“Polarization” is the word most associated with the positions of the Republicans and Democrats in Congress. The mass media and the commentators never tire of this focus, in part because such clashes create the flashes conducive to daily coverage.
The quiet harmony between the two parties created by the omnipresent power of Big Business and other powerful single-issue lobbyists is often the status quo. That’s why there are so few changes in this country’s politics.
In many cases, the similarities of both major parties are tied to the fundamental concentration of power by the few over the many. In short, the two parties regularly agree on anti-democratic abuses of power. Granted, there are always a few exceptions among the rank & file. Here are some areas of Republican and Democrat concurrence:
1. The Duopoly shares the same stage on a militaristic, imperial foreign policy and massive unaudited military budgets. Just a couple of weeks ago, the Pentagon budget was voted out of a House committee by the Democrats and the GOP with $24 billion MORE than what President Biden asked for from Congress. Neither party does much of anything to curtail the huge waste, fraud, and abuse of corporate military contractors, or the Pentagon’s violation of federal law since 1992 requiring annual auditable data on DOD spending be provided to Congress, the president, and the public.
2. Both Parties allow unconstitutional wars violating federal laws and international treaties that we signed onto long ago, including restrictions on the use of force under the United Nations Charter.
3. Both Parties ignore the burgeoning corporate welfare subsidies, handouts, giveaways, and bailouts turning oceans of inefficient, mismanaged, and coddled profit-glutted companies into tenured corporate welfare Kings.
4. Both Parties decline to crack down on the nationwide corporate crime spree. They don’t even like to use the phrase “corporate crime” or “corporate crime wave.” They prefer to delicately allude to “white-collar crime.”
Trillions of dollars are at stake every year, yet neither party holds corporate crime hearings nor proposes an update of the obsolete, weak federal corporate criminal laws.
In some instances, there is no criminal penalty at all for willful and knowing violations of safety regulatory laws (e.g., the auto safety and aviation safety laws). Senator Richard Blumenthal (D-CT) is trying to find just one Republican Senator to co-sponsor the “Hide No Harm Act” that would make it a crime for a corporate officer to knowingly conceal information about a corporate action or product that poses the danger of death or serious physical injury to consumers or workers.
5. Both Parties allow Wall Street’s inexhaustibly greedy CEOs to prey on innocents, including small investors. They also do nothing to curb hundreds of billions of dollars in computerized billing fraud, especially in the health care industry. (See, License to Steal by Malcolm K. Sparrow and a GAO Report about thirty years ago).
6. The third leading cause of death in the U.S. is fatalities from preventable problems in hospitals and clinics. According to the Johns Hopkins School of Medicine study in 2015, a conservative estimate is that 250,000 people yearly are dying from preventable conditions. Neither Congress nor the Executive Branch has an effort remotely up to the scale required to reduce this staggering level of mortality and morbidity. Nor is the American Medical Association (AMA) engaging with this avoidable epidemic.
7. Both Parties sped bailout of over $50 billion to the airline industry during Covid-19, after the companies had spent about $45 billion on unproductive stock buybacks over the last few years to raise the metrics used to boost executive pay.
8. Both Parties starve corporate law enforcement budgets in the Justice Department, the regulatory agencies, and such departments as Labor, Agriculture, Interior, Transportation, and Health and Human Services. The Duopoly’s view is that there be no additional federal cops on the corporate crime beat.
9. Both Parties prostrate themselves before the bank-funded Federal Reserve. There are no congressional audits, no congressional oversight of the Fed’s secret, murky operations, and massive printing of money to juice up Wall Street, while keeping interest rates near zero for trillions of dollars held by over one hundred million small to midsize savers in America.
10. Both Parties are wedded to constant and huge bailouts of the risky declining, uncompetitive (with solar and wind energy) nuclear power industry. This is corporate socialism at its worst. Without your taxpayer and ratepayer dollars, nuclear plants would be closing down faster than is now the case. Bipartisan proposals for more nukes come with large subsidies and guarantees by Uncle Sam.
11. Both Parties hate Third Parties and engage in the political bigotry of obstructing their ballot access (See: Richard Winger’s Ballot Access News), with hurdles, harassing lawsuits, and exclusions from public debates. The goal of both parties is to stop a competitive democracy.
12. Both Parties overwhelmingly rubber-stamp whatever the Israeli government wants in the latest U.S. military weaponry, the suppression of Palestinians and illegal occupation of the remaining Palestinian lands, and the periodic slaughter of Gazans with U.S. weapons. The Duopoly also supports the use of the U.S. veto in the UN Security Council to insulate Israel from UN sanctions.
13. Continuing Republican Speaker Newt Gingrich’s debilitating internal deforms of congressional infrastructures, the Democrats have gone along with the GOP’s shrinking of committee and staff budgets, abolition of the crucial Office of Technology Assessment’s (OTA) budget, and concentration of excessive power in the hands of the Speaker and Senate leader. This little noticed immolation reduces further the legislature’s ability to oversee the huge sprawling Executive Branch. The erosion of congressional power is furthered by the three-day work week Congress has reserved for itself.
14. Even on what might seem to be healthy partisan differences, the Democrats and the GOP agree not to replace or ease out Trump’s Director of the Internal Revenue Service, a former corporate loophole tax lawyer, or the head of the U.S. Postal Service, a former profiteer off the Post Office who will shortly curtail service even more than he did in 2020 (See: First Class: The U.S. Postal Service, Democracy, and the Corporate Threat, by Christopher W Shaw).
Right now, both Parties are readying to give over $50 billion of your tax money to the very profitable under-taxed computer chip industry companies like Intel and Nvidia, so they can make more profit-building plants in the U.S. These companies are loaded with cash. They should invest their own money and stop the stock buyback craze. Isn’t that what capitalism is all about?
Both Parties vote as if the American middle-class taxpayer is a sleeping sucker. Politicians from both parties exploit voters who don’t do their homework on voting records and let the lawmakers use the people’s sovereign power (remember the Constitution’s “We the People”) against them on behalf of the big corporate bosses.
Sleep on America, you have nothing to lose but your dreams.
What do nations care about the cost of war, if by spending a few hundred millions in steel and gunpowder they can gain a thousand millions in diamonds and cocoa? ― W.E.B. DuBois
He died. In an assisted (sic) care (oxymoron) home (nope) facility/prison (yes). Homeless for a few years; he was a photographer; and his life went to shit in four years. He overspent on photo equipment, a studio, gave away shoots, and alas, he ended up living in his car, putting the entire inventory in an expensive storage unit, and then he tried surviving.
I met him when I was a social worker helping him as a short-term veteran (Army, 12 months, no combat) in a housing program, 24/7, where my job was to get him on his feet, get his VA benefits together, get him back on some financial track, and getting him inspired to live.
He was curious, could run in mixed company, and he was fragile. That is the way of families — estranged, bizarre old men (father) moving on with second and third wives, and just giving shit about offspring.
I worked for the Starvation Army, one bloody year, and you can read about that hell hole of a fake (maybe not) religious wacko institution (poverty pimps): Here, Here and Here, over at Dissident Voice.
The preachers and lecturers deal with men of straw, as they are men of straw themselves. Why, a free-spoken man, of sound lungs, cannot draw a long breath without causing your rotten institutions to come toppling down by the vacuum he makes. Your church is a baby-house made of blocks, and so of the state.
…The church, the state, the school, the magazine, think they are liberal and free! It is the freedom of a prison-yard.
He lost one leg to diabetes, and it was typical – small black dot on his foot, and then, living the rough life, cold weather chills in a vehicle, long walks in the cold when the car broke down. Bad diet, and stress.
They chopped it (the leg) off at the knee. He was having eye/vision issues. He was a smart guy, even did a trivia night for his fellow homeless vets and their families. His memory, though, was flagging. He never wanted to learn how to deal with a prosthetic leg. He was getting more and more confused, obsessed with CNBC-type shit, and anti-trump disease to the max.
He had to be reminded of everything, daily, and we worked on getting him housing vouchers, and, alas, he was finally getting Social Security, and then, the VA took care of some of his stuff.
He went to a couple of my fiction readings in Portland, and he was always there for my movie nights to watch some documentary that pushed to push against the military mindset, and he was there to listen to me rail and rail.
He found out his estranged father left some money to him when he died. It was a windfall, and my vet could not handle all the information and financial asides. It took two years to get that money, and he gave one leech a $10,000 loan for some scheme for a new dog food patent (right!), and alas, that leech never paid him back. The vet’s dead, and this deadbeat who pried money from him has no reason to pay back.
Before death, and after the Starvation Army, my vet got into an apartment (with my help), and they screwed him over. The one ground floor apartment with a large step and stoop, impossible for him to navigate his wheelchair, that wasn’t in the bargain. He already signed the lease and wanted out of the Starvation Army. He and I worked on getting the apartment to build a stone or cement pathway from the back slider, to the parking lot, so he could get his Uber or handicap buses trips.
It was another eye opener – largest (now #3) property management company in the USA for apartments, out of Texas, and not one of them responded to my emails or calls. Terrible, since that has never happened to me ever in my life. I have always gotten responses, even harsh ones back. From cops, senators, CEOs, IRS, more. These people are human leeches.
Pinnacle comes in at number three in the rankings for the largest property managers in the country, with 172,000 units under management. The company manages a diverse array of assets, including mixed-use properties, commercial properties, affordable developments, senior properties, and student housing. It also specializes in the turnaround of distressed assets and assisting in the management of HOAs and condo associations. Pinnacle is headquartered in Dallas, Texas, and is currently headed by President and CEO Rick L. Graf.
So think about that. He had to pay for this walkway, and it was an improvement for that unit, to say the least, so why should he have to pay? He had volunteers with a construction company and from the Rotary Club, and that Pinnacle nixed it. They had to have their vetted company. We are talking about $500 for the job using volunteers and a bonded contractor, versus the $2500 through Pinnacle’s outfit.
That apartment life did not last long. He was having major choking issues, and cognitive ones. He wasn’t eating right. No phone calls taken, or texts.
We are talking about a man, 68, no family. He had no one but a friend he met at the Rotary Club and acquaintances. And me, his former social worker. Who happened to move on the Coast, so I was 3 hours from him one way, via car.
He had to leave the apartment, to a care center (sic). That apartment would not give him a break, since he had to break the lease because of medical reasons. No big deal he was a veteran.
These are parasites.
Then, he ends up in one of the larger senior living places, and that was a living hell for him as he slipped more and more, had no decent meals, and never had a case manager for months. Then, lockdown, March 2020.
Brookdale Senior Living owns and operates over 700 senior living communities and retirement communities in the United States. Brookdale was established in 1978 and is based in Brentwood, Tennessee. In the late 1990s and early 2000s, Fortress Investments became the majority owner of Brookdale, holding approximately 51% of its share. Currently, Glenview Capital Management (a hedge fund) holds the largest number of shares. Brookdale has approximately 70,000 staff members and 100,000 residents. As of 2018, it was the largest operator of senior housing in the United States. In 2021, a New York Times investigation revealed that Brookdale submitted wrong and manipulated data to the government, thus inflating ratings of the quality of care in Brookdale facilities. Shortly thereafter, the state of California filed a lawsuit against Brookdale, alleging that the company manipulated the federal government’s nursing-home ratings system.
He was paying out of his social security and this money he got from his father: $4100 a month plus another $2000 for “special services.” There were no “Special services.” This happens every minute in the USA. Imagine, a society with how many aging people? How many with chronic illness? Who the fuck has $6100 a month to pay for these scabies outfits?
Again, we can either prepare for the ultimate disaster that disaster capitalism gives us, or, put our heads back in that sand:
In 10 years, more than half of middle-income Americans age 75 or older will not be able to afford to pay for yearly assisted living rent or medical expenses, according to a study published Wednesday in Health Affairs.
The researchers used demographic and income data to project estimates of a portion of the senior population, those who will be 75 or older in 2029, with a focus on those in the middle-income range — currently $25,001 to $74,298 per year for those ages 75 to 84.
And it doesn’t look good for that group because of the rising costs of housing and health care. The researchers estimated that the number of middle-income elders in the U.S. will nearly double, growing from 7.9 million to 14.4 million by 2029. They will make up the biggest share of seniors, at 43%. — Source
This three paragraphs cited above are from a two-year-old article. You think the plandemichas assisted with this? Socialism is about planning for and building out facilities and holistic ways to help the aging, the poor, the sick. Capitalism is about planning for and setting out a million ways to fleece and fleece people. Maybe blood and plasma and bone marrow transplants are the only way to get through. Or, just donating body and soul to Big Pharma for their Mengele stuff. A 10 by 10 room, with a roommate, and mac’n’cheese six days a week, fasting on Thursdays.
This is how America runs, as a continuing criminal enterprise, an elaborate multi-layered system of bilking and outright theft, casino capitalism on steroids, and zero concern by the majority of the people with investments, banks (owners) and the elected officials to make safety nets. Who the hell can afford $6100 a month for a studio apartment? Crappy food? Surly workers (underpaid, over worked)? This is prison on a whole other level.
He had to go to the VA, via ambulance, and with taxis, a few times with this female friend.
She got him to get a will prepared, and to get some things in order, but he was failing, vacant, not there, and alas, he died August 2020 age 70, and that should never have happened. If I had a community, 100 acres, gardens, small (tiny) homes, pets, chickens, and community conversations, he would NOT have died. Life expectancy dropped because he ended up in an apartment, isolated, alone, scared, and with deeper cognitive issues. A supportive community getting him off his duff, getting him involved, would have saved him. Could save millions of Americans. Hundreds of millions of global citizens.
So who owns the land, the farms, the concepts of living and aging in place, intergenerational, cooperatives, decent air and water? Dog-eat-dog. And who thinks that a coronavirus lives and breathes in the summer? Oh, that flu season, now 365 days a year, some rain or shine.
You know, I didn’t get a chance to talk to this vet too much about his concerns around lockdown, the SARS-CoV2, and, well, like many things once a person ages, sometimes talking real stuff about real things is too much for a mind that is going south.
Not all pandemics are caused by the obvious suspects. Though the media have us whipped up into a frenzy over a select cast of superstar pathogens, the villain in the next global drama may be lurking in the unlikeliest of places; perhaps it hasn’t even been discovered yet.
“I think the chances that the next pandemic will be caused by a novel virus are quite good,” says Kevin Olival, a disease ecologist from the EcoHealth Alliance, a US-based organisation that studies the links between human and environmental health. “If you look at Sars, which was the first pandemic of the 21st Century, that was a previously unknown virus before it jumped into people and spread round the world. So there’s a precedent there – there are many, many viruses out there in the families that we’re concerned with.”
Out of millions of viruses on the planet, very few have ever caused a major outbreak Olival is not alone. Earlier this year, Microsoft co-founder Bill Gates warned that the next pandemic could be something we’ve never seen before. He suggested that we prepare for its emergence as we would for a war.
Meanwhile, the WHO is so firmly convinced that they have updated their list of pathogens most likely to cause a massive, deadly outbreak to include “Disease X” – a mystery microorganism which hasn’t yet entered our radar. By Zaria Gorvett, 13th November 2018
The irony of ironies, I was talking about things like this way before that BBC (bad bad organization) put out these pabulum pieces as quoted about NOV. 2018, a year before the official Wuhan and Italian flu hit (sic).
The death of the vet, of course, create a nightmare for his friend, designated as the executor of his “estate.”
Comcast screwed the estate by keeping service going (charging $90 a month) even though he was dead. He had a storage unit that was charging $215 a month. That Brookdale ended up hitting the estate with more bills in the thousands. The apartment complex, Pinnacle, was looking for several thousand for fees and penalties. The bills came in, and the collection agencies rose to the occasion.
And this vet’s friend (sic) who had borrowed the money paid nothing back.
It is May, 2021, and those proceeds to his small estate have not yet been disbursed. Pandemic lockdown has hurt the process. Two of the beneficiaries are a free clinic that attended to this vet’s needs during his hours of need. And a food pantry out of a church who also helped him with food and electricity money.
He probably had $340,000 total, most of it in a Morgan Stanley account. Mind you, this is all from his dead old man, and the vet had not expected that. There are tax filing fees, moving expenses for his stuff to a furniture nonprofit, fees for the storage unit. Some prescription bills and other outstanding bills that should have just vanished. The creditors came out of the woodwork, and because I was not a family member, brother, say, of nephew, all those bills got paid. If I had been that family member, I would/could have wrangled many of the bills into either zeroed out bills, or some with a dime on the dollar. It takes letter writing, advocating, and pounding down these leeches.
As of May 18, 2021, the five beneficiaries – two nonprofits in need – have not seen a cent. Because the executor has had to do so much, and the fact the vet had no family, my vet’s estate is getting whittled down by that great American tick – middle men, fees, penalties, taxes, this and that amount extracted as part of the ugly middle and middle man/woman mentality of the USA.
Some people came up to the plate and did pro bono work, but because I was close to this whole thing, and talked with the executor a lot, I see how the total amount that could have been distributed five ways — $70,000 each – might now be even close to $60,000 each. What the beneficiaries don’t know won’t hurt them, right? All those leeches sucking the dead, well, they just don’t know it. It was money they were not expecting, so what’s the big deal.
That’s not the point. This is a minute-to-minute situation in USA. Millions of people and their families get screwed in the tens of billions each year by the ticks and leeches. I have had to deal with PayDay loan companies, repo men, collection agencies, courts, companies, telecoms and hospitals and others who have their hands out for more and more cuts of many of my clients who were making $730 a month in Social Security, and some way less. I contacted hospitals and businesses and others to get fees and bills reduced or zeroed out.
