What’s been keeping the US economy afloat for the past thirty years or so, since the Reagan “revolution?” A series of buy and sell shell games, wherein corporations sell their assets – or potential assets – to their subsidiaries, which then sell these assets to other subsidiaries, and so on, inflating the price with each transaction. This is what’s driving the price of crude oil to record levels and increasing oil companies’ profits at the same time. It’s the same in the Real Estate market. And banking. It’s what caused Enron to implode. And the so-called energy crisis in California.
The root cause of all of these financial “crises” is generally described as some sort of neo-con economic philosophy by the corporate media. Their philosophy has been described as a religion of Free Markets by Thomas Franks (“One Market Under God,” Anchor Books, New York), but in reality, most US corporations depend on federal handouts in the form of tax benefits, free or undervalued access to raw natural resources, no-bid contracts and payments for services that are either never delivered, or paid for twice before delivery.
We have lived under an economics of theft since the Reagan era. Knowing full well that their policies could one day come to light and that indictments would surely follow, the plunderers of the American economy stole the Presidential election of 2000 in order to install one of their trusted insiders from the notorious Bush crime family, who’s younger generation first came to prominence through their dealings with the collapse of the Savings and Loan industry in the 1980’s. Lest one dismiss that incident as ancient history, remember that US Senator John McCain (front-running candidate for the GOP presidential nomination at the time when this was written, he eventually lost the general election to Obama) was closely associated with Neal Keating, who (along with Bush family black sheep Neil) plundered Silverado S&L in the most spectacular failure of a US financial institution in the Reagan era. In order to keep the gravy train rolling, the Treasury Department had become, under the younger Bush administration, a place where secrecy and cover-ups replaced investigations and prosecution as it’s primary function. The Treasury Department not only oversees Federal economic policies, but is also the domain of the FBI, the US Secret Service and US Marshals.
Where did the Federal government come up with its figure of $700 billion for their proposed bailout? “It’s not based on any particular data point,” a Treasury spokeswoman told Forbes.com. “We just wanted to choose a really large number.”
So, after almost 30 years of non-stop propaganda about free markets and deregulation, now that the financial chickens have come home to roost because there is just no more money to borrow for their faith-based economic policies, the many investors and speculators are crying to Washington for hundreds of billions of tax dollars in order to protect their profits and dividends.
It should be obvious that the neo-cons are trying to plunder the economy on their way out the door. The neo-cons and their wealthy co-horts are trying to defraud the US taxpayers of as much money as possible while the getting is good. Has anyone heard talk by the two Presidential candidates about prosecuting the many, many crimes committed by this rogue administration? Are any Media people asking about such plans? Is anyone who resides in the higher ranks of influence and power in the media or society in general asking about this?
Oddly enough, it’s mostly only die-hard fiscal conservatives in the Republican Party who are insisting that the government stay out of this financial tar pit. It’s very difficult to imagine multi-millionaire Congresspeople and Senators standing idly by while their stock portfolios’ value plummets.
The covers are off now, and it’s easy for even the most casual onlooker to see who is in bed with who. The politicians and their henchpeople are busy protecting their masters, all the while preparing to plunge the average citizen into economic hardship never before experienced in an advanced capitalist nation.
The people demanding support for the administration’s bailout plan always point out that the taxpayers will pay a heavy price, with or without the bailout. We’re fucked, one way or the other, but at least the bailout will provide lubrication.
The thieves in office and their financial backers are plundering tax money, banks, stocks…everything they can get their hands on.
max kaiser shares his thoughts about goldman-sachs and the wall street bailout.