Category Archives: Federal Reserve

Modern Monetary Theory (MMT) and the Power of the US Dollar in the World Economy (Part 1)

Modern Monetary Theory (MMT) has become popularized by some of the liberal-left because it offers an explanation how to achieve full employment, national health insurance, free college education, and the Green New Deal without raising taxes. Political leaders like Alexandria Ocasio-Cortez and Bernie Sanders have espoused MMT. Economist Stephanie Kelton, a leading spokesperson of the theory, served as chief economic adviser to Sanders during his 2016 presidential campaign.

We summarize the basics of MMT on the significance of a “sovereign” currency and consider which currencies meet the conditions of being sovereign in the existing structure of the world economic system.  This requires a review of the role the US dollar plays in world trade and how the dollar dominates the world trade system. For MMT, the existence of a sovereign currency explains the US capacity to keep pumping dollars into the economy and not experience inflation. In a subsequent article we address the validity of this last claim.

The Essentials of Modern Monetary Theory

The central idea of MMT states that a country that issues its own currency, a “sovereign” currency, can never run out of money or go bankrupt the way households or businesses can. Any government spending can be paid for by the creation of more money. Therefore, national government spending should not be determined by balancing the budget or limiting deficit levels, but only by whether spending is keeping the economy at full employment and at a reasonable level of inflation.

The US government, being a currency issuer, has its own sovereign currency, the dollar, just as Japan has the yen, and Britain the pound. The US, as the exclusive producer of the US dollar, can create more money whenever it needs. That is not the same for countries without their own currency, such as the eurozone nations which are shared users of the euro. In a similar manner, state and local governments in the US do not possess their own currency, and have to keep balanced budgets.

MMT states national government spending does not have to be paid for with taxes. It can print money and not experience inflation. The purpose of taxes, according to MMT, serves to limit inflation, by taking consumers’ money out of the money supply. This goes against the conventional idea that taxes provide the government with money to spend on the military, build infrastructure, fund social welfare programs, etc.

According to MMT, the only limit the government faces when pumping out money is the availability of real resources: raw materials, workers, construction supplies, etc. It is only when an economy hits physical or natural constraints on its productivity, when these resources have been fully put to use, will inflation result if the government continues introducing more money into the economy. Unemployment itself is the result of a government spending too little.

While the theory is controversial, much of what MMT says about US government creation of dollars and inflation is true. MMTers are not the only economists who say it. Former chair of the Federal Reserve Alan Greenspan remarked: “The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default.”

Another former Fed chair, Ben Bernanke, likewise commented that the federal government’s $1 trillion bailout of the banks due to the 2008 financial crisis caused by their fraud did not come from raising taxes:

It’s not tax money. The banks have accounts with the Fed, much the same way that you have an account in a commercial bank. So, to lend to a bank, we simply use the computer to mark up the size of the account that they have with the Fed. It’s much more akin to printing money than it is to borrowing.  And we need to do that, because our economy is very weak and inflation is very low.

Former IMF chief economist and president of the American Economic Association, Olivier Blanchard declared: “Put bluntly, public debt may have no fiscal cost” given that “The current US situation in which safe interest rates are expected to remain below growth rates for a long time, is more the historical norm than the exception.”

Moreover, the US has run up its national debt, has not reached full employment, nor put in play all economic resources, and has not endured inflation, just as MMT predicted. The US government this spring created $6 trillion out of thin air to fund corporations, banks and to a lesser degree, working people, during the stock market crash and COVID pandemic. Yet the rate of inflation rate is less than 1%, lower than in 2019. The Quantitative Easing program (their term for creating money out of thin air) likewise conjured up $4.5 trillion from 2009-2014, and this also caused little inflation here.

Nations Possessing a Sovereign Currency

The key question for MMT is which nations besides the US have a “sovereign currency.” While definitions of monetary sovereignty provided by MMT authors vary, there are central elements. One, the government issues the national currency and imposes tax liabilities in that currency. Therefore, countries that do not print their own currency, such as those using the euro, do not have a sovereign currency. Two, the currency is fully floating, meaning it has a flexible exchange rate system determined by market forces of demand and supply of foreign and domestic currency, and where government intervention is non-existent. According to the IMF, 31 countries have “free floating currencies;” however, 19 of them use the euro.1  The remaining  12 are Australia, Canada, Chile, Japan, Mexico, Norway, Poland, Russia, Sweden, the UK, Somalia2, and the US. Three, the nation has no debt denominated in foreign currency. It receives foreign loans and repays them in its own currency. A country with an MMT sovereign currency is able to conduct trade with other states in its own currency.

Third World nations, a central MMT economist Randall Wray explains, “are not international reserve currency issuing countries.” If countries peg their currency to the dollar or the euro and if they receive loans payable in foreign currency:

They usually will adopt austerity as a means to obtaining US dollars, and that means that they have slow growth, they’ve failed to develop, and they are dependent on the US, the IMF, and the World Bank. So we recommend moving off the peg and stop issuing government debt in foreign currencies. Now, we know that’s a difficult condition, and it’s only the first step. They’ve got to move toward food independence and energy independence, because those are usually two of the things that they import. And they’ve got many other problems to deal with, political problems, corruption, and possibly foreign intervention.

Fadhel Kaboub, the leading MMT economist on Third World economies, agrees. He points out that Third World nations count on staple food and energy imports and on imported advanced technology. They therefore, accumulate foreign debts, mostly in dollars and euros. When asked if there were any Third World nations follow the conditions MMT recommends to develop,  Kaboub replied, “Unfortunately, not that I know of.” The closest, he said, were South Korea under the military dictatorship, and Singapore at some period in the past.

Given the MMT conditions for a sovereign currency, only 12 nations met the first two conditions. Meeting the further conditions, possessing no debt payable in a foreign currency and conducting its trade with other states in its own currency, requires a study of the role of the dollar in the world economy.

The Role of the US Dollar in World Trade

  1. Most International Trade Takes Place in the Dollar

Most traded commodities in the world, including basic commodities such as oil and food grains, are priced in dollars on the global market. Generally, trade contracts between countries take place in the US currency, followed by the euro and the Japanese yen.

Therefore, foreign nations require dollars to conduct international trade.  Exchange of goods and services among countries amounted to 39.7 trillion in dollar terms, in 2018, 46% of the global economy. The Society for Worldwide Interbank Financial Telecommunication (SWIFT) reports the majority of global trade takes place in dollars. (SWIFT is a key instrument the US uses to enforce its unilateral coercive measures – US imposed sanctions – to disrupt the international trading of a wide variety of countries.) In 2014, SWIFT determined the dollar makes up a 52% share of the value of international currency usage, a share that has been growing. The euro, used in trade in the eurozone region, is second, with a 30.5% share of total value. The British pound is third, with a 5.4% share. Concerning trade between regions of the world, the dollar’s role as payment currency rose to 79.5%.

Claudio Grass, a Swiss banker, gives a higher figure, with around 70% of world trade conducted in US dollars, and excluding trade among European states based on the euro, the percentage goes up to 90%. Forbes noted:

Almost all international transactions are done in US dollars.  Nearly all of the world’s commodities are priced in U.S dollars. So, an auto manufacturer in Korea importing steel from Japan must first convert Korean won into US dollars, pay for the transaction in dollars, and the Japanese exporter, once receiving the payment, must convert the dollars into Japanese yen.  So, the Dollar is key to much of the world’s trade.

Clearly, even the secondary imperial (“developed”) powers rely on the dollar for their economic operations.

A July 2020 IMF study looked at the pricing of worldwide exports and imports in dollars, euros, and other currencies since 1990. The dollar remains the prime currency used to price goods in global trade, even increasingly used for invoicing (as was also the euro) in spite of the decline in US and eurozone international trade, mostly due to the ever-increasing trade of China.

Studies of the Role of the Dollar in Country Imports and Exports

A 2018 Harvard economics report corroborates this: “the vast majority of invoicing is neither in the local currency or in the producer’s currency but instead in a ‘dominant currency’, which is most often the U.S. dollar.” Even other imperial (“developed”) countries’ trade takes place not in their own currencies, but mostly in dollars.  Another Harvard study noted that while only 13% of Japan’s imports come from the US, 71% of Japanese imports are priced in dollars, while only 33% of its exports are actually in Japanese yen. For the eurozone in 2018, 56% of the goods imported and 34% of good exported were calculated in dollars.

The Chinese renminbi (RMB), despite China being the world’s number one trader with 12.4% of world trade in 2018, was used in a mere 2% of international payments. 3   The US, by contrast, is second largest with 11.5%, yet the dollar reigns as the world currency.

For Latin America, 97% of exports and 90% of imports are still made in dollars4  even while China’s trade with Latin America has grown to half the size of US trade with the region.

The United States stands in sharp contrast to other nations, again showing the world power of the dollar. In 2015 93% of US imports were invoiced in the dollar, while 97% of its exports were.

  1. Most Foreign Central Bank Holdings Are in the Dollar

Central banks worldwide hold a considerable portion of their reserves in dollars, using it as their primary reserve currency. As of 2019, foreign government central banks held $6.8 trillion in US dollar reserves, about 61% of combined central bank foreign exchange reserves of $11 trillion. Nearly two-thirds of the world’s currency reserves are held in dollars, more than the combined holdings of all other currencies. The next closest reserve currency is the euro, which makes up 20% of known foreign central bank currency reserves. Japanese yen accounts for 5.7%, British pound 4.4%. Central banks held only 2% of their reserves in Chinese RMB, amounting to $221 billion worth of RMB.

The dollar’s portion of these foreign reserves has remained relatively the same since 2009. The New York Times noted in 2019, “The dollar has in recent years amassed greater stature as the favored repository for global savings, the paramount refuge in times of crisis and the key form of exchange for commodities like oil.”

  1. Almost Two-Thirds of International Debt Held Outside the US Must be Paid in Dollars

In 2018, 63% of international debt was denominated in dollars (to be paid in dollars), a percent that has been slowly rising since 2005. The second most common currency owed for international debt is the euro, at about 23%.5

There is $28 trillion worth of debt, to be paid in dollars, held by governments and private business outside the US. This is said to increase $1.6 trillion to $2 trillion a year. Foreign countries actually issued $11 trillion of this $28 trillion debt in the US currency rather than their own.

Third World government debt was the equivalent of 15 trillion in dollar terms. About 70% of this Third World debt is actually issued and owed in US dollars. This debt in dollars held abroad further serves to entrench the dollar as the world sovereign currency.

  1. Foreign Exchange Trading Dominated by the Dollar

Foreign exchange is the process of changing one currency into another for a variety of reasons, usually for commerce, trading, or tourism. The Foreign Exchange market has an estimated turnover of $6.6 trillion a day. In 2019, 88% of the world’s foreign exchange trading involves exchanging some currency with one in particular, the US dollar.  The euro ranked second with 32%, Japanese yen third at 17%. Chinese RMB ranked eighth at 4%. The dollar’s hold in this measure of the world’s most dependable currency remains the same as in 2004, while the euro, yen and British pound have tended to decline.6

  1. Most Foreign Currencies Rotate around the Dollar

While the US dollar ceased to be pegged to the price of gold, it continued as the monetary standard for other currencies, which revolve around the value of the dollar. At least 155 countries either directly peg their currency to the dollar, use the dollar as their own currency, or keep their currency in a tight trading range relative to the dollar.7 That constitutes just under 80% of the nations of the world. This means the quantity of dollars the US puts into circulation shapes to varying degrees the monetary policy of most other states. To maintain this relation to the dollar other states must keep a sufficient supply of them, undermining any sovereignty their currency may possess.  Nations that peg their currencies to the dollar typically rely on exports to the US. Their companies receive payment in dollars from the US market, which they then normally exchange with their own governments for their national currency.

The US Dollar Dominates the World Trade System

In spite of the US losing the status it held after World War II as workshop of the world, the dollar still exercises control over the world economy. It is the primary currency used in world trade; it is the main currency held in national central bank reserves; it is the currency used for just under two-thirds of all international debt; close to all exchange of world currencies involves one currency’s exchange for the dollar; most currencies’ exchange value is heavily influenced by the value of the dollar. Because foreign nations conduct trade in dollars and have debts in dollars, they are dependent on the dollar and the value of the dollar. This seriously compromises any sovereign power they possess.

Consequently, only in the dollar can we find a currency that meets the MMT conditions for being sovereign. All other countries must rely on the dollar to function, particularly for trade, although the degree of this dependency varies, with the subordinate First World powers exercising more independence than Third World nations. The present set-up of the world economy insures that another currency will not become sovereign like the US dollar. Therefore, the key importance MMT attaches to sovereign currency as a tool for national development loses value given these economic realities.

A gross omission made by MMT — the elephant in the room — is US corporate capital’s rule at home and abroad, which allows it to impose itself and its currency on the world. MMT compounds this weakness by presenting the obstacles nations face in establishing a sovereign currency largely as matters of political will, of choice. Ironically, this may explain MMT’s popularity at home in the liberal-left milieu. Implementing full employment, national health insurance, free college education, and the Green New Deal are presented as choices politicians have not yet made because of their mistaken beliefs concerning the national debt. Just clarify that we do not need to raise taxes and need not worry about inflation and bingo! We have what we want.

The question remains, however, why the US debt has grown over $10 trillion in 10 years with almost no inflation. Is the MMT explanation accurate, that the sovereign nature of the US dollar gives it that power? No. Printing or creating dollars out of thin air, backed by nothing, does create inflation. In Why the US Can Keep Increasing its Debt and not Suffer Inflation we show how the US has been able to export much of it and take many of the new dollars of out circulation. This does result from the US position as sovereign, but not in the sense MMT uses.

  1. Annual Report on Exchange Arrangements and Exchange Restrictions 2018, p. 18-19.
  2. The report notes in 2018 “the Central Bank of Somalia does not have a monetary policy framework”
  3. European Central Bank: The International Role of the Euro (June 2019), Box 1 Chart A.
  4. Ibid., Chart 26.
  5. Ibid., Chart 2 and p.19ff.
  6. Bank for International Settlements: Foreign Exchange Turnover in April 2019, p. 10.
  7. Annual Report on Exchange Arrangements and Exchange Restrictions 2018

The post Modern Monetary Theory (MMT) and the Power of the US Dollar in the World Economy (Part 1) first appeared on Dissident Voice.

Lockdowns, Coronavirus, and Banks: Following the Money

FED in the Trojan Horse 7e820

It usually makes sense to follow the money when seeking understanding of almost any major change. The strategy of following the money in our current convergence of crises in late summer of 2020 leads us directly to the lockdowns. The lockdowns were first imposed on people in the Wuhan area of China. Then other populations throughout the world were told to “shelter in place,” all in the name of combating the COVID-19 virus.

Understanding of the enormous impact of the lockdowns is still developing. The lockdowns are proving to pack a far more devastating punch than any other aspect of the strange sequence of events that is making 2020 a year like no other. Even when the issues are narrowed to those of human health, the lockdowns have had, and will continue to have, far more wide-ranging and devastating impacts than the celebrity virus.

The lockdowns have, for starters, been directly responsible for explosive rates of suicide, domestic violence, overdoses, and depression. In the long run, these maladies from the lockdowns will probably kill and harm many more people than COVID-19.

But this comparison does not tell the full story. The nature and length of the lockdowns are causing millions of people to lose their jobs, businesses and financial viability. It seems that the economic descent is still gathering force. The assault of the lockdowns on our economic wellbeing still has much farther to go.

The lockdowns have proven to be a powerful instrument of social control. This attribute is becoming very attractive especially to some politicians. They have discovered they can derive considerable political traction from hyping and exploiting the largely manufactured pandemic panic.

The lockdowns are still a work-in-progress. There are past lockdowns, revolving lockdowns, partial lockdowns, mandatory lockdowns, voluntary lockdowns, severe lockdowns and probably an array of many lockdown types yet to be invented.

The lockdowns extend to disruptions in supply chains, disruptions in money flows, drops in consumption, breakdowns in transport and travelling, increased bankruptcies, losses of finance leading to losses of housing, as well as the inability to pay taxes and debts.

The lockdowns extend beyond personal habitations to prohibitions on large assemblies of people in stadiums, concert halls, churches, and a myriad of places devoted to public recreation and entertainment. On the basis of this way of looking at what is happening, it becomes clear the economic and health effects of the lockdowns are far more pronounced than the damage wrought directly by the new coronavirus.

This approach to following the money leads to the question of whether the spread of COVID-19 was set in motion as a pretext. Was COVID-19 unleashed as an expedient for bringing about the lockdowns with the goal of crashing the existing economy? What rationale could there possibly be for purposely crashing the existing economy?

One possible reason might have been to put in place new structures to create the framework for a new set of economic relationships. With these changes would come accompanying sets of altered social and political relationships.

Among the economic changes being sought are the robotization of almost everything, cashless financial interactions, and elaborate AI impositions. These AI impositions extend to digital alterations of human consciousness and behavior. The emphasis being placed on vaccines is very much interwoven with plans to extend AI into an altered matrix of human nanobiotechnology.

There are other possibilities to consider. One is that in the autumn of 2019 the economy was already starting to falter. Fortuitously for some, the new virus came along at a moment when it could be exploited as a scapegoat. By placing responsibility for the economic debacle on pathogens rather than people, Wall Street bankers and federal authorities are let off the hook. They can escape any accounting for an economic calamity that they had a hand in helping to instigate.

A presentation in August of 2019 by the Wall Street leviathan, BlackRock Financial Management, provides a telling indicator of foreknowledge. It was well understood by many insiders in 2019 that a sharp economic downturn was imminent.

At a meeting of central bankers in Jackson Hole Wyoming, BlackRock representatives delivered a strategy for dealing with the future downturn. Several months later during the spring of 2020 this strategy was adopted by both the US Treasury and the US Federal Reserve. BlackRock’s plan from August of 2019 set the basis of the federal response to the much-anticipated economic meltdown.

Much of this essay is devoted to considering the background of the controversial agencies now responding to the economic devastation created by the lockdowns. One of these agencies is empowered to bring into existence large quantities of debt-laden money.

corona 5081311 640 7388a

The very public role in 2020 of the Federal Reserve of the United States resuscitates many old grievances. When the Federal Reserve was first created in 1913 it was heavily criticized as a giveaway of federal authority.

The critics lamented the giveaway to private bankers whose firms acquired ownership of all twelve of the regional banks that together constitute the Federal Reserve. Of these twelve regional banks, the Federal Reserve Bank of New York is by far the largest and most dominant especially right now.

The Federal Reserve of the United States combined forces with dozens of other privately-owned central banks thoughout the world to form the Bank of International Settlements. Many of the key archetypes for this type of banking were developed in Europe and the City of London where the Rothschild banking family had a large and resilient role, one that persists until this day.

Along with the Federal Reserve Bank of New York, BlackRock was deeply involved in helping to administer the bailout in 2008. This bailout resuscitated many failing Wall Street firms together with their counterparties in a number of speculative ventures involving various forms of derivatives.

The bailouts resulted in payments of $29 trillion, much of it going to restore failing financial institutions whose excesses actually caused the giant economic crash. Where the financial sector profited greatly from the bailouts, taxpayers were abused yet again. The burden of an expanded national debt fell ultimately on taxpayers who must pay the interest on the loans for the federal bailout of the “too big to fail” financial institutions.

Unsettling precedents are set by the Wall Street club’s manipulation of the economic crash of 2007-2010 to enrich its own members so extravagantly. This prior experience bodes poorly for the intervention by the same players in this current round of responses to the economic crisis of 2020.

In preparing this essay I have enjoyed the many articles by Pam Martens and Russ Martens in Wall Street on Parade. These hundreds of well-researched articles form a significant primary source on the recent history of the Federal Reserve, including over the last few months.

In this essay I draw a contrast between the privately-owned regional banks of the Federal Reserve and the government-owned Bank of Canada that once issued low-interest loans to build infrastructure projects.

With this arrangement in place, Canada went through a major period of national growth between 1938 and 1974. Canada emerged from this period with a national debt of only $20 billion. Then in 1974 Prime Minister Pierre Trudeau dropped this arrangement to enable Canada to join the Bank of International Settlements. One result is that national debt rose to $700 billion by 2020.

We need to face the current financial crisis by developing new institutions that avoid the pitfalls of old remedies for old problems that no longer prevail. We need to make special efforts to change our approach to the problem of excessive debts and the overconcentration of wealth in fewer and fewer hands.

Locking Down the Viability of Commerce

Of all the facets of the ongoing fiasco generally associated with the coronavirus crisis, none has been so widely catastrophic as the so-called “lockdowns.” The supposed cure of the lockdowns is itself proving to be much more lethal and debilitating than COVID-19’s flu-like impact on human health.

Many questions arise from the immense economic consequences attributed to the initial effort to “flatten the curve” of the hospital treatments for COVID-19. Did the financial crisis occur as a result of the spread of the new coronavirus crisis? Or was the COVID-19 crisis set in motion to help give cover to a long-building economic meltdown that was already well underway in the autumn of 2019?

The lockdowns were first instituted in Wuhan China with the objective of slowing down the spread of the virus so that hospitals would not be overwhelmed. Were the Chinese lockdowns engineered in part to create a model to be followed in Europe, North America, Indochina and other sites of infection like India and Australia? The Chinese lockdowns in Hubei province and then in other parts of China apparently set an example influencing the decision of governments in many jurisdictions. Was this Chinese example for the rest of the world created by design to influence the nature of international responses?

The lockdowns represented a new form of response to a public health crisis. Quarantines have long been used as a means of safeguarding the public from the spread of contagious maladies. Quarantines, however, involve isolating the sick to protect the well. On the other hand the lockdowns are directed at limiting the movement and circulation of almost everyone whether or not they show symptoms of any infections.

Hence lockdowns, or, more euphemistically “sheltering in place,” led to the cancellation of many activities and to the shutdown of institutions. The results extended, for instance, to the closure of schools, sports events, theatrical presentations and business operations. In this way the lockdowns also led to the crippling of many forms of economic interaction. National economies as well as international trade and commerce were severely impacted.