Young or old, many of the homeless people I worked with could NEVER work in a competitive work environment. Their health and minds are shot to shit. Much of that (PTSD and complex PTSD) was caused by the Armed Forces, and by the systems of punishment that hit these guys and gals after departing that shit hole.
Not everything in their lives is someone else’s fault and responsibility. They made bad choices. Booze and drugs, you betcha, took them down. Bad food, bad thinking smoking, and more, deteriorated them at a young age. Trying to pay rent, evictions, etc., all that adds up to the weathering.
Living in a truck or car or tent or in a garage, that also weathers these people. In the end, pre-Covid and now during it, these people are throwaways. The Stock Market is busting at the seams. Zoom school, and Zoom work for the middle class, the new normal abnormal. The rest of the workforce or citizen? Screwed blued and tattooed.
The irony is that my vet friend “made” more money in that investment account dead than when he was alive. And we know the great history of Morgan Stanley.
I’m writing this because I am delaying something bigger, and poetry, tied to the absolute hell hole that is American Zionism a la Israeli Zionism. War crimes that are ten thousand George Floyd’s “I Can’t Breathe” murder.
And I can’t wrap my head around this in a rural community. No marching here, no groups, and hell, in France and Germany and England, it is illegal to peacefully march for Palestine.
I’m thinking about Canada and USA, supporting murderous arms and murderous policies of that racist “country.” I am thinking about my vet’s account at Morgan Stanley:
The broker got him stocks in Walmart, Northrop Grumman, Microsoft, Facebook, Google, Blackstone, BlackRock. This guy was a friend, and asked about investing, and I had a guy in mind, but my buddy went with a friend of the Rotary who said this broker with Morgan Stanley would take care of him. My buddy wanted social responsible investing, and that, alas, is yet another bullshit marketing tool of the masters of the casino capitalist Walled Street.
Northrop Grumman’s medium-caliber cannons boast unrivaled reliability and effectiveness. When paired with our exceptional training, services, certified accessories and warranties, the result is exceptional value and performance over the entire gun system lifecycle. The company has produced solid propulsion systems for the Ground-based Midcourse Defense interceptor, as well as for the Trident II D-5 and Minuteman III strategic missiles. Northrop Grumman has 100 percent propulsion success on strategic production motors. For nearly half a century, Northrop Grumman and its heritage companies have been designing and developing bomb fuses that have stayed on pace with the technological advancements of the time.
How many parts in a missile or Bushmaster automatic cannon? Parts equal jobs. Parts designed equal academic jobs. Think of all those people in all those companies, in factories and warehouses, and manufacturing plants, and marketing plants, paint plants, PR plants, all of them down to the web master and the photographer making money on dead Palestinian children. It comes down to that.
I have relatives whose kids (grown adults) are blonde beauties in the sense of USA beauty, and they are tall, and lean, and they are pulling down $120,000 a year as 28 year old’s, working for one of those California based military death companies.
Here are California Dreaming Death Machine (139) openings for just one hiring site —
In 2019, here are the top states, but remember, those figures are not the true amount of money made on death since so much more tied to offensive weapons and space should be factored in. Sort of the multiplier effect of all the businesses service and hard industries making bank because of those contractors and their employees and their subcontractors and their employees living and eating the California dream, or whichever state listed is the dream. Forget about the billions in Hollywood and their enormous entanglement of people making money off those Tom Clancy, et al crap movies. Death, death, death, even in the form of liberal actors spewing off on this or that thing, but in the end, they love the DoD.
California: $66.2 billion
Virginia: $60.3 billion
Texas: $54.8 billion
Florida: $29.8 billion
Maryland: $26.1 billion
Connecticut: $19.7 billion
Pennsylvania: $18.1 billion
Washington: $17.8 billion
Alabama: $16.0 billion
Massachusetts: $15.8 billion
So, I am having a difficult time focusing, with this Industrial Complex tied to killing Palestinians, and so many other people’s of the world, through the training, outfitting, arming, and educating of the despots of the world. This is a telling interview. Malak Mattar, Dan Cohen and Miko Peled join MintCast to discuss the ongoing Israeli violence in the Gaza Strip. See interview here.
I am still processing all of this, trying to listen to Zoom continuing education credited things like trauma and social service workers in a time of lockdown and Covid-19. Things like that, which are bullshit, really. Just amazing bullshit now on Zoom, most of it. But I am just cruising through these people who believe they are thinking and saying something new.
BAR’s poet in residence Raymond Nat Turner is an accomplished performing artist. You can find much more of his work at https://www.youtube.com/user/zigilow
BAR’s poet in residence Raymond Nat Turner is an accomplished performing artist. You can find much more of his work at YouTube.
The acrobats are back…(gimme a bleepin’ break!)
The acrobats are back—riding bareback and backwards on Donkeys! They’re back juggling hocus-pocus focus groups; Back, spinning Wall Street straw into fools’ gold for the war- mongering mouth of a punch drunk politician. Back hallucinating on FDR Fairytales. Back somersaulting over scarlet streets, strikes and factory seizures; back vaulting over violence/militant eviction resistance
The acrobats are back—Lilliputian left-Munchkin Marxists—juggling Classless analysis; doing back-flips erasing millions; Tumbling above herds of handcuffed communists, socialists, anarchists, trade unionists who waged pitched battles with Pinkerton-police-national guard-gun thugs. The acrobats are back turning cartwheels; Flipping history on its head— Landing squarely in the laps of generals and statesmen…
The acrobats are back—flipping LBJ minus 34 dead and smoke-filled skies over Watts/43 dead in Detroit/27 dead, 1400 arrests in Newark; LBJ minus millions marching NO to Jim Crow, war/women’s oppression; Minus martyrs—whose M’s include Mickey, Medgar, Malcolm, Martin… The acrobats are back, dancing in donkey dung down the Yellow Brick Road for the Emerald City Intersectional Empire—strangely resembling the Pentagon…
The acrobats are back—daredevils who dangled dangerously for 8 yrs. from the Drone Ranger’s dick. They’re back—Capitalist Hill cartwheels and flips—sticking stealth socialist landings as Comrade Schmo plays them like The Great Oz—ominously warning: “Pay no attention to Wall Street-War-Profiteer- Big Pharma/Fossil Fuel-Credit Card Companies behind my thin blue curtain of Promises!” Then he quietly pulls his pistol and mumbles, ”What’s in your wallet?”
And the reality is that Wall Street and those Mutual Funds and Exchange Tradeable Funds (ETF’s), all are tied to bombing, booze, tobacco, big pharma, the entire shooting match. Just can’t go to sleep at night, or can’t look myself in the mirror, when thinking about all that time and energy and research and writing, and educating, and the reality is we are what we are — war criminals. Or, read, “Try as You May to Deny, but Evil is in Our DNA“!
Israeli Forces spokesman Zilberman announced the start of the bombing of Gaza, specifying that “80 fighters are taking part in the operation, including the advanced F-35s” (The Times of Israel, May 11, 2021). It is officially the baptism of fire for the US Lockheed Martin’s fifth-generation fighter, whose production Italy also participates in as a second-level partner.
Israel has already received twenty-seven F-35s from the US, and last February decided to buy no longer fifty F-35s but seventy-five. To this end the government has decreed a further allocation of 9 billion dollars: 7 were granted by a US to Israel free military “aid” of 28 billion, 2 were granted as a loan by the US Citibank.
While Israeli F-35 pilots were being trained by the U.S. Air Force in Arizona and Israel, the US Army Engineers built in Israel special hardened hangars for the F-35s, suitable for both fighters’ maximum protection on the ground, and their rapid take-off on attack. At the same time, the Israeli military industries (Israel Aerospace and Elbit Systems) in close coordination with Lockheed Martin enhance the fighter renamed “Adir” (Powerful): above all its ability to penetrate enemy defenses and its range of action which was nearly doubled.
These capabilities are certainly not necessary to attack Gaza. Why then are the most advanced fifth-generation fighters used against Palestinians? Because it serves to test F-35s fighters and their pilots in real war action using Gaza homes as targets on a firing range. It does not matter if in the target houses there are entire families.
The F-35s, added to the hundreds of fighter-bombers already supplied by the US to Israel. are designed for nuclear attack particularly with the new B61-12 bomb. The United States will shortly deploy these nuclear bombs in Italy and other European countries, and will also provide them to Israel, the only nuclear power in the Middle East with an arsenal estimated at 100-400 nuclear weapons. If Israel doubles the range of F-35 fighters and is about to receive eight Boeing Pegasus tankers from the US for refueling the F-35s in flight, it is because it is preparing to launch an attack, even nuclear, against Iran.
The coronavirus pandemic, the deepening economic crash, dangerously divisive political responses, and exploding social tensions have thrown an already declining American capitalist system into a tailspin. The consequences of these mounting and intertwined crises will shape our future. In this unique collection of over 50 essays, “The Sickness is the System: When Capitalism Fails to Save Us from Pandemics or Itself,” Richard D. Wolff argues clearly that “returning to normal” no longer responds adequately to the accumulated problems of US capitalism. What is necessary, instead, is transition toward a new economic system that works for all of us.
“A blueprint for how we got here, and a plan for how we will rescue ourselves” – Chris Hedges
“A magnificent source of hope and insight.” – Yanis Varoufakis
“In this compelling set of essays, and with his signature clarity, intensity, accessibility and deference to historical and present perspective, Wolff has issued not just a stark warning, but concrete reasoning, as to why this time really should be different.” – Nomi Prins
“One of the most powerful and incisive voices in America. As an economist he transcends that “dismal science”, he is a tribune of Main St, a voice of the people.” – George Galloway
“Wolff clearly explains the ways that capitalism exacerbates unemployment, inequality, racism, and patriarchy; and threatens the health and safety of workers and communities – i.e., most of us.” – Jessica Gordon-Nembhard, Ph.D.
“If you care about deeper measures of social health as Americans suffer the worst economic crisis since the Great Depression, you will find here a wealth of insight, statistics, and other ammunition that we all need in the fight for a more just society.” – Adam Hochschild
“The current failed system has a noose around all of our necks. Richard Wolff offers an economic vision that gets our society off the gallows.” – Jimmy Dore
Who controls the food supply controls the people; who controls the energy can control whole continents; who controls money can control the world. — Henry Kissinger, interview with the Observer, 1983, on his book, Years of Upheaval
Let’s make no mistake, we are already in WWIII. A more noble term is “The Great Reset” – the World Economic Forum’s (WEF) eloquent description of a devastated worldwide economy, countless bankruptcies and unemployment, abject misery, famine, death by starvation, disease and suicide. Hundreds of millions of people have already been affected by this “collateral” damage of the “covid-19” fear-propaganda bio-war, with a death-toll maybe already in the tens of millions, but which in reality cannot even be assessed at this time.
And this only one year into this criminal madness, a diabolical elite of multi-multi billionaires has pushed upon us, We the People. We are only in the first year of the war which by the Reset’s plan is to last the entire decade 2020-2030. The agenda is supposed to be completed by 2030. it’s also called UN Agenda 2030. See also here.
The WEF is, in fact, nothing more than an NGO, registered in a lush suburb of Geneva, Switzerland. Its members are, however, a collection of dirty-rich people: High-ranking politicians, heads of corporations, banking gnomes, artists and Hollywood personalities – none of them are people’s elected officials with a mandate to rule the world. Yet, they are effectively ruling the world, by coopting, coercing, or threatening the entire UN system and its 193 member countries into their obedience. Because they think they have all the money in the world, and they can. Mind you, money acquired in a fraudulent system designed by them. – But more importantly, because We, the People, let them.
The Great Reset has three major goals, all of equal importance (i) massive depopulation, (ii) shifting all assets from the bottom and the middle to the top; following the motto for the masses, at the end “You will own nothing and be happy”. That is Klaus Schwab’s conclusion for the completion of The Great Reset; and (iii) a complete digitized control over everything – money, mind, personal records and behaviors – a combination of Aldous Huxley’s “Brave New World”, and George Orwell’s “1984”. See Mike Whitney’s article “The COVID-19 Vaccine; Is the Goal Immunity or Depopulation?”.
As we can see, the WEF is involved at every level in the Plandemic and its consequences, especially the consequences that favor the Great Reset. As Klaus Schwab in the Great Reset so revealingly says, the pandemic opens a “small window of opportunity” during which these consequences (meaning the reshaping of the world) have to be realized. Everything has to work like clockwork.
So far, it seems to be on track. Though, as more people are waking up and scientists consciousness make them leaving their straight-jacketed matrix-jobs, resistance is growing exponentially.
The NGO, trillion-dollar members-powerhouse, WEF, is outranking the world’s peoples designed and implemented UN system by far. Recently the WEF, now in association with Carnegie Endowment for International Peace, was warning of a cyber-attack on the western monetary system. To emphasize their point, they said, it is “Not a Question of If but When.“
According to the Last American Vagabond (LAV), a “report published last year by the WEF-Carnegie Cyber Policy Initiative, calls for the merging of Wall Street banks, their regulators and intelligence agencies as necessary to confront an allegedly imminent cyber-attack that will collapse the existing financial system.”
The LAV article goes on saying
In 2019, the same year as Event 201 took place (Event 201 – 18 October 2019, in NYC, simulating the current SARS-CoV-2 plandemic and destruction of the world economy), the Endowment launched its Cyber Policy Initiative with the goal of producing an “International Strategy for Cybersecurity and the Global Financial System 2021-2024.” That strategy was released just months ago, in November 2020 and, according to the Endowment, was authored by “leading experts in governments, central banks, industry and the technical community” in order to provide a “longer-term international cybersecurity strategy”, specifically for the financial system.
The Cyber Policy Initiative emanating from the joint venture’s WEF- Carnegie Endowment report of November 2020, is contained in a paper titled “International Strategy to Better Protect the Financial System.” It begins by noting that the global financial system, like many other systems, are “going through unprecedented digital transformation, which is being accelerated by the coronavirus pandemic.” It concludes with the warning that:
Malicious actors are taking advantage of this digital transformation and pose a growing threat to the global financial system, financial stability, and confidence in the integrity of the financial system. Malign actors are using cyber capabilities to steal from, disrupt, or otherwise threaten financial institutions, investors and the public. These actors include not only increasingly daring criminals, but also states and state-sponsored attackers.
A fully digitized monetary system has been on the WEF’s and IMF’s agenda for years. They cannot wait to implement it. So, if indeed, a cyber-attack on the western monetary system actually will take place, there is no question, who has planned and implemented it.
The drive for total digitization of everything, but foremost the (western) world’s monetary system, is an integral part of The Great Reset. It is supported, of course, by the banking and finance sector, including western central banks. Its implementation is to be accelerated by the covid-fraud, but encounters fierce resistance in many countries, especially in the Global South but also in the western industrialized countries, where intellectual groups realize what this means for the resources and assets worked for and owned by the people – it will be easily ‘expropriated’ so to speak, for example, for disobedience, as the control will be fully with the banks.
And this leads to the conclusion of the nefarious Great Reset – “You will own nothing and be happy”.
Luckily, the East, led by China and Russia, has gradually withdrawn from the western monetary system and are largely independent, monetary-sovereign countries. Therefore the western digitization drive does not apply to the East which is further enhanced by the China-Russia led Shanghai Cooperation Organization – SCO – accounting for about half the world’s population and a third of the world’s economic output – GDP.
If Klaus Schwab and the WEF’s “Illuminati” would have their way, by 2030 the grand flock of humans will be transformed into “transhumans” – a kind of semi-robots that responds to AI signals controlled by The Great Reset’s masterminds (sic), which by then will have become the leaders of a tyranny, called the New or One World Order – OWO. We, the People, would then have become the new AI-directed serfs. Or, as per Aldous Huxley’s Brave New World, the “epsilon people”.
Let that not happen.
Let’s unite and resist with all our powers.
We are – still – 7.8 billion people against a few pathological soulless multi-billionaires.
Just over two months into the new year, 2021 has already seen a flurry of public banking activity. Sixteen new bills to form publicly-owned banks or facilitate their formation were introduced in eight U.S. states in January and February. Two bills for a state-owned bank were introduced in New Mexico, two in Massachusetts, two in New York, one each in Oregon and Hawaii, and Washington State’s Public Bank Bill was re-introduced as a “Substitution.” Bills for city-owned banks were introduced in Philadelphia and San Francisco, and bills facilitating the formation of public banks or for a feasibility study were introduced in New York, Oregon (three bills), and Hawaii.
In addition, California is expected to introduce a bill for a state-owned bank later this year, and New Jersey is moving forward with a strong commitment from its governor to implement one. At the federal level, three bills for public banking were also introduced last year: the National Infrastructure Bank Bill (HR 6422), a new Postal Banking Act (S 4614), and the Public Banking Act (HR 8721). (For details on all these bills, see the Public Banking Institute website here.)
As Oscar Abello wrote on NextCity.org in February, “2021 could be public banking’s watershed moment.… Legislators are starting to see public banks as a powerful potential tool to ensure a recovery that is more equitable than the last time.”
Why the Surge in Interest?
The devastation caused by nationwide Covid-19 lockdowns in 2020 has highlighted the inadequacies of the current financial system in serving the public, local businesses, and local governments. Nearly 10 million jobs were lost to the lockdowns, over 100,000 businesses closed permanently, and a quarter of the population remains unbanked or underbanked. Over 18 million people are receiving unemployment benefits, and moratoria on rent and home foreclosures are due to expire this spring.
