Author Archives: Reid Mukai

Hang onto your wallets: Negative interest, the war on cash, and the $10 trillion bail-in

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global-economic-crisis

By Ellen Brown

Source: Intrepid Report

Remember those old ads showing a senior couple lounging on a warm beach, captioned “Let your money work for you”? Or the scene in Mary Poppins where young Michael is being advised to put his tuppence in the bank, so that it can compound into “all manner of private enterprise,” including “bonds, chattels, dividends, shares, shipyards, amalgamations . . .”?

That may still work if you’re a Wall Street banker, but if you’re an ordinary saver with your money in the bank, you may soon be paying the bank to hold your funds rather than the reverse.

Four European central banks—the European Central Bank, the Swiss National Bank, Sweden’s Riksbank, and Denmark’s Nationalbank—have now imposed negative interest rates on the reserves they hold for commercial banks; and discussion has turned to whether it’s time to pass those costs on to consumers. The Bank of Japan and the Federal Reserve are still at ZIRP (Zero Interest Rate Policy), but several Fed officials have also begun calling for NIRP (negative rates) [update: Bank of Japan implemented a negative interest rate 1/29/16].

The stated justification for this move is to stimulate “demand” by forcing consumers to withdraw their money and go shopping with it. When an economy is struggling, it is standard practice for a central bank to cut interest rates, making saving less attractive. This is supposed to boost spending and kick-start an economic recovery.

That is the theory, but central banks have already pushed the prime rate to zero, and still their economies are languishing. To the uninitiated observer, that means the theory is wrong and needs to be scrapped. But not to our intrepid central bankers, who are now experimenting with pushing rates below zero.

Locking the door to bank runs: The cashless society

The problem with imposing negative interest on savers, as explained in the UK Telegraph, is that “there’s a limit, what economists called the ‘zero lower bound.’ Cut rates too deeply, and savers would end up facing negative returns. In that case, this could encourage people to take their savings out of the bank and hoard them in cash. This could slow, rather than boost, the economy.”

Again, to the ordinary observer, this would seem to signal that negative interest rates won’t work and the approach needs to be abandoned. But not to our undaunted central bankers, who have chosen instead to plug this hole in their leaky theory by moving to eliminate cash as an option. If your only choice is to keep your money in a digital account in a bank and spend it with a bank card or credit card or checks, negative interest can be imposed with impunity. This is already happening in Sweden, and other countries are close behind. As reported on Wolfstreet.com:

The War on Cash is advancing on all fronts. One region that has hogged the headlines with its war against physical currency is Scandinavia. Sweden became the first country to enlist its own citizens as largely willing guinea pigs in a dystopian economic experiment: negative interest rates in a cashless society. As Credit Suisse reports, no matter where you go or what you want to purchase, you will find a small ubiquitous sign saying “Vi hanterar ej kontanter” (“We don’t accept cash”) . . .

The lesson of Gesell’s decaying currency

Whether negative interests will actually stimulate an economic recovery, however, remains in doubt. Proponents of the theory cite Silvio Gesell and the Wörgl experiment of the 1930s. As explained by Charles Eisenstein in Sacred Economics:

The pioneering theoretician of negative-interest money was the German-Argentinean businessman Silvio Gesell, who called it “free-money” (Freigeld). . . . The system he proposed in his 1906 masterwork, The Natural Economic Order, was to use paper currency to which a stamp costing a small fraction of the note’s value had to be affixed periodically. This effectively attached a maintenance cost to monetary wealth.

. . . [In 1932], the depressed town of Wörgl, Austria, issued its own stamp scrip inspired by Gesell. . . . The Wörgl currency was by all accounts a huge success. Roads were paved, bridges built, and back taxes were paid. The unemployment rate plummeted and the economy thrived, attracting the attention of nearby towns. Mayors and officials from all over the world began to visit Wörgl until, as in Germany, the central government abolished the Wörgl currency and the town slipped back into depression.

