Capitalism has struck the deadly reef of corruption and is now sinking fast. But passengers of the American ship of state--already drowning in the murderous waters of loss of homes and jobs--are still believing politicians' reassurances that everything's being taken care of.
The lifeboats, courtesy of the Federal Reserve and the U.S. treasury, are "saving" big financial institutions: Bear Stearns, IndyMac, and a host of others to the tune of over 24 trillion dollars so far.
This is the biggest government
intervention in the American economy since the 1930s Great Depression. The capitalist junta was only able to push through the US Treasury Department's revised plan for American taxpayers to be the fall guy for the 24 trillion dollars for stressed banks by threatening the imposition of martial law. It's now clear for all to see that capitalism has totally collapsed.
Chief Economic "Expert" Admits Capitalism Has Collapsed
"Those of us who have looked to the self-interest of lending institutions to protect shareholders' equity, myself included, are in a state of shocked disbelief" . . . at this
"once-in-a-century credit tsunami . . . This modern risk-management paradigm held sway for decades. The whole intellectual edifice, however, collapsed in the summer of last year."
Alan Greenspan, former head of the Federal Reserve System, 10/23/08
On 7/7/08 the Bush junta nationalized the two mortgage giants Fannie Mae and Freddie Mac to the tune of 300 billion in taxpayer dollars.
Bankers received over 24 trillion (thus far and expanding daily)
Economic collapse is one of the final stages of the cabal's overall policy of
world devastation. Many of their earlier phases of contrived collapse have been largely unseen or ignored by most Americans. The final economic breakdown is now in its first stages with:
The failure and bankruptcy of financial institutions and businesses
"After centuries of global capitalist accumulation, the global environment is on the verge of collapse and there is no more ecological space for another major expansion of global capitalism. The choice is stark--either humanity will permit capitalism to destroy the environment and therefore the material basis of human civilization, or it will destroy capitalism first. The struggle for ecological sustainability must join forces with the struggles of the oppressed and exploited to rebuild the global economy on the basis of production for human needs in accordance with democratic and socialist principles."
These are realities U.S. citizens are finding it difficult to
turn a blind eye to, because many Americans are literally being thrown out on the street through foreclosure and eviction.
What finally brought capitalism to the state of collapse was the adoption of
fascist style capitalism. Capitalism's smash-up is visible to those with eyes to see, but most Americans have allowed themselves to be blinded by reactionary ideologies.
"Finding an answer to this crisis begins with asking the question: Who is to pay for it? Whatever their tactical differences on the bailout, the answer of the Democrats and Republicans is clear: Working people must give up their jobs, living standards and social interests in order to rescue the financial parasites who created the disaster."
Capitalism's Essence Is a Devastating System of Worker Exploitation
Capitalism, from its inception, has been a system of predatory oppression of the working class.
As we've seen in previous essays, capitalism's negative, destructive elements are systemic, not accidental. We can best see the fundamental defects in capitalism by reviewing the imbecilic fantasies on which it is based:
"The invisible hand of the market works for the good of all"
"Free trade is the only way to order international commerce"
"Capitalists should pay little or no tax because they are the engine of the economy"
"Unemployment and poverty are natural, inevitable afflictions in any economic system"
"The United States has the right to attack any nation which threatens the economic interests of its rulers"
"Economic efficiency is only possible under capitalism"
"All manufacturing, public utilities, and commodities should be privately owned"
"Capitalists ought to be able to make as much money as they can, no matter what the plight of the workers"
"All things are working together for the best in this best of all capitalist worlds"
Enough Is Too Much!
During the decades after World War II, capitalism was forced to operate on a somewhat more economically equitable basis, providing wages sufficient for a reasonable way of life for some workers. But, inevitably, the greed of capitalists consumes them and within a short time they're making over 800 times what workers are earning. That's an intolerable disparity!
By any sane system of economic calculation, a highly trained executive would never make over one hundred times what an average worker would earn. By that calculation, predatory capitalism has been "broken" since its inception.