Where was the Federal Reserve in all this? It poured out trillions of dollars in relief, but the funds did not trickle down to the real economy. They flooded up, dramatically increasing the wealth gap. By October 2020, the top 1% of the U.S. population held 30.4% of all household wealth, 15 times that of the bottom 50%, which held just 1.9% of all wealth.
State and local governments are also in dire straits due to the crisis. Their costs have shot up and their tax bases have shrunk. But the Fed’s “special purpose vehicles” were no help. The Municipal Liquidity Facility, ostensibly intended to relieve municipal debt burdens, lent at market interest rates plus a penalty, making borrowing at the facility so expensive that it went nearly unused; and it was discontinued in December.
The Fed’s emergency lending facilities were also of little help to local businesses. In a January 2021 Wall Street Journal article titled “Corporate Debt ‘Relief’ Is an Economic Dud,” Sheila Bair, former chair of the Federal Deposit Insurance Corporation, and Lawrence Goodman, president of the Center for Financial Stability, observed:
The creation of the corporate facilities last March marked the first time in history that the Fed would buy corporate debt… The purpose of the corporate facilities was to help companies access debt markets during the pandemic, making it possible to sustain operations and keep employees on payroll. Instead, the facilities resulted in a huge and unnecessary bailout of corporate debt issuers, underwriters and bondholders….This created a further unfair opportunity for large corporations to get even bigger by purchasing competitors with government-subsidized credit.
…. This presents a double whammy for the young companies that have been hit hardest by the pandemic. They are the primary source of job creation and innovation, and squeezing them deprives our economy of the dynamism and creativity it needs to thrive.
In a September 2020 study for ACRE called “Cancel Wall Street,” Saqib Bhatti and Brittany Alston showed that U.S. state and local governments collectively pay $160 billion annuallyjust in interest in the bond market, which is controlled by big private banks. For comparative purposes, $160 billion would be enough to help 13 million families avoid eviction by covering their annual rent; and $134 billion could make up the revenue shortfall suffered by every city and town in the U.S. due to the pandemic.
Half the cost of infrastructure generally consists of financing, doubling its cost to municipal governments. Local governments are extremely good credit risks; yet private, bank-affiliated rating agencies give them a lower credit score (raising their rates) than private corporations, which are 63 times more likely to default. States are not allowed to go bankrupt, and that is also true for cities in about half the states. State and local governments have a tax base to pay their debts and are not going anywhere, unlike bankrupt corporations, which simply disappear and leave their creditors holding the bag.
How Publicly-owned Banks Can Help
Banks do not have the funding problems of local governments. In March 2020, the Federal Reserve reduced the interest rate at its discount window, encouraging all banks in good standing to borrow there at 0.25%. No stigma or strings were attached to this virtually free liquidity – no need to retain employees or to cut dividends, bonuses, or the interest rates charged to borrowers. Wall Street banks can borrow at a mere one-quarter of one percent while continuing to charge customers 15% or more on their credit cards.
Local governments extend credit to their communities through loan funds, but these “revolving funds” can lend only the capital they have. Depository banks, on the other hand, can leverage their capital, generating up to ten times their capital base in loans. For a local government with its own depository bank, that would mean up to ten times the credit to inject into the local economy, and ten times the profit to be funneled back into community needs. A public depository bank could also borrow at 0.25% from the Fed’s discount window.
North Dakota Leads the Way
What a state can achieve by forming its own bank has been demonstrated in North Dakota. There the nation’s only state-owned bank was formed in 1919 when North Dakota farmers were losing their farms to big out-of-state banks. Unlike the Wall Street megabanks mandated to make as much money as possible for their shareholders, the Bank of North Dakota (BND) is mandated to serve the public interest. Yet it has had a stellar return on investment, outperforming even J.P. Morgan Chase and Goldman Sachs. In its 2019 Annual Report, the BND reported its sixteenth consecutive year of record profits, with $169 million in income, just over $7 billion in assets, and a hefty return on investment of 18.6%.
The BND maximizes its profits and its ability to serve the community by eliminating profiteering middlemen. It has no private shareholders bent on short-term profits, no high-paid executives, no need to advertise for depositors or borrowers, and no need for multiple branches. It has a massive built-in deposit base, since the state’s revenues must be deposited in the BND by law. It does not compete with North Dakota’s local banks in the retail market but instead partners with them. The local bank services and retains the customer, while the BND helps as needed with capital and liquidity. Largely due to this amicable relationship, North Dakota has nearly six times as many local financial institutions per person as the country overall.
The BND has performed particularly well in economic crises. It helped pay the state’s teachers during the Great Depression, and sold foreclosed farmland back to farmers in the 1940s. It has also helped the state recover from a litany of natural disasters.
Its emergency capabilities were demonstrated in 1997, when record flooding and fires devastated Grand Forks, North Dakota. The town and its sister city, East Grand Forks on the Minnesota side of the Red River, lay in ruins. The response of the BND was immediate and comprehensive, demonstrating a financial flexibility and public generosity that no privately-owned bank could match. The BND quickly established nearly $70 million in credit lines and launched a disaster relief loan program; worked closely with federal agencies to gain forbearance on federally-backed home loans and student loans; and reduced interest rates on existing family farm and farm operating programs. The BND obtained funds at reduced rates from the Federal Home Loan Bank and passed the savings on to flood-affected borrowers. Grand Forks was quickly rebuilt and restored, losing only 3% of its population by 2000, compared to 17% in East Grand Forks on the other side of the river.
What’s their secret? Much credit goes to the century-old Bank of North Dakota, which — even before the PPP officially rolled out — coordinated and educated local bankers in weekly conference calls and flurries of calls and emails.
According Eric Hardmeyer, BND’s president and chief executive, BND connected the state’s small bankers with politicians and U.S. Small Business Administration officials and even bought some of their PPP loans to help spread out the cost and risk….
BND has already rolled out two local successor programs to the PPP, intended to help businesses restart and rebuild. It has also offered deferments on its $1.1 billion portfolio of student loans.
Public Banks Excel Globally in Crises
Publicly-owned banks around the world have responded quickly and efficiently to crises. As of mid-2020, public banks worldwide held nearly $49 trillion in combined assets; and including other public financial institutions, the figure reached nearly $82 trillion. In a 2020 compendium of cases studies titled Public Banks and Covid 19: Combatting the Pandemic with Public Finance, the editors write:
Five overarching and promising lessons stand out: public banks have the potential to respond rapidly; to fulfill their public purpose mandates; to act boldly; to mobilize their existing institutional capacity; and to build on ‘public-public’ solidarity. In short, public banks are helping us navigate the tidal wave of Covid-19 at the same time as private lenders are turning away….
Public banks have crafted unprecedented responses to allow micro-, small- and medium-sized enterprises (MSMEs), large businesses, public entities, governing authorities and households time to breathe, time to adjust and time to overcome the worst of the crisis. Typically, this meant offering liquidity with generously reduced rates of interest, preferential repayment terms and eased conditions of repayment. For the most vulnerable in society, public banks offered non-repayable grants.
The editors conclude that public banks offer a path toward democratization (giving society a meaningful say in how financial resources are used) and definancialization (moving away from speculative predatory investment practices toward financing that grows the real economy). For local governments, public banks offer a path to escape monopoly control by giant private financial institutions over public policies.
Wall Street may own the country, as Kansas populist leader Mary Elizabeth Lease once declared, but a new generation of “retail” stock market traders is fighting back.
A short squeeze frenzy driven by a new generation of gamers captured financial headlines in recent weeks, centered on a struggling strip mall video game store called GameStop. The Internet and a year off in this shut down to study up have given a younger generation of investors the tools to compete in the market. Gerald Celente calls it the “Youth Revolution.” A group of New York Young Republicans who protested in the snow on January 31 called it “Re-occupy Wall Street.” Others have called it Occupy Wall Street 2.0.
The populist uprising against Wall Street goes back farther, however, than to the 2010 Occupy movement. In the late 19th century, the country was suffering from a depression nearly as severe as the Great Depression of the 1930s. Kansas populist leader Mary Elizabeth Lease declared in a fiery speech in 1890:
Wall Street owns the country. It is no longer a government of the people, by the people, and for the people, but a government of Wall Street, by Wall Street, and for Wall Street. The great common people of this country are slaves, and monopoly is the master.
Wall Street still owns the country. Millions of people have been forced out of work, while billionaires have doubled their money in the stock market. But a new generation of “retail” stock market traders is fighting back. (“Retail” traders are individuals trading for their own accounts as opposed to institutional investors.) Occupy Wall Street succeeded in raising awareness of the issues and putting a spotlight on the villains: the chief fault for the subprime crisis and 2008 crash was not with the defaulting homeowners but was with the banks. The Wall Street bankers, however, were not much fazed by the protests on the streets outside their windows. Not until January 2021 was Wall Street actually “occupied,” with millions of small traders landing a multibillion-dollar blow to at least a few of the mighty Wall Street hedge funds. GameStop was the most heavily shorted stock on the market, and the losing hedge funds were on the short end of the stick.
The Short Squeeze
“Short selling” works like this: an investor borrows shares from a broker middleman and immediately sells them, hoping to buy them back later at a lower price, return them to the broker, and pocket the difference. The trade, however, is quite risky. If the shorted stock keeps going up, the shorter’s potential loss is unlimited. “Covering” the short position by buying the shares at the higher price and returning them to the lender will result in a loss. But if the shorter fails to cover, the broker will eventually demand more collateral as protection against its own potential losses.
“Naked” short-selling involves selling stock without borrowing it. Naked short-selling is illegal, but the regulation is not well enforced; and in this case short-sellers had sold 40% more GameStop shares than were in existence. That made the short sellers extremely vulnerable to a “short squeeze.” WallStreetBets, a Reddit social media forum that then had 2.7 million members (a number that has since risen to about 8 million) called the shorters’ bluff and bought furiously, using a game-like trading app called “Robinhood.” The hedge funds had to buy the shares back to cover at the new price, further driving the stock up; and other players, seeing the action, jumped in. This is what is known as a “short squeeze” – driving the shorters to buy before the stock is out of reach. The WallStreetBets short squeeze drove the GameStop stock price up nearly 900% in five days, to around $380 on January 27. The 52-week low before that was $2.57.
Legally, traders cannot engage in “market manipulation,” but the term is poorly defined and the rule is poorly enforced. Hedge funds are reported to hold “idea dinners” where they get together and pitch each other on their favorite trades. As pointed out in a Peak Prosperity interview with financial researcher Jim Bianco, the big players routinely act together. Wall Street has been run as a cartel, and the house always wins; or at least it did until recently.
Bianco explained that formerly, small traders lacked the tools to compete. They lacked the knowledge base, the money to buy full shares of the higher priced stocks, and the time needed to study the market. But in the last two decades, technical advances have given the “little guys” connectivity and access to market information. And in 2020, forced lockdowns gave them the time to sit in front of their computers studying the market and playing it, while stimulus payments gave them some extra cash to play with. New game-like online trading apps such as Robinhood, billed as “democratizing” investing, waived commissions. The purchase of fractional shares was allowed, and social media groups such as WallStreetBets shared investment information and strategies with each other.
The “little guys” learned how to use the rigged stock market system to beat the big boys at their own game. By January 30, short-sellers had lost an estimated $19 billion on GameStop alone, and other heavily shorted stocks were hit as well. Hedge funds lost over $70 billion in January 2021, with GameStop jumping 1000% the last week of the month.
The Empire Strikes Back
Predictably, on January 28 the game came to a screeching halt. Robinhood restricted trades of GameStop and other shorted stocks, allowing investors to settle their trades but not make new purchases. GameStop closed down 44%. This market manipulation appeared to be so blatantly in favor of Goliath against David that congressional representatives from both sides of the aisle protested. Rather than a left/right issue or a racial issue, it was a class issue, one that has fortuitously served to align the 99% on all sides of the political spectrum.
By February 2, the GameStop stock price had plummeted to $97, and hedge fund losses dropped to $13 billion, half of what they were the previous week but still a serious hit. Some retail investors had struck it big, and used the proceeds to pay student loans or rent or mortgages; but others, those who bought or sold last, lost big. The rule is to invest no more than you can afford to lose, but some desperate gamers may have unfortunately learned that lesson the hard way.
According to the message boards, however, for other players it was not chiefly about making money on a single trade. It was an uprising, a show of force against a Wall Street behemoth that had destroyed small businesses, turned families out of their homes, and robbed young people of the “American dream.” In a February 6 post titled “This Is for You, Dad,” Matt Taibbi recounts the touching tales of young people whose parents’ lives were ruined by the 2008 crash, who were willing to risk their own money to see justice done.
In that sense it is an emotionally satisfying “Robinhood” tale, but it has a dark side. Pam and Russ Martens point out that the short squeeze was not actually a spontaneous, grassroots uprising. It was coordinated by a “sophisticated” trader in the Reddit sub-group, whose trading license forbids that sort of practice.
He could be in trouble with his employer or his licensing board, but the larger WallStreetBets group does not seem to have been guilty of “market manipulation” as usually defined. The group did not engage in fraudulent activity; for example, a “pump and dump” scheme based on false advertising of a product. The Reddit group was not conspiring behind closed doors to commit fraud. They were quite open about what they were doing, and there is nothing illegal about advocating the purchase of a stock, something investor newsletters do routinely. GameStop was a beloved retail store of the young traders, and they wanted to save it from the marauding hedge funds. As Jill Carlson observed on Yahoo.com:
When hedge fund managers get together and share insights and ideas, it is all in the name of moving towards a more efficient free market. Yet, when the online mob of retail traders comes to consensus about which stock is worth buying, they are considered by some to be artificially pumping the name and manipulating the market.
And there’s the rub. The disruption of the market caused by the WallStreetBets play could be the rationale for new regulations that hurt retail investors. It could also be another excuse to shut down free speech on the Internet and social media. And as Whitney Webb points out, it was not just a battle of David versus Goliath but one of hedge fund against hedge fund. The biggest winners included some of the most notorious Wall Street institutions – BlackRock, J.P. Morgan Chase and Goldman Sachs. They saw what was happening, bought early, bought big, and sold near the top. BlackRock made a staggering 700% on its trades.
In a February 9 article, Pam and Russ Martens show that the biggest winners were high-frequency program traders. They jumped in front of the WallStreetBets trades using sophisticated algorithms feeding on data provided by Robinhood and other trading platforms. Lance Roberts argues that Wall Street won again.
What all this shows, for all to see, is just how massively the stock market has been manipulated, from the Fed on down. Most of these manipulations attempt to manipulate prices up. But some manipulations are aimed at pushing prices down. What the millions of people conspiring on WallStreetBets to exact their pound of flesh accomplished was nevertheless enormous: They showed for all to see just how completely broken the stock market is.
True, but they showed more than that. They showed that the 99%, if organized and acting in concert, have the tools to overwhelm the 1%. Information, communication, and collective action are key.
The American people acting together have beaten the financial elite before. In the 18th century, it was London bankers who held the British colonies in financial bondage. The American colonists broke free by issuing their own paper currencies. The colony of Pennsylvania and then Treasury Secretary Alexander Hamilton refined that system by establishing publicly-owned banks that extended the credit of the colony and then of the nation; and Abraham Lincoln’s government avoided a 30% interest rate by reviving the colonial practice of issuing debt-free, interest-free paper currency.
The 19th century movement against Wall Street largely faded after Populist and Democratic Party candidate William Jennings Bryan lost to Republican candidate William McKinley in the 1896 and 1900 presidential elections. But a remnant of the Midwest movement triumphed in 1919, when the Non-Partisan League (NPL) was formed in protest against widespread foreclosures on North Dakota farms. The NPL won a statewide election and beat Wall Street at its own game by establishing a state-owned bank. The Bank of North Dakota cut out the Wall Street middlemen and partnered with local community banks; and by 2014, according to the Wall Street Journal, it was more profitable than either J.P. Morgan Chase or Goldman Sachs.
We the people need to recapture our local and national governments and regulators. If we had a popular nonpartisan government that put the public interest above the Corporatocracy, we could do remarkable things as a nation. Congress could even follow Lincoln in exercising its constitutional right to mint some very large coins, perhaps $1 trillion each, buy a controlling interest in some major corporations (Amazon? The New York Times? Some pharmaceutical or energy or telecommunications giants?), and distribute the dividends to the people. The public acting together is Goliath. E pluribus unum: strength in unity.
It’s an unprecedented coalition of business networks that have come together to raise our ambition. Not just to help our individual CEOs succeed, we’ll do that for sure. But to actually bring their voices together to help shift culture. So that the pushback on the BRT [Business Roundtable] from different business publications or other people within the business community lessens. So there’s less of a headwind culturally for this type of leadership.
— Jay Coen Gilbert, co-founder of B Lab and B Corporations [Source]
[These are not good people, and if anyone thinks otherwise, then, well, War is Peace, Truth is Lies, Hate is Love!]
We Are Big Data’s Dregs
The great data dredge. Everyone’s hired through a digital head hunter, staffing firm, and the result is a continuation of atomizing society with no water cooler, so to speak, from which to complain about working conditions, to discuss the next austerity measure concocted by the boss/management/ CEO/Corporation. No after work bull session at the local Chili’s or T.G.I.F. to compare notes about those exploding gas tanks and caustic chemicals and faulty electrodes in the air bag systems.
