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Privatization Is A Ramp For Corruption and Insouciance Is a Ramp for War

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Cross-posted from Paul Craig Roberts

The New York Times has acquired a new Judith Miller

Libertarian ideology favors privatization. However, in practice privatization is usually very different in result than libertarian ideology postulates. Almost always, privatization becomes a way for well-connected private interests to loot both the public purse and the general welfare.

Most privatizations, such as those that have occurred in France and UK during the neo-liberal era, and in Greece today and Ukraine tomorrow, are lootings of public assets by politically-connected private interests.

Another form of privatization is to turn traditional government functions, such as prison operation and many supply functions of the armed services, such as feeding the troops, over to private companies at a large increase in cost to the public. Essentially, the libertarian ideology is used to provide lucrative public contracts to a few favored persons who then reward the politicians. This is called "free enterprise."

The privatization of prisons in the US is an example of the extraordinary cost and injustice of privatization. Privatization of prisons requires ever higher rates of incarceration in order to build profitability. The US, supposedly "a land of liberty," has by far the highest incarceration rates of all countries. The "free" US has not only the highest percentage of its population in prison but also the highest absolute number. "Authoritarian" China with four times the US population has fewer citizens in prison.

This article shows how well prison privatization works for well-connected private interests.  It also shows the extraordinary shame, corruption, and discredit that prison privatization has brought to the US.

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A few years ago I wrote about the conviction of two judges who were paid by privatized juvenile detention facilities to sentence kids to their facilities.

As Alain of Lille and later Karl Marx said, "Money is all." In America money is all that is important to the political system and to the bulk of the population. Essentially, America has no other values.

Another great libertarian fantasy is Wall Street. In the libertarian mythology, Wall Street is the mother of entrepreneurs and of the start-up companies that blossom into industrial, manufacturing, and commercial giants. In actual fact, Wall Street is the mother of enormous corruption. As Nomi Prins shows in All The President's Bankers, it has always been the case.

Recently, there has been a spate of Wall Street whistleblowers. Many are reported by Pam Martens on her site, Wall Street On Parade.  Unlike libertarian ideologues, Prins and Martens are former Wall Street insiders and know what they are talking about.

All US financial markets are rigged for the benefit of a few. We have had the exposure of high frequency trading front-running buy and sell orders. We have had the exposure of the big banks rigging the LIBOR interest rate and the London gold price fix. We have had the exposure of the Federal Reserve rigging via its dependent bullion banks the price of gold in the futures market. We have had the exposure in Congressional hearings of the rigging of metal and commodity prices. The dollar's exchange value is rigged. And so forth. Yet no heads have rolled. Recently an SEC prosecuting attorney, James Kidney, retired. Upon his retirement, he proclaimed that his cases against the criminal big banks have been suppressed by SEC higher ups who have their eyes fixed on big jobs with the banks they are protecting while in government service.

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So there you have it. The United States government is so overwhelmingly corrupt that even the financial regulatory agencies have been corrupted by the money of the private capitalists they are supposed to regulate.

America the corrupted. That is what we have become.

Not even Vladimir Putin understands how totally corrupt and insensitive to humanity Washington is.

Putin's response to the Ukraine crisis created by Washington's coup in Kiev is to rely on "Russia's Western partners," the UN, the Obama regime, John Kerry, etc., to work out a reasonable solution to the crisis.

Putin's hope for a diplomatic solution is unrealistic. The NATO governments are bought-and-paid-for by Washington. For example, Germany is not a country. Germany is a mere piece of Washington's empire. The German government will do as Washington says.The German government represents Washington's agenda. The European governments to whom Putin is speaking are not listening.

Paul Wolfowitz, the neoconservative who as Deputy Secretary of Defense presided over the orchestration of the false evidence used by the Bush regime to launch Washington's wars in the Middle East, declared the minimization of Russian power as the "first objective" of US foreign and military policy:

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Dr. Roberts was Assistant Secretary of the US Treasury for Economic Policy in the Reagan Administration. He was associate editor and columnist with the Wall Street Journal, columnist for Business Week and the Scripps Howard News Service. He is a contributing editor to Gerald Celente's Trends Journal. He has had numerous university appointments. His book, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West is available here. His latest book,  How America Was Lost, has just been released and can be ordered here.

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Dumbshit americans (sic) - Well said Dr. Roberts.&... by Tom Madison on Thursday, Apr 17, 2014 at 1:07:15 AM
I refer to them as NotSee Americans for they may n... by Dennis Kaiser on Thursday, Apr 17, 2014 at 2:31:50 PM
Banks have always profited from war because ... by Lance Ciepiela on Friday, Apr 18, 2014 at 10:53:59 AM
YES _ Absolutely ___ but no problem, glorious USA ... by urb musak on Saturday, Apr 19, 2014 at 8:27:21 PM
All true, except I do get troubled about public s... by Pal Palsimon on Sunday, Apr 20, 2014 at 1:14:48 AM
See Milking Public Education by Pal Palsimon on Sunday, Apr 20, 2014 at 1:48:27 AM
Excellent article by P.C. Roberts___Tom M. comment... by urb musak on Saturday, Apr 19, 2014 at 8:10:31 PM
As usual, PCR knows all the evils of capitalism an... by Pal Palsimon on Thursday, Apr 17, 2014 at 2:23:06 AM
I like where you're coming from.  Best way f... by Michael Dewey on Thursday, Apr 17, 2014 at 3:12:34 AM
I just got the idea last night that united Western... by Pal Palsimon on Thursday, Apr 17, 2014 at 6:14:51 AM
May I suggest checking out Michael Tellinger... by Jack Flanders on Thursday, Apr 17, 2014 at 6:34:59 AM
Mr Flanders:  Also this, attributed to Pope ... by Lester Shepherd on Thursday, Apr 17, 2014 at 7:42:02 AM
You need not be Catholic--or a "devout ex-Catholic... by Daniel Geery on Thursday, Apr 17, 2014 at 12:59:08 PM
I have always held to that theory too. It is diffi... by Pal Palsimon on Thursday, Apr 17, 2014 at 3:08:37 PM
Just think how nice it would be not to have border... by Pal Palsimon on Thursday, Apr 17, 2014 at 3:22:44 PM
I do doubt that there will not be borders, in my l... by Michael Dewey on Thursday, Apr 17, 2014 at 5:43:41 PM
NEW PLEDGE OF ALLEGIANCE:  I p... by Tom Madison on Thursday, Apr 17, 2014 at 11:05:18 AM
Just a quick outline Not a finished product... T... by Leonard Allan on Thursday, Apr 17, 2014 at 8:17:34 PM
Too late, already started by the oligarchy, called... by urb musak on Saturday, Apr 19, 2014 at 7:43:28 PM
I am not talking about "only private corporations ... by Pal Palsimon on Sunday, Apr 20, 2014 at 1:20:20 AM
Very good summary article, but, I'd say the neocon... by Gregory Kozloff on Thursday, Apr 17, 2014 at 5:21:14 AM
Greg:  Yes, and the Reagan Administration pro... by Lester Shepherd on Thursday, Apr 17, 2014 at 6:26:18 AM
My big bang theory is it all started with a big ba... by Pal Palsimon on Sunday, Apr 20, 2014 at 1:23:00 AM
Actually, IMO, there wouldn't have been a " big ba... by Gregory Kozloff on Monday, Apr 21, 2014 at 2:43:13 AM
What cowards the Democrats, Johnson, Congress, et... by Pal Palsimon on Monday, Apr 21, 2014 at 7:55:46 AM
Hooray for China saying the world needs to be de-... by Steve Hudson on Thursday, Apr 17, 2014 at 10:21:28 AM
Privatization has done extreme damage to severa... by Ethan Hollow on Thursday, Apr 17, 2014 at 12:43:41 PM
This is all true and as you say: "As Republicans ... by Pal Palsimon on Thursday, Apr 17, 2014 at 3:26:04 PM
A quick look at the recent past will show that the... by Ethan Hollow on Thursday, Apr 17, 2014 at 1:29:40 PM
The compliant corporate media has done an outstand... by intotheabyss on Thursday, Apr 17, 2014 at 3:05:57 PM
Public Citizen promoting Constitutional Amendment... by Pal Palsimon on Sunday, Apr 20, 2014 at 2:04:49 AM