The concept of lockdowns was not universally embraced and applied. For instance, the governments of Sweden and South Korea did not accept the emerging orthodoxy about enforcing compliance with all kinds of restrictions on human interactions. Alternatively, the government of Israel was an early and strident enforcer of very severe lockdown policies.

At first it seemed the lockdown succeeded magnificently in saving Israeli lives. According to Israel Shamir, in other European states the Israeli model was often brought up as an example. In due course, however, the full extent of the assault on the viability of the Israeli economy began to come into focus. Then popular resistance was aroused to reject government attempts to enforce a second wave of lockdowns against a second wave of supposed infections. As Shamir sees it, the result is that “Today Israel is a failed state with a ruined economy and unhappy citizens.”

In many countries the lockdowns began with a few crucial decisions made at the highest level of government. Large and proliferating consequences would flow from the initial determination of what activities, businesses, organizations, institutions and workers were to be designated as “essential.”

The consequences would be severe for those individuals and businesses excluded from the designation identifying what is essential. This deep intervention into the realm of free choice in market relations set a major precedent for much more intervention of a similar nature to come.

The arbitrary division of activities into essential and nonessential categories created a template to be frequently replicated and revised in the name of serving public heath. Suddenly central planning took a great leap forward. The momentum from a generation of neoliberalism was checked even as the antagonistic polarities between rich and poor continued to grow.

To be defined as “nonessential” would soon be equated with job losses and business failures across many fields of enterprise as the first wave of lockdowns outside China unfolded. Indeed, it becomes clearer every day that revolving lockdowns, restrictions and social distancing are being managed in order to help give false justification to a speciously idealized vaccine fix as the only conclusive solution to a manufactured problem.

What must it have meant for breadwinners who fed themselves and their families through wages or self-employment to be declared by government to be “non-essential”? Surely for real providers their jobs, their businesses and their earnings were essential for themselves and their dependents. All jobs and all businesses that people depend on for livelihoods, sustenance and survival are essential in their own way.

Was COVID-19 a Cover for an Anticipated or Planned Financial Crisis?

A major sign of financial distress in the US economy kicked in in mid-September of 2019 when there was a breakdown in the normal operation of the Repo Market. This repurchase market in the United States is important in maintaining liquidity in the financial system.

Those directing entities like large banks, Wall Street traders and hedge funds frequently seek large amounts of cash on a short-term basis. They obtain this cash from, for instance, money market funds by putting up securities, often Treasury Bills, as collateral. Most often the financial instruments go back, say the following night, to their original owners with interest payments attached for the use of the cash.

In mid-September the trust broke down between participants in the Repo Market. The Federal Reserve Bank of New York then entered the picture making trillions of dollars available to keep the system for short-term moving of assets going. This intervention repeated the operation that came in response to the first signs of trouble as Wall Street moved towards the stock market crash of 2008.

One of the major problems on the eve of the bailout of 2008-09, like the problem in the autumn of 2019, had to do with the overwhelming of the real economy by massive speculative activity. The problem then, like a big part of the problem now, involves the disproportionate size of the derivative bets. The making of these bets have become a dangerous addiction that continues to this day to menace the viability of the financial system headquartered on Wall Street.

By March of 2020 it was reported that the Federal Reserve Bank of New York had turned on its money spigot to create $9 trillion in new money with the goal of keeping the failing Repo Market operational. The precise destinations of that money together with the terms of its disbursement, however, remain a secret. As Pam Martens and Russ Martens write,

Since the Fed turned on its latest money spigot to Wall Street [in September of 2019], it has refused to provide the public with the dollar amounts going to any specific banks. This has denied the public the ability to know which financial institutions are in trouble. The Fed, exactly as it did in 2008, has drawn a dark curtain around troubled banks and the public’s right to know, while aiding and abetting a financial coverup of just how bad things are on Wall Street.

Looking back at the prior bailout from their temporal vantage point in January of 2020, the authors noted  “During the 2007 to 2010 financial collapse on Wall Street – the worst financial crisis since the Great Depression, the Fed funnelled a total of $29 trillion in cumulative loans to Wall Street banks, their trading houses and their foreign derivative counterparties.”

The authors compared the rate of the transfer of funds from the New York Federal Reserve Bank to the Wall Street banking establishment in the 2008 crash and in the early stages of the 2020 financial debacle. The authors observed, “at this rate, [the Fed] is going to top the rate of money it threw at the 2008 crisis in no time at all.”

The view that all was well with the economy until the impact of the health crisis began to be felt in early 2020 leads away from the fact that money markets began to falter dangerously in the autumn of 2019. The problems with the Repo Market were part of a litany of indicators pointing to turbulence ahead in troubled economic waters.

For instance, the resignation in 2019 of about 1,500 prominent corporate CEOs can be seen as a suggestion that news was circulating prior to 2020 about the imminence of serious financial problems ahead. Insiders’ awareness of menacing developments threatening the workings of the global economy were probably a factor in the decision of a large number of senior executives to exit the upper echelons of the business world.

Not only did a record number of CEOs resign, but many of them sold off the bulk of their shares in the companies they were leaving.

Pam Marten and Russ Marten who follow Wall Street’s machinations on a daily basis have advanced the case that the Federal Reserve is engaged in fraud by trying to make it seem that “the banking industry came into 2020 in a healthy condition;” that it is only because of “the COVID-19 pandemic” that the financial system is” unravelling,”

The authors argue that this misrepresentation was deployed because the deceivers are apparently “desperate” to prevent Congress from conducting an investigation for the second time in twelve years on why the Fed, “had to engage in trillions of dollars of Wall Street bailouts.” In spite of the Fed’s fear of facing a Congressional investigation after the November 2020 vote, such a timely investigation of the US financial sector would well serve the public interest.

monetary figures on the bailouts 81707

The authors present a number of signs demonstrating that “the Fed knew, or should have known…. that there was a big banking crisis brewing in August of last year. [2019]” The signs of the financial crisis in the making included negative yields on government bonds around the world as well as big drops in the Dow Jones average. The plunge in the price of stocks was led by US banks, but especially Citigroup and JP Morgan Chase.

Another significant indicator that something was deeply wrong in financial markets was a telling inversion in the value of Treasury notes with the two-year rate yielding more than the ten-year rate.

Yet another sign of serious trouble ahead involved repeated contractions in the size of the German economy. Moreover, in September of 2019 news broke that officials of JP Morgan Chase faced criminal charges for RICO-style racketeering. This scandal added to the evidence of converging problems plaguing core economic institutions as more disruptive mayhem gathered on the horizons.

Accordingly, there is ample cause to ask if there are major underlying reasons for the financial crash of 2020 other than the misnamed pandemic and the lockdowns done in its name of “flattening” its spikes of infection. At the same time, there is ample cause to recognize that the lockdowns have been a very significant factor in the depth of the economic debacle that is making 2020 a year like no other.

Some go further. They argue that the financial crash of 2020 was not only anticipated but planned and pushed forward with clear understanding of its instrumental role in the Great Reset sought by self-appointed protagonists of creative destruction. The advocates of this interpretation place significant weight on the importance of the lockdowns as an effective means of obliterating in a single act a host of old economic relationships. For instance Peter Koenig examines the “farce and diabolical agenda of a universal lockdown.”

Koenig writes, “The pandemic was needed as a pretext to halt and collapse the world economy and the underlying social fabric.”

Inflating the Numbers and Traumatizing the Public to Energize the Epidemic of Fear

There have been many pandemics in global history whose effects on human health have been much more pervasive and devastating than the current one said to be generated by a new coronavirus. In spite, however, of its comparatively mild flu-like effects on human health, at least at this point in the summer of 2020, there has never been a contagion whose spread has generated so much global publicity and hype. As in the aftermath of 9/11, this hype extends to audacious levels of media-generated panic. As with the psyop of 9/11, the media-induced panic has been expertly finessed by practitioners skilled in leveraging the currency of fear to realize a host of radical political objectives.

According to Robert E. Wright in an essay published by the American Institute for Economic Research, “closing down the U.S. economy in response to COVID-19 was probably the worst public policy in at least one-hundred years.” As Wright sees it, the decision to lock down the economy was made in ignorant disregard of the deep and devastating impact that such an action would spur. “Economic lockdowns were the fantasies of government officials so out of touch with economic and physical reality that they thought the costs would be fairly low.”

The consequences, Wright predicts, will extend across many domains including the violence done to the rule of law. The lockdowns, he writes, “turned the Constitution into a frail and worthless fabric.” Writing in late April, Wright touched on the comparisons to be made between the economic lockdowns and slavery. He write, “Slaves definitely had it worse than Americans under lockdown do, but already Americans are beginning to protest their confinement and to subtly subvert authorities, just as chattel slaves did.”

The people held captive in confined lockdown settings have had the time and often the inclination to imbibe much of the 24/7 media coverage of the misnamed pandemic. Taken together, all this media sensationalism has come to constitute one of the most concerted psychological operations ever.

The implications have been enormous for the mental health of multitudes of people. This massive alteration of attitudes and behaviours is the outcome of media experiments performed on human subjects without their informed consent. The media’s success in bringing about herd subservience to propagandistic messaging represents a huge incentive for more of the same to come. It turns out that the subject matter of public health offers virtually limitless potential for power-seeking interests and agents to meddle with the privacies, civil liberties and human rights of those they seek to manipulate, control and exploit.

The social, economic and health impacts of the dislocations flowing from the lockdowns are proving to be especially devastating on the poorest, the most deprived and the most vulnerable members of society. This impact will continue to be marked in many ways, including in increased rates of suicide, domestic violence, mental illness, addictions, homelessness, and incarceration far larger than those caused directly by COVID-19. As rates of deprivation through poverty escalate, so too will crime rates soar.

The over-the-top alarmism of the big media cabals has been well financed by the advertising revenue of the pharmaceutical industry. With some few exceptions, major media outlets pushed the public to accept the lockdowns as well as the attending losses in jobs and business activity. In seeking to push the agenda of their sponsors, the big media cartels have been especially unmindful of their journalistic responsibilities. Their tendency has been to avoid or censor forums where even expert practitioners of public health can publicly question and discuss government dictates about vital issues of public policy.

Whether in Germany or the United States or many other countries, front line workers in this health care crisis have nevertheless gathered together with the goal of trying to correct the one-sided prejudices of of discriminatory media coverage. One of the major themes in the presentations by medical practitioners is to confront the chorus of media misrepresentations on the remedial effects of hydroxychloroquine and zinc.

On July 27 a group of doctors gathered on the grounds of the US Supreme Court to try to address the biases of the media and the blind spots of government.

Another aspect in the collateral damage engendered by COVID-19 alarmism is marked in the fatalities arising from the wholesale postponement of many necessary interventions including surgery. How many have died or will die because of the hold put on medical interventions to remedy cancer, heart conditions and many other potentially lethal ailments?

Did the unprecedented lockdowns come about as part of a preconceived plan to inflate the severity of an anticipated financial meltdown? What is to be made of the suspicious intervention of administrators to produce severely padded numbers of reported deaths in almost every jurisdiction? This kind of manipulation of statistics raised the possibility that we are witnessing a purposeful and systemic inflation of the severity of this health care crisis.

Questions about the number of cases arise because of the means of testing for the presence of a supposedly new coronavirus. The PCR system that is presently being widely used does not test for the virus but tests for the existence of antibodies produced in response to many health challenges including the common cold. This problem creates a good deal of uncertainty of what a positive test really means.

The problems with calculating case numbers extend to widespread reports that have described people who were not tested for COVID-19 but who nevertheless received notices from officials counting them as COVID-19 positive. Broadcaster Armstrong Williams addressed the phenomenon on his network of MSM media outlets in late July.

From the mass of responses he received, Williams estimated that those not tested but counted as a positive probably extends probably to hundreds of thousands of individuals. What would drive the effort to exaggerate the size of the afflicted population?

This same pattern of inflation of case numbers was reinforced by the Tricare branch of the US Defense Department’s Military Health System. This branch sent out notices to 600,000 individuals who had not been tested. The notices nevertheless informed the recipients that they had tested positive for COVID 19.

Is the inflation of COVID-19 death rates and cases numbers an expression of the zeal to justify the massive lockdowns? Were the lockdowns in China conceived as part of a scheme to help create the conditions for the public’s acceptance of a plan to remake the world’s political economy? What is to be made of the fact that those most identified with the World Economic Forum (WEF) have led the way in putting a positive spin on the reset arising from the very health crisis the WEF helped introduce and publicize in Oct. of 2019?

As Usual, the Poor Get Poorer

The original Chinese lockdowns in the winter of 2020 caused the breakdowns of import-export supply chains extending across the planet. Lockdowns in the movement of raw materials, parts, finished products, expertise, money and more shut down domestic businesses in China as well as transnational commerce in many countries outside China. The supply chain disruptions were especially severe for businesses that have dispensed with the practice of keeping on hand large inventories of parts and raw material, depending instead on just-in-time deliveries.

As the supply chains broke down domestically and internationally, many enterprises lacked the revenue to pay their expenses. Bankruptcies began to proliferate at rates that will probably continue to be astronomical for some time. All kinds of loans and liabilities were not paid out in full or at all. Many homes are being re-mortgaged or cast into real estate markets as happened during the prelude and course of the bailouts of 2007-2010.

The brunt of the financial onslaught hit small businesses especially hard. Collectively small businesses have been a big creator of jobs. They have picked up some of the slack from the rush of big businesses to downsize their number of full-time employees. Moreover, small businesses and start-ups are often the site of exceptionally agile innovations across broad spectrums of economic activity. The hard financial slam on the small business sector, therefore, is packing a heavy punch on the economic conditions of everyone.

The devastating impact of the economic meltdown on workers and small businesses in Europe and North America extends in especially lethal ways to the massive population of poor people living all over the world. Many of these poor people reside in countries where much of the paid work is irregular and informal.

At the end of April the International Labor Organization (ILO), an entity created along with the League of Nations at the end of the First World War, estimated that there would be 1.6 billion victims of the meltdown in the worldwide “informal economy.” In the first month of the crisis these workers based largely in Africa and Latin America lost 60% of their subsistence level incomes.

As ILO Director-General, Guy Ryder, has asserted,

This pandemic has laid bare in the cruellest way, the extraordinary precariousness and injustices of our world of work. It is the decimation of livelihoods in the informal economy – where six out of ten workers make a living – which has ignited the warnings from our colleagues in the World Food Programme, of the coming pandemic of hunger. It is the gaping holes in the social protection systems of even the richest countries, which have left millions in situations of deprivation. It is the failure to guarantee workplace safety that condemns nearly 3 million to die each year because of the work they do. And it is the unchecked dynamic of growing inequality which means that if, in medical terms, the virus does not discriminate between its victims in its social and economic impact, it discriminates brutally against the poorest and the powerless.

Guy Ryder remembered the optimistic rhetoric in officialdom’s responses to the economic crash of 2007-2009. He compares the expectations currently being aroused by the vaccination fixation with the many optimistic sentiments previously suggesting the imminence of remedies for grotesque levels of global inequality. Ryder reflected,

We’ve heard it before. The mantra which provided the mood music of the crash of 2008-2009 was that once the vaccine to the virus of financial excess had been developed and applied, the global economy would be safer, fairer, more sustainable. But that didn’t happen. The old normal was restored with a vengeance and those on the lower echelons of labour markets found themselves even further behind.

The internationalization of increased unemployment and poverty brought about in the name of combating the corona crisis is having the effect of further widening the polarization between rich and poor on a global scale. Ryder’s metaphor about the false promises concerning a “vaccine” to correct “financial excess” can well be seen as a precautionary comment on the flowery rhetoric currently adorning the calls for a global reset.

Wall Street and 9/11

The world economic crisis of 2020 is creating the context for large-scale repeats of some key aspects of the bailout of 2007-2010. The bailout of 2007-2008 drew, in turn, from many practices developed in the period when the explosive events of 9/11 triggered a worldwide reset of global geopolitics.

While the events of 2008 and 2020 both drew attention to the geopolitical importance of Wall Street, the terrible pummelling of New York’s financial district was the event that ushered in a new era of history, an era that has delivered us to the current financial meltdown/lockdown.

It lies well beyond the scope of this essay to go into detail about the dynamics of what really transpired on 9/11. Nevertheless, some explicit reckoning with this topic is crucial to understanding some of the essential themes addressed in this essay.

Indeed, it would be difficult to overstate the relevance of 9/11 to the background and nature of the current debacle. The execution and spinning of 9/11 were instrumental in creating the repertoire of political trickery presently being adapted in the manufacturing and exploiting of the COVID-19 hysteria. A consistent attribute of the journey from 9/11 to COVID-19 has been the amplification of executive authority through the medium of emergency measures enactments, policies and dictates.

Wall Street is a major site where much of this political trickery was concocted in planning exercises extending to many other sites of power and intrigue. In the case of 9/11, a number of prominent Wall Street firms were involved before, during and after the events of September 11. As is extremely well documented, these events have been misrepresented in ways that helped to further harness the military might of the United States to the expansionistic designs of Israel in the Middle East.

The response of the Federal Reserve to the events of 9/11 helped set in motion a basic approach to disaster management that continues to this day. Almost immediately following the pulverization of Manhattan’s most gigantic and iconographic landmarks, Federal Reserve officials made it their highest priority to inject liquidity into financial markets. Many different kinds of scenario can be advanced behind the cover of infusing liquidity into markets.

For three days in a row the Federal Reserve Bank of New York turned on its money spigots to inject transfusions of $100 billion dollars of newly generated funds into the Wall Street home of the financial system. The declared aim was to keep the flow of capital between financial institutions well lubricated. The Federal Reserve’s infusions of new money into Wall Street took many forms. New habits and appetites were thereby cultivated in ways that continue to influence the behaviour of Wall Street organizations in the financial debacle of 2020.

The revelations concerning the events of 9/11 contained a number of financial surprises. Questions immediately arose, for instance, about whether the destruction of the three World Trade Center skyscrapers had obliterated software and hardware vital to the continuing operations of computerized banking systems. Whatever problems arose along these lines, it turned out that there was sufficient digital information backed up in other locations to keep banking operations viable.

But while much digital data survived the destruction of core installations in the US financial sector, some strategic information was indeed obliterated. For instance, strategic records entailed in federal investigations into many business scandals were lost. Some of the incinerated data touched on, for instance, the machinations of the energy giant, Enron, along with its Wall Street partners, JP Morgan Chase and Citigroup.

The writings of E. P Heidner are prominent in the literature posing theories about the elimination of incriminating documentation as a result of the controlled demolitions of 9/11. What information was eliminated and what was retained in the wake of the devastation? Heidner has published a very ambitious account placing the events of 9/11 at the forefront of a deep and elaborate relationship linking George H. W. Bush to Canada’s Barrick Gold and the emergence of gold derivatives.

The surprises involving 9/11 and Wall Street included evidence concerning trading on the New York Stock Exchange. A few individuals enriched themselves significantly by purchasing a disproportionately high number of put options on shares about to fall precipitously as a result of the anticipated events of 9/11. Investigators, however, chose to ignore this evidence because it did not conform to the prevailing interpretation of who did what to whom on 9/11.

Another suspicious group of transactions conducted right before 9/11 involved some very large purchases of five-year US Treasury notes. These instruments are well known hedges when one has knowledge that a world crisis is imminent. One of these purchases was a $5 billion transaction. The US Treasury Department would have been informed about the identity of the purchaser. Nevertheless the FBI and the Securities Exchange Commission collaborated to point public attention away from these suspect transactions. (p. 199)

On the very day of 9/11 local police arrested Israeli suspects employed in the New York area as Urban Movers. The local investigators were soon pressured to ignore the evidence, however, and go along with the agenda of the White House and the media chorus during the autumn of 2001.

In the hours following the pulverization of the Twin Towers the dominant mantra was raised “Osama bin Laden and al-Qeada did it.” That mantra led in the weeks, months and years that followed to US-led invasions of several Muslim-majority countries. Some have described these military campaigns as wars for Israel.

Soon New York area jails were being filled up with random Muslims picked up for nothing more than visa violations and such. The unrelenting demonization of Muslims collectively can now be seen in retrospect as a dramatic psychological operation meant to poison minds as the pounding of the war drums grew in intensity. In the process a traumatized public were introduced to concepts like “jihad.” At no time has there ever been a credible police investigation into the question of who is responsible for the 9/11 crimes.

Defense Secretary Donald Rumsfeld chose September 10, the day before 9/11, to break the news at a press conference that $2.3 trillion had gone missing from the Pentagon’s budget. Not surprisingly the story of the missing money got buried the next day as reports of the debacle in Manhattan and Washington DC dominated MSM news coverage.

As reported by Forbes Magazine, the size of the amount said to have gone missing in Donald Rumsfeld’s 2001 report of Defense Department spending had mushroomed by 2015 to around $21 trillion. It was Mark Skidmore, an Economics Professor at the University of Michigan, who became the main sleuth responsible for identifying the gargantuan amount of federal funds that the US government can’t account for.

As the agency that created the missing tens of trillions that apparently has disappeared without a trace, wouldn’t the US Federal Reserve be in a position to render some assistance in tracking down the lost funds? Or is the Federal Reserve somehow a participant or a complicit party in the disappearance of the tens of trillions without a paper trail?

The inability or unwillingness of officialdom to explain what happened to the lost $21 trillion, an amount comparable to the size of the entire US national debt prior to the lockdowns, might be viewed in the light of the black budgets of the US Department of Defense (DOD). Black budgets are off-the-books funds devoted to secret research and to secret initiatives in applied research.

In explaining this phenomenon, former Canadian Defense Minister, Paul Hellyer, has observed, “thousands of billions of dollars have been spent on projects about which Congress and the Commander In Chief have deliberately been kept in the dark.” Eric Zuesse goes further. As he explains it, the entire Defense Department operates pretty much on the basis of an unusual system well outside the standard rules of accounting applied in other federal agencies.