This is what Ford would have wanted, and this is what the heads of retail and data and manufacturing want. They’ve already put most of us over a barrel with forced arbitration clauses, non-compete agreements (sic), and rule after penalty after threat after law after delimitation, that, well, in this knowledge (sic) economy and post-Industrial (sic) economy, the white collar and pink collar workers are hemmed in by management. More than the field hands picking this country’s lettuce!
The hemming in is an oppression planned and sealed, and a deep seated zombifcation of the “higher castes” and to be honest, people of the land, even those in struggle, in other countries that have been deemed shit-holes by Trump and Third World by Biden have more gumption about them, more ability to fight the systems, the oppressors, than any member of the Western Civilization.
Just drive around your town or suburb, anywhere. Take a look at what and how the systems have been set up for and about the rich, for the money changers, for the money takers, for the dream hoarders. Take a look. How many bus stations, how many covered and art-imbued public amenities? How many public toilets, public waysides, public paths, public trails, public pedestrian overpasses, public bandstands, public gazebos, public museums, public eateries, public statues, signs, art, historical markers? How many trees and shrubs and open spaces set up for the public? How many picnic tables and interpretive trails, and …? How many tiny home villages for the houseless? How many community gardens? Theaters and cinemas for and by the people?
Talk about dead and lobotomized citizens, as we have allowed the captains of industry and oppressors of finance and the legions of pushers of the realm rule: retailers, consumer crack salesmen/women, middle managers, ant hill after ant hill of processors and facilitators of the entire house of cards built upon the dopamine hits of lizard drips of the brain. “I betcha can’t eat just one Lays potato chip,” now on steroids – “I betcha you can’t just have 3 big screen TVs in your pad … “And now you fill in that blank – Just look at the so-called Black Friday ads.
Amazing, junk, junk and more junk. Families buying deep fryers and rice steamers and any number of electronic junk that they can’t or don’t know how to use. All that plastic and tin, diodes and LED screens. All of that planned obsolescence. Nary a word about the embedded energy, the packaging, the toil and slave labor, the life cycle analysis. Piles and piles of worthless junk, planned to break, parts planned to snap, wires planned and ready to melt.
Planned Human Obsolescence
This is not a difficult thing to comprehend, about socialism for the land and people versus capitalism for the elite and bankers and small group of sociopaths, who will fight tooth and nail (well, with a battalion of lawyers at $1500 an hour each, not really a fight per se) to push the poisons, hawk the faulty products, demand the welfare for the rich and corporations, and deposit all the externalities of their profit schemes onto the public and the commons’ health.
But … Man, those “buts.” I talk all the time with great white saviors, who just start spewing at the mouth of the evils of socialism, and that, well, capitalism is good, and “we let Jeff Bezos and Elon Musk and Bill Gates and Mark Zuckerberg” accumulate so much wealth and power, so it’s our fault, and really, is it that bad we have these Titans who give us goods and services? This is like heaven compared to countries who push that bullshit democratic socialism crap. Do you know what the 10 pillars of socialism/communism/Marxism are?”
Try putting “debunking the critics of socialism” into the Google Gulag Search, and you shall receive so much hatred and polemics around anything tied to socialism on the first 50 pages of the search, that, well, you get the picture why these big white saviors will dare come up to me and challenge me the socialist on how and why socialism is bad-bad-bad while capitalism is god’s work.
As these great white saviors are pushing a cart filled with two TV’s, a new printer, two iPads, and junk junk junk, 50 pounds of kitty liter and a hundred pounds of dog chow. While walking past the two young men I am working with who are taking in shopping carts as part of their competitive work as people who happen to be living with Intellectual and Developmental Disabilities. These Great White Hopes are Blind to “them.”
These great white saviors, well, it’s all about survival of the fittest. All about the colonized mind. All about – “you majored in the wrong subject matter, sucker … born into the most messed up family, sucker grew up on that side of the railroad tracks, dufus … got stuck with those bills and foreclosures, sucker.”
Oh, the invisible hand of the oppressors, and these people – Biden and Trump supporters, what have you – are criminal thinkers, really, because with one huge swath of their inhuman brain, they disregard 90 percent of the planet’s people.
“They are all sucka’s for being born where they are and from the loins of ‘those’ rotten people.”
A Sucker Borne Every Nanosecond
Oh, and I am seeing more and more quasi-leftist stuff, saying, well, the left needs to embrace the Trumpies, to work with them on labor rights, on environmental rights, on health care for all, on all those issues, and not be so hung up on their misogyny, racism, classism, white Duck Dynasty Ted Nugent shit.
Insanity, man. Leftists writing from the comfort of their offices, well, they are a dime a dozen. The reality on the ground is that this country has a cool 100 million or so hateful, resentful, ignorant of the world, pro-war, rah-rah, hate welfare of all kinds sort of people. They don’t have to be Proud Boys and KKK. These people in this USA, the white ones, mostly, have come from that evil spawn stock, back even before SCD, Smith Colony Disease.
Then, again, we have Democrats with a wilted big “D” who need their comeuppance, and who are just one half brain shy of a squid, and somehow, the other squids (sorry about the dispersion to cephalopods) with another load of brain cells missing need to be embraced, because, the GOP and Trumpies and the like want to move toward a truly socialist society?
Again, the reality is some bad-ass slow, consistent and in many cases rapid death by a 1,000 capitalist cuts.
I meet people in my new job, working with Adults with ID/DD, to get job ready and jobs in the community – real jobs, not stuck in some sheltered workshop getting one-tenth the wage of anyone else in the same job.
Sure, I am doing great work, god’s work, the work of an angel (they really say this stuff to me, a commie, a devoted atheist), and while I get the gist of that, we talk about how it is my careers have been shit for pay, highly exploitive and yet highly regarded in some sense: teaching, social services, and, well, community journalism.
“Ha-ha, you are doing these great services knowing you are not going to get rich doing it, but thank you for your service.”
Imagine that stupidity, that dense mentality. Imagine, the hard jobs that need doing in a broken capitalist society with wave after wave of damaged, chronically ill, economically strafed, mentally poisoned, generously precarious, and one paycheck away from bad ass disaster citizens on the precipice? PayDay Loans? That in and of itself defines capitalism. The Mafiosi aspect of this spiritually deserted society.
Yet, now, these great leftist warriors are saying the Trumpies and the GOP of the world – the log cutters, the mill workers, the truckers, the blue collar millionaires – that they want workplace rights, the right to strike, the right to squat, the right to refuse bad and dangerous work; that they want to be able to shut down polluting industries, and the right of the people to take over industries? That these Trumpies and GOP want universal health care, universal rights for all people. That these GOP and Trumpies want real education, more education, holistic education, writing and thinking across the curriculum, across disciplines, across industries. That the GOP-Trumpies will work so-so well with organizers and “the people” over defunding and holding to task “the police-backed” banks-warehouses-fulfillment centers. Right!@#$%
So how does anyone on both sides of the manure pile called USA politics square this fact?
Ahh, the world’s 26 richest people currently have the same amount of wealth as the poorest 3.8 billion—down from 61 people in 2016. As the rich get richer, sea levels are rising, tribalism is flourishing, and liberal democracies are regressing. Even some of the wealthiest nations are plagued by job insecurity, debt, and stagnant wages. Ordinary people across the political spectrum are increasingly concerned that the system is rigged against them. Trust in public institutions is near an all-time low.
So that Google search got one hit on the “other side” of the dividing line (not really) – “What the Right Gets Wrong About Socialism. As Scandinavia shows, it does feature plenty of public ownership—but also a thriving economy.”1
Sure, we get this from the Norwegian:
Norway’s success has not come without costs—wealth accrued through oil and other extractive industries has had harsh ecological consequences. But students there and across Scandinavia graduate without the horrifying debt burdens of their U.S. counterparts. Those who sustain injuries in traffic accidents never have to beg bystanders not to call for an ambulance, for fear of drowning in medical debt. Norwegian diabetics don’t need to crowdsource their insulin. As seniors, they don’t spend their golden years working at Walmart or living in their vehicles. Their homes were not repossessed en masse by banks during the Great Recession. Extensive public ownership shields Norwegians from the harshest aspects of unfettered capitalism.
But then he attacks North Korea and Venezuela for being failing socialist countries, and without the context of the international transnational monetary criminal system of sanctions and debt and theft of Venezuela’s treasury, and war war war with Korea still on the hot plate. Then the illegal maneuvers of governments like the USA and supported by all those others, including Norway, in its attack on Venezuela’s elected leaders and support of the dirty rich racist opposition groups, that is not mentioned.
Yep, there is a link in the Norwegian’s piece to another article – July 2018, “There is Nothing Inherently Wrong with State Ownership” by Matthew Bruenig over at Current Affairs Magazine.
Again, short anemic, and an essay in response to an attack on Norway and Sweden and “socialist” countries in the Nordic category by a New York Times “writer,” a Bret Stephens, who is sloppy and makes untrue claims in this piece, “Democratic Socialism Is Dem Doom.”
No Richard Wolf and no Michael Parenti or any thousands upon thousands of thinkers who know about societies and economies and cultures and ecologies who could put this tripe to rest. This is it?
Hemming Us In
Imagine, a 69-year-old working in a deli at a national chain. “I was once a speech therapist with a thriving private practice. And then my retirement went bust, thanks to Enron.” So, Molly works with a terrible limp, arthritis everywhere and almost no hair left. Fryers, slicers, prepping, and she runs it. Since age 55, when not only her measly retirement went bust, but the speech therapy arena turned more and more into high end certification racket, and gobbled up by, well, monopolies, agencies that scarf up the independents, or make it impossible to compete against the aggregators and services felons.
Then another guy, James, working the parking lot, bathrooms, carts, etc., making a wage when he started at this national grocery chain, of $9.75 an hour. He busts his butt, and we talked about his chronic heart failure, the meds he takes each month, all of that, including the pace maker and other aspects of his life, at age 60. He is at $12 an hour after five years with this outfit, and he tells me his supervisor likes his work, and his helping the other cart people, so much so that he is in for a wage increase to $15 an hour. He has to wait 90 days for the higher ups to approve that.
Hemming in. Working hard jobs at an old age to keep bad health insurance that is part of a for-triple-profit system of penury and theft. Oh, stories of an item being charged 18 times more during this Covid “crisis.”
A study that revealed hospitals may be charging as much as 18 times over their costs.
Nurse Jean Ross – “ Yes. Again, unconscionable, but that seems to be the way in this country. Up to 18 times. So, for example, if your true cost — it’s called the charge-to-cost ratio, or CCR — if your true cost for your service is $100, they are, in many cases, charging up to $1,800. And they do it because they can.” This from a study put out by National Nurses United.
Sit on the Ground and Try and Pull Yourself Up by Bootstraps
Those great white hopes, those big happy white males and big happy white females who voted for Trump and then those that believe Biden is better, well, that’s what we have – “Just let it take place, and that’s the way the Capitalist Cookie crumbles. What would Cuba be doing? The great invisible hand will fix things!”
Where I currently work – a small non-profit – the amount of software and tracking-time management apps and all the government agencies I have to get my mandatory trainings on and get my certifications renewed, well, it’s almost daunting. That’s the squeeze, the money train to the middle men, having nothing to do with my job, my humanity, work.
This is a non-for-profit agency working with adults with ID/DD.
Imagine all those warehouses and factories and office buildings and other places where the atomization was already on overdrive before the plan-pandemic.
Now, with the lockdowns, the on-line doom dungeons, and alas, with more and more AI and IT measures in place to keep us out of each other’s social distance arena, things are really degrading big time.
Teaching to the New Technology
I want to look at another gig I had – substitute teaching. Not just the bad working conditions of the public schools and anxious teachers and idiotic principals and the dictatorial superintendent. Let’s look at the payrate. Look at this – substitute teachers, K12, in Oregon, on the Coast, now managed by a Tennessee outfit. Note the hourly rate, and of course, coming into substitute teaching, a teaching certificate is required, and that means, well, most teachers like me, we have master’s degrees. That Oregon licensing costs another cool $400 to get the license and jump through the hoops. We get no mileage expended to get to and from very remote schools.
Job details — $14 an hour; Full-time/ Part-time; The State of Oregon requires all substitute teachers to hold an active Oregon Teaching License, Restricted Substitute Teaching License, or an Oregon Reciprocal License. As leaders in the education staffing space since 2000, ESS specializes in placing qualified staff in daily, long-term, and permanent K-12 school district positions including substitute teachers, school aides, and other school support staff. With more than 700 school district partners throughout the US, ESS supports the education of more than 2.5 million students every day.
I had been teaching as a substitute a year ago. I had been hired by the District, and my contacts were through the District. I was making $80 for four hours and $160 for seven. In many cases I could get called in late and then get ready, make the drive in the rural county, get to the school and still get the full day’s pay rate. That’s more than $18 an hour, and alas, I got to know the teachers who wanted me when they had planned absences, and the school secretaries also knew me.
There is a shortage of substitutes, and, well, if things were better all around, substitutes could be integrated more seamlessly and holistically to provide amazing outside the box perspectives and teaching.
Not so in Lincoln County, as is true of most counties, with plenty of Administrators, plenty of bullshit curriculum cops, plenty of teach-to-the- test zombies running roughshod over the entire project of working with our youth, our kids, our aspiring young adults.
This staffing “solution” is killing again teachers getting together, working with the district, getting to know people in the district, airing grievances with the district. Everything goes through this Tennessee outfit. Complaints go nowhere, and if you get a complaint leveled against you by a school, ESS will NOT go to bat. They have taken that $18 an hour and whittled it to $14 an hour. Then, they probably charge more than just that $4 per each hour taught to the DIstrict. Add to the fact they will manage who gets called, how they get called. These people are running call centers, data dredging centers, and know zilch about the schools, the roads, the weather, the culture, the teachers, the students.
I am sure they will not be allowing teachers to get a few extra hours pay if they are called in late and end up working a partial day. I am sure there are all sorts of cost-cutting (human-killing measures) this Education Staffing Solutions outfit deploys.
And, they probably pay Google for a net cast to see how many hits on the world wide web Education Staffing Solutions gets mentioned or Yelped or rated on Indeed or Linked In. You can only imagine if I was still employed as a substitute teacher, through ESS, that conversation happening, as ESS would be the outfit that would be managing me, so to speak. Finding this article criticizing them, well, sayonara subbing Mister Paul Haeder.
Management fees, man, and government (local, city, county and state, and federal) giving up oversight and decent livable wages for all the agencies and the public utilities (that we could have) and everything else, gone to middle and middle and middle men.
Again, these warped folk with ESS probably backed Trump and believe in Capitalism on Steroids, while they make bank on all the public entities across the land, AKA, public schools.
That the bus systems for schools is now outsourced from sea to shining sea, that again, defines the bottom line of pathetic capitalism. All the food cooked in cafeterias, outsourced to Sodexo. There is nothing local anymore, and these multinationals, these huge stockholder and stock board run outfits, they are making money off of us, US taxpayer, and in that formula, they are welfare recipients, and mostly welfare cheats, and with ESS, they are ripping off the very people that do the work – teachers, para-educators, more.
My comeuppance it seems was being banned from the entire District because of a few students I was in charge of at a local high school accused me of “upsetting” them when we were having a classroom discussion about homelessness, about epigenetics and families, about poverty, about the potential for many people to become substance abusers. We were talking about the books Of Mice and Men and Animal Farm.
What happened was La-La-Land level stuff, and while I think some students are crackpots, and little versions of really bad parents, I am ready to deal with crackpots and talk them off their cliff.
I did not get my day in court, so to speak, and I was not allowed to explain what could have been the students’ (three of them) hysteria, and I had no chance to query the people involved or bringing in the rest of the classroom students who were both inquisitive and enthralled to have a well-traveled, well-read, well-educated, well-experienced person like me in their classroom, albeit, temporary.
And ESS did nothing to defend me, protect me, or gain some sort of redress. That was a year ago.
Here’s a positive story — “Musings on a Monday After Teaching High School Get You Down? Nope!”
Another — “Professor Pablo and Fourth Grade Enlightenment in Lincoln City”
Education By and Because of the Corporation
The backdrop of my teaching debut … was a predicament without any possible solution, a deadly brew compounded from twelve hundred black teenagers penned inside a gloomy brick pile for six hours a day, with a white guard staff misnamed ‘faculty’ manning the light towers and machine-gun posts. This faculty was charged with dribbling out something called ‘curriculum’ to inmates, a gruel so thin [that this school] might rather have been a home for the feeble-minded than a place of education.
— John Taylor Gatto, “The Underground History of American Education,”
I did get a bird’s eye and on-the-ground look at the elementary, middle and high schools in this District. I have done substituting elsewhere, as in Vancouver, Seattle, Spokane and El Paso. Things are not looking good for youth. And I have written about that fact decades ago, and, yes, way before COronaVIrusDisease-2019, and, now, in a time of stupidity, fear, self-loathing, and complete loss of agency, the world is flipped around and, in most cases, crushed for our young people.
Did I mention fear, and while this Intercept piece below is a superficial look at the digital divide, there is so-so much more to write about this lockdown and social (pariah) distancing. It is a caste system on steroids. Calling it “remote learning” is doublespeak, oxymoronic.
In agro-industrial Watsonville, California, English-language learners struggle with remote learning. It’s much easier for students in a nearby Bay Area suburb.
I have a daughter, a step-daughter and a niece in various schooling situations. One is in med school, one is getting a chemistry degree and one is in esthetician school. Hmm, you’d expect hands-on for med school and chemistry majors. Nope. The fear factor for one of the three young women is high, and she is not wanting to leave campus, and the great reset is not in her vocabulary. There is a bombastic, “I am so glad Trump is gone. I hate him. I wish he was dead” from one of the college students. But that’s about it.
