Banker Occupied Europe and America
by Stephen Lendman
February 17, 2012
Money
power rules. Across Europe and America, governments follow banker
diktats. They demand economies and people suffer to assure they're paid.
Money
power in private hands and democracy can't co-exist. It buys what it
wants at the expense of government of, by and for the people. It never
was and isn't now.
Wall
Street and major European banks usurped unprecedented money making
power. With complicit politicians, they make it the old fashioned way.
They steal it.
As
a result, ordinary people are harmed. They've lost jobs, homes,
savings, and futures to let privileged elites get richer and more
powerful at their expense.
At
issue is banking giants controlling money, credit and debt for private
enrichment. Used lawlessly, they bribe politicians to pass business
friendly laws and turn a blind eye to massive fraud, abuse, and grand
theft.
Greece
is the epicenter of Europe's crisis. It's being strip-mined of all
material wealth. It's life force is being drained to pay bankers. Its
citizens face destitution and neoserfdom with no rights. Democracy's
just a figure of speech. In its birthplace, it no longer exists.
Attorney Dimitri Lascaris has family in Greece. His sister's letter explained harm times there, saying:
In
fall 2009, their family income declined. Their carpentry business only
works sporadically. Customers with outstanding balances can't pay. They
prioritize other obligations like food, rent, mortgages, water,
electricity and health insurance, etc.
"Slowly, cash has become more and more scarce for our customers, and therefore for us."
In
2012, empty stores with rent signs are everywhere. Businesses still
operating feature sales with 50 - 70% discounts. Once crowded markets
became "deserted urban centers."
"Suicides,
drug abuse, prostitution, and crime have infiltrated village
life....Other friends of ours have died of heart attacks, stressed to
the limit by debt, or worse, the loss of their cars, homes," and
livelihoods.
Businesses
have to beg customers to pay something, anything "because food or heat
in the dead of winter has become an issue for us....We are all now at
the mercy of anyone with money at hand to help our family survive, let
alone aspire to a better life."
The
same scenario threatens Europe, especially in troubled Eurozone
countries and Latvia where wages were slashed 30% and people haven't
enough to live on.
The
more pounds of flesh extracted, the less able economies can grow.
Greeks must either leave or rebel. The alternative's letting politicians
and bankers bleed them dry. There's no in between, and what's happening
there's heading for Portugal, Italy, Spain, Ireland, and eventually all
Europe, Britain, and America.
Class
war rages. Western society futures face high unemployment, poverty,
less government help, low pay for employed workers, few if any benefits,
and higher prices for basic services like food, healthcare,
transportation, electricity, heating oil, and water.
Households
with below subsistence incomes will be hard-pressed to survive, and
governments don't care enough to help. They're extracting maximum wealth
to pay bankers and force austerity when stimulus is needed to create
jobs and growth.
At
the same time, while the Fed and ECB can print money, they can't create
wealth by letting bankers use it for speculation, greater
consolidation, and big bonuses.
Greece
is ground zero, a poster child for destructive economic/political
policy. Austerity destroys growth. Its depression level exceeds the
worst of America's 1930s.
Government
then created jobs. In Greece, they're vanishing and with them the
ability to survive. Moreover, bankers impose impossible demands. New
ones add greater burdens. At issue, of course, is bleeding Greece dry en
route to entirely destroying its economy and people.
Despite
contracting nearly 20% since 2007, former senior World Bank official
Uri Dasash expects further decline to 30%. No matter, EU/IMF/ECB Troika
bandits demand continued wealth extraction until bled dry Greece
collapses. Then expect greater pillage elsewhere.
America's
future looks no better. Around $2.2 trillion in deficit cuts are
mandated post-November 2012. Expect weak economic conditions to worsen
en route to greater trouble when another $4 trillion in cuts are made.
Progressive
Radio News Hour regular/economist Jack Rasmus says downturns only
reverse two ways - by reflating economies stimulatively or liquidating
bad assets.
Since
crisis conditions began in late 2007, Fed policy struck out. Instead of
stimulating growth, it gave bankers trillions of dollars, bought their
toxic debt at near full purchase price (instead of around 15 cents on
the dollar), and fueled global speculation.
