The global financial crisis is "not a failure of the free market."
"History reveals the real problem is not democracy and public institutions but capital drowning in its own self-interest, greed, and exploitation leading to revolution. This dismal dynamic means ruling-class banking oligarchies must find ways to use private, fiat-money, systems to employ and distract the masses, fund welfare schemes, own and control media, and finance politicans serving up capital’s bread and circuses. It is capital’s deformation of society, and monopoly over money and credit, that generates instability and revolution."
Kent Welton, Cap-Com, The Economics Of Balance, 1995
As with nearly everything else George Bush 43 is wrong again. The global financial criss is indeed a failure of the so-called "Free market" and we can smell the fear of the ruling elite today.
In any case, what exactly is the so-called "free market" as we know it? Who is free in this market? Who is free-er? Where, and in whom, does real power reside in the marketplace? Dependent upon a wage for survival, how many days and ways of freedom does labor have versus capital? A week or a month of holdout power, on an over-mortgaged plot unable to sustain food production and with a foreclosure notice on its way?
A salient fact is that the vast majority no longer have natural freedom upon the land – i.e., an historic estate once providing for our independence and so servign to underwrite a balance of power between labor and capital. What we have today, however, is enclosure-generated urban dependency and a capital-dictated wage. Most are now completely dependent upon this, at-will, largesse.
As history reveals, all systemic failures of society and markets are a result of what I term factor imbalance – i.e., an imbalance of social, political, and marketplace power between the major economic factors, capital and labor. Chaos and crisis, wars and revolutions are largely about the gross imbalance of power between capital and labor in society.
In any case, the marketplace power of capital today stems largely from the un-remedied result of historic enclosures resulting in landless peasants packed into urban settings and dependent upon a paycheck for survival – a process creating massive instability and one still underway today around the world.
The only real remedy for this dismal and dependent situation of the vast majority lies in offsetting enclosure and dependence by maintaining factor-balanced institutions in society - which then serve to prevent the power and predation of either capital or labor.
Clearly, we are suffering under one of the greatest imbalances of factor power in history. Capital runs our lives as never before. The strength of the vast majority of wage-earning citizens has been reduced to irrevelance in a Potemkin democracy serving up ruling-elite propaganda.
Money controls our locked-down oligarchy. We have a private central bank controlled by self-interested big capital, and this despite the founders dire warnings of this very institution. We also have a "free trade" regime in which three guys in Belgium vote in secret and tell us what we can do, and without appeal – a prime example of a First-World crushing trap which no majority of Americans or Europeans would ever have approved.
Another big reason for capital’s on-going control is that we have no National Initiative process by which the vast majority might actually shape their economy and society, and overrule a capital-fed congress and Washington establishment virtually owned by the ruling bankster elite.
Make no mistake, it is any form of economic democracy that capital and ruling elites act to prevent, often via murder and torture of labor leaders and dissidents around the world. The ultimate insults are the CIA black budget ops, funded by taxpayers, which foster and pay for these crimes.
So money must rule, and it is supported by the Buckley v. Valeo Supreme Court ruling which traps us within the oligarchic dogma that money is "freedom" and not power. Freedom for whom? Obviously, those with the most money, and especially those with the exclusive privilege to create "our" money out of thin air... and get it backed by our taxes.
In short, the ruin we see today is far more than a normal business and inventory cycle. It is a direct result of gross factor imbalance in our society and institutions. It is the result of removing the vast majority of citizens from any effective power in shaping their institutions, and controlling marketplace regulation and enforcement, as well as monetary and trade policy.
1 | 2