When news broke about the missing $21 trillion, federal authorities responded by promising that special audits would be conducted to explain the irregularities. The results of those audits, if they took place at all, were never published. The fact that the Defense of Department has developed in a kind of audit free zone has made it a natural magnet for people and interests engaged in all kinds of criminal activities.

Eric Zuesse calls attention to the 1,000 military bases around the world that form a natural network conducive to the cultivation of many forms of criminal trafficking. Zuesse includes in his reflections commentary on the secret installations in some American embassies but especially in the giant US Embassy in Baghdad Iraq.

The US complex in Baghdad’s Green Zone is the biggest Embassy in the world. Its monumental form on a 104 acre site expresses the expansionary dynamics of US military intervention in the Middle East and Eurasia following 9/11.

The phenomenon of missing tens of trillions calls attention to larger patterns of kleptocratic activity that forms a major subject addressed here. The shifts into new forms of organized crime in the name of “national security” began to come to light in the late 1980s. An important source of disclosures was the series of revelations that accompanied the coming apart of the Saudi-backed Bank of Credit and Commerce International, the BCCI.

The nature of this financial institution, where CIA operatives were prominent among its clients, provides a good window into the political economy of drug dealing, money laundering, weapons smuggling, regime change and many much more criminal acts that took place along the road to 9/11.

The BCCI was a key site of financial transactions that contributed to the end of the Cold War and the inception of many new kinds of conflict. These activities often involved the well-financed activities of mercenaries, proxy armies, and a heavy reliance on private contractors of many sorts.

The Enron scandal was seen to embody some of the same lapses facilitated by fraudulent accounting integral to the BCCI scandal. Given the bubble of secrecy surrounding the Federal Reserve, there are thick barriers blocking deep investigation into whether or not the US Central Bank was involved in the relationship of the US national security establishment and the BCCI.

The kind of dark transactions that the BCCI was designed to facilitate must have been channelled after its demise into other banking institutions probably with Wall Street connections. Since 9/11, however, many emergency measures have been imposed that add extra layers of secrecy protecting the perpetrators of many criminal acts from public exposure and criminal prosecutions.

The events of 9/11 have sometimes been described as the basis of a global coup. To this day there is no genuine consensus about what really transpired to create the illusion of justification for repeated US military invasions of Muslim-majority countries in the Middle East and Eurasia.

The 9/11 debacle and the emergency measures that followed presented Wall Street with an array of new opportunities for profit that came with the elaborate refurbishing and retooling of the military-industrial complex.

The response to 9/11 was expanded and generalized upon to create the basis of a war directed not at a particular enemy, but rather at an ill-defined conception identified as “terrorism.” This alteration was part of a complex of changes adding trillions to the flow of money energizing the axis of interaction linking the Pentagon and Wall Street and the abundance of new companies created to advance the geopolitical objectives emerging from the 9/11 coup.

According to Pam Martens and Russ Martens, the excesses of deregulation helped induce an anything-goes-ethos on Wall Street and at its Federal Reserve regulator in the wake of 9/11. As the authors tell it, the response to 9/11 helped set important precedents for the maintaining flows of credit and capital in financial markets.

Often the destination of the funds generated in the name of pumping liquidity into markets was not identified and reported in transactions classified as financial emergency measures. While the priority was on keeping financial pumps primed, there was much less concern for transparency and accountability among those in positions of power at the Federal Reserve.

The financial sector’s capture of the government instruments meant to regulate the behaviour of Wall Street institutions was much like the deregulation of the US pharmaceutical industry. Both episodes highlight a message that has become especially insistent as the twenty-first century unfolds.

The nature of the response to 9/11 emphasized the mercenary ascent of corporate dominance as the primary force directing governments. Throughout this transformation the message to citizens became increasingly clear. Buyer Beware. We cannot depend on governments to represent our will and interests. We cannot even count on our governments to protect citizens from corporatist attacks especially on human health and whatever financial security we have been able to build up.

Bailouts, Derivatives, and the Federal Reserve Bank of New York

The elimination of the Glass-Steagall Act in 1999 was essential to the process of dramatically cutting back the government’s role as a protector of the public interest on the financial services sector. The Glass-Steagall Act was an essential measure in US President Franklin D. Roosevelt’s New Deal. Some view the New Deal as a strategy for saving capitalism by moderating ts most sharp-edged features. Instituted in 1933 in response to the onset of the Great Depression, the Glass-Steagall Act separated the operations of deposit-accepting banks from the more speculative activity of investment brokers.

The termination of the regulatory framework put in place by the Glass Steagall Act opened much new space for all kinds of experiments in the manipulation of money in financial markets. The changes began with the merger of different sorts of financial institutions including some in the insurance field. Those overseeing the reconstituted entities headquartered on Wall Street took advantage of their widened latitudes of operation. They developed all sorts of ways of elaborating their financial services and presenting them in new packages.

The word, “derivative” is often associated with many applications of the new possibilities in the reconstituted financial services sector. The word, derivative, can be applied to many kinds of transactions involving speculative bets of various sorts. As the word suggests, a derivative is derived from a fixed asset such as currency, bonds, stocks, and commodities. Alterations in the values of fixed assets affect the value of derivatives that often take the form of contracts between two or more parties.

One of the most famous derivatives in the era of the financial crash of 2007-2010 was described as mortgaged-backed securities. On the surface these bundles of debt-burdened properties might seem easy to understand. But that would be a delusion. The value of these products was affected, for instance, by unpredictable shifts in interest rates, liar loans extended to homebuyers who lacked the capacity to make regular mortgage payments, and significant shifts in the value of real estate.

Mortgage-backed securities were just one type of a huge array of derivatives invented on the run in the heady atmosphere of secret and unregulated transactions between counterparties. Derivatives could involve contracts formalizing bets between rivals gambling on the outcome of competitive efforts to shape the future.  An array of derivative bets was built around transactions often placed behind the veil of esoteric nomenclature like “collateralized debt obligations” or “credit default swaps.”

The variables in derivative bets might include competing national security agendas involving, for instance, pipeline constructions, regime change, weapons development and sales, false flag terror events, or money laundering. Since derivative bets involve confidential transactions with secret outcomes, they can be derived from all sorts of criteria. Derivative bets can, for instance, involve all manner of computerized calculations that in some cases are constructed much like war game scenarios.

The complexity of derivatives became greater when the American Insurance Group, AIG, began selling insurance programs to protect all sides in derivative bets from suffering too drastically from the consequences of being on the losing side of transactions.

The derivative frenzy, sometimes involving bets being made by parties unable to cover potential losses, overwhelmed the scale of the day-to-day economy. The “real economy” embodies exchanges of goods, services, wages and such that supply the basic necessities for human survival with some margin for recreation, travel, cultural engagement and such.

The Swiss-based Bank of International Settlements calculated in 2008 that the size of the all forms of derivative products had a monetary value of $1.14 quadrillion. A quadrillion is a thousand trillions. By comparison, the estimated value of all the real estate in the world was $75 trillion in 2008.

[Bank for International Settlements, Semiannual OTC derivative statistics at end-December, 2008.]

As the enticements of derivative betting preoccupied the leading directors of Wall Street institutions, their more traditional way of relating to one another began to falter. It was in this atmosphere that the Repo Market became problematic in December of 2007 just as it showed similar signs of breakdown in September of 2019.

In both instances the level of distrust between those in charge of financial institutions began to falter because they all had good reason to believe that their fellow bankers were overextended. All had reason to believe their counterparts were mired by too much speculative activity enabled by all sorts of novel experiments including various forms of derivative dealing.

In December of 2007 as in the autumn of 2019, the Federal Reserve Bank of New York was forced to enter the picture to keep the financial pumps on Wall Street primed. The New York Fed kept the liquidity cycles flowing by invoking its power to create new money with the interest charged to tax payers.

As the financial crisis unfolded in 2008 and 2009 the Federal Reserve, but especially the privately-owned New York Federal Reserve bank, stepped forward to bail out many financial institutions that had become insolvent or near insolvent. In the process precedents and patterns were established that are being re-enacted with some modifications in 2020.

One of the innovations that took place in 2008 was the decision by the Federal Reserve Bank of New York to hire a large Wall Street financial institution, BlackRock, to administer the bailouts. These transfers of money went through three specially created companies now being replicated as Special Purpose Vehicles in the course of the payouts of 2020.

In 2008-09 BlackRock administered the three companies named after the address of the New York Federal Reserve Bank on Maiden Lane. BlackRock emerged from an older Wall Street firm called Blackstone. Its former chair, Peter C. Peterson, was a former Chair of the Federal Reserve Bank of New York.

The original Maiden Lane company paid Bear Stearns Corp $30 billion. This amount from the New York Fed covered the debt of Bear Stearns, a condition negotiated to clear the way for the purchase of the old Wall Street institution by JP Morgan Chase. Maiden Lane II was a vehicle for payouts to companies that had purchased “mortgage-backed securities” before these derivative products turned soar.

Maiden Lane III was to pay off “multi-sector collateralized debt obligations.” Among these bailouts were payoffs to the counterparties of the insurance giant, AIG. As noted, AIG had developed an insurance product to be sold to those engaged in derivative bets. When the bottom fell out of markets, AIG lacked the means to pay off the large number of insurance claims made against it. The Federal Reserve Bank of New York stepped in to bail out the counterparties of AIG, many of them deemed to be “too big to fail.”

Among the counterparties of AIG was Goldman Sachs. It received of $13 billion from the Federal Reserve. Other bailouts to AIG’s counterparties were $12 billion to Deutsche Bank, $6.8 billion to Merrill Lynch, $5 billion to Switzerland’s UBS, $7.9 billion to Barclays, and $5.2 billion to Bank of America. Some of these banks received additional funds from other parts of the overall bailout transaction. Many dozens of other counterparties to AIG also received payouts in 2008-2009. Among them were the Bank of Montreal and Bank of Scotland.

The entire amount of the bailouts was subsequently calculated to be a whopping $29 trillion with a “t.” The lion’s share of these funds went to prop up US financial institutions and the many foreign banks with which they conducted business.

Much of this money went to the firms that were shareholders in the Federal Reserve Bank of New York or partners of the big Wall Street firms. Citigroup, the recipient of the largest amount, received about $2.5 trillion in the federal bailouts. Merrill Lynch received $2 trillion,

The Federal Reserve Bank was established by Congressional statute in 1913. The Federal Reserve headquarters is situated in Washington DC. The Central Bank was composed of twelve constituent regional banks. Each one of these regional banks is owned by private banks.

The private ownership of the banks that are the proprietors of the Federal Reserve system has been highly contentious from its inception. The creation of the Federal Reserve continues to be perceived by many of its critics as an unjustifiable giveaway whereby the US government ceded to private interests its vital capacity to issue its own currency and to direct monetary policy like the setting of interest rates.

Pam Martens and Russ Martens at Wall Street on Parade explain the controversial Federal Reserve structure as follows

While the Federal Reserve Board of Governors in Washington, D.C. is deemed an “independent federal agency,” with its Chair and Governors appointed by the President and confirmed by the Senate, the 12 regional Fed banks are private corporations owned by the member banks in their region. The settled law under John L. Lewis v. the United States confirms: “Each Federal Reserve Bank is a separate corporation owned by commercial banks in its region.”

In the case of the New York Fed, which is located in the Wall Street area of Manhattan, its largest shareowners are behemoth multinational banks, including JPMorgan Chase, Citigroup, Goldman Sachs and Morgan Stanley.

There was no genuine effort after the financial debacle of 2007-2010 to correct the main structural problems and weaknesses of the Wall Street-based US financial sector. The Dodd-Frank Bill signed into law by US President Barack Obama in 2010 did make some cosmetic changes. But the main features of the regulatory capture that has taken place with the elimination of the Glass-Steagall Act remained with only minor alterations. In particular the framework was held in place for speculative excess in derivative bets.

In the summer edition of The Atlantic, Frank Partnoy outlined a gloomy assessment of the continuity leading from the events of 2007-2010 to the current situation. This current situation draws a strange contrast between the lockdown-shattered quality of the economy and the propped-up value of the stock market whose future value will in all probability prove unsustainable. Partnoy writes,

It is a distasteful fact that the present situation is so dire in part because the banks fell right back into bad behavior after the last crash—taking too many risks, hiding debt in complex instruments and off-balance-sheet entities, and generally exploiting loopholes in laws intended to rein in their greed. Sparing them for a second time this century will be that much harder.

Wall Street Criminality on Display

The frauds and felonies of the Wall Street banks have continued after the future earnings of US taxpayers returned them to solvency after 2010. The record of infamy is comparable to that of the pharmaceutical industry.

The criminal behaviour in both sectors is very relevant to the overlapping crises that are underway in both the public health and financial sectors. In 2012 the crime spree in the financial sector began with astounding revelations about the role of many major banks in the LIBOR, the London Interbank Offered Rate. The LIBOR rates create the basis of interest rates involved in the borrowing and lending of money in the international arena.

When the scandal broke there were 35 different LIBOR rates involving various types of currency and various time frames for loans between banks. The rates were calculated every day based on information forwarded from 16 different banks to a panel on London. The reporting banks included Citigroup, JP Morgan Chase, Bank of America, UBS, and Deutsche Bank. The influence of the LIBOR rate extended beyond banks to affect the price of credit in many types of transactions.

The emergence of information that the banks were working together to rig the interest rate created the basis for a huge economic scandal. Fines extending from hundreds of millions into more than a billion dollars were placed on each of the offending banks. But in this instance and many others to follow, criminality was attached to the financial entities but not to top officials responsible for the decisions that put their corporations on the wrong side of the law.

One of the factors in the banking frauds comprising the LIBOR scandal was the temptation to improve the chance for financial gains in derivative bets. The biggest failure of the federal response to the financial meltdown of 2007-210 was that little was done to curb the excesses of transactions in the realm of derivatives.

Derivatives involved a form of gambling that exists in a kind of twilight zone. This twilight zone fills a space somewhere between the realm of the real economy and the realm of notional value. Notional values find expression in unrealized speculation about what might or might not come to fruition; what might or might not happen; who might win and who might lose in derivative speculations.

The addiction of Wall Street firms to derivative betting remains unchecked to this day. The bankers’ continuing fixation with unregulated gambling, often with other people’s money, is deeply menacing for the future of the global economy…. indeed for the future of everyone on earth. According to the Office of the Controller of Currency, in 2019 JP Morgan Chase had $59 trillion in derivative bets. In July of 2020 it emerged that Citigroup held $62 trillion in derivative contracts, about $30 trillion more than it held before it was bailed out in 2008. In 2019 Goldman Sachs held $47 trillion and Bank of America held $20.4 trillion in derivate bets.

A big part of the scandal embodied in these figures is embedded in the reality that all of these banks carry their most risky derivative bets in units of their corporate networks that are protected by the Federal Deposit Insurance Corporation. This peril played a significant part in deepening the crisis engendered by financial meltdown that began in 2007.

One of the most redeeming features of the Dodd-Frank Act as originally drafted was a provision preventing financial institutions from keeping their derivative portfolios in banks whose deposits and depositors were backed up by federal insurance.

Citigroup led the push in Congress in 2014 to allow Wall Street institutions to revert back to a more deregulated and danger-prone economic environment. The notoriously inept decisions and actions of Citigroup had played a significant role in the lead up to the financial debacle of 2007 to 2010. Since 2016 Citigroup has become once again the biggest risk taker by loading itself up with more derivative speculations than any other financial institution in the world.

By returning derivative speculations to the protections of federal financial backstops, taxpayers are once again forced to assume responsibility for the most outlandish risks of Wall Street’s high rollers. It is taxpayers who are the backers of the federal government when it comes to their commitment to compensate banks for losses, even when these losses come about from derivative bets.

How much more Wall Street risk and public debt can be loaded onto taxpayers and even onto generations of taxpayers yet unborn? How is national debt to be understood when it plunders working people to guarantee and augment the wealth of the most privileged branches of society? Why should those most responsible for creating the most excessive risks to the financial wellbeing of our societies be protected from bearing the consequences of the very risks they themselves created?

Along with Citigroup, JP Morgan Chase stands out among a group of financial sector reprobates most deeply involved in sketchy activities that extend deep into the realm of criminality. In a simmering scandal six of JP Morgan Chase’s traders have been accused of breaking laws in conducting the bank’s futures trading in the value of precious metals. They have been accused of violating the RICO statute, a law meant for people suspected of being part of organized crime.

In the charges pressed by the Justice Department on JP Morgan Chase’s traders it is alleged that they “conducted the affairs of the [minerals] desk through a pattern of racketeering activity, specifically, wire fraud affecting a financial institution and bank fraud.”

In 2012 JP Morgan Chase faced a $1 billion fine for its role in the “London Wale” series of derivative bets described as follows by the Chair of the US Senate’s Permanent Subcommittee on Investigation. Senator Carl Levin explained, “Our findings open a window into the hidden world of high stakes derivatives trading by big banks. It exposes a derivatives trading culture at JPMorgan that piled on risk, hid losses, disregarded risk limits, manipulated risk models, dodged oversight, and misinformed the public.”

Traders at Goldman Sachs appear to have been part of the Wall Street crime spree. The tentacles of corruption in the Goldman Sachs case apparently extend deep into the US Justice Department. The case involves allegations of embezzlement, money laundering and missing billions. These manifestations of malfeasance all spin out of a scandal-prone Malaysian sovereign wealth fund administered by Goldman Sachs.

A big part of the scandal reported in Wall Street on Parade in July of 2020 involves the fact that the Justice Department’s prosecutors seem to be dragging their feet in this possible criminal felony case against Goldman Sachs. The prosecutors, including the US Attorney-General, William Barr, worked previously for the law firm, Kirkland and Ellis. Kirkland and Ellis was retained to defend Goldman Sachs in this matter.

Pam Martens and Russ Martens express dismay at the failure of US officialdom to hold Wall Street institutions accountable for the crime spree of some of its biggest firms. They write, “Congress and the executive branch of the government seem determined to protect Wall Street criminals, which simply assures their proliferation.”

Even racketeering charges against officials at JP Morgan Chase, where Jamie Dimon presides as CEO, failed to receive any attention from the professional deceivers that these days dominate MSM. The star reporters of Wall Street on Parade write, “Crime and fraud are so de rigueur at the bank led by Dimon that not one major newspaper ran the headline [of the racketeering charge] on the front page or anywhere else in the paper.

While federal charges that JP Morgan Chase’s Wall Street operation engaged in criminal racketeering was not of interest to the press, Jamie Dimon’s surprise visit in early June to a Chase branch in Mt. Kisco New York aroused considerable media attention. Dimon was photographed with staff wearing a mask and taking the knee. By participating in this ritual Dimon signaled that his Wall Street operation is in league with the sometimes violent cancel culture pushed into prominence by the Democratic Party in partnership with Black Lives Matter and Antifa.

Jamie Dimon takes a knee 039df

*(JPMorgan CEO Jamie Dimon takes a knee with employees in front of a bank vault. Credit: JPMorgan)

In an article on 21 July marking ten years since the Dodd-Frank Act of 2010, the Martens duo conclude, “So here we are today, watching the Fed conduct another secret multi-trillion dollar bailout of Wall Street while the voices of Congress and mainstream media are nowhere to be heard.”

Enter BlackRock

In March it was announced that representatives of the US Treasury Department, the Federal Reserve Board and the BlackRock financial management were joining forces to make adjustments in the US economy. The aim was to address the financial dislocations resulting from the decision to lock down businesses, citizens, schools, entertainment, and social mingling outside the home, all in response to the health care hysteria promoted by governments and their media extensions.

The format of this process suggested some relaxation in the strict distinctions historically drawn between the US Treasury and the Federal Reserve. What would be the role of the third member of the group? In reflecting on this topic Joyce Nelson observed, “the new bailout bill not only further erases the line between the Federal Reserve and the U.S. Treasury, it places BlackRock effectively in an overseer position for both.”

Some saw as symbolically instructive the delegation to BlackRock of a larger role than that assigned it during the first bailout of 2007-2008. It would be hard to overestimate the significance of this prominent Wall Street firm’s return to a strategic role near the very heart of this major exercise of federal power. This invitation to take part in such crucial negotiations at such a consequential juncture in history caused some to characterize BlackRock as a “fourth branch of government.”

As Victoria Guida commented in Politico, “This is a transformational moment for the Fed, and BlackRock’s now going to be in an even stronger position to serve the Fed in the future.”

BlackRock officials had been instrumental in helping to manoeuvre their company into such a strategic role by responding proactively to the understanding in some elite circles that another financial debacle was imminent. Only months before the financial meltdown actually occurred a group of former central bankers all commissioned by BlackRock delivered a recovery plan in August of 2019.

Presented at a G 7 summit of central bankers in Jackson Hole Wyoming, the plan for the government responses to the looming financial collapse was entitled Dealing with the Next Downturn. Its authors are Stanley Fischer, former Governor of the Central Bank of Israel, Philipp Hildebrande, former Chairman of the Governing Board of the Swiss National Bank, Jean Boivin, former Deputy Governor of the Bank of Canada, and Elga Bartsch, Economist at Morgan Stanley.

The BlackRock Team at Jackson Hole put forward the case that a more aggressive and coordinated combination of monetary and fiscal policy must be brought to the job of stimulating a financial recovery. Monetary policy includes the setting of interest rates. Where monetary policy has historically been the domain of the central banks, fiscal policy, involving issues of taxation as well as the content and size of government budgets, lies within the jurisdiction of elected legislatures.

The nub of the proposal to unite fiscal and monetary policy put the US Treasury and the US Federal Reserve on the same political platform. As the author of this merger of monetary and fiscal policy, BlackRock became third member of the triumvirate charged to address the broad array of economic maladies that arrived in the wake of the lockdowns.

In the spring of 2020 BlackRock has been hired by the Bank of Canada and by Sweden’s Central Bank, the Riksbank, to deliver on the approaches to crisis management its representatives had laid out at Jackson Hole. BlackRock’s most high-profile and strategic engagement, however, began with its involvement in the negotiation of the $2 trillion CARES stimulus package that passed through the US Congress in March of 2020.

