Bailouts, Bondage and Political Bankruptcy - by Stephen Lendman
Policies adopted are digging bigger holes for troubled countries heading for insolvency.
Europe and America perhaps face their gravest ever economic crisis. Growing millions are impoverished, unemployed, and out of luck.
Hunger and homelessness are increasing. So is unaddressed anger over handouts to bankers, not people facing crushing hardships.
Economist Michael Hudson calls finance a new mode of warfare. Generalissimo bankers run everything. Co-opted politicians serve them. In return, they're rewarded handsomely.
Ordinary people lose out entirely. So do economies being strip-mined for profit. Hudson asks what's to stop major Western banks from creating any amount of money they wish?
With it they can "buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1% interest cost?"
What's to stop them from bankrupting nations to buy valued assets cheap? Who'll stop them when governments play ball? Bankers, in fact, run countries like Greece, Italy, America and Britain. Washington is Wall Street occupied territory. So is London.
Scottish political commentator Ian MacWhirter calls bankers "an untouchable elite, beyond any civil constraint." Once upon a time, governments ran countries. Today it's bankers, at least in America and Europe.
They care nothing about legal standards or public need, just profits, limitless amounts to make more of them.
"Are we perhaps moving to a kind of financial feudalism," asked MacWhirter, "in which immensely wealthy robber barons command a disproportionate share of society's wealth and subject the people to a kind of debt peonage?"
Indeed so! Waging financial war lets banker bandits create credit in any amount for speculation and whatever assets they want globally.
"Who needs an army," asked Hudson, "when you can obtain monetary wealth and asset appropriation simply by financial means?" Economies able to create most credit profit most - using computer keyboards, not guns and bombs.
Today, America, Japan, and Eurozone countries face crushing debt burdens. Solutions require adding more, they claim. Imagine the folly of using fuel to extinguish fires. Imagine trying to lose weight by eating more.
Imagine reducing debt burdens with more of it. Imagine hypocritical politicians selling this snake to unwitting populations. Imagine angry people saying no more.
Austrian economist Ludwig von Mises (1881 - 1973) once said: