Stephen Lendman

Economist Michael Hudson calls it "Replacing Economic Democracy with Financial Oligarchy" in a June 5 article by that title, saying:

After being debt entrapped, or perhaps acquiescing to entrapment, the Papandreou government needs bailout help to pay bankers that entrapped them. Doing so, however, requires "initiat(ing) a class war by raising its taxes (harming working households most), lowering its standard of living - and even private-sector pensions - and sell off public land, tourist sites, islands, ports, water and sewer facilities" - in fact, all the country's crown jewels, lock, stock and barrel, strip-mining it of everything of worth at fire sale prices.

Why? Because the US-dominated IMF, EU and European Central Bank (ECB), the so-called "Troika," demand it as the price for bailout help that wouldn't be needed if Greece wasn't trapped in the euro straightjacket. Membership means foregoing the right to devalue its currency to make exports more competitive, maintain sovereignty over its money to monetize its debt freely, and be able to legislate fiscal policies to stimulate growth.

Instead they're entrapped by foreign banker diktats demanding tribute. They call it a "rescue." In May 2010, the Papandreou government agreed to earlier austerity in return for loans. Now they're at it again, demanding more or they'll collapse the entire economy, or so they say. And the same scheme is replicated in Ireland and Portugal. Moreover, it's heading for Spain, and potentially most of Europe and America as representative governments head closer to "financial oligarchy."

In other words, it amounts to financial coup d'état authority over sovereign governments unless popular anger prevents it, involving more than street protests or short-term strikes accomplishing nothing.

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Stephen Lendman

Despite a deepening global depression, Washington, Wall Street and America's media remain largely in denial, for how much longer isn't certain as hard times get tougher for growing millions worldwide.

Tough enough, in fact, for angry demonstrators to strike and protest austerity measures across Europe in Greece, Spain, Ireland, Portugal, Britain, France, Germany, Italy, Georgia, and elsewhere, as well as others scattered across America against budget cuts, tax and tuition hikes, and layoffs when workers more than ever need jobs.

Trends expert Gerald Celente calls it "the greatest depression," warning months ago that when anger erupts, unrest will cause governments to "take draconian measures to prevent total economic collapse and panic." Nonetheless, he expects massive bank failures, bank runs, and a bank holiday, preventing easy access to deposits as dire conditions worsen.

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Stephen Lendman

The 1913 Federal Reserve Act let powerful bankers usurp America's money system in violation of the Constitution's Article I, Section 8, giving only Congress the power to

ney [and] regulate the Value thereof...."

Thereafter, powerful bankers victimized working Americans, using money, credit and debt for private self-enrichment by bankrolling and colluding with Congress and administrations to implement laws favoring them.

As a result, decades of deregulation, outsourcing, economic financialization, and casino capitalism followed, eroding purchasing power, producing asset bubbles, record budget and national debt levels, and depression-sized unemployment far higher than reported numbers, manipulated to look better.

After financial crisis erupted in late 2007, harder than ever Main Street hard times followed, getting worse, not better. As a result, high levels of personal and business bankruptcies resulted. Millions of homes have been lost. Record numbers of Americans are impoverished. An unprecedented wealth gap grows steadily. America's unstable economy lurches from one crisis to another, the current one miring Main Street in depression, still in its early stages.

Recovery is pure illusion. Today's contagion spread out-of-control globally. No one's sure how to contain it, so Wall Street got trillions of dollars in a desperate attempt to socialize losses, privatize profits, and pump life back into a corpse through grand theft by sucking public wealth to the financial sector, other corporate favorites, and America's aristocracy already with too much.

Speculation and debt need more of it to prosper, but ultimately it's a losing game. The greater the expansion, the harder it falls, especially when credit contraction persists. Job creation is moribund. Industrial America keeps imploding. High-paying jobs are exported. Economic prospects are eroding. Workers are exploited for greater corporate profits, and no one's sure how to revive stable, sustainable long-term growth.

Privatized money control is the problem, representing democracy's greatest threat. Regaining public control can restore it. The time for launching public banking across America is now when more than ever it's needed.

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Stephen Lendman

Protesters react as Spanish prime minister, José Luis Rodríguez
Zapatero arrives to vote in regional elections. (J. Juinen/Getty)

Since mid-May, Spain's M-15 movement began protesting for "Real Democracy Now," drawing large numbers of students, activists, unemployed workers, and other "los indignados" (the outraged ones) on streets throughout the country, defying a ban ahead of May 22 municipal and regional elections.

Tens of thousands said "No nos moveran" (We shall not be moved), opposing government imposed austerity to repay bankers at their expense.

Experiencing its worse economic crisis in decades, official figures show around 45% of Spanish youths unemployed, a crisis affecting all workers facing worsening, not improving conditions, some of the worst in Europe.