The CARES Act included $367 billion for loans and grants to small business, $130 billion for health care systems, $150 billion for state and local government, $500 billion for loans to corporate America, and $25 billion for airlines (in addition to loans).

The heart of the plan involved a payout of $1,200 per adult and $500 per child for households making up to $75,000. This payment to citizens approaches the concept of disseminating “helicopter money” as referred to in BlackRock’s initial outline for dealing with the “downturn.” Helicopter money distributed by the federal government to its citizens was also related to the concept of “going direct” in strategies for stimulating the economy.

BlackRock seems to be moving into the space recently held by Goldman Sachs as Wall Street’s best embodiment of ostentatious success including in the preparation of its corporate leaders for high-ranking positions in the federal government. Laurence Fink, BlackRock’s founder and CEO, might well have replicated this career path to become Treasury Secretary if Hillary Clinton had succeeded in becoming US President in 2016.

BlackRock’s leadership went to great lengths to avoid being tagged with the title in the United States of a “systematically important financial institution” (sifi). To be subject to this “sifi” label entails added federal scrutiny and regulation as well as heightened requirements to keep high amounts of capital on hand. BlackRock’s status as a private company not subject to sifi regulations makes the financial management firm more attractive to its federal partners in the federal payout operation presently underway.

One of the reasons for including a private company in the trio of partners involved in the payouts is to sneak around limitations on the legal powers of the Federal Reserve. As explained by Ellen Brown in her essay, Meet BlackRock: The New Great Vampire Squid, the Federal Reserve can only purchase “safe federally-guaranteed assets.” As a private company, BlackRock apparently faces no such restrictions. It can purchase more risky assets not backstopped by federal insurance.

The regional banks of the Federal Reserve Board are owned by private companies whose directors seem to have been part of the decision to include BlackRock in the implementation of the CARES process. There can be no doubt that the format of the CARES negotiations pulled the supposedly independent Federal Reserve more deeply into the political orbit of the US Treasury branch. The presence of a major Wall Street firm in the process, however, apparently gave the advocates of the Fed’s supposed independence from politics a sense that they retained some leverage in the process.

The inclusion of private companies in the conduct of government business has become in recent decades a very common expression of neoliberalism. One of the reasons for this embrace of public-private partnerships in the conduct of government business is to take advantage of the legal nature of private companies. The apportionment to private companies of significant roles in deciding and implementing public policies helps put veils of secrecy over the true nature of government decisions and actions.

Private companies can more easily assert claims to “proprietary information” than can public institutions when they act on behalf of citizens. This feature of privatization in the performance of public responsibilities by elected government runs counter to the imperatives of democratic transparency. It puts obstacles in the way of genuine accountability because the public is more likely to be kept in the dark about key aspects of what is being decided and done on their behalf.

Suck Up Economics and State Monopoly Capitalism

BlackRock owns, controls, or manages about $30 trillion in total in securities. It directly controls or owns somewhat less than a third of this amount. The remainder of the assets BlackRock manages are to service clients responsible for taking care of pension funds, philanthropies, foundations, endowments, family offices, superannuation funds and such.

A big part of BlackRock’s business model involves attracting customers by allowing them access to great masses of timely information of significant utility to those responsible for making investment decisions. This technological wizardry happens on a very advanced computational platform known as Aladdin.

Aladdin remains a work-in-progress, one that is widely recognized as the most sophisticated medium of its kind for assessing all manner of financial risks and potentials for profit. Its future as an investment platform is to become more and more integrated into the complex mix of hardware and software animating Artificial Intelligence.

BlackRock’s job is to dispense funds ushered into existence through the money-creating powers of the Federal Reserve. These transactions are to take place through eleven so-called “special purpose vehicles” similar to the Maiden Lane companies that BlackRock administered during the prior bailouts.

The funds it distributes in this round starting in 2020 are meant, at least at this early stage of the crisis, as payments for various sorts of assets. These assets might include an array of corporate bonds spanning a range from so-called investment grade to garbage grade junk bonds. The losses incurred in this exchange, involving supposed assets that might turn out to be worthless, or loans that might not be paid back, are to be charged to the US Treasury. Ultimately the liability lies on US taxpayers who are the holders of the national debt.

Bonds of varying levels of worth lie beneath another asset eligible for transformation into cash. This instrument of value is referred to as Exchange Traded Funds, ETFs. ETFs happen to be a specialty of BlackRock ever since the company launched a range of commercial ETFs into Stock Market circulation through its iShares division. BlackRock’s role on both sides of buying and selling ETFs comes up repeatedly as one of the many conflicts of interest of which the Wall Street firm stands accused.

Given that BlackRock is involved in one way or another in the proprietorship of pretty much every major company in the world, there is plenty to back up the allegation that Black Rock is an interested party in most of the transactions in which it engages as part of its partnership with the US Fed and Treasury Branch.

Pam Matens and Russ Martens have been very critical of the role of the Federal Reserve and BlackRock in the current economic crisis. They have anticipated that, if the current drift of events continues, American taxpayers will once again be gobsmacked with a huge growth in the national debt. This development would amount to another major transfer of wealth away from working people to the beneficiaries of Wall Street firms and the same commercial institutions that received the lion’s share of funds during the last bailout.

The co-authors picture BlackRock is part of a scheme to use “Special Purpose Vehicles” like “Enron used to hide the true state of its finances and blow itself up.” They entitle their article published on 31 March, 2020 as  “The Dark Secrets in the Fed’s Wall Street Bailout Are Getting a Devious Makeover in Today’s Bailout.”

The authors observe. “What makes the New York Fed’s bailout of Wall Street so much more dangerous this time around is that it has decided to use a different structure for its loans to Wall Street – one that will force losses on taxpayers and, it hopes, will provide an ironclad secrecy curtain around how much it spends and where the money goes.”

I find this account of an effort by the Federal Reserve to create an “ironclad secrecy curtain” shocking under these circumstances. It suggests an intention to exceed the deceptiveness of the last bailout. This warning renews longstanding suspicions that the failures of transparency and accountability have not subsided since the beginning of the era when deregulation and the 9/11 deceptions converged in the domestic and international operations of Wall Street.

The structural problems already identified in the process initiated to implement the CARES Act could have enormous consequences if the current economic crisis continues to deteriorate. This deterioration is not likely to stop anytime soon given the depth of the crash and its probable domino effects. It was reported in late July that during the second quarter of 2020 the US Gross Domestic Product collapsed at an annualized rate of 33%, the deepest decline in output ever recorded since the US government began measuring GDP in 1947.

The CARES Act helped set in motion a program with the potential to repeat elements of the earlier bailout. The amount of $454 billion was to be set aside to assist the banking sector. The Fed can leverage this amount by ten times according to the principles of fractional reserve banking.

The news of this development caused Mike Whitney to imagine “the Fed turning itself into a hedge fund in order to buy the sludge that has accumulated on the balance sheets of corporations and financial institutions for the last decade,” Whitney pictured an onslaught of “scheming sharpies who will figure out how to game the system and turn the whole fiasco into another Wall Street looting operation.”

Meanwhile the Martens Team at Wall Street on Parade called attention to the $9 trillion already injected by the New York Fed to flood liquidity into the still-troubled Repo Markets that began to falter in September of 2019. Add to this revelation the news that the Fed “has not announced one scintilla of information on what specific Wall Street firms have received this money or how much they individually received.”

There is no doubt that the nature of economic relations will be substantially altered in the process of dealing with the financial meltdown induced by the lockdowns and by the overreliance on high debt rates combined with artificially low interest rates prior to 2020. The altered political economy that is beginning to emerge following the lockdowns is sometimes described as state monopoly capitalism.

In deciding what companies get bailed out and what companies don’t, the financial authorities that are intervening in this crisis are pretty much deciding what enterprises get the advantage of federal financial backstops and what enterprises will not enjoy government sanction. Increasingly, therefore, it is the state that determines winners and losers in the organizing of financial relations. This development further undermines any notion that some idealized vision of competition and market forces will determine winners and losers in the economy of the future.

As Peter Ewarts has observed, it seems that BlackRock is being delegated by federal authorities to exercise “discretionary powers to pick winners and losers,” a choice that is “where the real bonanza and clout lies.” Will the winners be chosen from the companies run by executives that used the money gained from the prior bailouts to engage in stock buy backs? This process of buying back stock tends to be reflected in CEO bonuses and higher share prices. Alternatively this way of allocating funds tends to short change workers as well as innovation and efficiency in industrial production?

Will companies be rewarded whose executives have moved production facilities overseas or issued billions in junk bonds? Will companies be rewarded whose directors have participated in the effort to censor the Internet, bring about lockdowns or foment mask hysteria? Why is it that the coddled elites serving the financial imperatives of most wealthy branches of society are being put in the best position to decide who gets a life preserver from the state and who must sink and drown?

Might this bias be a factor in the current process that led Forbes Magazine to conclude in a headline that “Billionaries Are Getting Richer During the Covid-19 Pandemic While Most Americans Suffer.”

There can be no doubt that the financial transactions beginning with the CARES Act represent a crucial initial stage in what the promoters of the World Economic Forum have been labeling as the Great Reset. Laurence Fink and the BlackRock firm are significant participants in the World Economic Forum. The WEF helped introduce the pandemic in Event 201 in October of 2019 even as it is now trying to put a positive face on the fiasco.

Why should the people most harshly affected by the lockdowns tolerate that the very Wall Street interests dispossessing them, are tasked once again to lead and exploit the reset of the financial system? As presently structured by the likes of BlackRock and its beneficiaries, this process is once again transferring new wealth to the most wealthy branches of society. Simultaneously it is burdening the rest of the population with yet another massive increase in both personal and national indebtedness.

There is no more discussion of “trickle down” economics, a frequent metaphor invoked in the Reagan-Thatcher era. Instead we are in the midst of an increasingly intense phase of suck up economics. The rich are being further enriched and further empowered through the dispossession of the poor and the middle classes. This procedure, initiated when locked down citizens were sidelined from the political process, has the potential to result in the largest upward transfer of wealth so far in history.

BlackRock Versus the Debt-Lite Legacy of the Bank of Canada

At the end of March Laurence Fink, CEO and founder of BlackRock, announced in a letter to his company’s shareholder, “We are honored to have been selected to assist the Federal Reserve Bank of New York and the Bank of Canada on programs designed to facilitate capital to businesses and support the economy.”

This announcement might leave the impression that the Bank of Canada and the Federal Reserve Bank of New York are similar institutions. This impression is unfounded. The two banks have very different structures and histories. A spotlight on these differences helps illuminate the nature of a number of core financial issues.

These financial issues should command avid attention during this time of reckoning with a serious economic crisis that may well be still in its early stages. Such issues inevitably draw attention to the current manifestations of very old questions about the character of money and its relationship to the concepts of usury and debt. Questions about debt, debt enslavement as well as the possibility of debt renunciation or debt forgiveness are becoming especially pressing.

These controversial queries arise in an era when a tiny minority is aggressively asserting sweeping claims to ownership of vast concentrations of the world’s available assets. The other side of this picture reveals that the largest mass of humanity is sinking into a swamp of rising debt on a scale that is concurrently unsustainable and unconscionable. How did this level of inequity reach such audacious extremes? Are there any remedies in sight?

There is nothing to suggest structural remediation in the current approach to the economic crisis. In fact so far there is every indication that the current approach of bringing about an enormous expansion in the availability of debt-laden money will only compound the further dispossession of the already dispossessed in order to expand the wealth of the already wealthy.

As already noted, the Federal Reserve Bank of New York is one of twelve regional banks that together constitute the US Federal Reserve. Every regional Federal Reserve Bank is owned by a group of private banks. Each of the private banks at the base of a Federal Reserve regional bank marks its proprietorship through the ownership of shares. These shares cannot be freely traded in stock markets. The ownership of these shares expresses the private ownership of the US banking system.

The Fed’s New York regional bank has a special role in money creation given its location at the heart of the US financial sector on and around Wall Street. In this crisis, the Federal Reserve Bank of New York is creating new money in the name of holding back onslaughts of destitution and penury in a traumatized society. Ever since 1913 every new dollar brought into existence by the Federal Reserve, which is the central bank of the United States, creates added debt that collects compound interest as long as it is left unpaid.

The Bank of Canada was created to counter the delegation of money-creating authority to privately-owned banks. The Bank of Canada was founded during the Great Depression, a time when the failure of many existing institutions created the conditions to try out alternative entities in the attempt to improve economic relationships.

One of the driving forces in the creation of Canada’s new banking system was Gerald Gratten McGeer. McGreer was an elected official in British Columbia dedicated to changing the system so that the people of Canada could generate their own currency through the sovereign authority of Canada’s Parliament. McGeer helped to push the national government of Prime Minister R.B. Bennett in this direction. The wheels were set in motion in 1933 through the work on the Royal Commission on Banking and Currency.

McGeer drew much of his inspiration from former US President, Abraham Lincoln. Lincoln led the US federal government throughout the US Civil War. To finance the Armed Forces of the Union, Lincoln used the authority of the federal government to create “Greenbacks” as a means of paying the troops. By employing the sovereign authority of the US government to create its own currency, Lincoln avoided the intrigues that often accompanied the process of borrowing money from foreign lenders.

McGreer had obtained what he viewed as credible evidence that Lincoln had been assassinated because of his antagonism to the designs of private bankers seeking to widen their base of power in the United States. The Canadian politician had taken to heart a comment attributed often to Lincoln: “The privilege of creating and issuing money is not only the supreme prerogative of Government, but it is the Government’s greatest creative opportunity.”

The Bank of Canada was created in 1934 and nationalized as a Crown Corporation in 1938. To this day it retains its founding charter that affirms,

WHEREAS it is desirable to establish a central bank in Canada to regulate credit and currency in the best interests of the economic life of the nation, to control and protect the external value of the national monetary unit and to mitigate by its influence fluctuations in the general level of production, trade, prices and employment, so far as may be possible within the scope of monetary action, and generally to promote the economic and financial welfare of Canada.

The Bank of Canada formed an essential basis of a very creative period of Canadian growth, development, and diversification throughout the middle decades of the twentieth century. The Bank of Canada created the capital that financed the Canadian war effort from 1939 until 1945. After the war the Bank of Canada lent money at very low rates of interest to the municipal, provincial and national governments. The monies were used for infrastructure projects and for investments to increase the wellbeing and creative potential of Canada’s most important resource, its people.

This type of low interest or no interest financing formed the economic basis for projects like the creation of a national pension plan, national health care insurance, the Trans-Canada Highway, the St. Lawrence Seaway, the Avro-Arrow initiative as well as a formidable system of colleges and universities.

One could say that the Bank of Canada provided an indigenous money supply that was spent into the operations of a fast growing economy greased with lots of federal liquidity. The new money derived its value from the efforts of Canadian workers.  Together they brought about significant increases in the country’s net worth through practical improvements that bettered the lives of all citizens.

Consider the contrast between this type of national development and the kind of larceny facilitated by the Federal Reserve’s infusions of the money it creates into Wall Street’s operations in the twenty-first century. In, for instance, the financial bailouts of 2007 to 2010 the largest part of the newly-created money ended up in the coffers of the wealthy whereas the new debt created ended up as part of a US national debt.

The burden of carrying this debt falls inter-generationally on average working people who form the lion’s share of taxpayers. They have long been saddled with an “inextinguishable debt” that unrelentingly grows, hardly ever shrinks, and remains basically unpayable forever. The very concept of “compound interest” conveys the image of an overall debt spread out over many venues. This debt must grow in perpetuity. There is a constant need for additional debtors while existing debtors must face constantly growing personal debt.

There is reason to suspect that the financial debacle of 2020 will re-enact some the worst excesses of the 2008 bailout. Might the payouts this time around to derivative-addicted Wall Street firms like Citigroup, Goldman Sachs and JP Morgan Chase exceed the scale of the prior bailout? Would there be any way of even knowing whether the current round of payouts outdoes the former round of bailouts? The current process of federal disbursements is not transparent. In fact the process has been described as one designed to “provide an ironclad secrecy curtain around how much [the Fed} spends and where the money goes.”

Why is the Canadian government turning to the very firm that emerged as Wall Street’s main fixer and winner in the 2008 bailouts? Why is Justin Trudeau looking to BlackRock to respond to the Canadian aspects of the 2020 economic crash?

Justin Trudeau seems unwilling or unable to provide a coherent answer to this question and others requiring thoughtful replies rather than barrages of platitudes. Why is Justin Trudeau instituting what Joyce Nelson has characterized as a “new feudalism” in Canada’s economic policies?

Any decent effort of response on Trudeau’s part would have to make some reference to the background of the current debacle. There would have to be some acknowledgment that between 1934 and 1974 the Canada government did not build up any significant national debt. Then, between 1974 and 2020, the national debt of Canada skyrocketed from $22 billion to $700 billion.

Why was such a good and sustainable use of the Bank of Canada put aside, one that contributed magnificently to the health and wellbeing of the Canadian people as well as the Canadian federation? Who lost out? Who gained besides the international bankers?

The incomprehensible abandonment of a winning formula for Canadian development by Prime Minister Pierre Trudeau puts a special onus on his son, Canada’s current PM, to explain the incredibly costly mistake of his father. Why won’t Justin Trudeau fix the mistake of his father and restore the Bank of Canada to its former role in Canadian nation building?

There has never been a full and satisfactory explanation of what really happened in 1974 to persuade Pierre Trudeau to throw aside the means of developing infrastructure with resources generated internally within Canada. Trudeau Senior’s decision to stop building up Canada through the operation of the Canadian people’s own national bank was not debated in Parliament. The option was never part of an election platform let alone the subject of a national referendum.

Apparently the Swiss-based Bank of International Settlements, which is often referred to as the central bank for central bankers, had some role in Pierre Trudeau’s decision to cease using the Bank of Canada’s powers to generate near-debt-free Canadian currency.

Government as a Means of Escaping Debt Entrapment

That powers of debt-lite money creation invested by Parliament in the Bank of Canada have never been formally withdrawn. The Bank of Canada could still revert back to the direct creation of Canadian currency to be spent into an economy of national recovery; to be spent in investments in infrastructure as well as in cultivating and applying the creative skills of the Canadian people.

Between 2011 and 2017 a court case was brought against the government of Canada with the aim of restoring the Bank of Canada to its former role. As Rocco Galati, the lawyer for the Committee on Monetary and Economic Reform (COMER) explained  “Not only has the government abandoned its constitutional duty to govern, but it has transferred it to international private banks which corresponds to an abandonment of its sovereignty.”

After some significant rulings and contentious appeals, the COMER case came to an end without delivering results that its plaintiffs sought. But the court case helped to put a spotlight on the potential of the Bank of Canada. If properly utilized, this institution could provide a model corrective to the subordination of governance to the international Lords of Debt Explotation and their minions.

This process of politicizing the role of the Bank of Canada should extend to a process of calling out Justin Trudeau’s current approach to selling off key components of Canada’s infrastructure.

This topic came up in private discussions between Larry Fink and Justin Trudeau at the World Economic Forum in Davos in January of 2016. Fink apparently got Trudeau interested in attracting private investors to the project of improving or building Canadian infrastructure projects like roads, high-speed trains, airports and such. This kind of approach to developing infrastructure projects runs counter to the role once played by the Bank of Canada in incorporating self-sufficiency into the process of national building.

The dangers and opportunities in this time of manufactured crises are indeed unprecedented.  Instead of rejecting the Davos crowd’s preoccupation with a giant reset, why not embrace the concept? Why not treat this moment as an opening to reset the global economy in a way that would restore the Bank of Canada to some of its former functions. Why not highlight this return to the sovereign embrace of benevolent nation building as an example for the rest of the world?

Why not reconstitute the worldwide structures of the international system of economic relations to restore elected governments to the functions that have been pre-empted by unaccountable institutions like the US Federal Reserve or the Bank for International Settlements? Why not renew the model of banking as an exercise and expression of national sovereignty and the self-determination of peoples in a dynamic global arena of rules-based economic interaction?

Why not withdraw the power from private bankers to create national currencies? Why not follow the advice of the deceased Abraham Lincoln by restoring “the greatest of all creative possibilities available to governments,” namely their power to issue money and set interest rates. The restoration of economic power to governments and the people and peoples they represent would involve the infusion of life into conceptions of globalization very different than those used to justify the industrialization of China and the deindustrialization of North America.

By delegating to international organizations much of their capacity to influence the economic conditions affecting their own people, national legislatures have lost much of their capacity to provide responsible government. Governments thus weakened are not realistically in a position to derive their authority from the consent of the governed. When representative bodies cannot effectively express the right of their constituents to collective self-determination in economic realm, what legitimacy is left to the institution of representative government?

This strange moment puts humanity face to face with much that is novel and unprecedented and much that is old and integral to the history of human interaction. The economic dimensions of this crisis constitute its most devastating and far-reaching attribute. The supposed remedy being rushed into operation is to flood large quantities of debt-laden loans into existence and for governments to distribute the borrowed funds to individuals, businesses, and organizations as they see fit.

Once again, vast quantities of debt-laden money are being created without the informed consent of those on whose shoulders the vastly increased loads of debt are falling. Once again governments are rewarding political friends and punishing political enemies by means of the way the new funds are being apportioned.

Decisions are pushed forward that emanate not from citizen constituents but from cabals of supranational connivers actively engaged in wrecking what little remains of responsible government. As governments lose legitimacy by engaging in collusion with corrupt cronies and international crime syndicates they must depend more and more on police state thuggery to enforce some semblance of order.

This process is going forward in spite of the fact that alternative means exist to create as much new money as is required without having to pay large amounts of compound interest to private bankers. Every sovereign government has the capacity to generate new money by following the model of the Bank of Canada between 1938 and 1974.