The med school woman, well, she is still having to pay out the nose for the school, yet there are less hands-on classes, again, through this doublespeak system of “remote learning.”
Now the esthetician student is hands-on, learning about the human skin dynamics, the chemistry of things in the body and outside, and working on clients, hands on. Seems very interesting that this one area – not to knock one career choice over another – has more practical hands on work than university-level chemistry majors and medical school attendees.
Now, the chemistry major’s school is introducing an “app of paranoia and tracking 101” – you put it on your smart phone, and all those who accept this app, well, as soon as someone tests (sic) positive for the virus (sic), then the entire network of users will get a notification and a detailed map of that person’s whereabouts. Oh, it’s secure, safe, no personal data shared (or mined – right!) they say, and that is a blatant lie-lie-lie. This is the Great Reset, and it’s pathetic and a gateway drug to implanted RFID’s.
The two college students, well, they are focused on their majors, but because of the siloing (atomization) of schooling, the demands on S/T/E/M do not enter the real of STEAM, science technology engineering arts math as interdisciplinary critical studies and as a praxis of seeing how the world could, should and might work outside the Corporate Thievery of Capitalism.
The net effect of holding children in confinement for twelve years without honor paid to the spirit is a compelling demonstration that the State considers the Western spiritual tradition dangerous, subversive. And of course it is. School is about creating loyalty to certain goals and habits, a vision of life, support for a class structure, an intricate system of human relationships cleverly designed to manufacture the continuous low level of discontent upon which mass production and finance rely.” —John Taylor Gatto, The Underground History of American Education
More atomization, and more dumb-downing, and more caste systems, and more social-economic-intellectual-employment-philosophical-cultural distancing. This is it for us, no?
…. the world’s 26 richest people currently have the same amount of wealth as the poorest 3.8 billion—down from 61 people in 2016. As the rich get richer, sea levels are rising, tribalism is flourishing, and liberal democracies are regressing. Even some of the wealthiest nations are plagued by job insecurity, debt, and stagnant wages. Ordinary people across the political spectrum are increasingly concerned that the system is rigged against them. Trust in public institutions is near an all-time low.” [source]
Read some of this report, and the surface stuff, well, just surface feel good stuff, but dig deep — Oxfam Report. It’s harrowing.
Nick Hanauer, entrepreneur and venture capitalist:
I am a practitioner of capitalism. I have started or funded 37 companies and was the first outside investor in Amazon. The most important lesson I have learned from these decades of experience with market capitalism is that morality and justice are the fundamental prerequisites for prosperity and economic growth. Greed is not good.
The problem is that almost every authority figure – from economists to politicians to the media – tells us otherwise. Our current crisis of inequality is the direct result of this moral failure. This exclusive, highly unequal society based on extreme wealth for the few may seem sturdy and inevitable right now, but eventually it will collapse. Eventually the pitchforks will come out, and the ensuing chaos will not benefit anyone – not wealthy people like me, and not the poorest people who have already been left behind.
Ironically, the woman going into the beauty field is much more keenly aware of the economic and social disasters befalling small businesses in her own city, her own state and her region of the country. She is super left, but is keenly aware of her democratic governor’s insipid lockdown measures.
I have many friends who now are going bankrupt, closing their businesses. Those businesses are part of a multiplier fabric. The town is or was so much better off with all these independent and mom and pop owned businesses. Not just the cool eateries and breweries, but many people I know opened up furniture stores, businesses around building and construction, all kinds of services you can’t find at the national level. Heck, used computer parts and computers, and even car rental places. Things that are not part of the monopolizing Fortune 500 set. Gone.
That means, of course, STEAM is damaged, in that, sure, the arts are hit hard, but the rest of the STEM also are hit hard on many levels. These STEM folk like their food, beer, edgy stuff, locally sourced and owned. The neutron bomb that the lockdowns and lack of financing and wages and deep-deep help for the small guys and gals, well, it is hollowing out and even more hollowed out economy. The STEM folk will follow the money, while the arts folk and those deeply tied to something richer than science for profit and engineering for war and math for building and construction and technology for the Fourth Industrial Revolution will embed and grow a city’s or town’s or area’s culture.
This all leads us back to the semi-liberal class, even the youth who hate Trump and who don’t get all the conspiracies because they go to schools (universities) which are nothing to shake a stick at, since they are tied to social constructs and hierarchies reliant on the investor class; and they pay out the nose, take out loans and go to classes that are on-line, given to them now largely by scared educators, monitored and mashed up by the Titans of Technology, who have colonized every aspect of our society, ESPECIALLY, PK12 and higher education.
The young woman working on beautifying people and supporting their self-esteem and confidence on a superficial level (skin deep beauty, so to speak), well, she is more acutely aware of the lies of the authorities on both sides of the political manure pile than these card-carrying creeps who actually think Kamala Harris is something good. Anyone-but-Trump is what got us here, this evil of two lesser, lesser of two evils. The two college-going/educated ones are more and more tied into getting out and making money, and not to knock them, because they too know the disgusting reality of poverty and more and more people who once had decent lives, who were the fabric of communities, from that baker to the speech therapist, from that teacher to the counselor, from that glass blower to that coffee shop owner, from all those service workers with lives outside just the service economy (if they are budding or bustling artists).
The creative class is not what Richard Florida yammers about. The liberal class, as Chris Hedges writes, is dead. Education has been gutted and sold down the river, as Henry Giroux states. The New Jim Crow, as Michelle Alexander states, is the new normal for not just American mindsets at the citizen level, but on the economic and investor and Capitalist level.
But conditions today favor the amateur. They favor “speed, brevity, and repetition; novelty but also recognizability.” Artists no longer have the time nor the space to “cultivate an inner stillness or focus”; no time for the “slow build.” Creators need to cater to the market’s demand for constant and immediate engagement, for “flexibility, versatility, and extroversion.” As a result, “irony, complexity, and subtlety are out; the game is won by the brief, the bright, the loud, and the easily grasped.” — “The Great Unread: On William Deresiewicz’s The Death of the Artist”
Capitalism is fascism, and it takes over entire cities and states and regions. It operates on the “buyer beware” mentality, which relies on consumers to take it up the rear, no foul called on the billionaires and CEOs and capitalist systems; and it is protected through the fascist laws of the land created by the massagers of the law from the Supreme Court down to traffic court.
More Nazis Than They Knew What to do With
Again, the great reset tied to Dashboards, a million different types of Education Staffing Solutions (ESS), universal buffoon incomes, all of that inculcated by Karl Schwab, Bill Gates, the Aspen Institute, the TED-X-ers, the World Economic Forum, all of them in the elite class, their handlers, their sycophants, all of those billionaires determining the course of cradle to grave predetermination for billions of people (Zuckerberg has encircled the African continent with his cables and lines and fiber optics), that reset was started decades ago. Debt. Foreclosures. Bailing out corporations. Drugs for guns; Crack Cocaine and the CIA; and, well, the CIA is god, into everything, right, making sure the reset has already been ensured. CIA and Nazis, and Mossad and Jihad, and, these are the merry makers of the world of Lords of War, Lords of Disruptive Economies, Lords of Predatory-Parasitic-Vulture-Usury Capitalism.
Operation Paperclip – 1,600 of Hitler’s Angels of Death. Housing, citizenship, and carte blanc living in the United States. Families welcomed. Italy’s and Germany’s intelligent agencies working closely with the National Security State, and this was in the form of so-called the rat-lines. Tens of thousands going to South America. Tens thousand other Nazi’s allowed to come to USA.
And this was the plan, from the last days right before WWII ended with an illegal double bang of Atomic Murdering Tools – all these stay-behind armies from those defeated fascists of Italy and Germany. Check out this interview on RT –Chris Hedges talks to Gabriel Rockhill about the undercurrents of fascism in America’s DNA, and the US role in internationalizing fascism after World War II through clandestine activities such Operation Paperclip and Operation Gladio.
Rockhill is a Franco-American philosopher and the founding Director of the Critical Theory Workshop and Professor of Philosophy at Villanova University. His books include Counter-History of the Present: Untimely Interrogations into Globalization, Technology, Democracy, Interventions in Contemporary Thought: History, Politics, Aesthetics, Radical History & the Politics of Art and Logique de l’histoire.
Try having conversations with liberal (illiberal) college-educated and college-loving Democrats about USA’s bioweapons program dating back to again, WWII, and Japanese scientists who were working on all sorts of bioweapons but were captured by the USA and reappropriated and brought back to the USA for, well, good paying jobs.
That is capitalism, right, reappropriating and stealing and setting up systems of mental, physical, psychological, biological, ecological, cultural repression, and eventually, disease and illness, because it pays more to treat and encourage the disease than it does to have a society living disease-free or at least living with those old time religion concepts of – precautionary principle, do no harm, preventative medicine, treat your fellow human as you would want to be treated. You know, all of that mumbo-jumbo that is not put into practice one iota in Capitalism, but certainly is mishmashed into the systems of propaganda, and, alas the “Si Se Puede” marketing of such criminals at Audacity of Hope Obama. et al makes some feel like there is change where change will NEVER be.
Until we get this liberal archetype who says Columbus was a bad guy, and that the USA was built upon the deaths and murders of Indians and Blacks, but, shoot, when ordering from the Prime Amazon account, or when scrolling up and down the iPhone, and, well, all of that which we take for granted in this First World which comes on the back of people here and now in this country and especially in other countries, then, well, the tune changes.
Because in an economic fascism, when again, old worn out people have to still hoof it to Walmart and stock shelves, and when there is no home health care for the sick and dying, young or old, unless there is always huge exchanges of money going out into the pockets of the purveyors of capitalism, you will be getting variations on a theme of a people hooked on Netflix, hooked on buying, hooked on not knowing, hooked on confusion and chaos and, well, this is what is planned.
The great reset and fourth industrial revolution are no-brainers. We’ve given up our fingerprints for a shit job, we have given up blood and urine for a shit job, we are guilty before we can attempt to prove our humanity, our innocence, and in reality, we are always guilty in the eyes of Capitalists.
Western and ruling class ideologies have played a crucial and cruel role in the violent transformation of the peoples, ecosystems and biosphere. The Fourth Industrial Revolution represents the most violent transformation of all. For as long as the ruling class is allowed to exist, social and environmental justice remain pipe dreams. [Cory Morningstar, source]
We are now taking those supposedly benign things like tracking outcomes – you know, if you have prenatal education and vitamins as a pregnant teen, and if you get the little tikes reading on a Chromebook, watching Sesame Street and if you eat this veggie over that deep friend morsel, and, all of those metrics that the data ditzes love, all of it is now being used AGAINST self-agency, AGAINST not just individuals, but all manner of classes, groupings, economic strata. You do the stuff “right” which Bill and Melinda have studied are right, then there will be s few more digital dollars in your bank account. If you fail to do them, well, no more dialing for dollars.
Because the jobs are going. The mom and pops are folding. Even chains like bowling alleys and movie theaters, all of that, they are shuttering. This revolution was already in the works before Marshall McLuhan and the medium is the message and Herman and Chomsky’s manufacturing consent. Way before deadly at any speed, a la Nader, and way before the lies of better angels of our nature Pinker.
The fix was in long-long time ago, when the food was locked up and the agricultural revolution forced us to stop being human and humane, and made us into the cogs in so many machines of oppression and suppression.
Until today, when the Catholic freaks are coming in their vestments with their exorcising tools for anyone who would dare desecrate the statue of Columbus or any Fray who pushed their stinking selves and their stinking religions onto this continent and the one south.
In response to Indigenous-led efforts that demanded land back and the toppling of statues, Catholic Church leaders in Oregon and California deemed it necessary to perform exorcisms, thereby casting Indigenous protest as demonic. [Truthout]
This is 2020, and the trillionaire Catholic Church is walking in downtown Portland with these conquistadors of nothingness, while the great reset is happening, with the green light of the Pope. “The story did not end the way it was meant to,” Pope Francis wrote recently, deftly excommunicating about a half-century’s worth of economic ideology. [source] In a striking, 43,000-word-long encyclical published last Sunday, the pope put his stamp on efforts to shape what’s been termed a Great Reset of the global economy in response to the devastation of COVID-19.”
Here it is imperative to note the consolidation of power happening in real time. World Economic Forum founder and CEO Klaus Schwab refers to this consolidation as a new global architecture; the new global governance. The following dates of are of paramount significance. On May 18, 2018, the World Bank partners with the United Nations. On June 13, 2019, the World Economic Forum partners with the United Nations. On March 11, 2020, the World Economic Forum partners with the World Health Organization (a UN body) launching the COVID Action Platform, a coalition of 200 of the world’s most powerful corporations. This number would quickly swell to over 700. On this same day, March 11, 2020, the WHO declares COVID-19 a pandemic. The UN-WEF partnership firmly positions Word Economic Forum at the helm of the Sustainable Development Goals (SDGs, also referred to as the Global Goals), which they are frothing at the mouth to implement. This is not because they care about poverty, biodiversity, the climate, or world hunger. Marketed with holistic language, dressed with beautiful images of brown smiling children, SDGs represent the new poverty economy (impact investing/social impact bonds) and emerging markets. Children as human capital data to be commodified on blockchain linking behaviour to benefits. Coercion has been repackaged as empowerment. The human population to be controlled via digital identity systems tied to cashless benefit payments within the context of a militarized 5G, IoT, and an augmented reality environment. A world where every function of nature is monetized, to be bought, sold and traded on Wall Street. — Cory Morningstar, The Great Reset: The Final Assault on the Living Planet [It’s not a social dilemma — it’s the calculated destruction of the social — Part III]
[Pope Francis meets with members of the clergy after his weekly general audience at the San Damaso courtyard, September 30 2020. Image: REUTERS/Yara Nardi]
Why do political science and neoclassical economics go in one ear and out the other?
A human being who has a fully integrated social body understands that economics is about a social system of circulation of goods and services. In other words, provisioning for the population. Politics is the collective process of evaluating and deciding a) where have we been (our past) and b) where are we going (the future). Politics is about steering. With this framework, it would be inconceivable to steer or govern without referring to how well the economic system is working. How can you steer without an evaluation of how goods and services are circulating? So too, how can you monitor the economic provisioning process without checking on the decision-making process of the steering of our social direction? In fact, a person with an integrated social body only makes a distinction between economic and political processes for analytical purposes. It would be better to call the whole endeavor “political economy”.
However, if you received an undergraduate college degree you probably never had a class in political economy. What you probably had is at least one class in political science and another class in economics. If you are like most people, you found these classes either boring or incomprehensible. Why? The answer is because both fields are riddled with capitalist propaganda that has little basis in most people’s experience. Sure, there are some people who are convinced that political science and neoclassical economics make sense but which social class is this? Chances are it is members of the upper middle class for whom political and neoclassical economics make sense from their class position. But upper middle-class people are 10% of the Yankee population. Even if we take half of the 30% of the middle class, it is still only a quarter of the population. (I exclude the ruling class and the upper class for whom these courses are not relevant for different reasons).
For the rest of the middle class and lower classes, these courses are likely to produce apathy. There is a reason why Yankee masses hate politics and why they pay no attention to economics. For the elites who control political science and neoclassical economics fields, mass apathy is fine because they don’t want the lower classes asking political and economic questions. Mass apathy doesn’t mean they haven’t internalized the propaganda of political science and/or neoclassical economics. It just means some of these assumptions and images exist in the unconscious of people. For example, most people will say, if asked, “we live in a democracy”. So too they will say economically “there are no free lunches”, right out of neoclassical economics guru Milton Friedman’s playbook.
In the meantime, the social body has now slowly been taken over by two zombies: a political science zombie and a neoclassical economics zombie. This zombification process undergoes at least five processes:
Political science and economics are cut off from history, anthropology and sociology.
Political science and economics are separated from each other. In a political science class, if you ask an economic question about politics you will be told that is “not their department”. If you ask a political question in an economics class you will be told the same thing.
Political science and economics classes become reified because both disciplines are presented as changeless and not subject to scandals, false turns or ideological manipulation. Both fields appear as things, dogmas, idols. In the case of the Constitution or the Declaration of Independence, these documents have become dogma. George Washington or Thomas Jefferson have become idols that are uncriticizable.
Both fields focus on very small micro processes that are relatively inconsequential for the average person’s life. In both fields, this is done because smaller processes lend themselves more easily to scientific measurement. In addition, most neoclassical economics theories are presented in mathematical form which is intimidating for working class and even some middle-class people because they do not have formal training.
Scientific method is emphasized over the content in the field. Unless you have some reason for going into each field professionally, knowledge of how they do science is not really relevant. In the case of Trump, if you want to know how someone with no political experience or training could become the president of Yankeedom, you won’t find the answers in your political science or civics courses.
The result is that any zombified Yankee college graduate is filled with self-congratulatory political science propaganda about the nature of democracy as well as self-congratulatory neo-classical economics which is filled with economics propaganda about the wonders of capitalism.
For this article I will draw on the books Tragedy of Political Science by David Ricci and Disenchanted Realists by Raymond Seidelman and Edward Harpham. For the economics section, I’ve drawn on Introduction to Political Economy by Sackrey, Schneider and Knoedler as well as E. K. Hunt’s History of Economic Thought and Polanyi’s TheGreat Transformation.