In response to growing needs, Jose Luis Zapartero's Socialist Workers Party (PSOE) government proposed 5% or more public worker pay and pension cuts, halting cost of living adjustments, raising the retirement age from 65 to 67, ending payments for births or adopting children, and more ahead, including reforming labor protections and pensions, not stimulus when it's most needed.

As a result, the populist "Real Democracy Now" manifesto states:

"We are ordinary people. We are like you: people who get up every morning to study, work or find a job, people who have family and friends. People who work hard every day to provide a better future for those around us," calling for "an ethical revolution" for change.

The same crisis affects other countries throughout Europe, notably Greece, Ireland, Portugal, Italy, Latvia, Iceland, Hungary, Romania, Ukraine, and elsewhere, what Michael Hudson calls a specter haunting Europe, showing no signs of letup under crushing debt burdens counterproductively dealt with by neoliberal austerity.

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Stephen Lendman

It's a sad testimony to a two centuries old experiment that failed because absolute power corrupted too many with it wanting more.

What distinguished experts long knew (timetables aside), the IMF just recognized, saying China's economy will surpass America's in 2016. If so, it will signal an end to the "Age of America," and no wonder after decades of heedless profligacy. More on that below.

The IMF's 2011 World Economic Outlook shows China overtaking America in five years based on purchasing power parity (PPP) - a criterion for an appropriate exchange rate between currencies as measured by the cost of a representative basket of goods in one country v. another.

IMF's 2016 PPP GDP estimate:

● China - $18,975.7 trillion
● America - $18,807.5 trillion

In current dollar terms, America retains its lead, but it's slipping noticeably.

IMF's 2016 dollar GDP estimate:

● America - $18,807.5 trillion
● China - $11,220.2 trillion

Economic forecasts, of course, vary. Moreover, long-range ones combine extrapolated trends with reasoned judgments. However, as economist Alec Craincross (1911 - 1998) once observed:

"A trend is a trend is a trend. But the question is, will it bend? Will it alter its course through some unforeseen force and come to a premature end?"

Not China's for over three decades, "growing 17-fold in real (inflation-adjusted) terms since 1980," according to economist Mark Weisbrot. As a result, it's been the world's fastest growth engine, a pace it's maintained during the current global economic crisis in contrast to America in decline.

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Stephen Lendman

In July 1944, 730 delegates from 44 nations met at the Mount Washington Hotel in Bretton Woods, NH for a UN Monetary and Financial Conference. Its purpose was to establish a post-war international monetary system of convertible currencies, fixed exchange rates, free trade, the US dollar as the world's reserve currency linked to gold, and those of other nations fixed to the dollar.

It also designed an institutional framework for market-based capital accumulation to assure newly liberated colonies would pursue capitalist economic development beneficial to victorious allies, mainly America.

In addition, the IMF and World Bank were established to integrate developing nations into the Global North-dominated world economy, using debt entrapment as the way to transfer their wealth to powerful Western bankers.

The scheme to this day obligates indebted nations to take new loans to service old ones, assuring rising indebtedness and structural adjustment harshness, including:

● privatization of state enterprises;
● mass layoffs;
● deregulation;
● deep social spending cuts;
● wage freezes or cuts;
● unrestricted free market access for western corporations;
● corporate-friendly tax cuts;
● crackdowns on or elimination of trade unionism; and
● harsh repression against those opposing a system incompatible with social democracy.

As a result, since WW II, public wealth shifted to powerful private hands, widening the gap between super-rich elitists and working households, a process more intense than ever now, including the amounts.

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Michael Hudson

About 75% of Iceland’s voters turned out on Saturday to reject the Social Democratic-Green government’s proposal to pay $5.2 billion to the British and Dutch bank insurance agencies for the Landsbanki-Icesave collapse. Every one of Iceland’s six electoral districts voted in the “No” column – by a national margin of 60% (down from 93% in January 2010).

The vote reflected widespread belief that government negotiators had not been vigorous in pleading Iceland’s legal case. The situation is reminiscent of World War I’s Inter-Ally war debt tangle. Lloyd George described the negotiations between U.S. Treasury Secretary Andrew Mellon and Stanley Baldwin regarding Britain’s arms debt as “a negotiation between a weasel and its quarry. The result was a bargain which has brought international debt collection into disrepute … the Treasury officials were not exactly bluffing, but they put forward their full demand as a start in the conversations, and to their surprise Dr. Baldwin said he thought the terms were fair, and accepted them. … this crude job, jocularly called a ‘settlement,’ was to have a disastrous effect upon the whole further course of negotiations …”

And so it was with Iceland’s negotiation with Britain. True, they got a longer payment period for the Icesave payout. But how is Iceland to obtain the pounds sterling and Euros in the face of its shrinking economy. This is the major payment risk that is still unaddressed. It threatens to plunge the krona’s exchange rate.