There is an especially urgent need at this time for some serious reckoning with the economic dimensions of the crisis before us. This reckoning will inevitably meet the resistance of extremely powerful interests who are deriving great benefits from the existing system. The process of privatizing the creation of money has enriched and empowered a clique whose institutionalized, deep-rooted and continuing kleptocracy was exposed in part by the bailout of 2008.

Why should we take for granted in 2020 that the best way to deal with the economic debacle put before us is to create new money by agreeing to go much deeper into a quagmire of debt entrapment. This debt trap, whose cumulative amount will soon be more that $300 trillion globally, creates gross liabilities in a trajectory of disadvantage that severely limits the life chances even of many generations still unborn.

The other side of debt is embodied in assets. Who gets the assets and who gets the liabilities that coalesce to form indebtedness? What is to be made of the role of birth or inheritance or race or natural ability or social connections in apportioning assets or imposing the enslavements of accumulated debt?

John Perkins addressed some of these issues in his Confessions of an Economic Hit Man and in a subsequent follow-up volume. Perkins chronicled how an inter-related complex of US institutions aligned themselves with his own greedy and unscrupulous interventions. The goal of their coordinated aggressions was aimed at imposing the enslavements of massive debt with compound interest. Their version of loan sharking is one of many manifestations expressing a very old and common phenomenon. It often happens that powerful interests parasitically exploit the weak to further enrich themselves.

This partnership between John Perkins and the kleptocratic agencies directed by the US government has long been drawing wealth from struggling countries by pushing them more deeply into national indebtedness. Once the governments of target countries succumbed to greater dependence on debt-based financing, the conditions were ripe to force officials into adopting policies of austerity that harmed local citizens in order to augment the assets of international investors.

Significantly the World Bank demonstrated how this coercion works in the context of the current economic crisis. The World Bank attempted to impose conditions on a loan of $940 million to Belarus because the WB wanted Belarus to conform to the lockdowns that are a primary cause of the current manufactured crisis.

As revealed by the Belarus’s President, Alexander Lukashenko, the World Bank wanted his country to adopt the full set of COVID-19 measures that had been implemented by the Italian government. Lukashenko said no to the loan. He refused to accept the conditions and carried on the established policies of Belarus, a country that has “not implemented strict coronavirus containment measures.”

Lukashenko is far from alone in his contempt for the manipulative tactics of the apparatus promoting the manufactured crisis. For instance Tanzanian President, John Magufuli, tested the accuracy of the testing procedures being forced on his country by the World Health Organization. President and Medical Doctor Mugufi included in the samples submitted to the testing agency some tissue of a goat and a papaya. Both the goat and the papaya tested positive for COVID-19, an outcome he publicized before ordering the WHO group to leave his country.

The Political Economy of Usury From the Middle Ages to the Era of Social Credit and Ezra Pound

We cannot assess the division of humanity between a massive group of debtors and a much smaller group of creditors without touching on the issue of usury. The subject of usury, the lending of money with the addition of interest payments, has been an extremely contentious issue throughout much of human history.

There were prohibitions against usury in ancient Greece, ancient India and the Roman Empire. Throughout much of the last thousand years usury has been regarded as a sin outlawed in the Bible, the Torah and the Koran. At different times in history the Roman Catholic Church has been an especially zealous opponent of some forms of usury.

Considering the nature of our current predicaments including obscene levels of economic inequality, usury might yet again arouse contentions. Some of the core ethical issues raised by the resort to usury remain unresolved. How is it ethical, for instance, to subject disinherited children in poor countries to the indignities of deepened poverty so that rich folks in rich parts of the world can reap larger dividends?

Beginning in the Middle Ages, forms of usury began to show up first in the Italian city states and in the towns of the Franco-Flemish realm. The act of loaning money with interest gradually spread throughout Europe. In some predominately-Muslim jurisdictions, the concept conveyed in the Arabic term, “riba,” approximated the idea of usury or interest. Over time various versions of riba have affected Muslim banking practices.

Often there were prohibitions preventing Jews from demanding interest on loans made to other Jews. There were many Talmudic teachings, however, permitting interest to be collected from gentiles when they borrowed money from Jews. Many accounts of Jewish efforts to break down prohibitions on usury highlight obstacles preventing Jews from pursuing other lines of work. The case is made that the pull of some Jews into banking came about in part because of their exclusion from other occupations.

Whatever the case, the obstacles to usury continued to be lessened including through the changes to Biblical interpretation that came with the Protestant Reformation. Even in the twentieth century, however, usury continued to arouse criticism and distrust. Ezra Pound was one of those who became very outspoken when it came to problems with usury.

The modernist poet and scholar, Ezra Pound, was one of the most influential literary figures of the twentieth century. The importance of his work was expressed not only in his own literary efforts but also in his contributions to other authors in his circle of friends and colleagues.

Pound’s outspoken criticism of usury formed part of the discourse that was integral to the political movements seeking economic reform. The creation and successful nationalization of the Bank of Canada was one of the outgrowths of the concerted quest to give substance to economic institutions that would more effectively serve human needs.

The creation of the Bank of Canada drew on the ideas of Abraham Lincoln and also on those of many other theorists including Major C.H. Douglas. While Major Douglas and John Maynard Keynes each denounced one another’s work, both sought to stimulate economic activity by expanding the supply and distribution of money.  Major Douglas’ vision of Social Credit, one that Pound enthusiastically embraced, sought to bring about greater harmony and equilibrium between the forces of production and consumption.

A biographer of Pound has explained that this formidable literary figure believed “there was the prospect of building a Social Credit society where money served the consumer and served the producer.”  As Pound pictured it, “the middle men” seeking usurious, interest bearing profit” to be collected “without work or prior motivation, could be cut out.” During the Depression the hope of prosperity through the application of Social Credit principles was seized upon by many. One of them was an evangelical preacher in the Canadian province of Alberta.

Largely as a result of the popularity he gained by incorporating Major Douglas’ analysis of Social Credit into his Sunday afternoon Christian radio broadcast, “Bible Bill” Aberhart became the Premier of Alberta. His Social Credit Party gained 56 of 63 seats in the Alberta Legislature. The Social Credit Party continued in power until 1971.

The Social Credit preoccupation with bringing about changes in the relationship of citizens to financial institutions helped add to the discourse from which the Bank of Canada emerged as a dynamic instrument of nation building.

The enthusiasm was well placed of those who threw their lot in with the movement to create and enlivened the Bank of Canada. The generations that put their trust in this federal financial institution had the satisfaction of knowing that their taxes were not devoured to pay big amounts of interest to private bankers in the style that presently prevails almost everywhere.

Like his good friend and colleague, Ernest Hemingway, Pound was a devotee of clear, terse and succinct prose.

This characteristic of his writing comes through strongly in his harsh condemnations of usury. “Usury is the cancer of the world,” Pound wrote. He explained, “Until you know who has lent to whom, you know nothing of politics, you know nothing whatever of history, you know nothing of international wrangles.”

Ezra Pound was born in Idaho but was attracted to Italy throughout long periods of his life. In Italy he lionized its fascist leader, Benito Mussolini. He embraced the Axis side in World War II developing close relations with the British fascist leader, Oswald Mosley. Pound threw himself into the contest producing a torrent of radio broadcasts seeking to win over English-speaking converts to the Axis side. These broadcasts are today widely described as war propaganda.

Pound was indicted in the United States in 1943 and arrested at the war’s end by the US Armed Forces in Italy. After being jailed in Pisa, Pound was charged with treason. Then Pound was diagnosed as being mentally unfit to face charges.

The finding that he was mentally ill caused Pound to be locked up as a patient in St. Elizabeth’s Hospital in the Washington DC area for the next 13 years. In spite of his severe prejudices against Jewish bankers and his active embrace of fascism during the war years, Pound continued to carry on very lively interactions with his formidable circle of poets, essayists and novelists.

Pound’s circle included James Joyce, Ernest Hemingway, and T.S. Eliot. All these writers wrote works that won a Nobel Prize for Literature. These and many other authors benefited from Pound’s encouragement and mentorship. In 1948 Eustace Mullins joined Pound’s circle. Mullins was introduced to the famous poet and scholar through Pound’s wife, Dorothy Shakespeare,

When he first met Pound, Mullins was an art school student and a veteran of the US Air Force. He had already published some short pieces in the British journal, Social Creditor. Mullins remembered Pound’s place of forced residence as “a hideous, urine-soaked madhouse in Washington D.C.” As their visits became increasingly regular, Pound encouraged Mullins to conduct research into the history and activities of the Federal Reserve.

When Pound proposed the idea Mullins was unaware of the existence of the Federal Reserve. Nevertheless, Mullins threw himself into the project that he supported by combining his research with work as a book stacker at the Library of Congress. At the Library he befriended George Stimpson who was well known among Washington journalists and government officials for his wealth of knowledge and his ability to locate relevant research materials.

Stimpson happily worked with Mullins. He helped the aspiring author by guiding him into the primary and secondary literature illuminating many facets of the Federal Reserve’s history

Eustace Mullins Explores the Secrets of the Federal Reserve

An initial edition of the volume appeared in 1952 as Mullins on the Federal Reserve. Another edition with added information was published in 1954. The text has been republished many times, sometimes in different editions under the title Secrets of the Federal Reserve. The text is organized around both thematic and chronological facets.

Mullins lays out the history of the Federal Reserve with considerable attention to the institution’s roots and origins. The author emphasizes several strands of continuity showing the links of the Federal Reserve to the banking establishments of Europe but especially those of Great Britain and Germany.

Mullins characterizes the Federal Reserve as the most powerful institution in the United States whose influence grew so that “it gradually superseded the popular elected government of the United States.” The power of the Fed and its core facet, the Federal Reserve Bank of New York, is said to have become so formidable because the agency operates in secrecy without any genuine form of accountability to any public institution. The NY Fed combines the power of secrecy with the enormous power to create new currency and to set interest rates becoming in the process “the most gigantic trust on earth.”

Mullins makes the case that the financial district known as the City of London exercised enormous influence over the activities of the Federal Reserve and many of the large Wall Street banks. Mullins wrote, “London is the world’s financial centre, because it commands enormous sums of capital created at its command by the Federal Reserve Board of the United States.”

Mullins is conscientious in presenting many citations to back up his observations and interpretations. He cites, for instance the New York Times on January of 1920 where it states, “The Federal Reserve is a fount of credit not capital.” The manipulation of credit, however, can greatly affect the industrial economy by affecting the ability of manufacturers and farmers to produce.

Mullins emphasizes throughout the text how events are often engineered to strengthen the hand of the Lords of Credit in the matrix of society’s operations. In referring, for instance, to a secret banker’s plan to crash the stock market in 1929, Mullins expressed a view that could as easily describe the growing suspicion in 2020. Could it be that the lockdowns of businesses and workers were purposely engineered to strengthen the hands of the Lords of Credit whose main platform is the Federal Reserve Bank of New York?

Mullins explains that sometimes “bankers paralyse the industrial energies of the country” in order to highlight and strengthen “their tremendous powers” over the financial and business organization of the American economy. Mullins’ observation that “panic is an instrument of [financial] power” is another statement with obvious relevance to the current crisis.

As have many authors since, Mullins emphasizes the importance of a top-secret meeting on Jekyll Island in the state of Georgia in 1910. At this meeting Paul Warburg essentially took the intellectual lead in creating a plan for a Central Bank in the United States. Such an institution was long contemplated and promoted but it had been stopped repeatedly, most famously be Andrew Jackson. Jackson’s political career culminated in his winning the US presidency between 1829 and 1837.

Warburg left his family banking business in Hamburg Germany in 1902. He joined the Wall Street Office of Kuhn Loeb, a Wall Street House that helped finance the Bolshevik Revolution in Russia. Mullins devotes much effort to describing the complex of alliances and rivalries that characterized banking before and after the founding of the Fed.

Weaving throughout these networks of financial activity were the banking operations of the Rothschild family. Mullins leaves no doubt that the operations of the Rothschild family of bankers were extensive, elaborate and very influential.

In the nineteenth century the Rothschild banking establishment gradually wove its operations into those of large segments of Europe’s royal and aristocratic establishments. Mullins emphasizes the genesis of the close business relationship between the Rothschild banking clan and a London-based US company, George Peabody and Company.

Peabody’s bank was passed on to a father and son team, Junius Spencer Morgan and John Pierpont Morgan. In the days of the Fed’s founding and even today, the name of J.P. Morgan is synonymous with New York banking. Mullins explains how the Rothschild bankers kept a fairly low profile in New York by conducting much of their American business largely through the financial organizations associated with the name and reputation of J.P. Morgan.

Mullins outlines the role of the Federal Reserve in the funding of two world wars. Many of the topics covered in Secrets of the Federal Reserve were later pursued in much more detail in the prolific writings of Antony C. Sutton.

Most of Sutton’s volumes describe the role of Wall Street in helping to bring about many of world history’s major turning points during the twentieth century. These turning points include Wall Street’s funding of the rise of the National Socialist government in Germany in the 1930s and the role of Wall Street in financing the Bolshevik Revolution and the business activities of the Soviet Union.

The capacity of the New York Bank of the Federal Reserve to create vast quantities of credit to finance wars, often with the same bankers funding competing sides in conflicts, provided the key to the creation of huge fortunes. The funding of both sides in war can be seen as an early form of hedging one’s bets. This kind of high impact intervention through banking sometimes created huge leverage for a very small number of people to steer history towards preconceived destinations.

As Mullins explains it, the Federal Reserve was founded in extreme secrecy and often employs deceptive tactics to misrepresent its true nature. As Mullins sees it, for instance, the creation of the twelve regional banks was a ploy to gain political acceptance for the Central Bank’s core entity, the Federal Reserve Bank of New York. Mullins explains, “the other eleven banks were so many expensive mausoleums erected to salve local pride and quell the Jacksonian fears of the hinterland.”

The ability of Wall Street bankers to invoke the credit creating powers of the New York Fed forms a key aspect of the frequent military adventurism of the US government. This military adventurism continued full force even after the United States became the world’s largest debtor nation after 1990. How large has been the role of the US Fed in building up the US national debt together with the tens of trillions missing from the books of the US Defense Department?

The Israel Lobby and the Federal Reserve

Much of the military adventurism of the United States especially after 9/11 was directed into invasions of Muslim-majority countries that threaten a particular view of Israel as a dominant power in its region and in the world. Why would it be that the Federal Reserve is any less involved in creating the available credit for the waging of wars in the twenty-first century than it was in creating the wars of the twentieth century?

In his authorship of The Secrets of the Federal Reserve, Mullins seems largely oblivious to the role in world history of Zionism and the genesis of Israel. His main attention lay elsewhere. As I read his text, he accurately conveyed how the large Jewish influence in the banking institution of Europe, including the influence of the Rothschild consortium, was extended into Wall Street including the Federal Reserve.

While Mullins does not shy aware from dealing with the Jewish component of the story he set out to tell, I don’t think he belabours this subject or becomes aggressively polemical about it. Certainly the same cannot be said of some of his critics whose condemnations of Mullins can sometimes be extremely polemical.

Mullins might have made more of the identity politics prevailing throughout the twentieth century. The sensibilities of the dominant Christian constituency in the United States probably influenced the decisions of many customers shopping for banking services. Quite likely some of them would have been more comfortable dealing with firms identified with names like J.P. Morgan, Rockefeller and Mellon rather than Warburg, Greenspan or Fink. Times, however, have changed.

Some of the more severe prejudices seem to have subsided around the time that Sandy Weill combined his Travellers Insurance Company with Citicorp to create Citigroup. This merger helped create the political momentum leading to the elimination of the Glass-Steagall Act in 1999. With Glass-Steagall’s elimination, Citigroup tried to become a giant department store of varied financial services. In its inner sanctums, however, Citigroup developed a preoccupation with derivatives that continues yet.

In the twenty-first century it happened that some of the cosmetic overlays were removed that had previously been imposed to disguise the large representation of Jews in Wall Street banking, including in the Federal Reserve Bank of New York. For good or bad, usury has become a core features of how the contemporary world is organized. Some reckoning with the ethnic inheritances attending usury are therefore inescapable, especially when dealing with the some of the most dramatic displays of usury on steroids in Wall Street institutions.

Where I see the need to draw a line in the sand is not on the question of the ethnicity of Wall Street personnel. Rather this line in the sand involves the question of how power is used or abused at the domineering heights of our financial institutions. Generally speaking it is not a justifiable use of the Federal Reserve to produce credit that enables the waging of wars that are offensive rather than defensive in character.

The waging of war has long been one of the big bonanzas producing major windfalls for international bankers. In the twenty-first century so many of the wars involve the flexing of military might by the United States to advance the expansionary designs of the Israeli state. The US Federal Reserve has been part of the process of creating what some would consider wars for Israel in Iraq, Syria, Yemen and Iran.

Why are the money-generating powers of the secretive Federal Reserve being invoked to help fund wars for Israel and also to help shape public opinion to accept the US role in these wars of aggression. Especially sensitive is the further indebting of the American people to subsidize the production of propaganda aimed at persuading them to back wars for Israel. This propaganda is deemed necessary to deflate opposition to Israel’s actions including the ruthless dehumanizing treatment of Palestinian Arabs.

We have seen that the Federal Reserve Bank of New York was deeply engaged in 2008 in transferring tens of trillions into the coffers of its own member institutions and counterparties. What uses were made of this bailout produced through a dubious process of legalized financial larceny?

One way or another the Israel Lobby must be a prime beneficiary of the machinations of Wall Street and its money spigot, the Federal Reserve Bank of New York. This pattern of priority can easily be related to US federal funding of the Israel project as a higher priority in federal budgeting than even the basic needs of the domestic population of the United States. Black Lives Do Matter but why is it that the lives of Israel First Partisans seem to matter more than any other group?

This Israel Lobby has the power to prevent any critic of Israeli policies from gaining the nomination of a major US party to run for US president. The result is that, in election after election, Americans are offered a very limited choice between competitors who are equally supportive of Israel.

The Israel Lobby can intervene to prevent the leadership of opposition parties from adopting policies that emphasize equity in Israel-Palestinian relations. Through its campaign contributions, the Israel Lobby dominates the process of choosing and electing representatives in Congress. How much does it cost to buy the political obedience of most federal politicians? How much does it cost to replicate this feat in the state legislatures and even municipal governments?

Through the ownership and/or control of major media outlets, the Israel Lobby exerts major influence in determining the main outlines of much public discourse when it comes to US-Israeli relations and many related subjects. How could one calculate the amount of money it took to achieve this feat? How much of this money is directed into payments for compliance, in other words, bribery? In the post-Epstein era what is the role of bribery’s criminal cousin, namely backmail?

The Israel Lobby is deeply engaged with other lobbies in transforming the Internet from an open forum of public interaction and debate into a centrally controlled propaganda instrument. Prominent among the Internet’s most aggressive censors and thought police are Google, You Tube, Facebook, Twitter and the Anti-Defamation League of B’nai B’rith.

Through all kinds of interventions the Israel Lobby asserts significant forms of control over a broad array of institutions and operations including those of the judiciary, the universities, book publishing, magazine publishing, municipal governments, trade unions and cultural groups. The biggest and most influential cultural group of all is the Hollywood film industry. Not surprisingly there is little in its cinematic output that provides critical perspectives on Zionism and its emanations.

The injection of huge amounts of money are essential to the exercise of so much concerted influence over such a broad sweep of political, intellectual and cultural organizations. Where do the large quantities of money supporting the activities the Israel project come from? Why is it that so many of agencies of the Israel Lobby have the status of charitable organizations with the capacity to extend tax write-offs to donors? What is the relationship of the Israel Lobby to Wall Street and the Federal Reserve Bank of New York?

Even the act of asking such questions will be seen by some as heretical. There is, however, nothing wrong with looking into issues that have so much impact on the quality of our political discourse… so much impact on our capacity to live together with the civility and security we have been losing so quickly with the imposition of the economically crippling lockdowns.

It is no less legitimate to ask questions about the ethnic identity of those who benefit most from the US economy than it is to ask questions about what groups suffer the most from the deprivations of poverty. Wouldn’t it make sense to try to moderate the disparities beginning with processes of research and discussion?

In a book of the same name, former ADL Executive Director, Abe Foxman, has opened the discussion of Jews and Money. Foxman effectively counters the view that all Jews are rich. Foxman, of course, is correct in this assertion. All Jews are not rich. Some are outright poor. A fairly large number of Jews, however, are somewhat rich and a small minority of Jews are disproportionately invested with wealth and power. Jews are especially well represented in the billionaires club both within the United States and internationally.

Some of the wealthiest Jews are part of the Wall Street establishment including the Federal Reserve Bank of New York. Perhaps the time has come to begin retiring this, “the most gigantic trust on earth.” Perhaps it is time to retire some of the debt created over more than a century of putting private bankers in charge of dictating interest rates as well as creating debt-laden dollars. Perhaps the time has come to lessen the debt burden that is narrowing the life chances of so many people who have been funding the wars for Israel mounted in the wake of the 9/11 deception.

The severity of the crisis before us compel all thoughtful people of conscience to look beyond the redeployment of old institutions and old remedies for old problems that are different from the challenges facing us now. One of the most obvious ways to avert further calamity is to move away altogether from the empowerment of private bankers to massively expand national debts with compound interest charged to tax payers.

The alternative to this approach is to change the present means of creating new money. The creation of many banking systems similar to that of the Bank of Canada should be considered in the quest for the main ingredients of a global reset. The Bank of Canada brought about an almost-debt-free run of prodigious nation building before Pierre Trudeau bent the policies of his government to meet the impositions of the Bank of International Settlements.

  • First published at American Herald Tribune.
  • The post Lockdowns, Coronavirus, and Banks: Following the Money first appeared on Dissident Voice.

    The Two Parties Have Failed Us, But The People Can Succeed

    The Republican and Democratic Party conventions showed that both major parties are failing to control the pandemic and protect people, address the climate crisis and clean up the environment, support families and businesses during the economic collapse, prevent police violence or deal with any of the other major problems we face.