FROM INTERDISCIPLINARY TO SPECIALIZATION OF POLITICS AND ECONOMICS
In the beginning of both the study of politics and the study of economics each was understood as being inseparable from history, philosophy, sociology and anthropology. So, in the case of politics, we could never understand a form of rule without understanding the economic property relations through which rulers, and ruled interacted. Nor could we make sense of the rise and fall of dynasties without understanding the social class composition of the society. Lastly, how could we know how the current ruler differs from rulers decades or even centuries ago without including history.
In the case of economics, the interdisciplinary field that preceded it was called political economy. In the work of Smith, Ricardo and Marx, no economic transactions could be understood without understanding the machinations of political rulers or how the newly formed industrial capitalist society differed from the agricultural, slave capitalism that preceded it. This way of looking at things began to change in the last three decades of the 19th century with the marginal utility theorists Menger, Marshall and Walras, who gradually isolated economics from these other fields. This isolation continued into the 20th century with the Austrian school economics in the work of Eugen Ritter Böhm-Bawerk, Von Mises and Von Hayek just before World War II.
In the United States during the depression the work of Keynes was carried on as a political economy point of view because Keynes was interested in macroeconomics and he insisted the state needed to intervene to keep capitalism from going off the rails. The work of neo-classical economists Samuelson and then Milton Friedman in the 1950s and 1960s emphasized the independence of the market from all political influences.
ZOMBIE NUMBER ONE: POLITICAL SCIENCE PROPAGANDA FOR DEMOCRACY
How the political ideology of liberal pluralism gets in the way of research into how democratic Yankeedom actually is
American political theory has always fancied itself a democratic politics well before the end of the 19th century. There was never a time when political theory considered that Yankee politics’ “democracy” was ever something to be proven. It was already always the case. Political science was not a neutral approach to the study of politics. It dwelt in a national context of liberal democracy. This political ideology operates with the following postulates:
presumption of human rationality – people are capable of thinking through their situation about what their own interest requires them to do;
the separation of religious from secular institutions (separation of church and state);
separation of political powers into legislative, executive and judicial fields;
the presence of more than one political party to represent factions of citizens who must have their interests checked and balanced by the upper classes (electoral college);
all that is most profound and enduring about politics was laid down by the Founding Fathers in their documents; and,
liberal faith in science as the midwife of social progress and enlightenment.
The infrastructure of democracy – political parties, the electoral college, the constitution, the separation of powers – could not be challenged. This is crucial because it puts a damper on the study of power blocks and the behavior of elites. To the extent that it takes inequalities seriously, it farms them out to other social science disciplines such as sociology or political sociology.
What would happen if the results of actual political scientific research continually denied central tenets of democratic ideology that political scientists in the United States believe in? Supposed research showed that American citizens do not behave much like democratic citizens? Suppose a political scientist has a hypothesis that democratic theory in practice is an illusion. Can you still practice political science if you believe democracy really doesn’t exist? Suppose a scientist insists on studying politics scientifically even though their inquiry cannot insure the health of a democratic society. Hypothetically you should be able to do this research.
What are the chances of a research grant for a hypothesis designed to show how anti-democratic American social institutions are? Of course, political scientists have done this research in these areas and received grants. But the research in political science would be easier if you proposed research that made people hopeful, comfortable or at least neutral, rather than disturbing them. As of around the year 2000 there were two political science textbooks which did not toe the line of what will later be called “political pluralism”. One was Michael Parenti’s Democracy for the Few, which is Marxist. The other is Irony of Democracy by Louis Schubert and Thomas Dye, which are from the Elitist school of political science.
But political scientists work in educational communities and are somewhat dependent on each other. They have political tendencies that are not based on political facts but on political ideologies that inform the facts whether they are conservative, liberal or Marxist. These ideologies inform whether the reception they receive from their work is cool, hostile or enthusiastic. For example, the topic of political disorder is not looked upon favorably by political scientists. It undermines their theories and cracks their time-honored assumptions. This kind of research is far from welcomed, as important a topic as it might be.
As a political scientist, do you try to use the research to change the institutions in a more democratic way or do you leave the institutions alone and rewrite democratic theory to fit the growing problems and weaknesses of its institutions? The field of political science in the United States did the latter. We will focus on how the ideology of democracy kept political scientists from critically analyzing their own institutions.
Generations of Political Science in Yankeedom
The first generation of politics in the US, from 1880-1900 grounded politics in morality and comparative history. The goal was to pass on qualitative, comparative, eternal wisdom through the ages that led to the development of character. Teachers taught many subjects in the humanities. A single teacher would be responsible for teaching rhetoric, criticism, English composition, logic, grammar, moral philosophy, natural and political law and metaphysics. Teachers were not expected to “publish or perish”, as commercial publishers would not publish books on research because they were not profitable. Scholars in other disciplines, however, judged their work. A single organization, Allied Social Science Association (ASSA) housed History, Economics and Anthropology. Teachers were both products and co-producers of breadth-full learning.
Progressive era of muckraking: Charles Beard
The period of muckraking in the Progressive Era (1896 – 1916) was more down-to-earth and left-liberal compared to the previous generation. The desire was to expose the conditions and the workings of corporate capitalism with writers like Upton Sinclair, Lincoln Steffens and Ida Turnbull. Yet they were still interdisciplinary. For example, Charles Beard famously took the Constitution apart and identified the economic property relations that underlined it. Beard’s vision of a new society included the fusion of new state powers with a revived, educated, informed and activist public.
Positivism political science
But after World War I, interest in political muckraking and activism cooled. When the American Political Science Association (APSA) was set up as a field, its connection to research was separated from history, economics or sociology. As capitalists expanded their industry, companies merged into corporations. They increasingly needed more highly trained managers to help in coordinating production, planning and supervising workers. Universities were chosen as the location to train the middle classes for work in these institutions. Some of these folks became political scientists.
Masses seem uninterested in substantive democracy
Beginning in the 1920s and 1930s, the field of politics was taken over by a positivist scientific orientation and was rechristened as “political science”. The emphasis on science meant using techniques of modern empirical research and descriptive studies. Guided by the perspective that the social sciences could be as rigorous as the natural sciences, modern political science was based not on the discovery of eternal truths, but on an ever-expanding body of quantitative research. Science was considered a university affair in which basic research was done, supposedly independent of how the research could be used.
What this new science found was that Americans did not seem to be acting very democratically at all. Many did not bother to vote and masses were susceptible to dictators. The research showed the average American does not conform to the modern liberalism of Dewey and Roosevelt. Merriam and Gosnell wrote about the non-voting public that 44% of non voters gave general indifference or inertia as reasons for not voting. Lasswell pointed out that the findings of personality show the individual is a poor judge of their own interest. In a world of irrational humans, Lasswell argued that a stable order must rely on a universal body of symbols and practices which sustain an elite. This stable order propagates itself by peaceful methods and wields a monopoly of coercion which is rarely necessary to apply, as Graham Wallas said in Human Nature in Politics.
But what if scientific investigations carefully carried out with the intent to improve society might instead contradict popular expectations and undermine faith in democracy? Were political scientists to inquire into the most efficient ways to overthrow America’s government and then publish the results? These are not the types of questions political scientists would be happy to entertain. The tragedy of political science is that in pursuing scientific facts while ignoring political values, those political values became unconscious as they crippled their ability to critically evaluate and challenge the social institutions that stood in the way of a substantive democracy.
Political science fails to explain dictatorships, communism or fascism
Liberal democracy had failed to take hold in Europe after World War I. Instead, in Mussolini’s control of Italy, dictatorships were established in Portugal, Yugoslavia, Austria, and Bulgaria. In 1931 the Japanese invaded Manchuria. In 1932 the Nazis were voted into power and in 1939 fascism triumphed in Spain – and then came World War II.
Political science provided little guidance for understanding the political processes that were shaping Germany (fascism) and Russia and China (state socialism). With regard to key questions of the day such as why fascism existed or how it was possible for peasants to overthrow governments, they provided no serious answer. Even more damning, they could not explain why the politics in their own country were becoming less democratic. The entire corpus of scientific knowledge seemed unable to provide a course for society to follow which would enlighten the population about the rudiments of democratic government. World War I, fascism, Stalinism and World War II signaled a loosening of forces that would make human progress chaotic at best, rather than automatic
In spite of all this, political science proceeded on its merry way as if nothing had happened. Old liberalism counted on the rationality of citizens and the responsiveness of government. Neither was found to be very true. These are not findings that political science wanted to hear because it strongly supported institutions and practices of liberalism. Probably the most famous political scientist of the 1920s and 1930s, Charles Merriam, still held out hope for the public. He promoted a civic education to improve the political life of the average person.
The reification of research methodology
The first thing political science did was to bury itself in research methodology and stop paying attention to voting patterns or even more seriously, the electoral process itself. It worked overtime to be accepted as a kindred spirit to the natural sciences. Its aim was to make its research methods as close to natural science as possible. This meant quantitative measurement and specialization of the field.
Liberal democracy is like scientific method
John Dewey saw science as organized intelligence. When humans work together at science, the methods they employ individually are reinforced by their interaction collectively as an ever-increasingly joint capacity. Dewey developed a system called instrumentalism to organize the findings of science. Dewey believed that discovering the truth was a dynamic process which was forever incomplete yet evolving. Likewise, Dewey thought democracy must be the scientific method applied to politics. He came to think that the method of political science as at least as important, if not more important, than criticizing and changing political institutions.
In 1945, Karl Popper’s The Open Society and Its Enemies was published. For the next decade, this was the stance that informed many polemics of the Cold War. Like Dewey, Popper saw the application of the scientific method as the road to democracy. He wanted to use the scientific method in his professional work so as to make modest proposals for reforming small parts of society one at a time – piecemeal social engineering as opposed to a “dangerous” utopian program for reframing all parts of society totally and simultaneously as in Marxism. Part of the process of distinguishing science from non-science is to make a distinction between what is true as the result of research, and what should be done with the research. The basic concepts and hypotheses of political science should contain no elaboration of political doctrine or what the state and society ought to be or do.
A product of this specialization was the loss of communication with the public. Political scientists talked to fewer and fewer people and those who listened heard more and more about less and less. Their research was guided by statistics, survey research, and later on formal modeling and game theory. These studies created jargon incomprehensible to the lay person. Instead political scientists became more concerned with how the work might interest their colleagues. As this happened political scientists lost touch with their colleagues in other disciplines and only discussed their findings with those already in their field. Associations which once housed many disciples differentiated into specialized bodies: Political science became more on the surface and lost its depth and breath. Only concrete scientific investigations could yield true knowledge and that knowledge was empirical, particular and experimentally verifiable.
Political scientists naively believed that by simply amassing more data, eventually a theoretical breakthrough would occur about how political systems changed. But while political scientists were slowly amassing reliable political knowledge about increasingly smaller political processes, in their insistence on separating fact from political commitment they left the barn door open by not providing political alternatives as a guide for social policy. Their political crisis came when Leninists and fascists did have political commitment while political science had nothing qualitatively to offer their own politicians.
Thin (Procedural) Democracy
Additionally, besides burying themselves in research method, their standards for what constituted democracy slipped badly. Instead of facing the lack of real substantive democracy in their own country they simply compared themselves favorably to “totalitarian societies” to make them seem relatively more democratic. The bad news for substantive democracy in the West was papered over by a comparison with the political life in “totalitarian” societies. As the evidence on individual and group irrationality mounted, many members of the discipline felt constrained to advocate an approach to politics designed to compensate for some of democracy’s shortcomings. This thin theory of democracy would praise existing liberal practices and institutions rather than criticize weak democratic processes such as voting and the electoral college. They needed to find new justifications for accepting the sometimes-disappointing outcome of democratic processes in the real world.
Rise of pluralism: political practice of interest groups as social science
If individuals are irrational, how did American democracy control its rulers? Empirical democratic theorists or pluralists examined the dynamics of group politics and the effect of organized interest groups on electoral competition. A plurality of groups competes with each other to constrain rulers and political parties to some extent. Pluralists claim, following Arendt, that unlike atomized individuals in totalitarian societies, in liberal democratic societies voluntary associations can and do exist for exerting pressure. William Kornhauser argued for the importance of maintaining pluralism, a bevy of competing power centers to guard against “mass society”.
Tinkering Instrumentalism as the invisible hand of politics
Why isn’t democracy the collective process by which we first establish our values, list our alternatives, prioritize the alternatives, weigh the potential consequences of each alternative and then act together to test what works? According to pluralists, this collective rational deduction process won’t work because humans cannot agree as to which values are to be pursued.
Dahl and Lindblom claim there is another way, which they call disjointed incrementalism. In Politics, Economics and Welfare, Dahl and Lindblom claim that democratic politics is incremental. Here small policy steps are taken without reference to unattainable consensus or grand objectives. Since a great many political actors from voters to interest groups to parties to bureaucrats must be consulted before anything gets done, this process will be disjointed. Yet it is a series of policy adjustments and taking small steps via calculated risks where immediate additions to old policy will not at once achieve all goals but at the same time will not unduly invite unforeseen tumultuous consequences.
Political science and the end of ideology movement
The self-congratulatory nature of political pluralism reached new heights with the “end of ideology movement.” From the late 1940’s and well into the 1960’s many leading scholars in the US agreed that Western society had progressed beyond any need for an explicit liberal ideology because liberalism had already won. The fundamental decency and social efficiency of American policy had been conclusively proven between 1930-1950. Daniel Bell (End of Ideology), Seymour Lipset, (Political Man) and Edward Shils agreed that most political parties in the West paid only lip service to ideology anyway. Secondly, there were so few social issues left that only practical tinkering rather than ideological solutions was needed. Daniel Boorstin’s book The Genius of American Politics argued that American political institutions by-passed the need for ideology. Raymond Aron, in the Opium of the Intellectuals, called for the abolition of ideological fanaticism and the advent of skeptics who will doubt all models and utopias. They rejected ideological speculation because its propositions could not be confirmed or disconfirmed. To questions about their ideological use of “the end of ideologies” in the service of the Cold War they responded that the Cold War was largely a military affair. Anti-ideologists represented the dominant American mood after WWII.
Political science pluralism excludes the working class
Seymour Lipset writes about working class authoritarianism. He points out that studies show the poorest strata of Western society were most likely to support Communist parties. Lipset believes the lower-class people simply do not fit the requirements for good citizenship. They are insufficiently pragmatic, open-minded skeptical and tolerant. Therefore, there is a social utility in the relative weakness of the lower classes. Real world democracies operate on the basis of high participation by elites with their superior political knowledge. Low participation by the masses might impair the political process with their undemocratic attitudes. Liberal political scientists had accepted apathy among citizens.
Rough road for political science in the 1960s
As most everyone knows, the 1960s were a time of explosion that neither Popper nor the pluralists predicted. As far back as the mid-1950s C. Wright Mills described a concentrated power elite which controlled society rather than the pluralist theories of a many-centered polity. The civil rights movement, the opposition to the Vietnam War, the rise of the New Left and the women’s movement all went unexplained by political science pluralism. Whether they called for reform or revolution, the politics of the 1960s were far from pluralist instrumentalism. Murray Edelman, in his book Symbolic Use of Politics, says the job of democratic procedures is to provide the public with symbolic gratification. Elections are for expressing discontent, for articulating enthusiasm, for enjoying political involvement and legitimating the democratic regime by giving it the appearance of popular support. Herbert Marcuse attacked pluralism for creating a “one-dimensional man”. John Galbraith argued that capitalism was not creating real public goods such as roads and bridges but was creating or expanding on the fleeting fancies of consumer products introduced by advertising.
Students complained that the universities were machines in the service of churning out passive consumers or beholden to military contractors. Student activists wanted universities to be agents of change, not handmaidens to the status quo. What united all these strands was a vision of politics that was participatory, not consensual. Political sciences had been focusing on conventional political processes, not the quality of the institutions themselves. They dealt with congresses, political parties, but not the content of what these institutions were doing. Students wanted more policy studies – that is, what the government chooses to do or not do. There were too few, if any, quantitative research studies found on powerful bureaucracies like the Department of Justice, the Ford Foundation or Institute for Defense Analysis. Political philosopher Sheldon Wolin advocated a for a renaissance in the vocation of political theory – to read, analyze, appreciate, extend and build upon the great political philosophers of yesterday. He called for a development of “epic theory”. Political science was not neutral. No stance is a stance for the status quo.
ZOMBIE NUMBER TWO: NEOCLASSICAL ECONOMICS
From political economy to neoclassical economics
Just as political science got cut off from its relationship to history, sociology, anthropology and moral theory by end of World War I, so too economics theory also got cut off from history, politics, anthropology and moral theory beginning around 1870. What now passes for economics, which is known in the United States as neoclassical economics, didn’t exist until the mid-20th century. Throughout the 18th-19th century there was a tradition called “political economy” which included Adam Smith, David Ricardo, Karl Marx and John Stuart Mill among others. Political economics assumed that economics could not be separated from history, politics or anthropology. It was only in the last three decades of the 19th century with the work of Jevons, Walras and Marshall – with what was called “marginal utility theory” – that economics began to be treated as if it could be separated from these other fields. The Austrian school of von Böhm-Bawerk, Von Mises and Von Hayek continued this tradition which separated the economy from the rest of social life. In the United States Paul Samuelson and Milton Friedman brought together neoclassical economics fields.
