Tricky Banking Socialism for the Rich

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By Jay Janson (about the author) Page 1 of 2 page(s)

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For OpEdNews: Jay Janson - Writer

Where are America's favorite son critics of what is presently obvious as desperately thieving predatory capitalism?

- Socialist participatory democracy is sweeping most of Latin America.
- In capitalist India, most educated Kerala state always elects Communist governments.
- Nepal has a Maoist prime minister.
- Parliaments in Italy and France often have socialist led coalitions in power.
- East Europeans often vote their formerly communist parties back in to power.
- The leading Asian political economies are run in part as national family protectorates.
- Most Islamic populations favor Islamic Banking practices of fairly shared risk.
- Violent revolt is rampant in an Africa exploited by EU's merciless power banks,
China's ruling Communist Party limits the rampage of unfettered investment capital,

- but in corporate media dumbed down American majority opinion capitalism must not be questioned! Conglomerate owned media has sold America on capitalism being as American as apple pie and that to be critical of capitalism is therefore unpatriotic.

Okay, okay, but one wonders about the hundreds of offers in the mail to buy any debt that one might have.

"Transfer debt to us and pay less interest!"

And this phenomenon is on top of the hundreds of credit card offers over the past year. What profit pays for all the postage?

Fairy-tale America, always 'something for nothing' assurance. Can't dope it out? Check out the spin in explanations of the speculative buying and selling of debt as if it were firm and fixed capital one reads in capitalist oriented media:

In a circular diagram titled A.I.G.'s Troubles And Why They Matter, NY Times, Sept. 17 front page, describing the 'tricks of the trade' within the strange buying and selling of debt:

"1. Banks wrote mortgages and sold them to investment banks. The investment banks packaged the mortgages into securities and sold them to investors.

2. To protect the investors from defaults A.I.G. sold insurance on those securities. A.I.G. put up collateral to guarantee it could repay investors if needed.

3. The contracts said that if A.I.G. credit ratings were cut, it would have to provide additional collateral.

4. Credit rating agencies, concerned about the declining value of A.I.G.'s own investment portfolio, cut the company's credit ratings on Monday, forcing the company to put up more collateral.

5. If A.I.G. had failed to put up more collateral, investors' holdings would have been at risk, perhaps leading to losses around the world."

(Hey, let's remember that this owed money is REAL only upon a THEORETICAL repayment that is contingent on the ability of the borrowers to do so, which in turn is relative to the value of the wages the borrowers are receiving)

The diagram accompanies the lead article "Fed’s $85 Billion Loan Rescues Insurer" which contains the admission,

"the bailout is likely to prove controversial, because it effectively puts taxpayer money at risk while protecting bad investments made by A.I.G. and other institutions it does business with."

While citizens were still reading this NY Times article, Associate Press "Business Writers" added details of this recent result of private national financing in the hands of the unscrupulous wealthy:

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Musician and writer, who has lived and worked on all the continents and whose articles on media have been published in China, Italy, England and the US, and now resides in New York City.

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