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Stephen Lendman

In his April 8 article headlined, "The Economic Crisis in Iceland: 'IMF Medicine' is not the Solution," Michael Hudson asked:

"Will Iceland Vote 'No' on April 9, or commit financial suicide," their choice being:

>

Reject debt bondage or "subject their economy to decades of poverty, bankruptcy and emigration of their work force."

In other words, destroying the nation for profit, extorting its wealth, selling off its natural resources and public enterprises, raising taxes on working Icelanders, and transforming the country into a dystopian nightmare, what Merriam-Webster calls "an imaginary place where people lead dehumanized and often fearful lives," the opposite of utopia under conditions of deprivation, poverty, disease, violence, oppression, and terror, like in Orwell's Nineteen Eighty-Four.

In other writing, Hudson called debt bondage "as deadly as outright military" defeat. Loss of livelihoods and assets leave people vulnerable to sickness, despair, and early deaths, much like what happened in post-Soviet Russia under Washington-imposed "shock therapy" when:

● 80% of farmers went bankrupt;
● around 70,000 state factories closed;
● unemployment became epidemic;
● a permanent underclass was created;
● poverty rose from two million in 1989 to 74 million by the mid-1990s, and in half the cases it was desperate;
● alcoholism and drug abuse soared;
● so did HIV/AIDS 20-fold;
● suicides also and violent crime four-fold; and
● the population declined by 700,000 a year; by 2007 it was 10% lower than in 1989 because of sharply reduced life expectancies.

In March 2010, Hudson explained that 93% of Icelanders rejected bailout terms. Otherwise, they faced repayment for billions in banking fraud. In fact, they've already been mercilessly hammered by "a falling GDP, rising unemployment, defaults, foreclosures," and housing prices down 70% from their peak valuation, heading for mortgaging their futures unless freed from perpetual debt bondage.

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Stephen Lendman

On February 3, New York Times writers Helene Cooper and Mark Landler headlined, "White House, Egypt Discuss Plan for Mubarak's Exit," saying:

His administration is "discussing with Egyptian officials a proposal for (Mubarak) to resign immediately and turn over power to a transitional government headed by Vice President Omar Suleiman with the support of the Egyptian military," including Lt. Gen. Sami Enan, armed forces chief, and Field Marshall Mohamed Tantawi, defense minister. [...] The alleged plan includes constitutional reform, a transitional government with opposition groups like the Muslim brotherhood, and "free and fair elections in September." [...] Testifying during a February 3 Senate hearing, senior CIA official Stephanie O'Sullivan said earlier tracking of Cairo instability showed conditions were "untenable," but "we didn't know what the triggering mechanism would be."

On February 4, Times writer David Kirkpatrick headlined, "Egyptian Government Figures Join Protesters," saying:

During Friday protests, "(c)racks in the Egyptian establishment's support for (Mubarak)" emerged with Amr Moussa, Arab League head, and other notable figures appearing on Cairo streets, including defense minister Field Marshal Mohamed Tantawi, the first member of Egypt's ruling elite to do so.

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Stephen Lendman

Make no mistake. He didn't quit. He was pushed, the final straw perhaps being the January 18 FCC-approved Comcast-NBC Merger. Its chairman/CEO Brian Roberts co-chaired the 2000 Republican Convention host committee, and COO Stephen Burke/now NBC Universal CEO tilts heavily to Republicans. According to Public Citizen and Think Progress, he raised at least $200,000 for Bush's 2004 campaign, served on his Council on Science and Technology, and may wish to make MSNBC another Fox, despite pledging no "interference with NBC Universal's news operations."

Think Progress asked:

"Why would Comcast be interested in silencing progressive voices?" Because it opposes issues they support, including Net Neutrality, stiffer media regulation, and restraints on being able to buy telecommunications and media companies freely.

Despite having MSNBC's highest ratings, Olbermann's gone like (once top-rated) Phil Donahue ahead of Operation Iraqi Freedom. At the time, a leaked network February 25, 2003 memo to All Your TV.com, said he presented a

"difficult public face for NBC in a time of war....He seems to delight in presenting guests who are anti-war, anti-Bush and skeptical of the administration's motives." It outlined a nightmare scenario of his show becoming "a home for the liberal antiwar agenda at the same time our competitors are waving the flag at every opportunity," promoting war, not diplomacy and peace.

For those on the far right, Olbermann, like Donahue, became too hot to handle, personality issues mattering less than staunchly right wing politics. Expect MSNBC to feature more of it, shifting more to the right like Fox and CNN, racing to the bottom to see who's more pro-business, pro-war, and anti-left of center ideologically. MSNBC's remaining prime time hosts take note.

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