Polanyi’s Great Transformation
In his powerful book The Great Transformation, political economist Karl Polanyi argues that for most of human history there was no such thing as a separate realm called “the economy”. The economy was embedded in social relationships regarding the circulation of goods based on principles of “reciprocity” within families and kin groups. At the level of the state power of kings and aristocrats, these political relationships were regulated by what Polanyi called “redistribution”. What might be called an “economy” was limited to some trade relations between societies, not within them.
Polanyi argues that this began to change when capitalism brought into society the wheeling-and-dealing that was once limited to trade between societies. At the end of the 18th century when industrialization began to pulverize community relations based on generalized reciprocity and redistribution, the state became more centralized and reorganized society as market relations. There is no better account of this great transformation than to examine Adam Smith’s Wealth of Nations. While Adam Smith is considered the “father” of neoclassical economics, in most ways he represented a cross between political economy and neoclassical economics. In the first section below I will contrast him with those harder-line political economists like Marx. In the next section I will show how different he was from neoclassical economists.
Substantive vs formal rationality
If you ask most people what an economy is, they will tell you that it is a social process by which people work to produce goods and then the goods are circulated and consumed. But in the minds of neoclassical economists, the economy is not a society-wide social process involving the transformation of nature to meet human needs through a production and circulation process. For neoclassical economists, the economy is a micro exchange between self-interested, hedonistic individuals who compete with each other. Their decisions about what will be traded or bargained is based on short-term self-interest in which they weigh the pros and cons. Society is no more than the aggregate sum of these micro interactions.
Adam Smith vs radical political economists (Marx)
Turning to Adam Smith’s The Wealth of Nations, the first thing worth noticing is the ahistorical manner in which the origins of capitalism are presented. Smith argues that individuals “trucked and bartered” all the way back to hunting and gathering societies. Ideologically it is important to establish that some form of capitalism has always existed. For Marx and the institutionalist political economy theory, capitalism has a more recent origin in the 15th and 16th centuries. No anthropologist who studied tribal societies would try to make Smith’s case.
Secondly, Smith claims that capitalism starts when frugal, hard-working, shrewd traders identify a need to invest capital in land. In the best of all possible worlds, the product sells and he makes a profit. This capitalist has to compete with other traders and the results of this competition are better products for everyone. Smith called this “the invisible hand” of the market. Marxists and post-Keynesians contest this. Marx argued that capitalism doesn’t begin with trading. It begins with what Marx called “the primitive accumulation of capital” when peasants are thrown off the land (enclosures) and their tools and animals are taken away from him. The capitalist uses the land for commercial farming growing coffee, sugar, cotton and tobacco through the labor of slaves. Meanwhile former peasants are driven to work in cities and eventually work in factories after capitalists have revolutionized industry in the 19th century.
Smith believes that the source of profit is in the circulation process. Capitalist make profits by winning the competition, buying land cheap and selling it dear. His ingenuity and risk-taking are rewarded. For Marx, the key to understanding the source of profit is not primarily circulation process, but the production process. Marx says that the exploitation by the capitalist of the laborer comes in the form of wages paid to the worker. Marx estimated that the wages of work covered the first four hours of labor. This was enough money to reproduce working-class life. The last 4-6 hours were surplus labor that was pocketed by the capitalist. So, the ultimate source of profit was the exploitation of labor power. Smith also has a labor theory of value, but it was not the most important factor.
Adam Smith was sensitive to the cost the specialization of labor might have on the body and mind of the worker in terms of alienation on the job. Despite that, he felt that the massive productivity of volume that would result was worth that cost. In Bertell Ollman’s great book Marx’s Theory of Alienation he points out that workers are alienated from a) the process of labor; b) the products of labor; c) other people on the job while laboring; d) the tools harnessed; e) alienation from himself. Marx’s hope was that once an abundance of goods was produced the worker should work less and have a diverse set of activities, as he said, fishing in the morning, cattle rearing in the afternoon, criticism in the evening.
Human nature for Smith is pretty bleak. He believed that human beings are pleasure-seeking, rational and competitive, but lazy. Most people would prefer to do nothing and it is only by the carrot and the stick of enterprising capitalists that makes workers productive. For Marx, people are naturally collectively creative and want to cooperate. People only appear lazy when they have been performing wage labor and they are tired and miserable. When people control their conditions of labor, they are more productive than under capitalist conditions. This has been shown in evidence of worker cooperatives and workers councils during revolutions.
For Adam Smith the fruits of competitive capitalism led to lower prices for consumers. Marx said this is not what actually happens. Competition between capitalists leads to a concentration of capital in a few corporations and the elimination of smaller capitalists. As Marxists Baran and Sweezy point out, corporate capitalists agree not to engage in cut-throat competition and the prices of commodities are pretty much the same. They compete through advertising, not through the prices themselves. There are many more contrasts that could be made, but these are the most important. Let me turn now to the difference between Adam Smith and neo-classical economists like Milton Friedman. It is Milton Friedman‘s right-wing economics that is propagandized in college courses.
Adam Smith Vs Milton Friedman
Despite Smith’s departure from the more leftist political economists of Marx or Thorstein Veblen, compared to Milton Friedman, Adam Smith would have been considered a left liberal. In the first place, Adam Smith understood that the state was necessary for public works like roads, canals and harbors to provide education and defense. With rare exceptions, Milton Friedman wanted the state completely out of the market. His theory was “let the markets run everything”.
While Adam Smith was sensitive to the impact of the working conditions in factories, Milton Friedman might say that workers are free to find work elsewhere if the working conditions did not suit them. In terms of the source of profit, Adam Smith, like Marx, also included a labor theory of value. That means that the cost of a product depended at least partly on the labor time it takes to produce the product. To my knowledge, Milton Friedman ignored this.
How is wealth measured? Smith had an infrastructural answer to this. For him wealth is measured in a) the increased dexterity of every workman; b) the amount of time saved; and c) the inventions of machines that would shorten the workday for workers. Ultimately for Smith the increase in the standard of living of the poor should be the ultimate determination of social wealth. By today’s neoliberal and neoconservative light, Adam Smith would be to the left of Bernie Sanders! For Milton Friedman, he believed that maximizing the profits of capitalists would have a trickle-down effect on the poor.
Notice there is nothing in Adam Smith’s work about investment in the military or finance as sources of profit. For Adam Smith production of material, physical wealth was how profit was measured. For Milton Friedman, profit should be measured regardless of the field. This means that the profits made on a tractor and the profits made on a tank should all count as profit. This fails to make the distinction between tools which can produce food and tools which destroy land and people. So too, for Friedman, profits made on finance capital, investment in paper which produces no material wealth is the same as profits made on building roads, bridges or houses.
Adam Smith, like political economists such as Thorstein Veblen, included the creativity of farmers, artisan, scientists and engineers as creative sources for the economy. For Milton Friedman, the only fount of creative power was the ingenuity of the capitalist. Apparently, Friedman had little idea that the wealth capitalist possessed was not the result of personal ingenuity but most often from inheritance. Last time I checked about 2/3 of capitalist got their wealth from the inheritance they received.
Playing Hardball: the totalitarian nature of capitalist economics courses
In the fields of psychology, a student is presented with six different theoretical schools: psychoanalysis, behaviorism, humanistic psychology, physiological, evolutionary psychology and cognitive. In the fields of sociology, we might be presented with three founding schools – Marx, Weber and Durkheim. Second generation schools might be added: The Elitists (Mosca, Pareto, Michels), symbolic interactionists and rational choice theory. But in the field of economics, in Economics 101 classes, the student is presented with one school. That school would be the neoclassical economics of Samuelson and then later, Milton Freidman. No matter what the chapter heading, neoclassical economics has an interpretation and analysis. Keynesian theory might be presented somewhat, but only in select chapters. Surprisingly only two schools are presented. Does this mean there are only two schools? Hardly.
In their book Introduction to Political Economy, Sackrey, Schneider and Knoedler identify a number of other schools. In addition to a full presentation of Keynes, also included are the works of John Kenneth Galbreath, Thorstein Veblen, Karl Marx, along with might be called the anarchist economics of worker cooperatives. There are other schools called post Keynesians like Steve Keen and Michael Hudson. These are all first-rate economics, why are they not included?
The reason is solely for propaganda purposes. Neoclassical economics theorists are cheerleaders for what I call market fundamentalism. Other schools vary in calling for more state intervention (Keynes, Galbraith) while some are critical of finance capitalism (Keens and Hudson). Others like Marxists and anarchists are critical of the entire capitalist system. The propagandistic nature of neoclassical economics can be more blatantly seen in the fact that there is not one Marxian economist in the United States that is the head of an economics department.
It has often been said by people living outside of Yankeedom that the Yankee masses are stupid people. We don’t know anything about the history of other societies or where they even are on the globe. As true as this may be, what is even more disturbing is that Yankee masses do not understand our own political economy. This article was designed to show how our social bodies have been snatched away and then inhabited by two zombified entities. A political science body which is designed to persuade us that we live in a democracy despite our own best judgment. The evidence political science offers us is self-congratulatory, contradictory, irrelevant, myopic, filled with deceptive comparisons and anti-communist. The other body is a neo-classical economic entity which is also triumphant, mystifying, naïve, cynical, wooden, anti-social, shallow, obscurant and also anti-communist. Anyone in Yankeedom who manages to recover their social body must go through a process of de-zombification. What does this recovery look like? We must analyze the world through a political economy which is interdisciplinary, which is always undergoing quantitative and quantitative changes and through which we can collectively imagine and then build a new socialist world.
I am still working, losing billable hours weekly as my contract with an “anti-poverty/social capital” organization winds down. This is with a non-profit that is pushing over $100 million (“donated” by millionaires, billionaires, philanthropies and in some cases state and city programs) that came down the pike just in the past six months for so-called Covid-19 relief money for, right now, the 110,000 folk already, from Oakland to Detroit to Chicago and Austin and Seattle, who have applied for funds varying from $500 a person in King County, WA, from the Starbucks Mafia for out-of-work restaurant folk (that was $6 million of Schulz Foundation blood coffee profits), to home owners in Chicago who can apply for eviction relief.
I’ll do a piece on the outfit as my time with them ends soon, but for now, any Google search for my name, well, that’s a killer. For instance, again, I need the work, and for two jobs for which I interviewed via Zoom, I got the thanks but no thanks — a permancey worker for foster children, and then a worker for folks with developmental disabilities. In each case (and I have written about both this and reverse sexism, and anti-socialist crap before) five women (a state job and then a country job) interviewing me. All these teams are stacked with women, and in the illogic of neoliberalism and this bizarre mentality, why not keep a man off the team. As if young foster youth and youth who might need to be reunited with biological families, and those with developmental disabilities NEVER EVER need to see or hear from a male case worker. You think it is true these HR folk do a Google on me? Yep.
So, now, limping along, imagine, I am working as a contractor – on the 1099 IRS form– and there is little broad connection to the organization I work for in terms of my own benefit and contribution for the organization. There is a lot of fakery, a lot of on-the-screen fake comradeship. These people are siloed, as they work remotely (before lockdown Covid-19 Zoom Gulag). There is a lot of cliqueness, and the entire concept of remote work and conference calls/training/management is dead from the navel up.
But it is the thing of the future, thanks to the thousands upon thousands of outfits pushing on-line banking, on-line education, on-line med, on-line psychiatry, on-line family reunions, on-line weddings/divorces/funerals/ anniversaries/birthdays/dating/sex. The world is the app developers’ and the tech monsters’ virtual oyster.
But the working with the devil noise is now much more pronounced with this outfit I ended up working with starting a year ago July. We are talking about a non-profit that is now working hand in hand with the Koch Brothers (Stand Together) and Charles Schwab and all that lovely stuff that is part of the Fourth Industrial Revolution.
Koch Network Reorganizes as ‘Stand Together’ May 22, 2019. The Seminar Network , a network of nonprofits funded by Charles Koch and like-minded conservatives and libertarians who donate at least $100,000 annually to “help people improve their lives,” has announced that going forward it will be known as Stand Together .[ Source ! ]
So, this non-profit is over 18 years old, and used to have sites where household members met monthly, shared stories, shared resources, and did journals to receive some cash assistance. It was always the “data in the monthly journals was aggregated, not connected to one specific person or household.” And the non-profit got seed money and in-kind app development and AI support from, well, you guessed it, Google.
Connecting to the Koch Brothers is a dance with the devil. That started in Februart, 2020. Talk about cognitive dissonance —
Koch-Backed “Libre Initiative” Purports To “Empower Hispanics,” But Pushes Policies That Would Disproportionately Hurt Poor Hispanics. Libre Initiative, backed by more than $10 million in Koch funding, purports to “empower Hispanics,” but experts say the organization supports policies that “disenfranchise Hispanic voters” and opposes programs that would help millions of Hispanics living in poverty. Libre opposes the Affordable Care Act (ACA) and minimum wage increases, both of which would disproportionately benefit the Hispanic community, especially those living in poverty, and supports voter ID laws that would “disenfranchise Hispanic voters, other minorities, and the poor.” — Media Matters.
So, this Stand Together is supported by the billionaires who hate teachers, hate unions, hate raising the minimum wage, hate the science around global heating/warming, hate universities, hate hate hate. And, the non-profit I work with is mostly made up of BIPOC, and many are 20-somethings and 30-somethings. Many came from poverty. Some are originally from places like Puerto Rico and Columbia.
Read about the Koch Brothers in “Kochland: The Secret History of Koch Industries and Corporate Power in America,” by the Christopher Leonard.
As a 1099 contractor on the outs — who goes to bat for the few hundred Oregonians in the project I am/was heading up, money from Department of Human Services, to the tune of $720,000 total (most of which has not been distributed) — I am way left-left of field, the most radical person these young and youngish people will ever meet. I am not a capitalist, and I know what capitalism does. The proof is in the pudding — and if I sent this over to any of the people I work with, nah, I’d expect more than just push back. I’d expect narcing in the true sense of that term.
Read, Wrench in the Gears:
One of the biggest things we’re up against, and something few people are talking about, is social impact investing and pay for success finance. Within the hollowed out shell of the welfare state, which admittedly was always inadequate and used for purposes of racialized social control, global finance has built a new machine that will use predictive analytics, artificial intelligence, and wearable and screen-based technologies to monitor the global poor and profit from their misery.
This effort is being carried out in partnership with the non-profit sector, higher education, think tanks, and global foundations. Many involved identify as liberal, even progressive. Successful resistance will require stopping Trump, the Koch brothers, and ALEC, as well as a corporate, militarized Blue Wave that has every intention of stabilizing late-stage capitalism with technocratic “evidence-based” solutions. Make no mistake; this is a fully bipartisan enterprise.
Outcomes-based contracts are this machine’s operating system. Contracts employ pay-for-performance agreements that reimburse service providers IF they produce specified success metrics. These metrics are narrowly defined and chosen for their ability to be gamed. Contrived solutions offer up fake “success” to enrich investors at the expense of vulnerable populations. Think standardized test scores as success metrics for education or fit-bit step counts for preventative health.
This machine requires a steady supply of people labeled deficient by those in power. Like batteries in the Matrix, the poor are meant to be the fuel. The machine does not care for their actual wellbeing; its sole purpose is to maximize profit. In that it is similar to the capitalist Western medical model where Big Pharma opts for chronic disease management over research leading to cures. Pay for success will not empower the poor, but instead manage them and harvest their data, indefinitely. — Pay for Success Finance Preys Upon The Poor: Presentation at Left Forum
You can read more about the reality of capitalism NEVER dying because it is, a., running through the BlackRock filter ($100 trillion that for-profit scheme has on its ledgers as handlers of money), b., part of a huge effort to colonize most people on earth to abide by the Dashboard overlord. That is, people in dire straits will abide to almost anything to get paid, to get food, rent money, something, whether an at-home-paycheck, or some UBI – universal buffoon income.
It’s not just the vaccine passport that will be on the Dashboard, monetized, collected, used against you (if you don’t get one of those shots), or in your favor (if you get the shot, let the shot people put more data about you on the Dashboard, and let the AI and tech fascists decide what is or is not a viable human being on planet earth). Everything you do or say or believe or put on Facebook, that all will be collected, parsed, judged (AI) and then used to determine your worth, whether you are near the value of Soylent Green or some cubicle worker developing code.
Education is already dead in the water. So the concept of a smart, educated, critically thinking, independent, demanding, critical of government/ corporations/media student, well, that has been gone-gone-gone. Now, look at the Pre-K plans for the future below:
Look, they will be collecting BMI’s and all those details of all our chronic illnesses, all reports from the cops, all prescriptions taken, all notes from the social worker/psychologist/psychiatrist. They will collect all movements in your work history, all movements in your credit history, all moving and non-moving violations.
Capitalism is not dying, but rather, it is a Philip K. Dick nightmare, making Minority Report and Gattaca and Blade-Runner look like a bicycle ride around Mister Rogers neighborhood.
Make no bones about it – capitalism is in its 4.0 iteration of surveillance punishment. Capitalism is never just that – a form of economic relationships, that is supposed to be fair, balanced and with that free hand helping the community of businesses come together and practice fair market sharing, and using that all boats rise kind of communitarian logic. Nine sheep farmers on the island working out how much bite the flocks can make, which fields stay off limits during certain seasons, how to share the streams, the fields, the pathways, the roads and access to markets. Even a collective of shearers and ways to store the wool and how to enhance all their lives. Sure? But then that 10th farmer comes on board, moves to the island and well, a true capitalist maximizes profits, finds ways to cut corners (expenses), and has ways to not share the water and share the commons. Alas, yep, tragedy of the commons, and without communism and participatory democracy, then the common good is thrown out with the blood and guts and shit, put in a pond, collected out back, where the poor workers live. The common good has been replaced by the corporate good, the good of the stockholders, the good of the few at the expense of the many. Children understand this. Good things are not bad things done to good people. Duh. But capitalism is all about bad and mean and horrors done to good people.
