Richard Wolff provides an insightful analysis and historical perspective on the present state of capitalism and democracy. Clearly, Franklin Roosevelt saved capitalism in the 1930s by yielding a bit to the masses’ demand for a share of the economic benefits. Will there be a repeat of that in the coming decade under the next President?
That is doubtful. Conditions today are much different than
they were in the 1930s. Big government is no longer in vogue since governments
have ceded most of their power to transnational corporations. People now are
much more aware of the need for structural change in politics, economics and
finance. The vogue today is decentralization of power and restoration of the
I don’t know if Marx has any answers because I’ve never
studied Marxist economics.
I am convinced of one thing however that no one else seems
to recognize, that is the fundamental flaw in the global interest-based,
debt-money, central banking regime. It is the “debt-growth
imperative” that derives from the way banks create money by making loans
that require the payment of interest. One need only look at the empirical
evidence of global debt growth over time to see that it conforms to the
exponential growth function of compound interest. Even the richest countries
have exploding levels of sovereign debt because there are limits to how much
debt the private sector can bear, so governments become the “borrower of
last resort” to keep the money supply from collapsing. That’s the reason
for bank bailouts and “quantitative easing.”
The fundamental need is for a deep restructuring of money,
banking, and finance to decentralize control of credit and eliminate the
“debt-growth imperative.” Such an idea may seem radical in the
extreme and will not be welcomed by the powers that be, but alternative
approaches are already in the works and will be ready to save the day when the
capitalist train crashes off the rails.
Posted in Basic Concepts, Debt, Finance and Economics, Geo-politics, Global Economy, The Political Money System, The state of democracy
Tagged bailout, capitalism, debt imperative, Marxist economics, Richard Wolff, sovereign debt
Michael Hudson is one of the few academic economists who is worth listening to. He understands how bankers and politicians of both major parties have been deceiving and fleecing the people and he is willing to expose it. In this video he explains how it works and how both Trump and Hillary have planned to continue (and intensify) the fleecing
Michael Hudson: Donald Trump Wants to Make the 1% Even Richer
An academic study from the European School of Management and Technology highlights the utter futility of the bailout programs in pulling Greece out of the quagmire of debt bondage and economic depression.The report concludes:
“This paper provides a descriptive analysis of where the Greek bailout money went since 2010 and finds that, contrary to widely held beliefs, less than €10 billion or a fraction of less than 5% of the overall programme went to the Greek fiscal budget. In contrast, the vast majority of the money went to existing creditors in the form of debt repayments and interest payments. The resulting risk transfer from the private to the public sector and the subsequent risk transfer within the public sector from international organizations such as the ECB and the IMF to European rescue mechanisms such as the ESM still constitute the most important challenge for the goal to achieve a sustainable fiscal situation in Greece.”
See Rocholl *, J., and A. Stahmer(2016). Where did the Greek bailout money go? ESMT White Paper No. WP–16–02. http://static.esmt.org/publications/whitepapers/WP-16-02.pdf
Tarek El Diwany and Jem Bendell have done a great job in this Al Jazeera interview program explaining the dysfunctional features that are built into the corrupt global system of money and banking. They also cover Islamic banking and mutual credit clearing. This is a “must watch” video.—t.h.g.
Here’s a video from Yahoo! Screen featuring an interview with Neil Barofsky, former Special Inspector General in charge of the TARP bailout and author of a new book, Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street.
In this interview, Barofsky says that Treasury Secretary Tim Geithner’s claims about his LIBOR whistle-blowing are “not credible,” and that the entire regulatory process has become “captured to the interests of the banks.”
Barofsky says that LIBOR was built into the bailout plan, so the fraud means the taxpayers are being repaid less than they should be, and added “I hope we see people in handcuffs.”
Watch it here.
Ross Jackson is more than a thought leader and visionary; here he is performing a song he wrote for the Occupy Movement. I think it is both inspiring and entertaining, an excellent companion to his recent book by the same name. You can learn more about the Occupy World Street agenda at the website, http://occupyworldstreet.org/.
According to the Associated Press, federal negotiators are close to concluding a deal with major banks that would essentially forgive them of crimes committed in connection with the mortgage crisis. You can read the story here, and a critique of the proposed settlement here: Obama Is on the Brink of a Settlement With the Big Banks—and Progressives Are Furious.