposes of the Fed and the banks.

Rep. Wright Patman, Chairman of the House Committee on Banking and Currency from 1963 to 1975, called the official sanctioning of the Federal Open Market Committee in the banking laws of 1933 and 1935 “the power revolution” — the transfer of the “money power” to the banks. Patman said, “The ‘open market’ is in reality a tightly closed market.” Only a selected few bond dealers were entitled to bid on the bonds the Treasury made available for auction each week. The practical effect, he said, was to take money from the taxpayer and give it to these dealers.

Feeding Off the Real Economy

That massive Wall Street subsidy was the subject of testimony by Eccles to the House Committee on Banking and Currency on March 3-5, 1947. Patman asked Eccles, “Now, since 1935, in order for the Federal Reserve banks to buy Government bonds, they had to go through a middleman, is that correct?” Eccles replied in the affirmative. Patman then launched into a prophetic warning, stating, “I am opposed to the United States Government, which possesses the sovereign and exclusive privilege of creating money, paying private bankers for the use of its own money. … I insist it is absolutely wrong for this committee to permit this condition to continue and saddle the taxpayers of this Nation with a burden of debt that they will not be able to liquidate in a hundred years or two hundred years.”

The truth of that statement is painfully evident today, when we have a $22 trillion debt that cannot possibly be repaid. The government just keeps rolling it over and paying the interest to banks and bondholders, feeding the “financialized” economy in which money makes money without producing new goods and services. The financialized economy has become a parasite feeding off the real economy, driving producers and workers further and further into debt.

In the 1960s, Patman attempted to have the Fed nationalized. The effort failed, but his committee did succeed in forcing the central bank to return its profits to the Treasury after deducting its costs. The prohibition against direct lending by the central bank to the government, however, remains in force. The money power is still with the FOMC and the banks.

A Model We Can No Longer Afford

Today, the debt-growth model has reached its limits, as even the Bank for International Settlements, the “central bankers’ bank” in Switzerland, acknowledges. In its June 2016 annual report, the BIS said that debt levels were too high, productivity growth was too low, and the room for policy maneuver was too narrow. “The global economy cannot afford to rely any longer on the debt-fueled growth model that has brought it to the current juncture,” the BIS warned.

But the solutions it proposed would continue the austerity policies long imposed on countries that cannot pay their debts. It prescribed “prudential, fiscal and, above all, structural policies” — “structural readjustment.” That means privatizing public assets, slashing services, and raising taxes, choking off the very productivity needed to pay the nations’ debts. That approach has repeatedly been tried and has failed, as witnessed, for example, in the devastated economy of Greece.

Meanwhile, according to Minneapolis Fed president Neel Kashkari, financial regulation since 2008 has reduced the chances of another government bailout only modestly, from 84 percent to 67 percent. That means there is still a 67 percent chance of another major systemwide crisis, and this one could be worse than the last. The biggest banks are bigger, local banks are fewer, and global debt levels are higher. The economy has farther to fall. The regulators’ models are obsolete, aimed at a form of “old-fashioned banking” that has long since been abandoned.

We need a new model, one designed to serve the needs of the public and the economy rather than to maximize shareholder profits at public expense.

An earlier version of this article was published in Truthout.org.

Insidious “Habituations”…

First, they came and said they would borrow your money and pay you a 2% annual interest rate for it. They called themselves a Savings Bank, so you accepted it.

Then they came and said you could borrow money from them at a variable rate, probably 6% (but just maybe as high as 30%). They called themselves a Financial Service, so you accepted it. Soon, they came and said that home “ownership” was a great personal investment and, that notwithstanding inflated market-”bubbles” and the like, it was a great idea to obtain a 30-year-mortgage with an “adjustable” rate. They called themselves a Lender, so you accepted it. Later, they came and said that, since your taxes were being used to kill foreigners rather than pay for your medical “needs,” you needed to “insure” that your personal medical bills would not cause personal bankruptcy. They called themselves an Insurance Company and said that, notwithstanding deductibles and co-payments and claims examiners, they would protect your interests. So you accepted it. (Some years later, jobless due to automation and “outsourcing,” you were ordered to continue buying such insurance–without the income to pay for it–but at a special, “affordable” rate. They called themselves the Government, so you accepted it.

But soon, as you became dependent on drugs called medications which were very expensive, you realized that cheap “generics,” manufactured in South Asian sweatshops, would have to do. After all, the Government had approved this–so you accepted it.

About this time, the President had suddenly urged all citizens to support, and pay for, a massive military invasion of a distant land. He insisted on starting a war–after all, the distant land in question might at some point threaten to start a war. Although no evidence was ever presented to substantiate such a threat, the President said this–so you accepted it. As the resultant war continued, causing unspeakable, mass suffering, the President periodically demanded an extra $200 billion-or-so to pay for his senseless, criminal war–and you accepted it.

Not much later, it was found that the Lender aforementioned had approved mortgages for millions who could not really, under the provisions, afford them in the long-term. Your Lender, having known this all along, had sold off these bad mortgages as a high-interest, “junk” investment which would certainly fail, then invested in lucrative hedge funds predicting such failure–and then paid bribes to the politicians to receive the usual tax-funded Bail-outs. Since economists and other self-styled experts seldom questioned this chain-of-events, you accepted it.

And right now, as it happens, much-worshiped Technocrats are declaring in commanding tones that you cannot even “live” without their daily, constant, intrusive oversight. They know already– and will monitor you all-inclusively–to calculate precisely what you really want–product-wise and “lifestyle”-wise! No need for you to choose–they will choose for you! Moreover, they will connect everything, from your child’s babbling in the nursery to your toaster in the kitchen, to “help” you! And…since they are all-knowing Technocrats, able to know you as you’ve never known yourself…you are accepting this??

QE Forever: The Fed’s Dramatic About-face

“Quantitative easing” was supposed to be an emergency measure. The Federal Reserve “eased” shrinkage in the money supply due to the 2008-09 credit crisis by pumping out trillions of dollars in new bank reserves. After the crisis, the presumption was that the Fed would “normalize” conditions by sopping up the excess reserves through “quantitative tightening” (QT) – raising interest rates and selling the securities it had bought with new reserves back into the market.

The Fed relentlessly pushed on with quantitative tightening through 2018, despite a severe market correction in the fall. In December, Fed Chairman Jerome Powell said that QT would be on “autopilot,” meaning the Fed would continue to raise interest rates and to sell $50 billion monthly in securities until it hit its target. But the market protested loudly to this move, with the Nasdaq Composite Index dropping 22% from its late-summer high.

Worse, defaults on consumer loans were rising. December 2018 was the first time in two years that all loan types and all major metropolitan statistical areas showed a higher default rate month-over-month. Consumer debt – including auto, student and credit card debt – is typically bundled and sold as asset-backed securities similar to the risky mortgage-backed securities that brought down the market in 2008 after the Fed had progressively raised interest rates.

Chairman Powell evidently got the memo. In January, he abruptly changed course and announced that QT would be halted if needed. On February 4th, Mary Daly, president of the Federal Reserve Bank of San Francisco, said they were considering going much further. “You could imagine executing policy with your interest rate as your primary tool and the balance sheet as a secondary tool, one that you would use more readily,” she said. QE and QT would no longer be emergency measures but would be routine tools for managing the money supply. In a February 13th article on Seeking Alpha titled “Quantitative Easing on Demand,” Mark Grant wrote:

If the Fed does decide to pursue this strategy it will be a wholesale change in the way the financial system in the United States operates and I think that very few institutions or people appreciate what is taking place or what it will mean to the markets, all of the markets.

The Problem of Debt Deflation

The Fed is realizing that it cannot bring its balance sheet back to “normal.” It must keep pumping new money into the banking system to avoid a recession. This naturally alarms Fed watchers worried about hyperinflation. But QE need not create unwanted inflation if directed properly. The money spigots just need to be aimed at the debtors rather than the creditor banks. In fact, regular injections of new money directly into the economy may be just what the economy needs to escape the boom and bust cycle that has characterized it for two centuries. Mark Grant concluded his article by quoting Abraham Lincoln:

The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity.

The quote is apparently apocryphal, but the principle still holds: new money needs to be regularly added to the money supply to avoid an overwhelming debt burden and allow the economy to reach its true productive potential. Regular injections of new money are necessary to avoid something economists fear even more than inflation – the sort of “debt deflation” that took down the economy in the 1930s.

Most money today is created by banks when they make loans. When overextended borrowers pay down old loans without taking out new ones, the money supply “deflates” or shrinks. Demand shrinks with it, and businesses lacking customers close their doors, in the sort of self-feeding death spiral seen in the Great Depression.

As Australian economist Steve Keen observes, today the level of private debt is way too high, and that is why so little lending is occurring. But mainstream economists consider the rate of growth of debt to be irrelevant to macroeconomic policy, because lending is thought to simply redistribute spending power from savers to investors. Conventional economic theory says that banks are merely intermediaries, recirculating existing money rather than creating spending power in their own right. But this is not true, says Prof. Keen. Banks actually create new money when they make loans. He cites the Bank of England, which said in its 2014 quarterly report:

[B]anks do not act simply as intermediaries, lending out deposits that savers place with them, and nor do they ‘multiply up’ central bank money to create new loans and deposits. . . .

In the modern economy, most money takes the form of bank deposits. But how those bank deposits are created is often misunderstood: the principal way is through commercial banks making loans. Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.