But children can’t be taught this anymore, and alas, what passes as education today, moreover, for the past 30/40 years, has been a mix of indoctrination and pacification.
‘Traditional education can be seen as sculptural in nature, individual destiny is written somewhere within the human being, awaiting dross to be removed before a true image shines forth. Schooling, on the other hand, seeks a way to make mind and character blank, so others may chisel the destiny thereon,’ John Gatto, The Underground History of American Education
Much of Gatto’s writing is focused on the basic yet often overlooked distinction between schooling and education. At the heart of his work is the simple yet radical suggestion that mass schooling, a 19th-century European import to the U.S., is not the modern manifestation of the ancient concept of education but, rather, its diametric opposite. See: Truthout Vincent Kelley, October 25, 2019
I have written about my own decades teaching, from community colleges, to universities to prison programs, and K12. It is an absolute mess under capitalism, patriotism and commercialism. A society that believes in the red-white-and-blue and the power of the sword, well, you need willing participants and fools in that game. Start them off young. And no matter how radical and true to education one teacher or a million might be, the American will is to have outsiders and outside-the-box participants break.
Rockefeller’s General Education Board summed up in a 1906 document on scientific schooling:
In our dreams … people yield themselves with perfect docility to our molding hands. The present educational conventions [intellectual and character education] fade from our minds, and unhampered by tradition we work our own good will upon a grateful and responsive folk…. The task we set before ourselves is very simple…. We will organize children … and teach them to do in a perfect way the things their fathers and mothers are doing in an imperfect way.
It is only worse a hundred and 14 years later.
Capitalism has always been a stacked deck, and always has been based on penury, parasitic, predatory financial exchanges; and socialism for the corporations. Every aspect of capitalism has been set forth as a system of dog-eat-dog, and survival of the fittest. In fact, it is a form of Organized Crime, a unique Mafia … and those externalities and economies of scale that have set about mass murders of people – either softly, through economic violence, or, deliberately, through the myriad of toxins and poisons and slow/moderate/fast death by a thousand carcinogens.
Then it makes sense that self-driving cars, Internet of Things, vaccine markers and RFIDs, mass surveillance and real time data collecting, from saliva to ulcers, from keyboard clicks to Netflix picks, the entire system is set up to use regular humans as sources of data. Like big lakes of human blood to be harvested.
Forget about the mass media and mass indoctrination. Forget about Madison Avenue and the applied psychology and behaviorism of perceived or planned obsolescence. Forget about the dopamine hits from gambling, lotteries, shopping, eating, vegging out. Forget about the manipulation through the dark arts of subliminal advertising. Forget about the colonization of the mind through malls, box stores, and now the on-line tyranny of the Walmart/Target/Amazon kind.
Forget about the blood and guts and shit and cancerous tumors chopped up and mixed in with the All American hotdogs, or the shit and fetuses and unusable offal of the birds-swine-cattle used to feed The Jungle on Steroids. Imagine, a system – capitalism – that has the dark arts of lobbying, prostituting politicians, and the economic hitmen/snake oil salesmen/grifters/outright thieves/destroyers/takers all allowing mercury in baby formula, lead in water, microplastics in everything, untested nanoparticles pulverized and mixed in with the pancake batter, all the gas-fuel additives that cause future mommy to have ovarian cancer at 25 and future daddy to have a sperm count one-half that of a guy like Willy Loman.
Imagine that system, man, of zero precautionary principle which, in fact, has already been reversed as the cost of doing business. Forced arbitration, death of class action lawsuits, $2000 an hour lawyers to bankrupt any plaintiff, and this great system, called Capitalism, moves like a rabid pack of dogs ten million strong across the land, the globe.
The conversations with both left and right of that manure pile called American national politics, well, vapid, and hinging on insanity all the time.
Read more on social impact bonds — man, capitalists make money on every single bad move, bad decision, bad health care outcome, bad driving record, bad physiology, bad mental health performance, bad check, bad report card, bad loan, bad divorce, bad habit, bad addiction, bad sin, bad purchase, bad trip, bad death.
Now back to the ground-level stuff – I am working as a journalist (one paid gig, others free), editing Cirque Journal as guest editor (a $100 honorarium). I have a new book out and three more to get ready, and alas, where is that publishing money? Right: in the hands of the overlords and their mutants. From Mary Trump to Michael Cohen to Joe Rogan, well, the list of undeserving “authors” and complete trash products of nothingness is very very long. A hundred blog pages long. And that’s just a start!
Yet, I live in an area of the world (Central Oregon Coast) where many people are either really hurting with small fixed incomes or those that have gotten some form of the brass ring and are holding steady in their fairly middle class retirement. Plus, the service economy, and their families and their struggles are to the tenth power.
Many of the people I communicate with on social media, well, I wonder about them – they seem to also have some form of semi-secure stream of income. And yet, boy, do we hear a lot from those left-of-Al Gore types writing for blogs, Facebook posts, and on-line magazines. A LOT.
They have in most cases no concept of what homelessness is, or how housing insecurity destroys all hope. They are all raring to go with the “masks don’t work” thesis, or, “Biden is worse than Trump hands down” yammering. It is a bizarre time. They know nothing of two or let alone ten opposing ideas that all need parsing and critical discussion.
Many of my more secure friends think I am all 401-k-ed up. “Man, books, years as a journalist, decades as a college instructor, social worker . . . blah-blah-blah.” They just are as out of touch as those who believe Biden and Trump are two peas in a pod, or that the democrats hands down across the board are as bad or worse than republicans across the board.
Man, it is a shit show. Look, I have worked to lobby for part-time faculty rights, to lobby for stricter river rights, lobbied to increase minimum wage, lobbied to do a lot of progressive things. The conversations and the level of intelligence those two-bit senators and representatives who deem themselves blue compared to the level of intelligence, depth, humanity of those two-bit senators and representatives who deem themselves red are absolutely night and day, hands down.
We are not talking Karl Rover or Bill Clinton or James Carville or Cheney or Pence or Biden or Trump and all their lackeys and money-grubbing pukes. I am talking about small-town politics, about small districts, about large state districts.
Yep, few are going to be able to talk about Zapatistas, anarchism, ecosocialism, any of the progressive issues, but many conversations with democrats I have had over 4.5 decades, from Idaho to Seattle, from Las Cruces to Houston, from Portland to New York City, well, it doesn’t take some Off-Guardian winner to give the world the daily news – I can attest to the complete retrograde, misanthropic, mean-as-cuss, dog-eat-dog mentality of EVERY GOP or republican I have talked to in those 4.5 decades. Inherently, they are pro-cop, pro-war, pro-unfettered capitalism; they are anti-union; anti-collective bargaining; anti-environmentalism; anti-Medicare-for-all. They are fucking misanthropes, making neoliberals seem like saints. And we know what neoliberalism is!
For anyone to talk differently, well, that is one big fat lie. Delusion. Game. Devil’s Advocacy. Or just inherent love of some of Trump’s melodies of hate, from his anti 1619 Project, to his hate of critical race theory, to his complete ignorance, man, complete. Something about the white whore Trump that some of these lefties sort of like. Ask them.
Try it, really, with two-bit GOP v. two-bit democrat. Mayoral candidate? County supervisor? Try it. REALLY. Talk to both of them about those progressive issues, those radical ideas, those socialistic ideals. You will have ears with democrats, and rants and closed minds of the GOP.
Yep, you have to have the gift of gab, and you have to pull them into their subterfuge. In most cases, you have to be a white male talking to these fellows and women. It doesn’t take a Gore Vidal level of debate skills to flush them out of their racist, anti-raising-the-minimum-wage-to-a-living-wage mentality.
Yet, oh, yet – how broken the American soul is, and I can’t lump all the lower middle-class folk who go for the Elephant in the big state races, etc. Many can and do have intelligent conversations, and can understand false balance, invented dichotomies and do know how to process counterintuitive thinking.
I dare anyone to talk to a GOP or MAGA or military industrial complex whore about peace, getting USA out of any place, but let’s just say Venezuela. Try it. Try and discuss how corporations who lie-cheat-pollute-steal-murder must not only be prosecuted and fined, but community-wide reparations must be exacted from them as restorative justice. Try that one out with the neighbor posting the “Trump is a Sign from Out God” sign on their front yard.
Is it expected that liberals (democrats) might say and believe and understand stupid things? Sure, a bunch came out recently with “Romney is the only ethical guy” when it was first known of Ruth Bader’s demise (and like the human stain he is, Mister Bain Capital, reversed that statement about holding off on a SCOTUS vote until after the “election”). Or, how Cynthia McCain is great, and so was John McCain. This sort of bizarre rah-rah is definitely part of America’s Amnesia, and the country’s general collective Stockholm Syndrome. We are (and have been for a very long time) living in a country with two piss-ass bad national parties that have blood on their hands.
And part of the blood is on us all, as we pay for goods and services with those greenbacks – In God We Trust. Every tax filing, yep, money to-for-because of the military industrial complex, which we should know by now is everything from toilet paper to sunscreen, from pickles to window frames, from blue plastic tarps to armor-piercing ammunition, from drones to Hellfire missiles, from endless replacement parts to the tenth power each for every Hummer and Stryker parked on planet earth, to the B-1 bomber, the DARPA and Plume Island and Fort Detrick bioweapons lap dance. Every single person in academia who gets a grant from Rockefeller, Ford Foundation, any of the 2,700 billionaire-smeared non-profits and foundations and think tanks, well, they too are part of the Structural Violence and Military-Chemical-Drug-Oil-Med-Banking-Insurance-Prison-Ag-Law-Real Estate-Patent-AI-IT-Engineering-Space-Mining-Surveillance Complex.
Capitalism is about selling out and the Faustian Bargain. It is a cancer, a colonization of the mind-body-spirit-history-cultures-futures. You can strip away one layer after another layer, opt out of one thing after another thing, advance a socialist agenda in this or that arena, but in the end, Capitalism not only has us all by the short hairs, the future will be dictated by Criminal Capitalism. Every single thing coming out of Hollywood or Madison Avenue or Publishing has the stench of Sulphur, so to read all those Off-Guardian writers who just go full force on the Democratic Party, full force on the Democratic governors pushing lockdowns, full force on the Democrats who want to curtail individual and community rights, they fail the litmus test when it comes to the history of what a Republican/Conservative perverse racist and supremacist Trump or Pence or Nixon or Reagan or you-name-the-piece-of-human-stain Republican believes and wants for the world. Ask them about anything Native American, anything about the history of colonialism, manifest destiny, any of it. Question them about reparations, about genocide, about community rights, about the people’s right to push out bad businesses, bad industries, bad companies from their communities/towns/cities/states. Ask them, man, about private property, about the right to own a bazooka, about any of it, and you will hands down get the same answer through and through – from a republican, and it is, a fact, every GOP is a racist, corporatist, anti-intellectualist cult member. Do the democratic administrations have blood on their hands? Are they hypocrites? Are they in bed with Wall Street?
But have that conversation with a mayor or county supervisor or district representative. Flush them out, and see which GOP is open to any sort of liberal thinking. Good luck on that one.
But now, down to brass tacks: the unemployment, underemployment, bad-employment (Shit Jobs, David Graeber, may you rest in peace) rates in the USA, the real buying power, the real economy, all of that has been the shits since 1970. Before. There was never a real middle class, and most Americans are part of the debtor class. New car, second car, house, boat, new roof, college education, a trip, new fridge, you name it, including surgeries and dental work, all of that is on CREDIT. For most Americans.
You might have a better time framing these realities with naïve Democrats, but try it, brothers and sisters, with GOP and MAGA and Reaganites and Nixonites. Try those talks with them, your neighbors, anyone you know or suspect of being a cult-infused Trump-loving Christian-bowing Republican.
I’ve been having those conversations since I was 13, so mark that: one-half a century debating military, debating republicans, debating capitalists, debating the idea of America being anything other than North America, Canada, colonized and trashed, and then this USA colonized and trashed, and alas, Mesoamerica and Central America and South America, colonized and trashed before the United States ended up sending millions to their deaths through capitalism, structural economic warfare, propping up despots and dictators, and, here we are, then:
So many of my friends who vote blue are freaked out about Trump, about the Proud boys, about the anti-BLM movement, about the homeless problem, the climate heating problem, the entire shooting match – capitalism on steroids.
They are depressed and can’t even come to talk about the ways many of us who have been battling capitalism and faux democracy and this White Western Civilization’s rapacious and warring ways fight off that cynicism. They believe the world is cooked and ruined, and they in one fell swoop – in their naïve and shallow democratic party leaning ways – consign young and old to the dust bins of history even before the entire ranch has been sold down the river.
I enjoy one gig: focusing on people and their narratives and struggles. It’s for Street Roots, a paper that has won a lot of awards, but is a street newspaper, in Portland. Again, small potatoes, compared to the vaunted stuff over at Off-Guardian or Truthout or even now the Grayzone or Mintpress. But what I am finding is the stories in this newspaper are so more relevant than anything coming out of Glen Greenwald’s mouth, out of the celebrity culture that is either in overdrive, tied to MSM, or then those like Thom Hartmann (small potatoes) and now the $100 million deal given to Joe Rogan from Spotify.
I’m now interviewing Portland artists and the art community with the proposition around this — What is Art in a Time of Lockdown. Where Does Art Go Now that Artists Are Dropping to the Wayside like Flies. Is There No Exceptional and Out-of-the-Bourgeoise Box Art Anymore. Along those lines, but really, just talking to people who were already challenging the Art Biz mentality of American (Western Art) popular art that has permeated the art world for decades but now supercharged.
I just finished this older book: The Art Biz: The Covert World of Collectors, Dealers, Auction Houses, Museums, and Critics Hardcover, June 1, 1991 by Alice Goldfarb Marquis
And I watched again, this documentary, which lifts a lot from Alice Goldfarb Marquis’ book.
From acclaimed director Barry Avrich and executive producer Jonas Prince, BLURRED LINES: INSIDE THE ART WORLD lifts the curtain on the provocative contemporary art scene, a glamorous and cutthroat game of genius versus commerce. Featuring insider accounts from the most influential and powerful players in the industry, audiences will hear from renowned artists such as Julian Schnabel and Marina Abramovic, experts from prominent museums like MoMA and art fairs like Art Basel, insiders at Sotheby’s and Christie’s, and leading gallerists.
Imagine the degradation of thinking, discourse and debate over at the Rogan Show. And, Americans love their red-faced yelling heroes, their MC’s who do Mixed Martial Arts play-by-play, then a podcast, and now this big ass deal. Americans legitimize only those who are, a., high up on the You Tube platform, and, b., make news about themselves, and, c, have wads of money and wads of followers.
This is what we have gotten to – Entertaining/Amusing/YouTubing/Reality TV-ing/Art of Dealing Ourselves to Death.
What Orwell feared were those who would ban books. What Huxley feared was that there would be no reason to ban a book, for there would be no one who wanted to read one. Orwell feared those who would deprive us of information. Huxley feared those who would give us so much that we would be reduced to passivity and egoism. Orwell feared that the truth would be concealed from us. Huxley feared the truth would be drowned in a sea of irrelevance. Orwell feared we would become a captive culture. Huxley feared we would become a trivial culture, preoccupied with some equivalent of the feelies, the orgy porgy, and the centrifugal bumblepuppy. As Huxley remarked in Brave New World Revisited, the civil libertarians and rationalists who are ever on the alert to oppose tyranny “failed to take into account man’s almost infinite appetite for distractions.” In 1984, Orwell added, people are controlled by inflicting pain. In Brave New World, they are controlled by inflicting pleasure. In short, Orwell feared that what we fear will ruin us. Huxley feared that what we desire will ruin us.
This book is about the possibility that Huxley, not Orwell, was right.”
― Neil Postman, Amusing Ourselves to Death: Public Discourse in the Age of Show Business
Of course, Huxley didn’t quite describe the New World as a cultist crew of One Percenters and their Five Percent Eichmann’s and the other 15 Percenters who are the managers and bosses pushing this capitalism for the rich, trickle down, voodoo economics, what have you, for the POOR. But it is a cult, really, from celebrity to academic to overpaid idiots, and on and on, until we have perversions of humanity, whether Trump and his narcissism on steroids and Adderall, or Biden or Harris or Clinton, well, what fools we are for having new overlords in the administrations and the supreme courts, and even judgeships and DAs, inside the entire mess of America, run by people who get the mic, control the medium, get the print and copy and air time. All with big bucks thrown in.
Celebrity — turned into the cult of the self, a la Chris Hedges:
We have a right, in the cult of the self, to get whatever we desire. We can do anything, even belittle and destroy those around us, including our friends, to make money, to be happy and to become famous. Once fame and wealth are achieved, they become their own justification, their own morality. How one gets there is irrelevant. It is this perverted ethic that gave us Wall Street banks and investment houses that willfully trashed the nation’s economy, stole money from tens of millions of small shareholders who had bought stocks to finance their retirement or the college expenses of their children. The heads of these corporations, like the winners on a reality television program who lied and manipulated others to succeed, walked away with hundreds of millions of dollars in compensation and bonuses. The ethic of Wall Street is the ethic of celebrity. The Man in the Mirror, Chris Hedges
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.
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.
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. ” 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.
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.
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.
*(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.”
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.