Economics

The Road to Economic Slavery

As economist Michael Hudson points out, the European debt crisis is really the product of financial warfare instigated by big banks. Yes, these banks are engaged in warfare against the rest of society. What’s going on in Greece is exactly what’s going to happen in America very shortly. Why? Because in every industrialized country, the big banks are in the process of offloading their bad debts onto governments. They are then forcing these governments to sell off national assets so that the bankers can be paid what they consider to be their due. (For more about this, see the linked video at this web site, about Greece being a dress rehearsal for the US.)

In a nutshell, what it says is that the world is being prepared for the kind of “neo-feudalism” that these banksters (intent on ever more completely becoming our masters and lords) intend to implement. And so it is that America is in the early stages of being subjected to the same type of plundering as Greece and Ireland.

As Hudson explained in 2008, what these  banksters and their cohorts are really trying to do is to roll back the Enlightenment, roll back the moral philosophy and social values of classical political economy and its culmination in Progressive Era legislation, as well as the New Deal institutions that embody such legislation.   They’re not trying to make the economy more equal, and they’re not trying to share power — just the opposite:   Their aim is to implement a kind of pre-industrial and even feudal socioeconomic system. What this means is that our economy is being pushed back and put on the road to debt peonage. Hence forth, most manufacturing will be done in Asia and Europe.

What we have here, therefore, is indeed a “Road to Serfdom.” It is just the opposite of the government sponsorship of economic progress and rising living standards that we had until Reagan took the White House. Rather, it’s the dismantling of democratic government and the dissolution of regulatory agencies, for the purpose of creating this new kind of neo-feudal system. (Don’t miss Max Keiser’s discussion  of this neo-feudalism on the Keiser Report. Just scroll down until you see a picture of economist Michael Hudson on the linked video screen.)

If all this sounds far fetched, consider that Foreign Policy magazine recently ran an article entitled ” The Next Big Thing   Neomedievalism ,” arguing that the power of nations is declining, and is being replaced by big banks and other corporations, wealthy individuals, the sovereign wealth funds of monarchs, and city-regions.

Also consider that many progressive economists are now telling us that the true purpose of the bank rescue plans is “a massive redistribution of wealth (concentrating ever more of it into the hands of) the bank shareholders and their top executives.”

Finally, as the wholly non-partisan Australian economist Steve Keen observed:

“This is the biggest transfer of wealth in history,” as the giant banks have handed off their toxic debts (stemming from fraudulent activities) to tax payers in their respective countries. These big banks created bubbles — using fraud — because that’s the only way they could make the obscene profits they feel they now deserve. (See this for details). And be sure to not miss Max Keiser’s interview of Steve Keen here. (Just scroll down until you see Mr. Keen’s picture on the linked video screen.)

Indeed, this isn’t the “Great Recession”, it’s the Great Bank Robbery . In simple language, the big banks have pillaged and looted the rest of the world, and now they are beginning to pillage and loot the USA. It is not only Greece that is losing its sovereignty;  the big banks are in the process of turning America into a banana republic as well. Remember, the trillions in bailouts went to banks, not to Main Street , and a large percentage of the bailouts went to foreign banks (and see this ). And so did most of the money from the second round of quantitative easing .

In short, warfare initiated by the big banks has now gone global. As Warren Buffet, one of America’s most successful capitalists and defenders of capitalism, has pointed out, “There’s class warfare, all right, but it’s my class, the rich class, that’s making that war.”  And winning it.

Let’s not forget that it was inequality that to a large extent caused the Great Depression and that has also caused the current economic crisis . Finally, let’s not forget, either, that the father of modern economics, Adam Smithdidn’t believe that inequality should be a taboo subject, and that even some conservatives, in addition to most liberals of course, are against rampant inequality . In spite of this, however, polls show that the vast majority of Americans continue to greatly underestimate the amount of inequality that has, in our country, over the past 30 years, been generated. Most remain largely unaware of the colossal crime that has been committed against them.

That lack of awareness we must bring to an end.

Richard Clark

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