Moreover,
instead of liquidating bad debt, banks were rescued by lavish funding
even though they're technically insolvent. Toxic debt's still there, and
the public's on the hook for amounts the Fed bought.
As
a result, the public sector's fragile like banks, says Rasmus. People
are paying for their losses. Greece is the epicenter of global pillage,
but it's heading across Europe toward America and will arrive with a
bang.
A Final Comment
Obama's
proposed budget imposes hundreds of billions in social spending cuts at
the worst possible time. It adds another $638 billion to already agreed
on $1 trillion in cuts over 10 years.
Medicare
and Medicaid are hardest hit. Obama wants another $360 billion cut
besides earlier reductions. Healthcare providers will be most impacted.
As a result, fewer doctors and hospitals will treat patients for
payments not covering their opportunity and out-of-pocket costs.
Another
$278 billion less over 10 years is earmarked from other domestic
programs. Those mostly affected include federal worker pensions, the
Pension Benefit Guaranty Corporation (private pension insurer), farm
programs, and Postal Service being readied for privatization at higher
costs and less service.
Obama
officials claim his proposal's designed to create jobs, expand public
services, and make America's rich pay their fair share. In fact, expect
few job gains, and those created mostly low wage/low benefit temp or
part-time ones because most higher paying full-time ones went offshore.
As
a result, ordinary people face greater burdens. Retirees, the disabled,
and poor households are hardest hit, and proposed tax increases on
America's rich either won't pass Congress or will be largely offset by
new loopholes.
In
addition, alleged defense cuts won't happen as long as imperial wars
rage and proposed Pentagon Middle East/East Asia expansions proceed as
planned.
Overall,
Obama's budget combines greater pain for ordinary people with business
as usual for Wall Street, war profiteers, other corporate favorites, and
America's rich.
At
the same time, debt reduction's more smoke and mirrors than real.
Expect annual increases to outpace cuts as far ahead as can be
projected.
On
February 15, bipartisan complicity agreed on sharply reduced jobless
benefits duration. Long-term unemployed Americans will be harder pressed
to survive. More on the deal below.
On February 15, a New York Times editorial headlined, "A Rare Deal," leaving unexplained what matters most. Instead it claimed:
"The
agreement is imperfect but sound. It will help struggling Americans and
the struggling economy. It is also a political win for Democrats and"
Obama. Republicans dropped their demand to offset concessions with
comparable spending cuts.
Times editors never miss a chance to praise Obama instead of opposing his destructive/harmful policies and proposals.
Formerly,
jobless benefits ran 99 weeks. Now they're 73 weeks in states with
unemployment levels above 9%. Only 14 states qualify. Duration elsewhere
drops to 63 weeks. As a result, unemployed workers lose 30% of their
benefits when most needed.
Moreover,
they'll have to provide more proof they're actively seeking work, and
states will be able to impose drug tests. At the same time, federal
workers pension program costs will increase to offset continuing
unemployment benefit programs.
Obama's
plan comes at a time America's headline 8.3% unemployment rate masks
the real 22.5% figure. It includes discouraged, marginally attached, and
other workers without jobs long-term, as well as those wanting
full-time jobs forced into part-time/temp ones. It also excludes up to
48,000 falsely created monthly jobs based on new business birth-death
ratio calculations at a time accurate measures show losses, not gains.
Whatever's
finally enacted, expect poverty levels to rise. Already, around half of
US households earn below subsistence incomes or border it, according to
US Census figures. New cuts will push many more over the line to
greater hunger, homelessness and despair.
Obama, most congressional Democrats, and Republicans serve America's aristocracy at the expense of popular needs gone begging.
Planned cuts will force greater than ever burdens on households struggling to get by. As a result, the worst's yet to come.
Forewarned
is forearmed. The mother of all struggle's needed to change things. It
requires activism, not wishing, to get results.
Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.
Also
visit his blog site at sjlendman.blogspot.com and listen to
cutting-edge discussions with distinguished guests on the Progressive
Radio News Hour on the Progressive Radio Network Thursdays at 10AM US
Central time and Saturdays and Sundays at noon. All programs are
archived for easy listening.
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