Loans create deposits, and deposits make up the bulk of the money supply. Money today is created by banks as a debt on their balance sheets, and more is always owed back than was created, since the interest claimed by the banks is not created in the original loan. Debt thus grows faster than the money supply. When overextended borrowers quit taking out the new loans needed to repay old loans, the gap widens even further. The result is debt deflation – a debt-induced reduction in the new money needed to stimulate economic activity and growth. Thus the need for injections of new money to fill the gap between debt and the money available to repay it.

However, the money created through QE to date has not gone to the consuming public, where it must go to fill this gap. Rather, it has gone to the banks, which have funneled it into the speculative financialized markets. Nomi Prins calls this “dark money” – the trillions of dollars flowing yearly in and around global stock, bond and derivatives markets generated by central banks when they electronically fabricate money by buying bonds and stocks. She writes, “These dark money flows stretch around the world according to a pattern of power, influence and, of course, wealth for select groups.” She shows graphically that the rise in dark money is directly correlated with the rise in financial markets.

QE has worked to reverse the debts of the banks and to prop up the stock market, but it has not relieved the debts of consumers, businesses or governments; and it is these debts that will trigger the sort of debt deflation that can take the economy down. Keen concludes that “no amount of exhorting banks to ‘Intermediate’ will end the drought in credit growth that is the real cause of The Great Malaise.” The only way to reduce the private debt burden without causing a depression, he says, is a Modern Debt Jubilee or People’s Quantitative Easing.

QE-funded Debt Relief

In antiquity, as Prof. Michael Hudson observes, debts were routinely forgiven when a new ruler took the throne. The rulers and their advisors knew that debt at interest grew faster than the money supply and that debt relief was necessary to avoid economic collapse from an overwhelming debt overhang. Economic growth is arithmetic and can’t keep up with the exponential growth of debt growing at compound interest.

Consumers need that sort of debt relief today, but simply voiding out their debts as was done in antiquity will not work because the debts are not owed to the government. They are owed to banks and private investors who would have to bear the loss. The alternative suggested by Keen and others is to fill the debt gap with a form of QE dropped not into bank reserve accounts but digitally into the bank accounts of the general public. Debtors could then use the money to pay down their debts. In fact, Keen says it should go first to pay down debts. Non-debtors would receive a cash injection.

Properly managed, these injections need not create inflation. (See my earlier article here.) Money is created as loans and extinguished when they are paid off, so the money used to pay down debt would be extinguished along with the debt. And the cash injections not used to pay down debt would just help fill the gap between real and potential productivity, allowing demand and supply to rise together, keeping prices stable.

A regular injection of money into personal bank accounts has been called a “universal basic income,” but better would be to call it a “national dividend” – something all citizens are entitled to equally, without regard to economic status or ability to work. It would serve as a safety net for people living paycheck to paycheck, but the larger purpose would be as economic policy to stimulate demand and productivity, keeping the wheels of industry turning.

Money might then indeed become a servant of humanity, transformed from a tool of oppression into a means of securing common prosperity. But first the central bank needs to become a public servant. It needs to be made a public utility, responsive to the needs of the people and the economy.

• This article was first published on Truthdig.com.

Universal Basic Income Is Easier Than It Looks

Calls for a Universal Basic Income have been increasing, most recently as part of the Green New Deal introduced by Rep. Alexandria Ocasio-Cortez (D-NY) and supported in the last month by at least 40 members of Congress. A Universal Basic Income (UBI) is a monthly payment to all adults with no strings attached, similar to Social Security. Critics say the Green New Deal asks too much of the rich and upper-middle-class taxpayers who will have to pay for it, but taxing the rich is not what the resolution proposes. It says funding would primarily come from the federal government, “using a combination of the Federal Reserve, a new public bank or system of regional and specialized public banks,” and other vehicles.

The Federal Reserve alone could do the job. It could buy “Green” federal bonds with money created on its balance sheet, just as the Fed funded the purchase of $3.7 trillion in bonds in its “quantitative easing” program to save the banks. The Treasury could also do it. The Treasury has the constitutional power to issue coins in any denomination, even trillion dollar coins. What prevents legislators from pursuing those options is the fear of hyperinflation from excess “demand” (spendable income) driving prices up. But, in fact, the consumer economy is chronically short of spendable income, due to the way money enters the consumer economy. We actually need regular injections of money to avoid a “balance sheet recession” and allow for growth, and a UBI is one way to do it.

The pros and cons of a UBI are hotly debated and have been discussed elsewhere. The point here is to show that it could actually be funded year after year without driving up taxes or prices. New money is continually being added to the money supply, but it is added as debt created privately by banks. (How banks rather than the government create most of the money supply today is explained on the Bank of England website here.) A UBI would replace money-created-as-debt with debt-free money – a “debt jubilee” for consumers – while leaving the money supply for the most part unchanged; and to the extent that new money was added, it could help create the demand needed to fill the gap between actual and potential productivity.

The Debt Overhang Crippling Economies

The “bank money” composing most of the money in circulation is created only when someone borrows, and today businesses and consumers are burdened with debts that are higher than ever before. In 2018, credit card debt alone exceeded $1 trillion, student debt exceeded $1.5 trillion, auto loan debt exceeded $1.1 trillion, and non-financial corporate debt hit $5.7 trillion. When businesses and individuals pay down old loans rather than taking out new loans, the money supply shrinks, causing a “balance sheet recession.” In that situation, the central bank, rather than removing money from the economy (as the Fed is doing now), needs to add money to fill the gap between debt and the spendable income available to repay it.

Debt always grows faster than the money available to repay it. One problem is the interest, which is not created along with the principal, so more money is always owed back than was created in the original loan. Beyond that, some of the money created as debt is held off the consumer market by “savers” and investors who place it elsewhere, making it unavailable to companies selling their wares and the wage-earners they employ. The result is a debt bubble that continues to grow until it is not sustainable and the system collapses, in the familiar death spiral euphemistically called the “business cycle.” As economist Michael Hudson shows in his 2018 book And Forgive Them Their Debts, this inevitable debt overhang was corrected historically with periodic “debt jubilees” – debt forgiveness – something he argues we need to do again today.

For governments, a debt jubilee could be effected by allowing the central bank to buy government securities and hold them on its books. For individuals, one way to do it fairly across the board would be with a UBI.

Why a UBI Need Not Be Inflationary

In a 2018 book called The Road to Debt Bondage: How Banks Create Unpayable Debt, political economist Derryl Hermanutz proposes a central-bank-issued UBI of one thousand dollars per month, credited directly to people’s bank accounts. Assuming this payment went to all US residents over 18, or about 241 million people, the outlay would be close to $3 trillion annually. For people with overdue debt, Hermanutz proposes that it automatically go to pay down those debts. Since money is created as loans and extinguished when they are repaid, that portion of a UBI disbursement would be extinguished along with the debt.

People who were current on their debts could choose whether or not to pay them down, but many would also no doubt go for that option. Hermanutz estimates that roughly half of a UBI payout could be extinguished in this way through mandatory and voluntary loan repayments. That money would not increase the money supply or demand. It would just allow debtors to spend on necessities with debt-free money rather than hocking their futures with unrepayable debt.

He estimates that another third of a UBI disbursement would go to “savers” who did not need the money for expenditures. This money, too, would not be likely to drive up consumer prices, since it would go into investment and savings vehicles rather than circulating in the consumer economy. That leaves only about one-sixth of payouts, or $500 billion, that would actually be competing for goods and services; and that sum could easily be absorbed by the “output gap” between actual and forecasted productivity.

According to a July 2017 paper from the Roosevelt Institute called “What Recovery? The Case for Continued Expansionary Policy at the Fed”:

GDP remains well below both the long-run trend and the level predicted by forecasters a decade ago. In 2016, real per capita GDP was 10% below the Congressional Budget Office’s (CBO) 2006 forecast, and shows no signs of returning to the predicted level.

The report showed that the most likely explanation for this lackluster growth was inadequate demand. Wages have remained stagnant; and before producers will produce, they need customers knocking on their doors.

In 2017, the US Gross Domestic Product was $19.4 trillion. If the economy is running at 10% below full capacity, $2 trillion could be injected into the economy every year without creating price inflation. It would just generate the demand needed to stimulate an additional $2 trillion in GDP. In fact, a UBI might pay for itself, just as the G.I. Bill produced a sevenfold return from increased productivity after World War II.

The Evidence of China

That new money can be injected year after year without triggering price inflation is evident from a look at China. In the last 20 years, its M2 money supply has grown from just over 10 trillion yuan to 80 trillion yuan ($11.6T), a nearly 800% increase. Yet the inflation rate of its Consumer Price Index (CPI) remains a modest 2.2%.

Why has all that excess money not driven prices up? The answer is that China’s Gross Domestic Product has grown at the same fast clip as its money supply. When supply (GDP) and demand (money) increase together, prices remain stable.

Whether or not the Chinese government would approve of a UBI, it does recognize that to stimulate productivity, the money must get out there first; and since the government owns 80% of China’s banks, it is in a position to borrow money into existence as needed. For “self-funding” loans – those that generate income (fees for rail travel and electricity, rents for real estate) – repayment extinguishes the debt along with the money it created, leaving the net money supply unchanged. When loans are not repaid, the money they created is not extinguished; but if it goes to consumers and businesses that then buy goods and services with it, demand will still stimulate the production of supply, so that supply and demand rise together and prices remain stable.

Without demand, producers will not produce and workers will not get hired, leaving them without the funds to generate supply, in a vicious cycle that leads to recession and depression. And that cycle is what our own central bank is triggering now.

The Fed Tightens the Screws

Rather than stimulating the economy with new demand, the Fed has been engaging in “quantitative tightening.” On December 19, 2018, it raised the fed funds rate for the ninth time in 3 years, despite a “brutal” stock market in which the Dow Jones Industrial Average had already lost 3,000 points in 2-½ months. The Fed is still struggling to reach even its modest 2% inflation target, and GDP growth is trending down, with estimates at only 2-2.7% for 2019. So why did it again raise rates, over the protests of commentators including the president himself?

For its barometer, the Fed looks at whether the economy has hit “full employment,” which it considers to be 4.7% unemployment, taking into account the “natural rate of unemployment” of people between jobs or voluntarily out of work. At full employment, workers are expected to demand more wages, causing prices to rise. But unemployment is now officially at 3.7% – beyond technical full employment – and neither wages nor consumer prices have shot up. There is obviously something wrong with the theory, as is evident from a look at Japan, where prices have long refused to rise despite a serious lack of workers.

The official unemployment figures are actually misleading. Including short-term discouraged workers, the rate of US unemployed or underemployed workers as of May 2018 was 7.6%, double the widely reported rate. When long-term discouraged workers are included, the real unemployment figure was 21.5%. Beyond that large untapped pool of workers, there is the seemingly endless supply of cheap labor from abroad and the expanding labor potential of robots, computers and machines. In fact, the economy’s ability to generate supply in response to demand is far from reaching full capacity today.

Our central bank is driving us into another recession based on bad economic theory. Adding money to the economy for productive, non-speculative purposes will not drive up prices so long as materials and workers (human or mechanical) are available to create the supply necessary to meet demand; and they are available now. There will always be price increases in particular markets when there are shortages, bottlenecks, monopolies or patents limiting competition, but these increases are not due to an economy awash with money. Housing, healthcare, education and gas have all gone up, but it is not because people have too much money to spend. In fact, it is those necessary expenses that are driving people into unrepayable debt, and it is this massive debt overhang that is preventing economic growth.

Without some form of debt jubilee, the debt bubble will continue to grow until it can again no longer be sustained. A UBI can help correct that problem without fear of “overheating” the economy, so long as the new money is limited to filling the gap between real and potential productivity and goes into generating jobs, building infrastructure and providing for the needs of the people, rather than being diverted into the speculative, parasitic economy that feeds off them.

This article was first published on Truthdig.com

Capitalism, Empire, and the Infernal Gloom Machine

Depression is built into this machine and the evidence is plastered on the morose faces of people caught in the clutches of its business as usual activities. Depression is found in the insurmountable debts we owe for spending a lifetime of preparation and labor to serve the machine. In addition to debt, the machine awards us for our servitude with trinkets, gadgets, doodads and gizmos that provide a moment of hollow amusement and then sit on shelves in garages and decay. They represent the planned obsolescence of the human heart. The sacrifice paid for our fetish with materialism is the actual quality of our lives.

The gloom machine tells us the quality of our lives is defined by the machine in the driveway, and the machine that flushes away our excrement, and the machine that chills the tortured slaughtered animal flesh for later consumption, and the machine that flashes pornographic images and supplies numbers detailing how much we are liked by our so called friends. But to us humans it seems that quality of life is more appropriately measured in the amount of disposable time we have to pursue that which we want, and the quality of the community around us, and living without being chronically stressed with threats of being displaced from the land upon which we live for not working hard enough for the machine.

Depression is waking up at 6 in the morning in darkness to sit in traffic for an hour to arrive at a job that we don’t want to be at, only to serve the machinations of people with nothing but greed in their overstuffed bellies. And we go to these jobs so that we can pay rents that are unaffordable, and to service debt we’ll never escape, and we go home in darkness to our lonely lives in places where community is absent with a view of an equally lonely tree or a man-made retention pond which is an upgrade over the view of staring directly at your neighbor’s domicile. Depression is the realization there is no vacation on the horizon, no respite, just more of the same. Depression is knowing that such a life is better than many others have it.

Depression is recognizing the cynics were right about this society, that Cohen spoke truth when he sullenly moaned:

Everybody knows that the dice are loaded
Everybody rolls with their fingers crossed
Everybody knows the war is over
Everybody knows the good guys lost
Everybody knows the fight was fixed
The poor stay poor, the rich get rich
That’s how it goes
Everybody knows

Depression is watching art die. The surrealist, the bohemian, the rock ’n roll, and the anti-authoritarian soul has lain down and pledged fealty to the dollar. For money, they’re now all willing to become ready made predictable cubes to be packaged and sold in plastic wrap placed in cleverly designed boxes which deliver to the depressed public what they want, more of something that’s pretty on the outside and vacant within. We are left with monthly subscriptions of more tales of self aggrandizement for the throngs of temporarily embarrassed millionaires.

Depression is watching the worst of us rise to legitimacy and awarded iniquitous riches for it. The popular is depressive, musical hack Cardi B sings about her money money money and she is loved. Jordan Peterson sells cheap self help stolen from better written material decades ago amalgamated with misogyny and dictates of hierarchal subjugation and becomes wildly popular. Trump purveys hatred of people of color and a love of authoritarianism and the depressive people, oh do they eat it up. This is sickness, depressive sickness.

Depression is acceptance of the violent now. The grossly unhappy men with their armaments spread their gloom and horror across the planet and claim righteousness for doing so. Depression is watching society applaud murderous hearts for their crimes who don badges and camouflage and have holidays to celebrate their violent history, while villains are made of those who simply don’t want to stand up for songs of oppression. Thank you for your service to the machine.

Depression is watching notions of resistance and revolution take form in slightly altered subservience. The great reformation desired now is for a “green new deal” that doesn’t come close to mitigating the impending culling of humanity from soon to be ecological catastrophes. Their plans offer only more endless work at the behest of the gloom machine while promising healthcare that will never happen, less debt it will also never deliver, and affordable housing that still won’t solve homelessness. They don’t want to break the machine, just tweak it, and they lack the ability to do that even. Never have I borne witness to such eager slaves and such depressive aspirations. The people seem to adore their cubicle lives, their environmental destruction, their corporations, their debts, their corrupt leaders, their prisons, their banks, and their taxes.

They want to continue to be put to work under the thumb of the status quo western civilization authoritarian mind and this is all the depressed mentally dominated masses can think of as a possible improvement. Instead of wanting to taste real liberty and be actual equals, their dreams are limited to being better treated servants. The gloom machine chugs along fueled with dimwitted ideas sold by boxed-in thinkers without any possibility of escaping the darkness, rather simply offering a more cushy seat for viewing the end of everything.

The machine bellows out demanding more, more, you owe me more, and somehow those wearing red, white, and blue agree and celebrate the demands of the machine. These debts we owe are servitude. The numbers held in digital machines are immoral which demand one must wake up to a dreary existence to do more of what is killing our souls along with the flora and fauna around us.

Depression is the downtrodden plebs who celebrate their corrupt democracy, which is in reality a thinly veiled oligarchy that should be obvious to all. They prop up a system of voting that allows the election of the presidency, a position that shouldn’t exist in the first place in an egalitarian society, to be awarded to candidates who don’t capture the most votes. What little democracy there is in a representative system is lost in totality when the winner of elections need not win the majority of votes. The gloom machine is straight up tyranny.

A non-depressed society would reject being served faux democracy. They’d reject a system absent of reason or compassion and disdain would be for ideas of continuing to support such a destructive way of being. But instead, within the gloom machine shame is reserved for those who don’t want to take part in the busted system, and it venerates those who cast votes for imperialist conquerers and planet destroyers, and those voters are lauded as doing their civic duty for taking part in open public corruption.

Depression is the insincere know it all crowd who are incapable of honest debate and have rarely endeavored to open a book of substance or engage in critical thought, but they know trivialities which they mistake as facts and wisdom. They know arrogance well and emanate it with aplomb. They know how to believe all they see in the corporatized media, but thinking without boundaries or limitations is beyond their capacity. This is not even depression, this is tragedy.

Depression is watching the trees be plowed down for more tract housing, a portion of which will sit empty for years because no one can afford to move there, and even if they could it’s a heinous boring life that awaits which is only significantly better compared to being homeless. Depression is knowing this is the reason why we are rapidly destroying our habitable environment and commencing a 6th mass extinction event which is now accelerating.

Depression is to know there is nothing we can do to stop the country we live in from mercilessly killing innocent people all over the world for no reason other than more economic expansion and our sadistic ideas of exceptionalism that entail spreading pain and hardship so a few elites can have more of what they already have more than enough of.

Depression is the powerlessness to change anything of significance. There is no other way they say other than the desolate gloom machine, they say this is how it must be. And so we remain here waiting for the horror that is soon to approach us all as the gloom descends in ever quickening waves.

A zombified indoctrinated populace can see no other way than capitalism and beating each other over the heads to satiate egos in needless competition that is unnecessary for survival and deleterious to the common good. Capitalism is the primary tool of empire, and a word that should be synonymous with depression. It’s the accumulation of resources in an effort to gain more power in man-made markets to leverage that power over other people and get them to do what the person with the most power desires. Capitalism’s depressing ideology is defined by the lecherous desire for more for the sake of it so the winner can pound their simian chest in victorious celebration of the devastation they’ve created.

Capitalism is inherently unsustainable due the way it allows power to coalesce via the leveraging abilities given to money to buy land, the means of production, elections, and advertising. It allows the whims of the few to overrun the needs of the many where those with the worst intentions aspire to gain more than others because they will attempt to fill the void in their hearts with self importance expressed via power over others. This is why it cannot be used.

If there is no central currency or advantage to collecting huge amounts of resources then the motivation to hoard would evaporate, as those resources would simply rot or become a burden to maintain. There’s no fun in that kind of hoarding. The “fun” comes to the simpleton power seeker when they acquire power to make others do what they want and thus gain the ephemeral validation they so desperately seek.

If one runs the math on players competing for money at different rates of gain over a certain amount of time, there will be a doubling effect which becomes exponential. And this effect will accelerate as it plunders along due to gains in leverage which allows for ever greater amounts of money to be made at faster rates. Eventually it always ends the way a game of monopoly ends, someone has all the power and everyone else is subservient to that entity/person.

These dour thoughts manifest from the recognition of the stranglehold empire has over our lives. The depression is the result of the myriad of expectations I can’t let go of that wants to see a kinder more egalitarian and sustainable world emerge while knowing how unlikely it is. Our collective depression is rooted in the foundations of social hierarchy and its economic tools of control, and understanding what a perfect trap it is, and so it goes, and everyone doesn’t know, but they feel it, though.

Forgive them their debts as they forgive those…

It is “budget time” again!

That is the season when the persons displayed on television screens as representatives of those who have no representation engage in the theatrical display of subordination to those who actually own things, like the countries we happen to inhabit. Although there have been a few publicised investigations and even some occasional criminal charges against (usually septuagenarians) some conspicuous miscreants, there has been no action which could restore some health or sanity to what most of us consider the daily economy. In some countries, like where I live, people go on strike. There is little indication that the fundamental message of the strikers gets heard. Perhaps that is also why the television seems obsessed with the marketing of hearing aids. There is a hearing aid for every occasion, except sessions of the national assembly, where such technology might really help.

One way of dealing with the hearing impaired is repetition. In scientific terms this means increasing the rate of signal in proportion to noise in the hope that the essential message is received. Although I wrote a version of this paper in 2014, four years later I cannot help feeling some repetition would do no harm. If every budget season one has to listen to the same set of distortions, then it is only fair to reproduce the corrections.

Like the absurd climate debate, which never includes the “carbon footprint” of the largest military machines, the budget debates (essentially interchangeable) never discuss the cost of subsidising international banks and corporations to facilitate their extraction of wealth from the national economy. There is no intelligent, let alone honest, discussion of what is meant by “public debt”—or why the taxpayers must bear losses to guarantee tax-exempt profits for investors.

I always ask myself when someone says or writes “loss”, where did the money go? Even when a ship is lost at sea there is generally wreckage. Of course, the ocean is bigger than the economy and it is possible that a ship’s remains disappear beyond recovery. The price of abandoning the very modest social gains of the New Deal in the US and social democracy in Europe with the ascendancy of Margaret Thatcher and Ronald Reagan has been enormous, not only for US and European working people but, for the rest of the world. In fact, the meter is still running with no indication of when it will stop.

The crisis no one cares to talk about any more comprises trillions in losses. If these losses are real, then that means the value has been forfeited in favour of someone else. E.g. after the Great War France and Britain were essentially bankrupt: they owed nearly everything to US banks. Without economic manipulation, war and terror, India would probably have occupied the same status vis a vis Great Britain in 1945 that Brazil gained vis a vis Portugal after the Napoleonic Wars. The claims against the productive capacity and assets of Old Europe were held by identifiable third parties, representing, then as now, a tiny band of bankers. Of course, those claims were so great that no normal income streams from taxation could satisfy them. Control of Britain was effectively ceded to the US, while India was wracked by civil war rather than collecting the wartime debt Britain owed to her.

The other meaning of loss is the inability to sustain a certain valuation of an asset or income stream. The nature of the initial valuation is then the problem. The continuous attempts in the IFRS (international accounting standards) to skirt around the issue of essentially fraudulent valuation illustrates that even the private sector’s notion of “value”, whether book value or fair value, is the product of casuistry.

Since European “banking” was reorganised on the US Federal Reserve model by creation of the European Central Bank, it is instructive to consider how grand theft in the state-banking sector of the US functions. In other words, the “losses” hidden on the books of the USG banks, “Fannie” and “Freddie”, are either notional or they reflect claims that were satisfied in favour of third parties beyond the capacity of those institutions to generate income. Again we know who those third parties are. The “losses” are essentially sacrificed sovereignty.

Government institutions pledge to private persons (corporations and foreign exchange pirates) the State’s capacity to pay, derived from the ability to tax the working population, beyond any realistic possibility to extract that income. This was called “tax farming” in the bad old days of “colonialism”. Frequently punitive military force was sent into any country that was not delivering enough booty (aka interest on foreign debt). In fact, as retired general of US Marines infamously confessed that was his main job in the Corps—protecting corporate plunder.

This is essentially the same principle imposed through the ECB—except that some nominal account has to be taken of national political systems. Since in Europe the State was far more frequently the owner of capital infrastructure, absorbing the cost of its operation and regulating labour as civil servants, considerable ideological work had to be performed to cultivate the generation, which privatised most of the national capital assets held by European states. The fact that since 1945 the US has controlled the international payments system has reduced the need for military intervention. Decisions taken in New York, London, Frankfurt or Brussels can deprive a country of any affordable means to engage in the most basic financial transactions. The entities involved are privately owned and therefore cannot be coerced except by measures that would “threaten private property”.

Just as the railroads and banks obtained control over most of the continental US by defrauding the US government in the 19th century, the surviving banks have defrauded most of the American population of its home equity today. Although it was established that a conspiracy of UK-based clearing banks illegally fixed the LIBOR/ EURIBOR rates, this had no serious consequences. If one considers very carefully that nearly all mortgage and commercial financing agreements base their interest computations on one of these benchmarks, the true scope of the fraud becomes apparent. Everyone who made an interest rate agreement assuming the “free market” condition of the underlying rate was cheated. It could be argued that the interest rate clauses of innumerable contracts were void due to fraud. A perusal of public debt instruments would no doubt reveal even more catastrophic deception.

The endless wars, funded by plundering the public treasury and the wealth of other countries, are part of that income extraction, too. Now the US government and those of its vassals are little more than one large mercenary enterprise, together as NATO, the most heavily armed collection agency on behalf of third party creditors on the planet. It does not matter who occupies the mansion at 1600 Pennsylvania Avenue.

Of course, there is plausible denial for any of the beneficiaries of this plunder since populations weaned on soap operas and “crime drama” are incapable of examining, let alone comprehending, the most obvious operations of US corporations and their agents– who almost never appear as criminals on television. The “crime drama” narrative dominates almost every bandwidth on the critical spectrum and as a much younger US director, Michael Moore demonstrated in Bowling for Columbine, corporate crime does not make acceptable television. The most elemental sociological truths, plain to anyone who has ever belonged to a club or worked in middle management of a company, namely that “democratic” and “meritocratic” decisions are regularly subverted by scheming among the ambitious at the expense of the docile– become discredited when the insight is applied to the polity as a whole. People who do not think twice about making a phone call to a “friend” to influence a decision in their social club or place of employment, become incredulous at the suggestion that the chairman of a major investment bank would dictate policy to the head of state whose election he had financed.

In short, the debate about the current global economic “crisis” is obscenely counterintuitive and illogical to the point of incoherence. Who is willing to “follow the money”? This dictum, popularised in the Woodward and Bernstein fairy tale of US President Richard Nixon’s demise– All the President’s Men— appears utterly forgotten, despite recurring astronomic fraud perpetrated by US corporations since the so-called “S&L scandal”– crimes for which no more than a handful of people were indicted, let alone tried or sentenced. Only one corporation was deprived of its right to do business, Arthur Andersen, and this was patently done to spare all the politicians from the reigning US president, most of the US Congress, and untold state and local officials who had been bribed or otherwise influenced by Enron.

If the stories reported by Pete Brewton in 1992, the documented history of the OSS “China insurer” AIG, and the implications of the 2002 Powers Report on the Enron collapse are taken seriously, then Houston lies on a financial fault line more devastating than the San Andreas. That fault line runs from Texas through Virginia to the bedrock of Manhattan. The economic earthquakes that have persisted since 1980 are both literally and figuratively the result of deployment of the US atomic arsenal and the policies that gave rise to it. The US dollar’s continued, if fluctuating, strength as a reserve currency is based on drugs, weapons, and oil– all traded in US dollars. However, this material reality is also based on an ideological or dogmatic constitution. The seismic activity induced by US corporations created gaping holes in the global economy– holes which could only be breached by the financial instruments developed in the weapons laboratories of Wall Street based on the same conceptual models as the neutron bomb and today’s nano-munitions developed at Lawrence Livermore. Indeed, the theory has been almost universally accepted that people are always to blame for the problems of government and Business is the sole and universal solution to all problems. Hence tax monies will only be spent on weapons, war, and subsidies for corporations—the things Business needs.

A considerable obstacle to any change in the US, short of its destruction, is the fact that as Michael Hudson and former assistant Treasury secretary under Reagan, Paul Craig Roberts, write repeatedly, the US government has absolutely lost whatever legitimate function it may ever have had as an instrument of popular will. In other words, the efforts of working people, whether immigrant or ex-slave to remake the plutocratic regime of the 19th century into a State responsive to their needs were frustrated by the massive assaults on labour, combined with the ideological warfare of the “Progressive” movement. The latter, funded heavily by the newly created super-philanthropies, including those of Rockefeller, Sage, Peabody, and Carnegie, predated CIA-style front organizations and infiltration. They helped turn popular sovereignty movements into the kind of technocratic organisations which prevail today– dependent on corporate donations and led by the graduates of cadre schools like the Ivy League colleges, Oxford and the LSE. With few exceptions the only remnants of the “popular will” in the US are those that drive lynch mobs, reincarnated in “talk radio” today.

The main work of the USG and the corporations for which it stands has been to undermine any notion that the State is rightfully an expression of the popular will for the realisation of popular welfare. The State has been reduced to a protection racket. By the time Ronald Reagan, imitating Margaret Thatcher, pledged to “get government off the back of the people”, the only “people” who counted were corporations and those in thrall to them.

It is easy to forget that the US was actually founded on the basis of a kind of white (in that sense “enlightened”), oligarchic absolutism– the British parliamentary dictatorship minus hereditary monarch. Its moral vision predated the Thirty Years War and, until John Kennedy was elected president, its hypocrisy was that of Cromwellian fanatics. In revolutionary France and countries that were inspired by France, as opposed to the American independence war, struggle continued on the premises that the State is not the King (in whatever incarnation) but created by the citizens (not the possessive individual) for the maintenance of the common weal– including the nutrition, health, housing, education of its people. The opposition to destruction of the public sector or public services and the debate that continues in Greece, France, Italy, and to a lesser extent Germany, defies comprehension in North America and Great Britain because of some unfortunate residues of that revolutionary vision of the State so violently opposed by Britain and the US ever since 1789– except when the resulting instability provided business opportunities. (Thatcher did not restore the spirit of Churchill to power—but that of Wellington.)

Moreover as Coolidge once said, “the business of America is business”. If a policy or action of government cannot be expressed in terms of someone’s maximum private profit then it is indefensible in the US. The conditions of the Maastricht Treaty establishing the euro and the ECB are an attempt to impose those same ideological and political constraints on the European Union enforced by adoption of the Federal Reserve Act in the US. The Federal Reserve is essentially a technology for naturalising usury and endowing it with supernatural legitimacy. But just as it has been argued in some quarters that the US Federal Reserve triggered the Great Depression– for the benefit of the tiny bank of banking trusts– the European Central Bank, urged by the right-wing government in Berlin, is being pressured to follow the same rapine policies as the FED is pursuing today. Of course, there are other countries ruled by financial terrorism or where banking gangs have turned their entire arsenal against sovereign peoples.

The “Crisis” is not really about the “debt” or the heinous losses. It is a crisis of sovereignty. The failure of popular sovereignty means that a microscopic bacterial colony of the immeasurably rich can make war on the rest of the world, destroying the common weal and commerce at home and everything else abroad. Germany’s citizens have been bludgeoned since 1945 by Anglo-American propaganda and the occupation forces to persuade them that they– not the great banking and industrial cartels on both sides of the Atlantic– were responsible for Adolph Hitler’s rise to power. When in 1968, student leaders like Rudi Dutschke tried to remind Germans that their democracy was destroyed before Hitler’s putsch and that they had the right and opportunity to demand a democratic Germany after the war, those young people were harassed and even killed. (Dutschke was shot in the head by an unemployed labourer. That “lone” killer later died in prison with a plastic bag over his head.) Attempts to create a truly popular democratic government in Germany have been frustrated by foreign intervention since the French Revolution. Nevertheless people in Germany still believe that the State is there to provide services to the people– and not to fight wars to further foreign trade as suggested by Horst Köhler before he was relieved of his duties (ostensibly resigning) as German federal president.

There is no doubt in Germany that former Chancellor Schroeder’s refusal to follow the US into Iraq—whatever motivated it—enjoyed the widest support, even among those who tend to believe anything the US government says. The resignation of former IMF director and Federal President Köhler expressed the sensitivity of the situation then. On one occasion he referred to the great banking interests as “monsters” and then broke the silence on the German war efforts in Central Asia by explicitly articulating what had been Chancellor Merkel’s, silent but deadly policy of supporting US counter-terror in Afghanistan. Köhler was not opposed to the future escalation of German belligerence, but by his calling a spade a spade on national radio, the right-wing government in Berlin almost had to defend its unconstitutional deployment of German soldiers in public. Already that April Angela Merkel had been forced to sacrifice an army general and a cabinet minister when it became known that German combat aircraft were also bombing civilians like their US counterparts—and trying to keep the fact a secret.

In the midst of the financial crisis, that is the plunder and pillage of the accumulated reserves of Europe’s working population after those of the US are exhausted, it is impossible to ignore the restoration of Asian political and economic prominence. This process started in the 1960s when Britain and the US launched their wars to secure footholds and control of the vast resources of Indonesia and Indochina. Although only partly successful, the destruction of national independence movements throughout South Asia created the conditions for de-industrialising Europe and North America. Mistakenly much of the North American and European Left judged the losses in Korea and Vietnam as defeats for US power. Such judgments have been based on assessments of the official war aims and not on any analysis of the underlying corporate and financial policy objectives. The long-term results of those wars included creation of the massive debt system that is at the root of financial collapse for the majority of US Americans. Of course, China remains the great unconquerable threat to continuation of US hegemony. The balance of power in Asia may be very delicate indeed.

Continental Europe remained somewhat insulated from those seismic forces until 1989. The “velvet” invasion of Eastern Europe and the former Soviet Union led by US capital, aided as usual by the combined secret services and economic “consultants” of Shock Therapy, began the destruction of the economic base for European social democracy and “real socialism”. The debt machine created to exploit Eastern Europe was applied in Germany first– destroying the GDR and financing that destruction with EU-generated debt, culminating in the euro. Introduction of the euro effectively destroyed half of the purchasing power of working people in the Euro Zone overnight, creating the conditions for consumer borrowing which had prevailed in the US since the late 60s and eroding wages and benefits drastically.

The final loss of control over archaic legislative instruments (whether in the US or Europe) is not only assured by the system of bribery that turns those in office into indentured servants of corporations. Full investigation of the Enron scandal would have proven once and for all that there is almost no one in the US Congress not owned by some corporation. Similar conditions have come to prevail in European legislatures where for decades US academic and policy exchange programmes have trained the political class to work first and foremost for Business.

The loss is also assured by the now entrenched belief that the only legitimate human goal is individual personal profit. As Hudson has suggested, this is the “theology of the Chicago School”. Since Margaret Thatcher was appointed to convert Britain to that dogma, nearly the entire political, academic and “civil” culture has been saturated with people who cannot think in any other terms– even when they assert that they are still social democrats or democratic socialists. The latter insist that “social policy” is merely a palliative to prevent the poor and destitute from becoming unsightly spectres in urban entertainment centres. They all have become positivists– reifying the prevailing economic relations and worshipping quantitative methods– subordinating human agency to pseudo-science and thinly disguised opportunism. The only kindness this ethical standpoint can express is “charity”. Charity, however, has nothing to do with the common weal or the State as an embodiment of the popular will. In fact, it is just as parasitic as the belief from which it springs. If those whom John Pilger called “the new rulers of the world” consent to relieve us– that is to allow us anything resembling our dignity and subsistence wages– then it will scarcely exceed the infamous “dimes” with which John D. Rockefeller cloaked his cynicism in piety and charity. Nowhere is the cynicism more profound than in the expression “giving back”. Of course, the pennies “given back” are microscopic compared with the billions “taken” in the first place. But those shiny pennies and dimes are enough to keep embedded intellectuals loyal to Bill Gates or George Soros. For a few dollars more they will even protect the likes of Blankfein or Buffett.

“Charity” is the gratification a person finds when scratching a mosquito bite. One feels better while scratching– although this provides no relief. The cause of the itch is the substance injected by the mosquito while sucking the blood from its victim. Of course, some mosquitoes offer only token charity and the itch disappears. But there are mosquitoes that carry other parasites– the effects of their charity can last forever, or at least until the victim dies.

Housing Crisis, Mental Health Collective Breakdown, 9 am to 5 am Work!

The essential American soul is hard, isolate, stoic, and a killer. It has never yet melted.

― D.H. Lawrence, Studies in Classic American Literature

He who does not travel, who does not read,
who does not listen to music,
who does not find grace in himself,
she who does not find grace in herself,
dies slowly.

— Brazilian poet Martha Medieros

I work at a homeless veterans (and their families, and some have their emotional support animals here) transitional housing facility in Oregon. We get our money from a huge non-profit religious organization and from the federal government in the form of VA per diem payouts.

The job is tough, rewarding, never with a dull moment, and a microcosm of the disaster that capitalism pushes into every fiber of the American fabric of false adoration of a class dividing and racially scaled society.