Capitalism produces huge earnings inequities--which they call "booms"--followed by depressions--when their corrupt practices lead to collapse of their entire system--as now. This somewhat concerns the cabal capitalists, because the working class is liable to rise up against capitalist oppression when their plight becomes intolerable. So the capitalists earlier allowed for some improvement in the lot of the workers--such as after World War II, as exemplified in the GI bill provision for education.
Capitalist Economic Depressions
Early Depression: 1837-1844
Long Depression: 1873-1893
Imperial Depression: 1893-1898
Great Depression: 1928-1939
Dot.com Depression: 1995-2001
Housing/Banking 2007- Depression:
Capitalists have historically been totally
indifferent to human suffering and have no interest in justice or equality of opportunity in society. They're currently demonstrating that their corruption has no bounds; for example, the capitalist cabal denies that it must meet any standard of legal behavior and claims executive privilege whenever their criminal acts are challenged. And the impoverishment and utter destruction of workers likewise has no limits: the capitalists will continue to loot taxpayer money to prop up their collapsed system.
"Every gun that is made, every warship launched, every rocket fired is, in a sense, a theft from those who hunger and are not fed, those who are cold and are not clothed."
President Dwight D. Eisenhower, April 16, 1953
The Unacknowledged Economic Collapse
Capitalists will never admit that their system has collapsed. So don't expect to see this headline in the Wall Street Journal or the New York Times:
Capitalists Acknowledge Their System Has Collapsed!
In the 1920s and 30s, the capitalists so destroyed the American economy through their criminally corrupt practices that they couldn't figure out how to restart their system. President Franklin D. Roosevelt saved capitalism from its own Robber Baron excesses by instituting his New Deal policies, which included Social Security and various oversight features. The cabal has destroyed all the oversight features of the New Deal and are continually trying to
loot Social Security through "privatization" (piratization).
An international cabal had set up its own private banking system in 1913--the "Federal" Reserve System--to control the U.S. monetary system and following FDR's presidency they took total command of the American federal government. Unlike the FDR era during the Great Depression (1920s and 1930s) and the post-World War II era--when the cabal allowed some worker benefits--the current cabal has no use for American workers since the capitalists have taken their manufacturing to slave-labor havens such as China and India.
Success for the capitalists is not measured in terms of whether workers are losing their homes, their jobs, their lives (in warprofiteering wars), or their Constitutional liberties; success is determined by whether their system--however rotten--continues to allow for windfall profits to oil companies, war materiel corporations, and all the other cabal business interests.
Capitalists have added a new fascist twist to contemporary capitalism: profits are private, losses are public.
They'll continue to dole out worker-taxpayer money to
failed financial institutions for as long as possible, rather than admit that the whole capitalist superstructure has collapsed. If capitalism's breakdown becomes so overwhelming that they can no longer print enough money to save all the upcoming financial institution failures, they'll orchestrate a general collapse in which they can then buy failed businesses for pennies on the dollar and force workers into
"Wall Street got drunk--that's one reason I asked you to turn off your TV cameras. It got drunk, and now it has a hangover. The question is, how long will it sober up and not try to do all these fancy financial instruments?"
President George W. Bush, fundraiser speech, Houston, TX, 7/23/08
"Bush's ignorant and cynical remark is an evasion of the central issue exposed by the Wall Street crisis: the colossal growth of economic parasitism and criminality in the workings of American capitalism." 2
Capitalism is a totally flawed economic system and its collapse was inevitable. Capitalism's distinguishing defects include the inevitability of overproduction of goods for too few markets--leading to economic and military warfare between competing capitalist nations. Since about 1950, return on investments in manufacturing has sharply decreased, leading to the creation of a fantasy economy of financial scams such as derivatives, swaps, futures, options, mortgage-backed securities (MBSs), collateralized debt obligations (CDOs), and structured investment vehicles (SIVs). There has been a massive migration of capital from real, productive industry to the "speculative sector" run by financial giants like AIG and Lehman Brothers. All of these swindles are unreal, mere entries in digital "space."