    These were two substance-less conventions. The Democrats focused on criticizing Trump without putting forward an agenda while the Republicans claimed Biden was a front for socialism when he is a deeply embedded corporate Democrat. Trump’s term as president has been a disaster and Biden has been consistently on the wrong side of history over his 47 years in politics. On issues today, both are out of step with the views of the majority of voters.

    The two parties demonstrated that people must lead from below because the parties represent the wealthy and transnational corporations. We must continue to organize and build popular power if we are to win the changes we need.

    Join us for a webinar and rally on Sunday, August 30 at 2:00 pm Eastern to learn how people can build power to shape the future.

    After the DNC-RNC We Can’t Breathe: Keep The Struggle In The Streets
    Click here to register Share on Facebook

    The Two Parties Have Failed Us, But The People Can Succeed

    At the Democratic Convention, no one used the phrases Medicare for all, Green New Deal, tuition-free college and vocational school, universal basic income, or wealth tax, even though all of these issues are supported by the majority of voters. Sen. Bernie Sanders, AOC, and Andrew Yang were silenced on issues they had championed during their campaigns.

    At the Republican Convention, if those policies were mentioned, they were derided or called ‘socialist.’ The two parties did not talk about economic, health, and environmental policies because neither has any solutions. Instead, the bi-partisan policies they support have created the economic, public health, and environmental crises we are facing.

    The United States is in crisis because the two-party system has failed the people and the planet. On a global scale, the United States is rated as a “flawed democracy” and corruption is on the rise. Studies within the United States find that popular support for a policy has no impact on whether it will be made into law by Congress, while wealthy interests have a significant impact over whether a law passes or fails. This is consistent with the United States being a plutocracy ruled by the wealthy.

    As we have written in the past, the United States is a mirage democracy where the candidates are largely chosen by the power holders and the people get to vote for one or another corporate-approved candidate. A few progressive candidates are elected from time to time but they are marginalized at the federal level. If they do gain power, the elites move swiftly to rein them in or redistrict them out.

    Third party candidates are kept out of the debates and the media, even left-leaning media like Democracy Now has not interviewed the Green Party candidate Howie Hawkins although he’ll be on the ballot in most states. Third party candidates have to fight to be on the ballot in each state, a challenge often made more difficult by Democrats and Republicans challenging them and tying them up in court.

    For this reason, many people throw up their hands and decide that trying to work within the two-party system is the only available option, as flawed as it is. But, where has that gotten us? Federal elections these days are more commonly about voting against what you don’t want rather than voting for what you do want. Lesser evil voting has driven a race to the bottom in the quality of the candidates because as long as people are voting out of fear, it doesn’t matter who the candidate is or what they stand for.

    Trump and Biden as the major party presidential candidates this year are the result of the system we have. Whichever one wins in November, the outcome will still be a plutocracy. The climate crisis will still rage on with climate-transformed wildfires, derechos, and drought that destroy crops and strong hurricanes that flatten towns but the Green New Deal will be off the table. The COVID-19 pandemic will continue to sicken and kill hundreds of thousands but Medicare for All won’t be an option. Workers will still be forced to work for low wages in unsafe conditions, families will lose their homes and students will be buried under heavy loans, but when Wall Street corporations or banks need help, the Federal Reserve will whisk their troubles away to the tune of trillions of dollars. Wars and interventions will continue as the Pentagon receives record budgets year after year, but for some reason, there isn’t enough money to fund our public schools, feed hungry families, or rebuild our failing infrastructure.

    This system is protected by a security state that has no regard for human life, especially if you are black or brown. Time and again, the legal system lets the police get away with cold-blooded murder. This lack of accountability emboldens law enforcement. And now, it is clear from the recent events in Kenosha Wisconsin, and even before that, those right-wing militias are an unofficial arm of the security state. If this continues and they are not held accountable, they will also be emboldened to kill with impunity.

    This is the reality in which we live. It is not the first time in history that this situation has existed in the world but it is unique to our generations in this country. We are living in a dark period, a failing state, and changing this situation is going to take hard work and sacrifice, but history also teaches us that people do have the power to take on the power elites and win.

    After the DNC-RNC We Can’t Breathe: Keep The Struggle In The Streets, Webinar and Rally, Sunday August 30 at 2:00 pm Eastern.

    Click here to register Share on Facebook

    People have the power; protest in Ferguson City Hall in 2014

    Building Power To Lead From Below

    We are in the midst of a national uprising on multiple fronts of struggle. There are widespread protests against racist police violence and there have been more than 900 wildcat strikes since March over worker safety and low pay. Teachers are striking over school reopenings. There are ongoing protests stopping pipelines and extreme energy extraction projects as well as demanding action on the climate crisis. Just last week, there was a national day of protest involving actions in hundreds of cities to save the US Postal Service.

    Since the Occupy protests of 2011, which focused on wealth inequality and political corruption, but also included system-wide change on low wages, police violence, the climate crisis, and student debt, people have been building deeper movements in all of these areas. During the Obama-era, the Fight for $15 began, along with Black Lives Matter, immigrant rights, climate, and debt protests. When the pandemic and recession began, people started organizing General Strike and Rent Strike campaigns

    The potential for people power has never been greater. Hundreds of thousands of people are ready to take the streets and stop business as usual. This is a time when every one of us has a role to play, whether it is sharing information in our communities (being the media), starting conversations in our social circles (education), organizing and mobilizing people in the groups we belong to or providing support for our neighbors and people who are in the streets (mutual aid). Learn how social movements create transformational change in our free online course.

    No matter what happens this November, the protest movement must continue to fight for economic, racial, and environmental justice as well as peace. The next presidential Inauguration Day will need to be a day of protest when more people come to Washington, DC to make demands of the next president than are there to celebrate him.

    The growing movement of movements has a broad foundation of education, organization, and mobilization on which to build. We have the ability to make this country ungovernable and if we use that power, we can make demands that cannot be ignored.

    The Specter of a Fascist Coup by Trump Haunts the US: There’s Worse to Worry About

    Spreading faster than COVID-19 among those on the portside, warnings of a fascist-style coup by Trump are rampant this presidential campaign season. Should Trump fail to carry the Electoral College, Noam Chomsky admonishes, “he could send Blackshirts out in the streets… preparation for a plan to try to bring the military in to carry out something which would amount to a military coup.”

    A New York Times columnist opines: “Put nothing past Trump, not even the destruction of the American electoral process.” Robert Weissman, president of Public Citizen, explains that Trump’s election delay threat is a coup in the making. Economist Jack Rasmus speculates Trump will “call for his radical right, gun-toting friends to come to Washington to surround and protect the White House.”

    The left World Socialist Web Site joins the liberal chorus: “In an act unprecedented in American history, Donald Trump has repudiated the Constitution and is attempting to establish a presidential dictatorship, supported by the military, police and far-right fascistic militia acting under his command.”

    Meanwhile in the real world, more than 51 million Americans have filed for unemployment since March. Some 27 million people have lost their health insurance on top of around 30 million who were uninsured before, in the face of the massive pandemic. The Federal Reserve has pumped $7 trillion into corporate bonds, municipal securities, loans and grants to business, while millions are going hungry. The pandemic death toll in the US is 168,345 as it rages out of control. California cannot even accurately count the number of cases being reported.

    The US is experiencing the greatest combined health and economic crisis since the founding of the republic. But instead of demanding solutions, the overriding liberal-left concern of this presidential campaign season is the specter of a Trump coup, quickly forgetting the issues that Bernie Sanders ran on.

    Fascism as a Personality Disorder

    The idea that the “visibly overweight and dementia-plagued” “orange pig,” in the florid words of Paul Street, could by personal will change the form of governance in the US from a bourgeois democracy to fascism is based on a “great man” concept of the course of history, where a single individual determines all.

    “There’s no doubt that the Trump malignancy runs deep,” Chomsky explains, “and that he is drawn to fascist symptoms,” describing Trump’s proclivity to fascism as a personality disorder.

    Obscured by this concentration on Trump’s personality are the social, economic, and political conditions for a fascist transformation.

    In Europe of the 1930s, sections of the ruling class in their respective countries accepted Hitler’s and Mussolini’s dictatorships for fear of working-class Communist and Socialist parties coming to political power. There is no such political contention in contemporary US. Rather, some half of the eligible electorate does not bother to vote because they do not see their interests represented by either wing of the two-party duopoly. The other half trust that they live in a genuine democracy with real political choices.

    The US ruling class can impose their rule on the popular classes because the latter are either inactive or believe they are represented. If rule by and for the elites is accepted, why should the bourgeoisie squander this gift and opt for a more costly fascist dictatorship?

    Even if Donald Trump personally would aspire to be the first US führer, he does not have sufficient backing from the ruling class, notably finance capital. Many military generals detest him. The foreign policy establishment does not trust him. At least half of the active-duty service members are unhappy with him. And the so-called deep state security agencies – FBI, CIA, NSA – are among his harshest critics

    Trump might be able to mobilize some skinheads with gun show souvenirs. But these marginalized discontents would hardly be a match to the coercive apparatus of the world’s superpower.

    Fellow party members, such as the Lincoln Project and Republicans against Trump (RAT), can’t stomach Trump. Romney has bailed, W isn’t far behind, and the polls indicate a landslide defeat in November. Even if Trump were doing everything right, not the opposite, no incumbent president could survive a spectacularly tanking economy plus a pandemic. Bottomline, Kamala Harris and what’s-his-face will be the new 1600 Pennsylvania Avenue neighbors.

    However…while a one-man coup can be dismissed, an “October surprise” in the form of a military adventure cannot. There’s nothing like a dandy little war (say a coup in Belarus) to boost a sitting president’s approval ratings 15% and put him over the top in November. With US warships cruising for trouble in the South China Sea and the Democrats egging Trump for being soft on Beijing, even a dustup with nuclear-armed China cannot be ruled out.

    Liberalism Is Dead

     The obsession with the person of Trump is testament to the political bankruptcy of the increasingly anemic successors of the New Deal and their epigones on the left who, every four years, admonish us that never before have the stakes been so high: we have to vote for the lesser evil. Given their view of the danger of a fascist coup, we should put aside a progressive agenda and vote for the former senator from Mastercard and learn to love endless imperial war and increasing austerity for working people in a repressive security state.

     The liberal-left pundits reproach us to vote Democrat simply because the alternative is not Trump. Recall similar warnings about Bush and Romney, who are now chums of Democrats in high places. Vote, but not for any issue, because the so-called liberal agenda is today devoid of issues. Liberalism is dead. Indicative is its standard bearer barely showing vital signs. Biden is being told to stay in his basement and even sit out his nominating convention.

    The Democratic National Committee (DNC) killed the one hope – a genuine one – that liberalism had. Bernie Sanders knew that the DNC had rigged the 2016 contest against him and would do the same in 2020. But Sanders’s strategy was to ignite a grassroots mass movement to overcome the Democratic Party from within.

    After a poor showing in the South Carolina primary, Sanders dropped out. Shortly thereafter, the winds of pandemic and BLM protests shook the nation and might have buoyed the Sanders campaign, with its signature issues of healthcare and equality for all. Instead of making history, the Great Gray Hope’s grand plans have sadly been reduced by his fateful conviction to work within the confines of the Democratic Party to urging the wearing of face masks.

    Trajectory of Neoliberalism

    Short of a fascist coup by Trump, the liberal-left has legitimate concerns. A rightward specter is haunting the US and beyond with serious consequences. White supremacy remains seminal in a nation founded on the expropriation of the Indigenous and the exploitation of African slaves. The decline of living standards and an ever more precarious workforce are reaching crisis proportions with the pandemic. The worst is yet to come, creating a political dynamic of discontent that can swing either left or right.

    Rather than merely replacing the current White House occupant with one with better table manners, more radical measures are called for.

    What remains is a political theatre of two neoliberal parties vehemently contesting matters of style and colluding on matters of substance. The two major parties concur: bail out Wall Street, renew the Patriot Act, increase the military budget, modernize the nuclear arsenal, prepare for war with China, pursue regime change in Venezuela, etc.

    The trajectory of neoliberalism has entailed a concentration of economic and political power coupled with an increasingly authoritarian and imperialistically aggressive state. This trajectory converges with fascism. A pervasive security state and the coercive apparatus of fascism are, in fact, already in place. According to the DNC, “Democrats have made modernizing our military a top priority” along with supporting our “national security personnel.” Ditto for the Republicans.

    Hitler physically liquidated the trade unions along with the left political parties. He censored the press and engaged in a massive military build-up. In the US today, union density has declined to 10.3% of the workforce, no countervailing left political organizations of consequence exist, the mainstream media echo Washington, and the military budget balloons. Neither the historical example nor the current one is free of the defects of racism and xenophobia. Perhaps the salient political question for the 2020 electoral season is not whether there will be fascist coup, but how would we know?

    The Marginalist Counter-Revolution, Science and Medical Social Management

    By the time Alfred Marshall became prominent, the theory of capitalism formulated in Marx’s Capital had become a theoretical pillar of organised working class politics in Europe. Remarkably the so-called “marginalist revolution”, of which Marshall became a leading figure, coincides roughly with the abolition of slavery in Brazil (1886) and a major economic depression.1  Thus the shift from economics, for the allocation of surplus to that of managing scarcity is not a purely theoretical development. Following later scholars like Eric Williams, who argued that the “surplus” for industrialisation in Europe — that which had to be allocated through struggle or Adam Smith’s “invisible (whip) hand”– was derived from slavery and would now under the terms of marginalism become a “scarcity” of resources that theoretically had to be shared with liberated slaves and organising industrial labour.2

    One of the objectives of political struggle in the 19th century was to appropriate the wealth held by the Church and the State and subject it to community/popular control. This meant also a struggle to find forms of governance adequate to this task. The opposition of marginalism, closely linked to progressivism and the emergence of “science” as religion (Auguste Comte and Herbert Spencer), was a denial that the economic relationships between classes could be defined in any way, which would permit popular/communal control.3  Marginalism not only rejected the existence of a surplus to be allocated but also the idea that social benefit could be measured and therefore allocated through communal/popular governance. Since every economic relationship was reduced to implicit contracts between individuals there was no way to create scientifically reliable economic knowledge of classes, only tentatively for individuals, so-called methodological individualism.

    What came to be social policy at the outbreak of WWI was, in fact, a denial that there was anything social at all. The entire history of the State’s promotion of adventurers, who in turn bought or leased the instruments of the State for the creation of monopoly wealth, was reduced to a footnote at best. Marginalism was conceived to explain — apologetics — what, in fact, had led to its creation as an ideology to counter democratic economic forces.

    This is important in order to understand how the US religious doctrine of “free enterprise” was concocted and how the marketing strategy of the Public-Private Partnership (PPP) became the dominant ideology of the end of the 20th century and the formal unquestioned dogma of the 21st. What is often alternatively called “neo-liberal” and “neo-conservative” is better understood if one looks at the history of the Roman Catholic Church. The 18th and 19th centuries were something like the Reformation, culminating in Marxism — itself a spectrum as broad as that between Lutheranism and Calvinism. The 20th century began the “Counter-Reformation”. Despite the successes of the October Revolution, the Chinese Revolution and the Cuban Revolution, the effect of this counter-revolution was to isolate these revolutions from the rest of the Church. In 1989, the Russian Revolution was no longer merely isolated but largely defeated — not surprisingly with a Polish pope in the van. The bullet in the neck was the NATO war against Yugoslavia.

    The Counter-Reformation had two principal effects in Christendom. One was that it defeated the Reformation in the core Catholic dominions. In the Spanish and Portuguese Empires, for example, there was no Reformation. In the rest of the realms, the political content of the Reformation was purged. Luther and Calvin sided with the State and preserved their own versions of clericalism, inheriting, but not abandoning, the economic wealth and privilege established by centuries of Church theft.

    The three great revolutions of the 20th century and to a far lesser extent the failed Mexican Revolution were the first to successfully transfer the socially generated wealth that had been appropriated by the Church and the corporate class (whether aristocratic or plutocratic) to a political structure based on popular/communal ownership and forced, for a brief period, the “Capitalist Church” to share at least symbolically some of its hoarded loot to provide facilities called “public” (as opposed to popular) and create a veneer of reform. The Church did the same thing in the Counter-Reformation — terrorising with the Inquisition and extending educational access through schools for the working class and poor and allowing local languages and some minor concessions to national preference in the clergy. From 1949 until 1989 the strategy was fierce repression and selective gradual openings:  social democracy in Western Europe (except Spain and Portugal, of course) on the “front” and death squads everywhere else.

    1989 put an end to the biggest competitive alternative system and restored Russia to Orthodoxy if not to Catholicism. Since then the entire veneer of social democracy has been scraped away in the Western front-line states.  Seventy-odd years of pacification reduced the forces of class struggle — meaning those who supported popular/communal control of social wealth rather than corporate monopoly of the State — to less than a shadow of their former selves.

    Nowhere, and at no time, has this become more evident than in 2020 when not a single political party of the “class struggle” tradition was able or willing to respond to the coup de grace against public space, social wealth and humanism that was administered in March past. The conspicuous silence at the massive theft that was orchestrated — untold trillions — while the bulk of the Western population was under house arrest — is beyond shameful.4 This was not an act to restrain a viral pandemic but an act culminating in the final expropriation, not only of the last scraps of social democracy but of the entire public space in which such struggles took place but also could take place. In Portugal, the quality might be called “Salazar light”, not the “new normal” but the “Estado Novissimo“.5

    What we hear, for example, from the curia in Brussels, with its quasi-dual pontificate comprising the German Chancellor and her former rival now the president of the European Commission or the World Economic Forum, is something comparable — but, of course, on a global scale — a homily like that delivered by Martin Luther in support of the violent suppression of the Peasants’ Revolt. (Here I am only talking about those who are members of the “Left”.)

    The Counter-Revolution/Counter-Reformation, whose spokespersons convene in the conclaves at Davos, has clear objectives. The euphemism is the great “reset”.6 What is described euphemistically as “growth” has always meant growth in power and control. By declaring an end to public space — anywhere — they are returning us to the closed world whose creation and maintenance was the objective of the Roman papacy. (I republished the bull Unaam Sanctam earlier this year for a reason!7  I do not want to repeat here everything I have tried to describe elsewhere. 8  At this writing the conclave in Brussels is deciding what to do with the residue of Christendom in the Western Empire.

    Habemus Reset!

    Somewhere I read in a history of China that at least the Confucians were amazed at the Roman Catholic Church’s organizational power and wondered that there was nothing equivalent to it in China. The Rockefeller Foundation was so concerned about China that it started very early (ca. 1914) to fund and train Chinese physicians in the Rockefeller model of industrial medicine and social engineering.9

    The West compensates for its relatively small population with an extraordinary level of violence and organization. It was that “catholic” organisational capacity that shut down the West and its dependencies in March — and including the Shrine in Fatima, defies the strength of the Holy Virgin.

    (What we have been told is the 18 months in the race to a “vaccine” should probably be seen as a planning parameter — adopted at least as early as 2015 — in the pacification program for which the vaccine is both a decoy and a weapon, by no means a toy.)

    1. For a discussion of the so-called “marginalist revolution” see, for example, Nuno Martins, “Interpreting the capitalist order before and after the marginalist revolution”, Cambridge Journal of Economics 2015, 39, 1109-1127.
    2. See Eric Williams, Capitalism and Slavery, and Gerald Horne, The Apocalypse of Settler Colonialism, reviewed by this author.
    3. What most people understand as “Darwinism” is actually “social Darwinism” as taught by Herbert Spencer et al. Charles Darwin did not consistently argue for the “survival of the fittest”. Rather he suggested that species’ variations could explain why some members of a species proliferated in an environment or survived changes in the environment. Unlike Spencer and vulgar Darwinists, Darwin claimed no teleology or interest in nature that could predict or promote any species or variation thereof. For a brief discussion of the difference between Darwin and vulgar Darwinism, see Morse Peckham, “Darwinism and Darwinisticism” in The Triumph of Romanticism (1970) pp. 176-201.
    4. While it is a matter of record that the US Federal Reserve gave away some USD 4 trillion on a single day at the beginning of the so-called pandemic, with no questions asked, both the US regime and its vassals in Brussels feel that any assistance to Europe’s SME sector must be endlessly debated and so structured that only the administering banks profit from it.
    5. For example, under Salazar’s Estado Novo that ended by revolution in 1974, three persons meeting in public spaces; e.g., on the street, constituted a “demonstration” requiring police authorisation. For those old enough to remember, the similarity to masks and social distancing is hard to overlook.
    6. World Economic Forum: The Great Reset; see also here:
    7. There is One God, One Faith, and One ChurchDissident Voice, May 2020.
    8. See my Dissident Voice articles this year if interested.  See, among others, “Re-Orientation”, 3 February 2020, and “The First Circle”, 24 April 2020.
    9. E. Richard Brown, Rockefeller Medicine Men, Medicine and Capitalism in America. It is just a coincidence that it was also a man named Gates, Frederick T, a Baptist preacher and not a physician, who initiated the tradition of plutocrats using medical institutions to design society in their particular interests. Rockefeller money turned the Peking Union Medical College from a missionary endeavour into a scientific medical school. Rockefeller money also seeded the Johns Hopkins University School of Public Health, now under the patronage of billionaire Michael Bloomberg, where it hosts such exciting séances like Event 201.

    COVID-19 Corruption: Wealthy And Well Connected Get Rich While People Suffer

    COVID Dollars from Fiscal Times

    While corrupt elected officials and elites feed at the public trough, the economic collapse is hitting people in the United States hard. According to the newly released Bureau of Labor Statistics figures 47.2 percent of working-age people are without work and businesses are finding it impossible to pay their rent or keep their employees. The basic ability to feed children is in crisis, as nearly 14 million children in the United States went hungry in June, an increase of 10 million since 2018, and nearly three times the number of children who went hungry during the Great Recession, according to an analysis of Census data.

    Newsweek summarizes:

    Nearly half of U.S. households’ incomes have declined during the pandemic, with survey data showing both low-and high-income households being affected at about the same rate. For the week ending July 4, 1.3 million Americans filed for unemployment benefits. Evictions are expected to skyrocket with 23 million people possibly facing eviction by September.

