Stephen Lendman

In this game, the house always wins. Bipartisan complicity stacked the deck against millions of working households, needing to know that political Washington is scamming them.

The end result is the banana republicanization of America. American writer O. Henry (William Sydney Porter: 1862 - 1910) coined the term (his fictional Republic of Anchuria) in his book, "Cabbages and Kings."

It refers to a country (often politically unstable and/or repressive) where a small percent of the population has a disproportionate share or wealth and power, where ordinary people are exploited, often persecuted, and where profits are privatized while working households bear the burden of debt.

It's also a kleptocracy run by criminals, complicit with corporate thieves who bribe them to get their way. It's corrupt, rotten to the core gangsterism, run for personal gain, both sides profiting at the public's expense.

It's in plain sight in Washington, the heart of darkness, where bipartisan crooks are destroying personal freedoms, democratic values, and general welfare to grab everything for themselves and their corporate partners.

Previous articles discussed it, accessed through the following links here, here and here.

Read them and weep, or better still, react by refusing any longer to put up with bipartisan corruption, stealing us blind for the Big Monied interests that own them. Obama was made president to play ball, a Democrat engineering what no Republican would dare, at the same time duplicitously claiming populist credentials.

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Stephen Lendman

(Schuyler Ebbets © The People's Voice)

The criminal class in Washington is bipartisan, united against working household interests. In fact, lawmakers yield on virtually everything big money wants, notably when banks and other corporate favorites are affected.

Last December, Obama capitulated to Republicans, rigging a deal for up to $1 trillion dollars in handouts, mostly to corporate giants and America's wealthy with working households almost entirely left out.

They still are, enduring a protracted Main Street depression, stiff-armed by Obama-led bipartisan crooks. In fact, he's more crime boss than president - stealing from the many for the few. More on his dirty scheme below.

As a result, America and other "(e)conomies are being turned into rentier ('tollbooths') to pay debts that ('real' ones) can't sustain," according to Michael Hudson. "It's a losing game," but goes on, criminally defrauding millions of people to assure creditors are paid, sucking massive amounts of wealth to their coffers, unreported by major media scoundrels, suppressing what people most need to know.

In fact, new audit figures show that Bernanke's Fed gave Wall Street and European banksters at least $16.1 trillion (called emergency loans) from December 1, 2007 - July 21, 2010, besides unknown amounts earlier and in the past year.

Moreover, it's well known that trillions of dollars are stolen, handed to corporate interests and never returned, as well as gotten in other illegal ways. As a result, taxpayers get stuck with the bill, the nation with unsustainable mounting debt, heading it eventually for ruin.

About $13 trillion in Fed bailouts went to US financial institutions, the rest to their counterparts in Britain, Germany, France, Switzerland, and Belgium, according to a Government Accountability Office (GAO) analysis.

In addition, asset swaps (good ones for toxic corporate junk) were arranged with banks in Britain, Switzerland, Canada, South Korea, Norway, Mexico, and Singapore.

Moreover, the Wall Street controlled Fed mostly outsourced its lending operations to the same institutions responsible for engineering the financial crisis, letting them profit hugely at the public's expense.

Though unsustainable, the dirty game goes on, a take the money and run scam, leaving hollowed out economies and impoverished millions on their own sink or swim.

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Stephen Lendman

John Boehner (left) is the Speaker of the U.S. House of Representatives and
a member of the Republican Party. Neither he nor Barak Obama work for the
people of America, who elected them. Obama works for the bankers, the war
profiteers, the Military Industrial Complex and, apparently, for Israel.

Short of finalizing details and assuring enough bipartisan support, it's a done deal to slash Social Security, Medicare, Medicaid, and other social spending while leaving outsized military budgets and generous handouts to corporate favorites in place. At the same time, the timeline to accomplish it is undetermined. Political posturing may extend the August 2 deadline until fall or beyond.

It's how corrupted Washington always works, notably since the 1980s under both parties. Obama was elected to assure continuity and accomplish by rhetorical duplicity what Republicans on their own can't do.

Notably after capitulating last December on tax cuts for America's super-rich, he proposed deep budget cuts, affecting disease prevention, children's and community healthcare, education, supplemental grants to poor women and children, community block grants for housing, energy efficiency and renewable energy, and other benefits for people most in need.

He's a charlatan, not a leader who cares. Earlier, he proposed hundreds of billions in Medicare cuts. It was step one ahead of incrementally ending entitlements and other social benefits altogether, including publicly funded pensions, returning America to dark age harshness.

Bipartisan duplicity supports it, including slashing healthcare, education, housing, virtually all social benefits incrementally, eliminating them all altogether. Obama and many Democrats tacitly agree. Timing is mostly at issue with an eye to 2012.

In principle, Obama and Speaker Boehner privately agreed to $4 trillion in Social Security, Medicare, and other social spending cuts, backtracking when word leaked prematurely to a more modest $2.4 trillion package, then resurrecting the $4 trillion one.

At a July 11 press conference, Obama again stressed "shared sacrifice," leaving unexplained he means working households sacrifice to let America's super-rich share.

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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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