Derivatives, for example, are mere mathematical formulas in which profits are supposed to derive not from trading assets but from speculation on the expectations of the risk of underlying assets. Such speculative chimera have created a nuclear device that has now exploded, mortally wounding the "real economy."
Governments and their central banks are now trying to "save" the real economy by "buying up" failing banks. But nothing will really work as long as they insist on remaining with the schizoid capitalist system. Even if they try a bit of so-called "socialism" by buying interest in banks, they'll still try to prop up the decayed corpse of the "free market economy."
As in the cartoon above, they may pretend that it's "full-on global socialism" or "nationalization of banks," but it will still be their futile effort to save bankrupt capitalism. The only real solution to our present economic and political problems is the displacement of capitalism and fascism with a truly commonwealth polity for the benefit of all citizens.
What Workers Worldwide Must Do
First, workers must awaken to the actual collapse of capitalism and ensure that they're not needlessly damaged by this catastrophe. For example, most workers are not attentive to what's happening to American and European banks: a great number are failing and many more will fail.
In September, 2008, when my wife and I withdrew our money from our Washington Mutual accounts, we were the only people doing so at our branch location, even though articles were appearing in the local and national papers about Wamu's shares having taken a nose-dive, and the bank had been on an FDIC "endangered" list for a number of days.
Determine if your bank is in danger of going under and withdraw your savings and checking funds--and your safe deposit box contents--as soon as it's clear that it's unsafe. Don't hesitate, thinking that you'll wait for a week or two and see what happens. If you want a good reason for quick action, see what an ordeal IndyMac depositors had in securing their funds in July, 2008.
Next, make sure you find a new bank--or better yet, a credit union--that's as safe as possible. Use an online rating service such as bankrate.com to determine that the bank you're considering has a 5, 4, or 3 star rating (5 being the highest).
Pay close attention to what's happening to your banks, because their status changes very rapidly. For example, Wamu, with assets of $310 billion, was seized by the Federal Deposit Insurance Corporation (FDIC) on September 25, 2008, then auctioned off to the behemoth JPMorganChase for $1.9 billion. The FDIC retained ownership of the New York City Wamu branch locations. It suddenly seemed that Wamu was more secure than the new bank we'd transferred our savings and checking accounts into. However, more was to transpire . . .
On March 20, 2009, the Wamu holding company Washington Mutual, Inc., filed suit against the Federal Deposit Insurance Corporation. It appears there was definitely collusion between the FDIC and JPMorganChase.
But it was clear that Wamu would never be able to prevail against these cabal-connected enterprises no matter what. WAMU is now JPMorgan Chase whether you like it or not! So, my wife and I have now transferred our account to a local credit union.
Help alert others to the undeniable factuality of capitalism's collapse and do whatever you can to stop the criminal bailout of failed capitalism. Warn workers against allowing themselves to be conned into believing that Obama's "stimulus plan" or his using taxpayer billions to buy criminal banks' toxic assets are genuine efforts to "save" the American economy. It's simply the fat cats looting taxpayer money and stuffing it into their own pockets. For over a hundred and forty years, discerning thinkers (as quoted below) have seen through these capitalist scams.
"The entire artificial system of forced expansion of the reproduction process cannot, of course, be remedied by having some bank, like the Bank of England, give to all the swindlers the deficient capital by means of its paper and having it buy up all the depreciated commodities at their old nominal values." 3
The destitution caused by a totally shattered, bankrupt capitalist "system," must motivate blue- and white-collar workers worldwide to gain increased critical consciousness and radicalized revolutionary determination. We must set about creating a
new political-economic-cultural system for human fulfillment: a redistribution of wealth, democratization of the workplace, and federalized worker control over industry and finance, among other essential features.
"The only sure bulwark of continuing liberty is a government strong enough to protect the interests of the people, and a people strong enough and well enough informed to maintain its sovereign control over the government."