    The impact of the economic collapse will hit even harder in the week of July 25, when the temporary weekly increase of $600 in unemployment benefits enacted in the CARES bill ends.  There is strong opposition in Congress and the White House to continuing those benefits. The moratorium on evictions from federally subsidized housing will also end that week. The Census Bureau Household Pulse Survey found 30 percent of renters had little or no confidence that they could meet housing payments next month.

    Amidst this crisis for most people, the investor class is doing well as the US stock market closed in June with one of the best quarterly rises in history. This is not surprising as the Federal Reserve and Treasury have funneled trillions to the wealthy. Pandemic capitalism is highlighting the wealth divide and the corruption of government working in cahoots with the super-wealthy.

    The Rich Got Bailed Out, We Got Sold Out

    While the government sought to hide where pandemic bailouts under the Paycheck Protection Program (PPP) were going, it is now being exposed. The PPP loans were intended to help small businesses maintain their payroll with loans that are fully forgiven if at least 60% of it is used on payroll costs. Recipients were kept secret, but public pressure forced them to release the information. The government is only releasing information on grants over $150,000. News agencies have filed suit to release all the information.

    The self-dealing and corruption of big donors, members of Congress, the president and their families and friends are being exposed. These people are getting the bailout funds while others without those kinds of connections are suffering. Or, as Esquire mockingly described, the list of recipients  “was stuffed to the gunwales with fatcats, friends of fatcats, deadbeat fatcats, fatcat-financed organizations, and fatcats with political influence.”

    Bailout Dollars Go To Elected Officials, Their Families, and Associates

    Roll Call reports that $14 million in relief funds wound up going to members of Congress and their families. Businesses owned by lawmakers and their families move to the front of the line for bailouts. “At least nine lawmakers and three congressional caucuses have ties to organizations that took millions of dollars in aid,” Politico reports

    The Washington Post reports Elaine Cho, the wife of Majority Leader Mith McConnell (R-KY) received aid, “Among some of those receiving relief were Transportation Secretary Elaine Chao’s family’s shipping business. In addition, at least seven members of Congress or their spouses received loans, including lawmakers who were directly involved in shaping regulations and also benefited from a blanket waiver of ethics concerns.”

    KTAK Corp., a Tulsa-based operator of fast-food franchises owned by Rep. Kevin Hern (R-Okla.) received between $1 million and $2 million, according to the Post.  Further, Rep. Mike Kelly (R-Pa.) benefited when three of his car dealerships, located outside of Pittsburgh, received a combined total of between $450,000 and $1.05 million. Several plumbing businesses affiliated with Rep. Markwayne Mullin (R-Okla.), all based in Broken Arrow, Okla., each received between $350,000 and $1 million.

    The Fiscal Times reports:

    Among the lawmakers who own or have other ties to businesses that received loans are Republicans Reps. Rick Allen (GA), Vicky Harzler (MO), Kevin Hern (OK), Mike Kelly (PA), Markwayne Mullin (OK) and Roger Williams (TX) as well as Democratic Reps. Matt Cartwright (PA), Susie Lee (NV) and Debbie Mucarsel-Powell (FL). A company tied to the husband of House Speaker Nancy Pelosi (D-CA) got a loan of between $350,000 and $1 million.

    Forbes reports that West Virginia Governor Jim Justice, a coal-mining tycoon, pulled in millions for his businesses. His Greenbrier resort in White Sulphur Springs took a PPP loan ranging from $5 million to $10 million. His Greenbrier Sporting Club, a membership club that touts “luxury living,” infinity pools and more took a loan of $1 million to $2 million in April.

    Trump Family, Friends and Business Associates Get Millions

    ProPublica reports “Businesses tied to President Donald Trump’s family and associates stand to receive as much as $21 million in government loans designed to shore up payroll expenses for companies struggling amid the coronavirus pandemic.” This includes a hydroponic lettuce farm backed by Dobald Trump, Jr., the president’s eldest son of at least $150,000.

    Further, “several companies connected to the president’s son-in-law and White House adviser, Jared Kushner, could get upward of $6 million.” ProPublica reports on Kushner-related grants, “The New York Observer, the news website that Kushner ran before entering the White House and is still owned by his brother-in-law’s investment firm, was approved for between $350,000 and $1 million, data shows. A company called Princeton Forrestal LLC that is at least 40 percent owned by Kushner family members, according to a 2018 securities filing, was approved for $1 million to $2 million. Esplanade Livingston LLC, whose address is the same as that of the Kushner Companies real estate development business, was approved for $350,000 to $1 million.” They also report that “up to $2 million was approved for the Joseph Kushner Hebrew Academy, a nonprofit religious school in Livingston, N.J., that’s named for Jared Kushner’s grandfather and supported by the family.

    It is not just Trump’s family, the Post reports, “At 40 Wall Street, an office building Trump owns in Lower Manhattan, 22 companies received loans, for a combined total of at least $16.6 million.” Similarly, tenants at Trump hotels received millions; e.g., “Triomphe Restaurant Corp, which operates the Jean-Georges restaurant at the Trump International Hotel on Central Park West, got between $2 million and $5 million. Sushi Nakazawa, a restaurant in the Trump D.C. hotel, received between $150,000 and $350,000 to support 22 jobs, according to the data.”

    Also, Trump friends and associates such as “Albert Hazzouri, a dentist frequently spotted at Mar-a-Lago, asked for a similar amount. A hospital run by Maria Ryan, a close associate of Trump lawyer and former mayor Rudy Giuliani, requested more than $5 million.”  A Trump lawyer also received millions: “a Manhattan law firm whose marquee attorney has fiercely defended Trump for almost two decades. Kasowitz Benson Torres LLP — whose managing partner, Marc Kasowitz, was at one point the president’s top lawyer in the special counsel’s Russia investigation — was set to receive between $5 million and $10 million from Citibank.”

    Trump media allies got PPP funding. Bipartisan Report wrote:

    The conservative online media outlet founded by Trump confidante and FOX News host Tucker Carlson, the Daily Caller received as much as $1 million. Carlson sold his stake in the company on June 10. And, Newsmax, the Conservative TV network and website owned by another presidential confidante, Christopher Ruddy, got a loan worth $2 million to $5 million.

    End Socialism For The Rich

    Bailout business “socialism” would be something you’d expect libertarians and small government anti-tax advocates to oppose; however, among the recipients of PPP funds was Grover Norquist who wants the government to shrink “to the size where we can drown it in the bathtub.” His organization, Americans for Tax Reform took $350,000. The Ayn Rand Institute, The Center for the Advancement of Objectivism, which advocates  “laissez-faire capitalism,” took $1 million in PPP funds. Its board member, Harry Binswanger, said they would take the money because “the principle here is justice.”

    In fact, if the principle were justice, then this kind of hypocrisy and corruption would be stopped and a program to help the vast majority of people who lack economic security, and the small businesses that will be unable to survive the economic collapse would be the recipients of this kind of funding.  This is the second time in a decade that the government has had to bail out capitalism with trillions of dollars. Maybe it is time for economic democracy, an economy that serves the people, not the wealthy.

    As Richard Wolff writes, “Capitalism serves capitalists first and foremost.” That’s why recovery from the COVID19 pandemic and the current recession require changing the economic system to one that puts people and the planet over profits. There are efforts to make that a reality by creating worker-owned cooperatives, participatory budgeting and public banks. Some communities are organizing mutual aid including solidarity gardens where the food produced is given to communities in need and there are programs to donate stimulus checks to people without incomes.

    If there was ever a time to build a different world, that time is now. Ajamu Baraka explains, “The current ongoing capitalist crisis has created the most serious crisis of legitimacy since the collapse of the capitalist economy during the years referred to as the Great Depression.” He urges us to keep the focus on class and race so we cannot be divided and to have a broad lens to connect what is happening at home to what the US does abroad. We must also recognize how the state will try to coopt and water down our demands. Change is coming. What it looks like is up to us.

    Upcoming events:

    July 16 – The Embassy Protection Collective hosts the “Strengthening Solidarity between Social Movements in Venezuela and the US” meeting via Zoom at 2:00 pm. Click here for more information.

    July 20Strike for Black Lives.

    The Stock Market Produces Nothing

    On June 2, 2020, Jan Dehn of Ashmore Investment Management Limited remarked:

    If central banks were to allow asset prices to reflect the actual underlying fundamentals – record levels of debt, record low productivity growth, record unemployment, record populism – the resulting crashes in financial markets would be so large that most Western economies would be plunged into deep and lasting depressions.1

    Putting aside the fact that many countries and regions are already in a deep and lasting economic depression that started long ago, the stock market is once again rising thanks to massive non-stop infusions of digital dollars from the private institutions of the rich like the Federal Reserve. Central banks in other parts of the world are also printing colossal sums of money around the clock. However, no jobs or social programs are being printed.

    Like the banks, the stock market produces nothing. Neither creates value. Both are driven by anti-consciousness and both are a drain on the socialized economy.

    While the stock market reflects the contradictions inherent to the capitalist economic system and is not an entity unto itself completely detached from the production of goods and services, stocks themselves are not the economy. Stocks are largely property titles to claims to anticipated wealth. An increase in the price of stocks, for example, does not necessarily represent an increase in real wealth. In short, there exists a mediated relationship between the stock market and the actual production of real value.

    Today, stock values have become very far removed from the value of real assets and material goods and services. The idea of “bubbles” reflects this growing disconnect between the economy and the stock market. In 2008, for example, most could not even explain what “derivatives” were because they were so convoluted and so far removed from reality. It was next to impossible to determine which claims of wealth (real and fictitious) belonged to whom because toxic financial instruments were essentially made-up and resold over and over again.

    In reality, much of the stock market relies on fictitious capital—value beyond what can be realized in the form of commodities. It is capital above and beyond actual capital. Fictitious capital is parasitic and can arise from printing money, lending between banks, compound interest, credit, speculation, fractional banking, fake toxic financial instruments, and more. Fictitious capital spontaneously duplicates and triplicates real capital. It is not real value produced by real workers in the sphere of production. Workers do not produce fictitious capital. Speculation, for example, represents a projected legal claim to value that may or may not materialize in the future. It is a gamble. It is akin to trading in promises and risks, without actual existing funds. Not surprisingly, risk-taking and recklessness have reached new heights under the current surreal circumstances.

    The “free-market” under conditions of imperialism causes many individuals and organizations to become blind to reality and the laws of motion of economic development. Many get lost in a radically-detached subjective reality where anything goes (so-called “animal spirits” take over). The market appears as a land of infinite unicorns and rainbows. Material reality dissolves. After all, the private Federal Reserve has repeatedly signaled to the mega-rich that they have nothing to worry about: the super-rich will be taken care of under all circumstances. Since they are “too big to fail and too big to jail,” digital dollars will keep flowing to them perpetually. This eliminates risk for a tiny few.

    Keeping in mind the important principle that what is not produced cannot be distributed, the stock market mainly re-divides and re-distributes already-produced value. It represents the parasitism and decay within the economy. It is an arena in which the richest and most powerful capture the wealth seized not only by weaker and smaller owners of capital, but also the pensions and other funds that belong to workers and the public. “Might makes right” prevails throughout the obsolete “dog-eat-dog” capitalist economic system.

    The notion that “money begets money” (“capitalization”) is a capital-centered prejudice that fosters the illusion that production does not matter and workers are irrelevant; workers supposedly have nothing to do with the production of social wealth. Money just arises magically. But the fairy tale that “money begets money” is a main reason why the stock market always becomes “over-valued” and eventually crashes. Asset valuations and speculation may extend well beyond the stratosphere, but ultimately they are governed by the laws of motion of economic development and must return to Earth. The chickens always come home to roost, as the saying goes. The “good times” never last. Anxiety and insecurity are always around the corner. Unplanned and anarchic economic activity cannot escape frequent catastrophic reckonings.

    Such crashes and the havoc they wreak are inevitable in an economic system based on the private ownership of competing parts of the economy. The generalized anarchy of production in society negates conscious human control and planning of the economy and inevitably leads to disharmony between production and consumption, resulting in regular upheavals and chaos. Sustained prosperity, peace, and stability for all are impossible under such outmoded conditions and further reveal the need for new relations of production. A new direction and motivation for the economy are sorely needed.

    The economy, properly speaking, is the relations people enter into with each other in the course of producing value. Every society has to produce and reproduce their means of existence. Any society that fails to do so, even for a few months, will experience serious problems.

    Capital is the dominant unequal social relation in modern society. Workers and owners of capital enter into a relation with each other that legally permits owners of capital to seize the added-value stemming from the labor-time of workers. The claims of workers and owners of capital over this added-value clash frequently, and today this unequal social relation is in deep crisis and needs to give way to a new relation in which the working class controls what it alone produces.

    To be clear, value comes only from the labor-time of workers producing goods and services in material space-time. Only the work-time of the working class can impart value to commodities. Without workers, there would be no social wealth. In this sense, owners of capital are historically superfluous, a drain on society and the economy. They are not needed. They play no positive role. They are not interested in nation-building and have not solved any problems. Owners of capital are blocking social progress by preventing the rise of new relations of production that are in harmony with the socialized nature of production.

    All the chicanery, parasitism, and schemes of the imperialist oligarchs, including the stock market, will only intensify economic and social problems. Inequality, unemployment, and poverty will continue to worsen as private central banks print more money and stock markets climb.

    The law of the falling rate of profit is coercive and inescapable. Under capitalism, the amount of capital invested in production eventually necessarily exceeds the profit returned. And eventually a point is reached where there is no incentive to invest, thereby establishing the conditions for crisis. Efforts to counter this law are temporary and ineffective in the long run; such efforts cannot avert crises altogether. Attempts to avert this law lead only to more tragedies for the people. The law of the falling rate of profit is a main reason why, over the past few decades, owners of capital have reduced investments in real production and shifted towards financial parasitism. According to some, the rate of profit in the U.S. has been steadily declining for 70 years.

    In the coming months, the domino effects of the current world-wide economic fiasco will become even more painful and visible. The consequences of the global economic collapse will be unfolding for some time. More social unrest is bound to arise at home and abroad. And to be sure, finding a vaccine for Covid-19 will not end the depression or its torturous consequences. The obsolete capitalist economic system has been in decline for decades.

    Nonetheless, while multiple overwhelming crises are unfolding simultaneously, this is not the time to drown in pessimism and hopelessness. That won’t help.

    Taking up the hard and drawn-out work of developing independent thinking and politics is critical at this juncture. There are openings to do this. The social unrest unfolding worldwide provides an opening to advance ideas, thinking, perspectives, and measures that advance the general interests of society and its members. For instance, people everywhere are raising demands for accountability for state violence in its many forms. They are also rejecting past symbols of oppression. A new form of consciousness is unfolding and its direction and content are up for grabs. When far more people start to say things like “nothing surprises me anymore,” it is clear there are significant contradictions in motion.

    Growing social unrest is intensifying the need to reject the ideas, views, agendas, arrangements, and fear-mongering of the rich and the democrats and republicans who govern on their behalf. Conditions are compelling more people to take nothing for granted and to investigate things and phenomena for themselves. There is a heightened sense of skepticism about information from mainstream sources. In the current rapidly-changing context, one must persistently engage in a conscious act of finding out and not automatically believe the rich and their political and media representatives. The mainstream media and the cartel political parties work tirelessly to impose ideas, agendas, and arrangements on people that deprive them of their own outlook, motivation, drive, and path forward.

    Women, students, youth, workers, and senor citizens must take up serious investigation and analysis of what is unfolding and connect the dots. Action with no analysis won’t work. Nor will blindly repeating what the mainstream media or social media says. That just increases confusion and incoherence. Resorting to knee-jerk reactions, one-liners, or clever idioms will not do either. The need for analysis and coherence is more critical than ever.

    Old ideas and old ways of thinking are not going to be useful moving forward. People must establish their own reference points and their own perspective on how to move society forward. A new direction, aim, motivation, and organization of society and the economy are needed and possible.

    People everywhere want real decision-making power over their lives, society, and economy. This power is key to unleashing the human factor essential to building the new and guaranteeing the rights of all.

    1. Jan Dehn. June 2, 2020. “When market valuations become too high to fall“, June 2, 2020.

    Meet BlackRock, the New Great Vampire Squid

    BlackRock is a global financial giant with customers in 100 countries and its tentacles in major asset classes all over the world; and it now manages the spigots to trillions of bailout dollars from the Federal Reserve. The fate of a large portion of the country’s corporations has been put in the hands of a megalithic private entity with the private capitalist mandate to make as much money as possible for its owners and investors; and that is what it has proceeded to do.

    To most people, if they are familiar with it at all, BlackRock is an asset manager that helps pension funds and retirees manage their savings through “passive” investments that track the stock market. But working behind the scenes, it is much more than that. BlackRock has been called “the most powerful institution in the financial system,” “the most powerful company in the world” and the “secret power.” It is the world’s largest asset manager and “shadow bank,” larger than the world’s largest bank (which is in China), with over $7 trillion in assets under direct management  and another $20 trillion managed through its Aladdin risk-monitoring software. BlackRock has also been called “the fourth branch of government” and “almost a shadow government”, but no part of it actually belongs to the government. Despite its size and global power, BlackRock is not even regulated as a “Systemically Important Financial Institution” under the Dodd-Frank Act, thanks to pressure from its CEO Larry Fink, who has long had “cozy” relationships with government officials.

    BlackRock’s strategic importance and political weight were evident when four BlackRock executives, led by former Swiss National Bank head Philipp Hildebrand, presented a proposal at the annual meeting of central bankers in Jackson Hole, Wyoming, in August 2019 for an economic reset that was actually put into effect in March 2020. Acknowledging that central bankers were running out of ammunition for controlling the money supply and the economy, the BlackRock group argued that it was time for the central bank to abandon its long-vaunted independence and join monetary policy (the usual province of the central bank) with fiscal policy (the usual province of the legislature). They proposed that the central bank maintain a “Standing Emergency Fiscal Facility” that would be activated when interest rate manipulation was no longer working to avoid deflation. The Facility would be deployed by an “independent expert” appointed by the central bank.

    The COVID-19 crisis presented the perfect opportunity to execute this proposal in the US, with BlackRock itself appointed to administer it. In March 2020, it was awarded a no-bid contract under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to deploy a $454 billion slush fund established by the Treasury in partnership with the Federal Reserve. This fund in turn could be leveraged to provide over $4 trillion in Federal Reserve credit. While the public was distracted with protests, riots and lockdowns, BlackRock suddenly emerged from the shadows to become the “fourth branch of government,” managing the controls to the central bank’s print-on-demand fiat money. How did that happen and what are the implications?

    Rising from the Shadows

    BlackRock was founded in 1988 in partnership with the Blackstone Group, a multinational private equity management firm that would become notorious after the 2008-09 banking crisis for snatching up foreclosed homes at firesale prices and renting them at inflated prices. BlackRock first grew its balance sheet in the 1990s and 2000s by promoting the mortgage-backed securities (MBS) that brought down the economy in 2008. Knowing the MBS business from the inside, it was then put in charge of the Federal Reserve’s “Maiden Lane” facilities. Called “special purpose vehicles,” these were used to buy “toxic” assets (largely unmarketable MBS) from Bear Stearns and American Insurance Group (AIG), something the Fed was not legally allowed to do itself.

    BlackRock really made its fortunes, however, in “exchange traded funds” (ETFs). It gained trillions in investable assets after it acquired the iShares series of ETFs in a takeover of Barclays Global Investors in 2009. By 2020, the wildly successful iShares series included over 800 funds and $1.9 trillion in assets under management.

    Exchange traded funds are bought and sold like shares but operate as index-tracking funds, passively following specific indices such as the S&P 500, the benchmark index of America’s largest corporations and the index in which most people invest. Today the fast-growing ETF sector controls nearly half of all investments in US stocks, and it is highly concentrated. The sector is dominated by just three giant American asset managers – BlackRock, Vanguard and State Street, the “Big Three” – with BlackRock the clear global leader. By 2017, the Big Three together had become the largest shareholder in almost 90% of S&P 500 firms, including Apple, Microsoft, ExxonMobil, General Electric and Coca-Cola. BlackRock also owns major interests in nearly every mega-bank and in major media.

    In March 2020, based on its expertise with the Maiden Lane facilities and its sophisticated Aladdin risk-monitoring software, BlackRock got the job of dispensing Federal Reserve funds through eleven “special purpose vehicles” authorized under the CARES Act. Like the Maiden Lane facilities, these vehicles were designed to allow the Fed, which is legally limited to purchasing safe federally-guaranteed assets, to finance the purchase of riskier assets in the market.

    Blackrock Bails Itself Out

    The national lockdown left states, cities and local businesses in desperate need of federal government aid. But according to David Dayen in The American Prospect, as of May 30 (the Fed’s last monthly report), the only purchases made under the Fed’s new BlackRock-administered SPVs were ETFs, mainly owned by BlackRock itself. Between May 14 and May 20, about $1.58 billion in ETFs were bought through the Secondary Market Corporate Credit Facility (SMCCF), of which $746 million or about 47% came from BlackRock ETFs. The Fed continued to buy more ETFs after May 20, and investors piled in behind, resulting in huge inflows into BlackRock’s corporate bond ETFs.

    In fact, these ETFs needed a bailout; and BlackRock used its very favorable position with the government to get one. The complicated mechanisms and risks underlying ETFs are explained in an April 3 article by business law professor Ryan Clements, who begins his post:

    Exchange-Traded Funds (ETFs) are at the heart of the COVID-19 financial crisis. Over forty percent of the trading volume during the mid-March selloff was in ETFs ….

    The ETFs were trading well below the value of their underlying bonds, which were dropping like a rock. Some ETFs were failing altogether. The problem was something critics had long warned of: while ETFs are very liquid, trading on demand like stocks, the assets that make up their portfolios are not. When the market drops and investors flee, the ETFs can have trouble coming up with the funds to settle up without trading at a deep discount; and that is what was happening in March.