Mostly after two-and three-year hitches in the Army, Navy, Marines and Air Force, these men and women are broken on many levels, but serve as emblematic examples of the masses of broken people this country’s top 19 or 20 percent make a killing on. The Point Zero Zero One Percent, the One Percenters and the 19 Percenters live off the 80 percent of us who have toiled for these masters of the capitalist universe and these Little Eichmanns and highly paid bureaucrats and middle managers and top brass in every industry possible (two-income earners making money in higher education, medicine, the law, pharmaceuticals, high tech, military industrial complex, judicial and criminal justice, and all the flimflam that is the retail and consumption class).

I have clients who never saw out-of-country battlefields, but these same veterans hands down have applied and sometimes have received service connected disability claims, from tinnitus to shin splits, bad discs in the back to Parkinson’s, from skin diseases to anxiety disorders, from PTSD to depression, and many, many more.

The problems abound, because these folk are virtually broken and spiritually disconnected, brainwashed by some mythological past, flooded with inertia, possibly never able to get their lives back. We can look at them in their section eight apartments, see them at the free meal joints for veterans, and we can listen to their complaints and then respond by throwing all our fury and recrimination onto them, admonishing them to get off their butts and work. Sounds good from a parasitic, penury capitalistic society of me-myself-and-I thinking, but in reality, these younger and older veterans are strafed with anxiety disorders, co-occurring mental health challenges, post-addiction disorders, and brains that have been calcified by many, many aspects of being in the military; then discharged, and then the entire landmine field of epigenetic realities anchored to what many of them call “broken and bloodied” family lives before hitching up.

Some of us know how to solve their homelessness problem, help with intensive healing, assist them in reintegrating into society: inter-generational communities, in micro-homes/tiny homes, with an intentional cooperative community housing set up with things to do . . . . Like growing food, working on construction projects, engaging in peer counseling, and coalescing around community engagement and co-op like business models.

How many plots of land exist in this PT Barnum Land? How many empty buildings are there in this Walmart Land? How many young and old would like to get off the hamster wheel and out of the machine to live a life worthy of spiritual and collective pacifism to grow a truly communitarian spirit.

Here we have this CryptoZionist VP Pence pledging to rebuild an Air Force base in Florida, Tyndall, for $1.5 billion and then spreading more hubris as we witness Pence and the Air Force brass (their felonious DNA locked into our corrupt military industrial complex) ask for more robbing of the tax till, when a hurricane we knew about weeks ahead of time, destroyed more than 17 Stealth aircraft worth (sic) $339 million each! No apologies, no public investigation, nothing!

You won’t hear on Democracy Now a strong case against building these jets in the first place, or a strong case for lopping off the heads of Generals and state senators, on down, for this Keystone Cop disaster. Up to $6 billion for these graft-ridden and spiritually empty examples (Stealth Baby and Old Man-Woman Killers) of America the Empire.

Daily, I struggle to get veterans accommodations for evictions or for property debts, as many have just failed to pay rents or mortgages because of the colluding forces of mental-physical-spiritual dysfunction created by what it is that makes broken people in general, but especially broken veterans who have some undeserved sense of entitlement. Daily, just attempting to get VA hospital treatment, or trying to have experts look at veterans’ amputated limbs and just getting appointments for prosthesis devices?

We are not in “new times” with a CryptoZionist brigade in office, or a filthy example of an individual as the leader of these follies. Nothing new in the New Gilded Age punishment caused by a small cabal of One Percenters who hold dominion over workers. Nothing new about the power of the media and entertainment game to brainwash compliant citizens. Nothing new about War Is a Racket principles (sic) driving our economy. Nothing new about white supremacy ruling Turtle Island. Nothing new about the Manifest Destiny Operating System ripping land, resources, people from indigenous homelands and other countries’ sovereignty. Nothing new in the great white hope tutoring other like-minded fellows in other countries on how to get one or two or a thousand “ups” on the powerless or disenfranchised peoples of their own countries.

Life for Third World (sic) peoples was bad under all the criminals we have voted into POTUS office for the past 250 years! Longer.

The big difference seems to be the passed on and learned helplessness, fear, bulwarking that has been seeded from generation to generation. The fact there are hyper Christians who support the hyper hedonistic, superficial, irreligious, criminally-minded, sexist, racist, loud mouth, intellectually challenged Trump may seem illogical. Oh, so much illogical braying in the world before the Trump seed spilled on this land. Imagine, Jews supporting white supremacists, anti-Semites. Imagine, Native Americans wrapping themselves in the US red-white-blue, and signing up for war-military in higher numbers than any other demographic group. No need to go apoplectic over women supporting Trump as if he is their daddy or Sugar Daddy. How many times in this country’s history have we had Women for Reagan, Women for Bush, Women for Clinton, Women for the Vietnam War?

Susan Sontag said it pretty clearly:

Of course, it’s hard to assess life on this planet from a genuinely world-historical perspective; the effort induces vertigo and seems like an invitation to suicide. But from a world-historical perspective, that local history that some young people are repudiating (with their fondness for dirty words, their peyote, their macrobiotic rice, their Dadaist art, etc.) looks a good deal less pleasing and less self-evidently worthy of perpetuation. The truth is that Mozart, Pascal, Boolean algebra, Shakespeare, parliamentary government, baroque churches, Newton, the emancipation of women, Kant, Marx, Balanchine ballets, et al., don’t redeem what this particular civilization has wrought upon the world. The white race is the cancer of human history; it is the white race and it alone — its ideologies and inventions — which eradicates autonomous civilizations wherever it spreads, which has upset the ecological balance of the planet, which now threatens the very existence of life itself. What the Mongol hordes threaten is far less frightening than the damage that western ‘Faustian’ man, with his idealism, his magnificent art, his sense of intellectual adventure, his world-devouring energies for conquest, has already done, and further threatens to do.

To be honest, the insanity of the white race is also what I am concerned with in Sontag’s (RIP) polemic. That pejorative “crazy” seems apropos for the white race, if one were to look at the way this country’s leaders and movers and shakers play the game and push their destructiveness on the rest of the world. They are all white!

Crazy watching the Kavanaugh hearings. Crazy reading the World Socialist Web Site hit after hit on any woman fighting the scourge of sexual harassment, sexual assault, rape!

This David Walsh gets it all wrong, deploying simplistic “blame the victim” mentality, and then using “witch hunts” accusations to buttress his absurd essay’s thesis. This article is an example of low level white writer crazy:

The ostensible aim of this ongoing movement is to combat sexual harassment and assault, i.e., to bring about some measure of social progress. However, the repressive, regressive means resorted to—including unsubstantiated and often anonymous denunciations and sustained attacks on the presumption of innocence and due process—give the lie to the campaign’s “progressive” claims. Such methods are the hallmark of an anti-democratic, authoritarian movement, and one, moreover, that deliberately seeks to divert attention from social inequality, attacks on the working class, the threat of war and the other great social and political issues of the day.

Instead of bringing about an improvement in conditions, in fact, the #MeToo movement has helped undermine democratic rights, created an atmosphere of intimidation and fear and destroyed the reputations and careers of a significant number of artists and others. It has taken its appropriate place in the Democratic Party strategy of opposing the Trump administration and the Republicans on a right-wing footing.

The sexual hysteria has centered in Hollywood and the media, areas not coincidentally where subjectivism, intense self-absorption and the craving to be in the limelight abound.

Comments back at the author’s “hysteria” analysis are not worthy of recrimination, for sure, but if you scroll down in the WSWS comments section for this piece, have at it: the continued craziness of white thought, white attitudes and white actions. It’s a long essay, and this man’s conclusions are all over the place, indicting anyone who aligns himself or herself with the #MeToo movement. Blames #MeToo (using current polls) for aiding and abetting an upsurge in misogynistic thinking, where these vaunted white man’s polls say more Americans one year later after #MeToo are skeptical in larger numbers about allegations of sexual harassment coming from anyone. Blame #MeToo, so-called socialist David.  Polls, oh those pollsters, oh Mr. Walsh states that #MeToo activists should be involved in other things, like the plight of working class men and women, or stopping the apocalyptic brinkmanship played out by Trump with toy nuclear weapons. Etc., etc.

It makes sense that we have silos in the social justice, criminal injustice, environmental-economic-equity movements. So much easier to tackle one bad bill or vote or crazy politician in your neck of the woods than to grasp the totality of how broken, mean, murderous, monstrous this country’s policies are! And, reality check – the white race is crazy. You see it in Nazi German, in Europe today, in Israel, in the USA, in Canada, in Australia.

Yet the broken systems, the insanity of even considering a series of social nets being frayed, chopped and burned by the One Percent’s minions in political office and finance – how insane is it that social security is on the chopping block, that there is no single payer health plan, that there is no public transportation, that the commons are being razed, raped and contaminated? How insane is it to “let” lead flow in public water system pipes (Flint, Portland, et al); or that pesticides rule the micro-world of future generations, where brain stems are permanently damaged; or how insane is it to allow a good chunk of young people to come into the world with diabetes, or riddled with on-the-spectrum diseases . . . or full of ticks and physical ailments in the name of Big Ag/Big Energy/Big Chem/Big Med/Big Tech ruling the land?

Insanity is a race that hawks chemicals of death, that inculcates punishments and fines and levies and taxes and penalties and surcharges and charges and fees and tolls and taxes and tickets and defaults and foreclosures and balloon rates and eminent domain decisions and impoundments and confiscations and seizures on their own people?

Daily, Portland (three counties, and then just north, Clark County, WA) is an example of this white insanity — unchecked growth, unchecked rent hikes, unchecked cost of living busting more and more people, unchecked home costs rising, unchecked traffic and bureaucratic gridlock, constant punishment for the downtrodden, homeless, poor. How insane is it to have students of nursing programs living in their cars while attending classes (Portland Community College, et al)? How insane is it that the Portland police bureau can charge non-profits thousands of dollars for public records, our own records?

The system is rigged, and it’s a white system of lawsuit after lawsuit! Death by a thousand fines and spiritual-mental-physical cuts!

Until the system is so broken you have millions of social workers like myself attempting to figure out how to save one life at a time, all broken lives products of the insane white culture, their own insane (crazy) leaders, family members, bosses and communities?

Order and Progress was Never a Civilian Slogan

The apparent victory of Jair Bolsonaro in the 2018 Brazilian presidential elections has been analysed as the return of some kind of fascism to Brazil: electing dictators where they previously had to enter office in tanks. However, Brazilians, unlike Portuguese, did not remove their dictators from power. The Brazilian military gave way to its civilian counterparts. A governing structure was created in 1986, which permitted the discrete withdrawal of uniformed personnel from public offices and public liability for the consequences of their acts. However, it did not end the role of the military in ruling Brazil. For both historical and ideological reasons this was not necessary.

The military-technocratic tradition in Brazil is as old as the founding of the republic.1 That was one reason why the Brazilian military so readily accepted the same “national security ideology” that the US propagated in its cadre institutions like the National Defence College/University, the curriculum of which was largely imitated by the Superior War College in Brazil. The “military” in Brazil is best understood as the elite managers of the republic’s military – industrial – technological complex, one of the products to survive the dictatorship.

Although certainly not an accident, the anointment of Bolsonaro as a saviour in Brazil’s time of troubles, is incidental. His appearance and election (unless something utterly unexpected happens on 28 October) should be understood within Brazil’s ancient domestic political culture and the subordination of the Brazilian military in the widest sense of the term to the hemispheric national security ideology that has prevailed since its formulation in the late 1940s.

Comparisons with Trump are distractions, like the attacks on Trump. They draw attention away from the actual power issues involved and who actually wields power.

Bolsonaro’s election cannot be fully understood without an international perspective. Brazil, although a very large country with an enormous economy, is a very closely held property dominated by a tiny elite with more loyalty to the North American elite than to its own national interests. It has always been a subordinate country in the hemisphere although the mechanisms of subordination have changed over time. Unlike in the US, Brazilian elections are actively manipulated by foreign governments. Brazilian media are even more concentrated than in the US, with Globo occupying virtual monopoly control over every media outlet in Brazil not controlled by a US conglomerate.

Yet there has always been a tension between pro-US and nationalistic factions in Brazil’s elite. The only mass political base ever established in Brazil — prior to the PT — was the Vargas regime, which was vigorously opposed by those in Brazil who hate anything resembling democracy, nationalism or mass-based politics. The PT emerged despite repression to become Brazil’s first mass democratic party. When it was allowed to govern after the long-forgotten corruption of the Collor de Melo presidency, it was because it had attained this broad democratic base capable of winning elections.

Winning elections was considered in the early period after the collapse of the Soviet Union to be the sine qua non of the “victory” of capitalism. The PT then started to create its own political base in the Brazilian context– a combination of local clientelism and organised labour, but including sectors that had previously been excluded from this formula. In Brazil’s federal system it was necessary to establish a serious social budget at federal level to compensate for the intransigence at state level. To do this the PT needed a public budget to finance that expenditure. And here is where international banking– a historical force in suppressing Brazilian national development– applied the brakes. The PT had to commit itself to servicing the extortion aka foreign debt. Like in every other country held down by “debt”, Brazil could not fulfill any but the most superficial social promises and pay the extortion to banks.

So what happened was surely this: the PT political engineers decided to covertly subsidise their political consolidation and some of the social budget by siphoning funds from the parastatal oil company, Petrobras. This had to be done covertly to prevent the extortion ring (international banking and monetary agencies) from manipulating the Brazilian credit ratings and exchange rate to prevent it. So a lot of people got on the gravy train to keep this scheme working. Of course, the drain of paying all those whose cooperation was necessary to maintain this finance mechanism became parasitical so that more money was reaching the facilitators than the intended beneficiaries of the policy.

The idea of draining funds from a corporation through covert means is not new. (Enron was essentially a banking-led investor scheme for laundering money and exporting it to off shore banks. It would have continued had it not been for some personnel problems and a few accidents– biggest of which that it threatened to implicate POTUS G W Bush.) It is entirely excusable as greed when the funds are transferred to the wealthy. However, it becomes a horrible crime if the money benefits masses of ordinary people. The multilateral (US) debt enforcers have always upheld the claims against sovereign states by those who made official loans to corrupt dictators where the money was transferred to private Swiss accounts.

Hence, given the number of people on the Petrobras gravy train, this policy might have continued with relative impunity were it not for two very important international issues where the US regime has a direct interest: BRICS and Venezuela.

It is worth viewing a small segment in the late Allan Frankovich’s 1980 documentary On Company Business. There is an interview with a labour organizer from the US who is recruited by the AIFLD to go to Brazil and organise “anti-communist unions”. He explains what he thought he was doing and what he found to be his actual mission. But his most striking realisation was that he had been sent to Brazil for this work in 1962– a full two years before the “crisis” that officially led to the Brazilian military coup removing João Goulart.

Bolsonaro is discussed as a product of the “anti-corruption” crusade. “Anti-corruption” has merely replaced “anti-communism” since the latter is deemed extinct. In fact, the case for disrupting Brazil’s BRICS policy and isolating it from the Venezuela – Cuba “axis”, was given almost immediately after Lula’s first election. However, it would have taken some time to place everyone and everything in the best position to depose the PT. This was certainly ready by the time Lula’s second term expired. The death of Chavez and recently the death of Castro (at least of natural causes) have made it imperative to close the Brazil-Venezuelan border in every sense. The escalating war against Russia and China had already made it imperative to take the “B” out of BRICS.

The success of the “anti-corruption” strategy in legitimating the overthrow of heads of state had been proven along with the capabilities to generate synthetic social support for such exercises as elections and street demonstrations. Anti-corruption campaigns are directed against public officials and civil servants but not against the military (although the corruption of the arms trade is endemic and apparently incurable) or corporations who initiate the corrupt acts and/or benefit from them. There is a conspicuous reluctance to attack fundamentally anti-democratic institutions: Business and the military. “Anti-corruption” is really a euphemism for a broad attack on all democratic institutions since 1989-90.

It is one of the failures of the Left and faux gauche to grasp these fundamental issues. This is in part because they share the same “moral language” and progressive technocratic ideas about how the State should be constituted and operated. There has been a distinct inability or reluctance to retool, to defend fiscal independence, to recognise and call foreign debt (or in many countries all public borrowing) what it, in fact, is: a deliberate conversion of community resources into private cash streams for the ruling class compulsory debt financing of public expenditure by private banks. This is the main reason why the central banking system adopted by the US regime in 1913 and internationalised at Bretton Woods and in the EU, impoverishes all attempts at socialism. It is impossible to remedy the corrupt system of public finance and government operations without a radical change in the anti-democratic control over money. As long as economics is treated as a science when it is, in fact, a theology, every Left government will have its Luthers praising the slaughter of revolting peasants, while claiming the privileges of their own particular liberties.

The PT attempted to evade this criminal constraint on the democratic government by using a parastatal for social purposes– this was a capital crime and will be punished as such. It makes little difference that Petrobras could never have funded all the activities that the PT government would have implemented were it not constrained by compulsory “debt” service. The scandal effect of a rather thinly disguised evasive tactic by a slightly socialist government was a necessary catalyst to break the electoral majority that had delivered the PT solid election results.

The strategies of Langley have also matured with the years. In 1964 there was no hesitation to use direct military force to seize control. But now this is unnecessary and undesirable. No amount of protest prevented Temer exercising the office of President, despite massive corruption charges pending against him. No one can defend notorious criminal acts if they are made notorious even before trial has established whether a crime was committed. In the 60s and 70s no one in the Western hemisphere or Africa could be “for” a government notorious as socialist/communist, even if it was neither; in fact, (Goulart was no communist but there are people from Brazil who still say that he was. There are also people in Portugal who think that the 1974 revolution was directed from Moscow, although it was clearly the director of the counter-revolution, Frank Carlucci, who died this year.)

Another innovation has gone largely without comment: that is the refinement of the Phoenix programme. The so-called “war on drugs” and its various theatres provide cover throughout Central and South America for counter-insurgency or political warfare against the poor. When Temer ordered the military into Rio the attention was given to the extreme criminality and danger to normal inhabitants, which the military was needed to suppress. Aside from the fact that the military and police in all countries are integral components of the trade in drugs and other contraband, law enforcement militarisation is a classic cover for death squads and similar terror instruments. Placing the poor under martial law is something the Brazilian military actively practiced together with US Forces while deployed in Haiti under UN cover. No serious commentator on Haiti doubts that the “crime” in Haiti is any kind of base organisation against the owners of the neo-slave state.