    According to a May 3 article in The National:

    The sector was ultimately saved by the US Federal Reserve’s pledge on March 23 to buy investment-grade credit and certain ETFs. This provided the liquidity needed to rescue bonds that had been floundering in a market with no buyers.

    Prof. Clements states that if the Fed had not stepped in, “a ‘doom loop’ could have materialized where continued selling pressure in the ETF market exacerbated a fire-sale in the underlying [bonds], and again vice-versa, in a procyclical pile-on with devastating consequences.” He observes:

    There’s an unsettling form of market alchemy that takes place when illiquid, over-the-counter bonds are transformed into instantly liquid ETFs. ETF “liquidity transformation” is now being supported by the government, just like liquidity transformation in mortgage backed securities and shadow banking was supported in 2008.

    Working for Whom?

    BlackRock got a bailout with no debate in Congress, no “penalty” interest rate of the sort imposed on states and cities borrowing in the Fed’s Municipal Liquidity Facility, no complicated paperwork or waiting in line for scarce Small Business Administration loans, no strings attached. It just quietly bailed itself out.

    It might be argued that this bailout was good and necessary, since the market was saved from a disastrous “doom loop,” and so were the pension funds and the savings of millions of investors. Although BlackRock has a controlling interest in all the major corporations in the S&P 500, it professes not to “own” the funds. It just acts as a kind of “custodian” for its investors — or so it claims. But BlackRock and the other Big 3 ETFs vote the corporations’ shares; so from the point of view of management, they are the owners. And as observed in a 2017 article from the University of Amsterdam titled “These Three Firms Own Corporate America,” they vote 90% of the time in favor of management. That means they tend to vote against shareholder initiatives, against labor, and against the public interest. BlackRock is not actually working for us, although we the American people have now become its largest client base.

    In a 2018 review titled “Blackrock – The Company That Owns the World”, a multinational research group called Investigate Europe concluded that BlackRock “undermines competition through owning shares in competing companies, blurs boundaries between private capital and government affairs by working closely with regulators, and advocates for privatization of pension schemes in order to channel savings capital into its own funds.”

    Daniela Gabor, Professor of Macroeconomics at the University of Western England in Bristol, concluded after following a number of regulatory debates in Brussels that it was no longer the banks that wielded the financial power; it was the asset managers. She said:

    We are often told that a manager is there to invest our money for our old age. But it’s much more than that. In my opinion, BlackRock reflects the renunciation of the welfare state. Its rise in power goes hand-in-hand with ongoing structural changes; in finance, but also in the nature of the social contract that unites the citizen and the state.

    That these structural changes are planned and deliberate is evident in BlackRock’s August 2019 white paper laying out an economic reset that has now been implemented with BlackRock at the helm.

    Public policy is made today in ways that favor the stock market, which is considered the barometer of the economy, although it has little to do with the strength of the real, productive economy. Giant pension and other investment funds largely control the stock market, and the asset managers control the funds. That effectively puts BlackRock, the largest and most influential asset manager, in the driver’s seat in controlling the economy.

    As Peter Ewart notes in a May 14 article on BlackRock titled “Foxes in the Henhouse,” today the economic system “is not classical capitalism but rather state monopoly capitalism, where giant enterprises are regularly backstopped with public funds and the boundaries between the state and the financial oligarchy are virtually non-existent.”

    If the corporate oligarchs are too big and strategically important to be broken up under the antitrust laws, rather than bailing them out they should be nationalized and put directly into the service of the public. At the very least, BlackRock should be regulated as a too-big-to-fail Systemically Important Financial Institution. Better yet would be to regulate it as a public utility. No private, unelected entity should have the power over the economy that BlackRock has, without a legally enforceable fiduciary duty to wield it in the public interest.

    The Global Reset: Unplugged

    Imagine, you are living in a world that you are told is a democracy – and you may even believe it – but, in fact, your life and fate is in the hands of a few ultra-rich, ultra-powerful and ultra-inhuman oligarchs. They may be called Deep State, Illuminati, or simply the Beast, or anything else obscure or untraceable, it doesn’t matter. They are less than the 0.0001%.

    For lack of a better expression, let’s call them for now “obscure individuals”. These obscure individuals who pretend running our world have never been elected. We don’t need to name them. You will figure out who they are, and why they are famous, and some of them totally invisible. They have created structures, or organisms without any legal format. They are fully out of international legality. They are a forefront for the Beast. Maybe there are several competing Beasts. But they have the same objective: A New or One World Order (NWO, or OWO).

    These obscure individuals are running, for example, The World Economic Forum (WEF – representing Big Industry, Big Finance and Big Fame), the Group of 7 – G7, the Group of 20 – G20 (the leaders of the economically” strongest” nations). There are also some lesser entities, called the Bilderberg Society, the Council on Foreign Relations (CFR), the Chatham House and more. The members of all of them are overlapping. Even this expanded forefront combined represents less than 0.001%. They all have superimposed themselves over sovereign national elected and constitutional governments, and over THE multinational world body, the United Nations, the UN.

    In fact, they have coopted the UN to do their bidding. UN Director Generals, as well as the DGs of the multiple UN-suborganizations, are chosen – mostly by the US, with the consenting nod of their European vassals – according to the candidate’s political and psychological profile. If his or her ‘performance’ as head of the UN or head of one of the UN sub-organizations fails, his or her days are counted. Coopted or created by the Beast(s) are also the European Union, the Bretton Woods Organizations, World Bank and IMF, as well as the World Trade Organization (WTO), and – make no mistake – the International Criminal Court (ICC) in The Hague. It has no teeth. Just to make sure the law is always on the side of the lawless.

    In addition to the key international financial institutions, WB and IMF, there are the so-called regional development banks and similar financial institutions, keeping the countries of their respective regions in check. In the end it’s financial or debt-economy that controls everything. Western neoliberal banditry has created a system, where political disobedience can be punished by economic oppression or outright theft of national assets in international territories. The system’s common denominator is the (still) omnipresent US-dollar.

    The supremacy of these obscure unelected individuals becomes ever more exposed. We, the People, consider it “normal” that they call the shots, not what we call – or once were proud of calling, our sovereign nations and sovereignly elected governments. They have become a herd of obedient sheep. The Beast has gradually and quietly taken over. We haven’t noticed. It’s the salami tactic: You cut off slice by tiny slice and when the salami is gone, you realize that you have nothing left, that your freedom, your civil and human rights are gone. By then it’s too late. Case in point is the US Patriot Act. It was prepared way before 9/11. Once 9/11 “happened”, the Patriot Legislation was whizzed through Congress in no time – for the people’s future protection – people called for it for fear – and – bingo, the Patriot Act took about 90% of the American population’s freedom and civil rights away. For good.

    We have become enslaved to the Beast. The Beast calls the shots on boom or bust of our economies, on who should be shackled by debt, when and where a pandemic should break out, and on the conditions of surviving the pandemic, for example, social confinement. And to top it all off, the instruments the Beast uses, very cleverly, are a tiny-tiny invisible enemy, called a virus, and a huge but also invisible monster, called FEAR. That keeps us off the street, off reunions with our friends, and off our social entertainment, theatre, sports, or a picnic in the park.

    Soon the Beast will decide who will live and who will die, literally – if we let it. This may be not far away. Another wave of pandemic and people may beg, yell and scream for a vaccine, for their death knell, and for the super bonanza of Big Pharma and towards the objectives of the eugenicists blatantly roaming the world – . There is still time to collectively say NO. Collectively and solidarily.

    Take the latest case of blatant imposture. Conveniently, after the first wave of Covid-19 had passed, at least in the Global North, where the major world decisions are made, in early June 2020, the unelected WEF Chairman, Klaus Schwab, announced “The Great Reset”. Taking advantage of the economic collapse – the crisis shock, as in “The Shock Doctrine” – Mr. Schwab, one of the Beast’s frontrunners, announces openly what the WEF will discuss and decide for the world-to-come in their next Davos Forum in January 2021. For more details see here.

    Will, We, The People, accept the agenda of the unelected WEF?

    It will opportunely focus on the protection of what’s left of Mother Earth; obviously at the center will be man-made CO2-based “Global Warming”. The instrument for that protection of nature and humankind will be the UN Agenda 2030 – which equals the UN Sustainable Development Goals (SDG). It will focus on how to rebuild the willfully destroyed global economy, while respecting the (“green”) principles of the 17 SDGs.

    Mind you, it’s all connected. There are no coincidences. The infamous Agenda 2021 which coincides with and complements the so-called (UN) Agenda 2030, will be duly inaugurated by the WEF’s official declaration of The Great Reset, in January 2021. Similarly, the implementation of the agenda of The Great Reset began in January 2020, by the launch of the corona pandemic – planned for decades with the latest visible events being the 2010 Rockefeller Report with its “Lockstep Scenario”, and Event 201, of 18 October in NYC which computer-simulated a corona pandemic, leaving within 18 months 65 million deaths and an economy in ruin, programmed just a few weeks before the launch of the actual corona pandemic. See COVID-19, We Are Now Living the “Lock Step Scenario“; and Global Capitalism, “World Government” and the Corona Crisis; and Robert F. Kennedy, Jr.: Moderna’s Clinical Trial Results for its Groundbreaking Covid 19 Vaccine could not be much worse“.

    The racial riots, initiated by the movement Black Lives Matter, funded by Soros & Co., following the brutal assassination of the Afro-American George Floyd by a gang of Minneapolis police, and spreading like brush-fire in no time to more than 160 cities, first in the US, then in Europe – are not only connected to the Beast’s agenda, but they were a convenient deviation from the human catastrophe left behind by Covid-19. See  The “Corona Hoax”, The Proliferation of Racial Riots: Towards a Military Lockdown?

    The Beast’s nefarious plan to implement what’s really behind the UN Agenda 2030 is the little heard-of Agenda ID2020. See The Coronavirus COVID-19 Pandemic: The Real Danger is “Agenda ID2020“. It has been created and funded by the vaccination guru Bill Gates, and so has GAVI (Global Alliance for Vaccines and Immunizations), the association of Big Pharma – involved in creating the corona vaccines, and which funds along with the Bill and Melinda Gates Foundation (BMGF) a major proportion of WHO’s budget.

    The Great Reset, as announced by WEF’s Klaus Schwab, is supposedly implemented by Agenda ID2020. It is more than meets the eye. Agenda ID2020 is even anchored in the SDGs, as SDG 16.9 “by 2030 provide legal [digital] identity for all, including free birth registration”. This fits perfectly into the overall goal of SDG 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.”

    Following the official path of the UN Agenda 2030 of achieving the SDGs, the ‘implementing’ Agenda ID2020 – which is currently being tested on school children in Bangladesh – will provide digitized IDs possibly in the form of nano-chips implanted along with compulsory vaccination programs, will promote digitization of money and the rolling out of 5G – which would be needed to upload and monitor personal data on the nano chips and to control the populace. Agenda ID2020 will most likely also include ‘programs’ – through vaccination? – of significantly reducing world population. Eugenics is an important component in the control of future world population under a NOW/OWO – see also Georgia Guidestones, mysteriously built in 1980.

    The ruling elite used the lockdown as an instrument to carry out this agenda. Its implementation would naturally face massive protests, organized and funded along the same lines as were the BLM protests and demonstrations. They may not be peaceful – and may not be planned as being peaceful. Because to control the population in the US and in Europe, where most of the civil unrest would be expected, a total militarization of the people is required. This is well under preparation.

    In his essay “The Big Plantation” John Steppling reports from a NYT article that a “minimum of  93,763 machine guns, 180,718 magazine cartridges, hundreds of silencers and an unknown number of grenade launchers have been provided to state and local police departments in the US since 2006. This is in addition to at least 533 planes and helicopters, and 432 MRAPs — 9-foot high, 30-ton Mine-Resistant Ambush Protected armored vehicles with gun turrets and more than 44,900 pieces of night vision equipment, regularly used in nighttime raids in Afghanistan and Iraq.” He adds that this militarization is part of a broader trend. Since the late 1990s, about 89 percent of police departments in the United States serving populations of 50,000 people or more had a PPU (Police Paramilitary Unit), almost double of what existed in the mid-1980s. He refers to these militarized police as the new Gestapo.

    Even before Covid, about 15% to 20% of the population was on or below the poverty line in the United States. The post-covid lockdown economic annihilation will at least double that percentage – and commensurately increase the risk for civil turbulence and clashes with authorities – further enhancing the reasoning for a militarized police force.

    None of these scenarios will, of course, be presented to the public by the WEF in January 2021. These are decisions taken behind closed doors by the key actors for the Beast. However, this grandiose plan of the Great Reset does not have to happen. There is at least half the world population and some of the most powerful countries, economically and militarily – like China and Russia – opposed to it. “Reset” maybe yes, but not in these western terms. In fact, a reset of kinds is already happening with China about to roll out a new People’s Bank of China backed blockchain-based cryptocurrency, the crypto RMB, or yuan. This is not only a hard currency based on a solid economy, it is also supported by gold.

    While President Trump keeps trashing China for unfair trade, for improperly managing the covid pandemic, for stealing property rights – China bashing no end – that China depends on the US and that the US will cut trading ties with China – or cut ties altogether, China is calling Trump’s bluff. China is quietly reorienting herself towards the ASEAN countries plus Japan (yes, Japan!) and South Korea, where trade already today accounts for about 15% of all China’s trade and is expected to double in the next five years.

    True, China’s exports did decline by about 3% in April 2020 as a result of the covid-lockdown, but US exports decreased by almost 8% in the same period. It is clear that the vast majority of US industries could not survive without Chinese supply chains. The western dependence on Chinese medical supplies is particularly strong. Let alone Chinese dependence by US consumers. In 2019, US total consumption, about 70% of GDP, amounted to $13.3 trillion, of which a fair amount is directly imported from China or dependent on ingredients from China.

    The WEF-masters are confronted with a real dilemma. Their plan depends very much on the dollar supremacy which would continue to allow dishing out sanctions and confiscating assets from those countries opposing US rule; a dollar-hegemony which would allow imposing the components of The Great Reset scheme as described above.

    At present, the dollar is fiat money, debt-money created from thin air. It has no backing whatsoever. Therefore, its worth as a reserve currency is increasingly decaying, especially vis-à-vis the new crypto-yuan from China. In order to compete with the Chinese yuan, the US Government would have to move away from its monetary Ponzi-scheme, by separating itself from the 1913 Federal Reserve Act and print her own US-economy- and possibly gold-backed (crypto) money – not fiat FED-money, as is the case today. That would mean cutting the more than 100-year old ties to the Rothschild and Co. clan-owned FED, and creating a real peoples-owned central bank. Not impossible, but highly improbable. Here, two Beasts might clash, as world power is at stake.

    Meanwhile, China, with her philosophy of endless creation, would continue forging ahead unstoppably with her mammoth socioeconomic development plan of the 21st Century, the Belt and Road Initiative, connecting and bridging the world with infrastructure for land and maritime transport, with joint research and industrial projects, cultural exchanges – and not least, multinational trade with “win-win” characteristics, equality for all partners – towards a multi-polar world, towards a world with a common future for mankind.

    Today already more than 120 countries are associated with BRI – and the field is wide open for others to join – and to defy, unmask and unplug The Great Reset of the West.

    The Shallow Deep-State Goes Deeper as It Moves Toward Martial Law

    I am not trying to be cute and play with words.  That title is meant to convey what it says, so let me explain.

    The people who own the United States and their allies around the world have a plan.  It is so simple that it is extremely devious.  Their plan has been in operation for many years.  It has most people bamboozled because it is Janus-faced by design, overt one day, covert the next, but both faces operate under one controlling head.  Some call this head the Deep-State. Even the Deep-State calls itself the Deep-State in a double fake. It is meant to make people schizoid, which it has.

    The so called Deep-State has been given many names over the years.  I will not bore you with them, except to say that it was once called the power elite.  They are the upper classes, the super wealthy who control the financial institutions, Wall Street, the intelligence agencies, the corporate media, the internet, the military, and the politicians. They are multinational.

    They are the wealthy nihilists who care not one jot for the rest of the world. They operate in secret, yet also run above-ground organizations such as the World Bank (WB), the World Health Organization (WHO), the U.S. Agency for International Development (USAID), etc. Their bloodstream runs on war, the preparations for war, and economic exploitation of the world.  All wealthy people are not party to their machinations, but they are almost always complicit in profiting from their crimes, unless they are very stupid.  Or play stupid.  Since I am talking about a great confidence game, that is quite common.

    Other people, all other classes, the poor, middle-classes, even a portion of the upper middle classes mean nothing to the power elite unless they can serve their interests.  They are always waging class warfare to maintain their domination and control. Their recent version of this class war is underway in the United States and in many other countries. As of today, they are using race fears to create chaos and outrage to disguise their class warfare that is leading to the imposition of martial law.  Soon they will shift back to the coronavirus fraud. Back and forth, in and out, now you see it, now you don’t.

    By shutting down the world’s economy, they have destroyed the livelihoods of hundreds of millions of people and are creating poverty on a vast scale. Much famine and death will follow.  In the United States alone, 40-45 million people have applied for unemployment insurance and job loss is the greatest since the Great Depression. The reason:  a massive propaganda campaign created around Covid-19 fear porn.

    This class war is not new, but it is conducted today at warp speed since these people control the technology that has allowed them vastly increased power. In the U.S.A., it is conducted as usual under the guise of Republicans versus Democrats, the two representative political factions that are the faces of the controlled “opposition,” who are actually allies in the larger confidence game.  Keeping “hope” alive is central to their strategy.  Mind control is what they do.  Speed is their greatest ally.  Race is central to their game plan.  They always say they are protecting us.

    It is all a lie.  A show.  Nothing but a spectacle for the gullible.  A shadow play.

    The current president, Donald Trump, is the choice of one faction of these psychopaths.  This year, Joseph Biden, is the shaky presumptive choice of the other. Both are deranged puppets.  Regular people fight over who is better or worse because they are living inside what Jim Garrison, the former District Attorney of New Orleans and the only person to ever bring a trial in the assassination of President Kennedy, long ago called “the doll’s house.”

    It is a place where illusions and delusions replace reality.  It is 24/7 propaganda. It keeps people engaged. It gives them something to argue about, one team to root for.  It’s a sport. It is similar to Plato’s Cave.  Fire has been replaced with electronic lighting and screens, but little has changed.

    The sick system of exploitation is oiled and greased with the tantalizing bait of hope dangled for the masses.  Shit slogans like “We are all in this together.”

    But there is no hope for this system.

    But when the propaganda is so slick that it creates a double-bind, people grasp at any neurotic “solution” out of frustration.  As I write, huge angry crowds are out in the streets protesting the sick murder of a black man, George Floyd, by a white cop. Police infiltrators have started violent looting.  Chaos reigns, as planned. Such killings are routine, but someone turned a switch for this one when just yesterday operation corona lockdown with its fear and fake statistics had everyone cowering behind masks at home as the economic lives of vast numbers were destroyed in a flash.  For today, the masquerade is in the streets. Many good people are caught up in it.  In a few days the scene will shift and we can expect another “bombshell.”  These surprises will keep happening one after another for the foreseeable future.  Shock and Awe for the home crowd.  The war come home.  The controllers know you can’t wage war against the rest of the world unless you do so at home as well.

    When one group within the deep-state won the internecine battle in 2016 and “shocked” the country with the election of the comical Trump, the other deep-state group called the Democrats, immediately set in motion a plan to try to oust him or to make it seem as if they were trying to do so. The naïve thought this may happen, and their deluded yearning has been stretched until the 2020 presidential election, although some probably think Trump might go before then.  He won’t.

    So many people have destroyed their minds and relationships because they can’t see through the fraud.

    Early in 2017, as the outgoing front man for the CIA/warfare/Wall St. state, Barack Obama, left his time bombs for the future. The pink pussy hats were sent out marching to open the show.  Russia-gate was launched; eventually impeachment was tried. The Democrats. with their media allies, went on a non-stop attack. It was all so obvious, so shallow in its intent, as it was meant to be. But millions who were in the doll house were outraged, obsessed, frantic with rage.  They bought the con-game. Both those who hate Trump and those that love him have spent almost four years foaming at the mouth, breathless.

    Trump was cast as the personification of evil.  A relentless attack on Trump began and has continued all this time. It is pure theater. Trump remains at the helm, as planned, holding the Bible aloft in a style reminiscent of a Bible thumping Klansman from The Birth of a Nation. Only the ignorant thought it might have been different.  He knows how to perform his role. He is a fine actor.  He outrages, spews idiocies, as he is supposed to do. That Mussolini style stance, that absurd hair, the pout.  Just perfect for an arch-villain. It’s so obvious that it isn’t. Herein lies the trick.

    And who profits from his policies?  The super-rich, of course, the power-elite.  Who just stole 6-10 trillion dollars of public money under the hilariously named Cares Act?  The super-rich, of course, the deep-state.  It was a bi-partisan bank robbery from the public treasury carried out under the shadow of Covid-19, whose phony hyped up numbers were used to frighten the populace into lockdown mode as the Republican and Democratic bank robbers smiled in unison and announced forcefully, “We care!”  We are here to protect you.

    Remember how Barack Obama “saved” us by bailing out Wall St. and the big banks to the tune of trillions in early 2009.  Then waged unending wars. Left black Americans bereft.  He cared, too, didn’t he?  Our leaders always care.

    Obama was the black guy in the white hat. Trump is the white guy in the black hat. Hollywood on the Potomac, as Gary Wills called it when Ronald Reagan was the acting-president.  Now Obama’s war-loving side-kick, the pale-faced, twisted talking Biden is seriously offered as an alternative to the Elvis impersonator in the White House.  This is the false left/right dichotomy that has the residents of the doll’s house in its grip.

    If you can’t see what’s coming, you might want to break out of the house, take off your mask, go for a walk, and take some deep breaths.  The walls are closing in.

    Knees will be on everyone’s necks in the months ahead.