Bolsonaro’s election result has to be seen, together with the combined operations to demobilise those sectors of the Brazilian electorate that provided the support and legitimacy for the PT, leaving only the historically unreliable and proportionately insignificant middle class to be disaffected (not unlike the anti-Chavista middle in Venezuela) to vote for the mythical “clean broom”. Here we return to the fact that the military never really left the stage. The military can be better grasped in a “cultural” sense — all those people in the elite and supporting classes who think with the military whether members of the armed forces or not. This includes the technocratic strata and those who naively believe in “military rationality” as a pure and national virtue. But one thing should be remembered about modern politics and “independent” candidates. Bolsonaro is expendable. He can be seen as a placeholder for the wider institutional force that combines actively to frustrate any democratisation of Brazil, most importantly by preventing any meaningful self-confident lower class political organisation and obstructing anything but the most meagre attempt to remedy Brazil’s grotesque economic inequalities.

The resistance to political and economic equity, let alone equality, is a centuries-old tradition in the two largest slaveholder republics of the Western hemisphere. This commitment to enrichment by forced labour and plunder has always been the driving force in the US and in Brazil. It makes little difference that chattel slavery was abolished in the 19th century. Democratic allocation of a country’s resources by whatever formula violates the very essence of the economic system slavery made possible. Facing that deep corruption in the Brazilian and US regimes will help in the appraisal of measures and movements to create genuine democracy and maybe even socialism in the majority of countries of the Americas, which have had neither.

  1. Ordem e Progresso (order and progress), the Brazilian national motto is a slogan from the 19th century Positivist Church. The leading figures of the Brazilian military, e.g. Benjamin Constant, who overthrew the monarchy to establish the republic were members. The Positive Church was based on the teachings of Auguste Comte, credited as the founder of positivism and sociology. It was conceived as a “religion of humanity”, emphasising science and progress. This coincided with the development of modern militaries in Latin America based on science and engineering as the foundations of military education. The military’s “modernising” role and its supposed rational objectivity originate in this tradition.

Tenth Anniversary Of Financial Collapse, Preparing For The Next Crash

Jail Bankers Not Protesters, Occupy Wall Street, 2011 (Photo by Stan Honda for AFP-Getty Images)

Ten years ago, there was panic in Washington, DC, New York City and financial centers around the world as the United States was in the midst of an economic collapse. The crash became the focus of the presidential campaign between Barack Obama and John McCain and was followed by protests that created a popular movement, which continues to this day.

Banks: Bailed Out; The People: Sold Out

On the campaign trail, in March 2008, Obama blamed mismanagement of the economy on both Democrats and Republicans for rewarding financial manipulation rather than economic productivity. He called for funds to protect homeowners from foreclosure and to stabilize local governments and urged a 21st Century regulation of the financial system. John McCain opposed federal intervention, saying the country should not bail out banks or homeowners who knowingly took financial risks.

By September 2008, McCain and Obama met with President George W. Bush and together they called for a $700 billion bailout of the banks, not the people. Obama and McCain issued a joint statement that called the bank bailout plan “flawed,” but said, “the effort to protect the American economy must not fail.” Obama expressed “outrage” at the “crisis,” which was “a direct result of the greed and irresponsibility that has dominated Washington and Wall Street for years.”

By October 2008, the Troubled Asset Relief Program (TARP), or bank bailout, had recapitalized the banks, the Treasury had stabilized money market mutual funds and the FDIC had guaranteed the bank debts. The Federal Reserve began flowing money to banks, which would ultimately total almost twice the $16 trillion claimed in a federal audit. Researchers at the University of Missouri found that the Federal Reserve gave over $29 trillion to the banks.

This did not stop the loss of nine million jobs, more than four million foreclosures and the deep reduction in wealth among the poor, working and middle classes. A complete banking collapse was averted, but a deep recession for most people was not.

The New Yorker described the 2008 crash as years in the making, writing:

…the crisis took years to emerge. It was caused by reckless lending practices, Wall Street greed, outright fraud, lax government oversight in the George W. Bush years, and deregulation of the financial sector in the Bill Clinton years. The deepest source, going back decades, was rising inequality. In good times and bad, no matter which party held power, the squeezed middle class sank ever further into debt.

Before his inauguration, Obama proposed an economic stimulus plan, but, as Paul Krugman wrote:

Obama’s prescription doesn’t live up to his diagnosis. The economic plan he’s offering isn’t as strong as his language about the economic threat.

In the end, the stimulus was even smaller than what Obama proposed. Economist Dean Baker explained that it may have created 2 million jobs, but we needed 12 million. It was $300 billion in 2009, about the same in 2010, and the remaining $100 billion followed over several years — too small to offset the $1.4 trillion in annual lost spending.

New York Magazine reports the stimulus was “a spending stimulus bigger, by some measures than the entire New Deal.” But unlike the New Deal, which benefited people at the bottom and built a foundation for a long-term economy, the bi-partisan post-2008 stimulus bailed out Wall Street and left Main Street behind.

Wall Street executives were not prosecuted even though the financial crisis was in large part caused by their fraud. Bankers were given fines costing dimes on the dollar without being required to admit guilt or having their cases referred for prosecution. The fines were paid by shareholders, not the perpetrators.

Protest near Union Square in New York, April, 2010. Popular Resistance.

Still at Risk

Many of the root causes of the crisis remain today, making another economic downturn or collapse possible. The New Yorker reports that little has changed since 2008, with Wall Street banks returning to risky behavior and the inadequate regulation of Dodd-Frank being weakened. Big finance is more concentrated and dominant than it was before the crash. Inequality and debt have expanded, and despite the capital class getting wealthier in a record stock market with corporate profits soaring, real wages are stuck at pre-crisis levels.

People are economically insecure in the US and live with growing despair, as measured by reports on well-being. The Federal Reserve reported in 2017 that “two in five Americans don’t have enough savings to cover a $400 emergency expense.” Further, “more than one in five said they weren’t able to pay the current month’s bills in full, and more than one in four said they skipped necessary medical care last year because they couldn’t afford it.”

Positive Money writes:

Ten years on, big banks are still behaving in reckless, unfair and neglectful ways. The structural problems with our money and banking system still haven’t been fixed. And many experts fear that if we don’t change things soon, we’re going to sleepwalk into another crash.

William Cohen, a former mergers and acquisitions banker on Wall Street, writes that the fundamentals of US economy are still flawed. The Economist describes the current situation: “The patient is in remission, not cured.”

From Occupy Washington DC at Freedom Plaza

The Response Of the Popular Movement

Larry Eliott wrote in the Guardian: “Capitalism’s near-death experience with the banking crisis was a golden opportunity for progressives.” But the movement in the United States was not yet in a position to take advantage of it.

There were immediate protests. Democratic Party-aligned groups such as USAction, True Majority and others organized nationwide actions. Over 1,000 people demonstrated on Wall Street and phones in Congress were ringing wildly. While there was opposition to the bailout, there was a lack of national consensus over what to do.

Protests continued to grow. In late 2009, a “Move Your Money” campaign was started that urged people to take their money out of the big banks and put it in community banks and credit unions. The most visible anti-establishment rage in response to the bailout arose later in the Tea Party and Occupy movements. Both groups shared a consensus that we live in a rigged economy created by a corrupt political establishment. It was evident that the US is an oligarchy, which serves the interests of the wealthy while ignoring the necessities of the people.

The anti-establishment consensus continues to grow and showed itself in the 2016 presidential campaigns of Senator Bernie Sanders and Donald Trump. They were two sides of the same coin of populist anger that defeated Jeb Bush and Hillary Clinton. Across the political spectrum, there is a political crisis with both mainstream, Wall Street-funded political parties being unpopular but staying in power due to a calcified political system that protects the duopoly of Democrats and Republicans.

Occupy Wall Street 2011

Preparing for the Next Collapse

When the next financial crisis arrives, the movement is in a much stronger position to take advantage of the opportunity for significant changes that benefit people over Wall Street. The Occupy movement and other efforts since then have changed the national dialogue so that more people are aware of wealth inequality, the corruption of big banks and the failure of the political elites to represent the people’s interests.

There is also greater awareness of alternatives to the current economy. The Public Banking movement has grown significantly since 2008. Banks that need to be bailed out could be transformed into public banks that serve the people and are democratically controlled. And there are multiple platforms, including our People’s Agenda, that outline alternative solutions.

We also know the government can afford almost $30 trillion to bail out the banks. One sixth of this could provide a $12,000 annual basic income, which would cost $3.8 trillion annually, doubling Social Security payments to $22,000 annually, which would cost $662 billion, a $10,000 bonus for all US public school teachers, which would cost $11 billion, free college for all high school graduates, which would cost $318 billion, and universal preschool, which would cost $38 billion. National improved Medicare for all would actually save the nation trillions of dollars over a decade. We can afford to provide for the necessities of the people.

We can look to Iceland for an example of how to handle the next crisis. In 2008, they jailed the bankers, let the banks fail without taking on their debt and put controls in place to protect the economy. They recovered more quickly than other countries and with less pain.

How did they do it? In part, through protest. They held sustained and noisy protests, banging pots and pans outside their parliament building for five months. The number of people participating in the protests grew over time. They created democratized platforms for gathering public input and sharing information widely. And they created new political parties, the Pirate Party and the Best Party, which offered agendas informed by that popular input.

So, when the next crash comes. Let’s put forward a People’s Agenda. Let’s be like Iceland and mobilize for policies that put people first. Collectively, we have the power to overcome the political elites and their donor class.