. . . [T]he Wörgl currency bore a demurrage rate [a maintenance charge for carrying money] of 1 percent per month. Contemporary accounts attributed to this the very rapid velocity of the currencies’ circulation. Instead of generating interest and growing, accumulation of wealth became a burden, much like possessions are a burden to the nomadic hunter-gatherer. As theorized by Gesell, money afflicted with loss-inducing properties ceased to be preferred over any other commodity as a store of value.

There is a critical difference, however, between the Wörgl currency and the modern-day central bankers’ negative interest scheme. The Wörgl government first issued its new “free money,” getting it into the local economy and increasing purchasing power, before taxing a portion of it back. And the proceeds of the stamp tax went to the city, to be used for the benefit of the taxpayers. As Eisenstein observes:

It is impossible to prove . . . that the rejuvenating effects of these currencies came from demurrage and not from the increase in the money supply. . . .

Today’s central bankers are proposing to tax existing money, diminishing spending power without first building it up. And the interest will go to private bankers, not to the local government.

Consumers today already have very little discretionary money. Imposing negative interest without first adding new money into the economy means they will have even less money to spend. This would be more likely to prompt them to save their scarce funds than to go on a shopping spree.

People are not keeping their money in the bank today for the interest (which is already nearly non-existent). It is for the convenience of writing checks, issuing bank cards, and storing their money in a “safe” place. They would no doubt be willing to pay a modest negative interest for that convenience; but if the fee got too high, they might pull their money out and save it elsewhere. The fee itself, however, would not drive them to buy things they did not otherwise need.

Is there a bigger threat than a sluggish economy?

The scheme to impose negative interest and eliminate cash seems so unlikely to stimulate the economy that one wonders if that is the real motive. Stopping tax evaders and terrorists (real or presumed) are other proposed justifications for going cashless. Economist Martin Armstrong goes further and suggests that the goal is to gain totalitarian control over our money. In a cashless society, our savings can be taxed away by the banks; the threat of bank runs by worried savers can be eliminated; and the too-big-to-fail banks can be assured that ample deposits will be there when they need to confiscate them through bail-ins to stay afloat.

And that may be the real threat on the horizon: a major derivatives default that hits the largest banks, those that do the vast majority of derivatives trading. On November 10, 2015, the Wall Street Journal reported the results of a study requested by Senator Elizabeth Warren and Rep. Elijah Cummings, involving the cost to taxpayers of the rollback of the Dodd-Frank Act in the “cromnibus” spending bill last December. As Jessica Desvarieux put it on the Real News Network, “the rule reversal allows banks to keep $10 trillion in swaps trades on their books, which taxpayers could be on the hook for if the banks need another bailout.”

The promise of Dodd-Frank, however, was that there would be “no more taxpayer bailouts.” Instead, insolvent systemically-risky banks were supposed to “bail in” (confiscate) the money of their creditors, including their depositors (the largest class of creditor of any bank). That could explain the push to go cashless. By quietly eliminating the possibility of cash withdrawals, the central bank can make sure the deposits are there to be grabbed when disaster strikes.

If central bankers are seriously trying to stimulate the economy with negative interest rates, they need to repeat the Wörgl experiment in full. They need to first get some new money into the economy, money that goes directly to the consumers and local businessmen who will spend it. This could be achieved in a number of ways: with a national dividend; or by using quantitative easing for infrastructure or low-interest loans to states; or by funding free tuition for higher education. Consumers will hit the malls when they have some new discretionary income to spend.

Ellen Brown is an attorney, founder of the Public Banking Institute, and author of twelve books including the best-selling Web of Debt. Her latest book, The Public Bank Solution, explores successful public banking models historically and globally. Her 300+ blog articles are at EllenBrown.com. Listen to “It’s Our Money with Ellen Brown” on PRN.FM.

Why Chaos Always Seems To Have Such Grand Potential

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By Shauna Janz

Source: Collective Evolution

We have been experiencing “chaos as grand potential” throughout our entire history. From the first potential of life that exploded from the stars and hurled across a universe in chaotic fashion, to the evolution of all species on our Earth, to the splitting of cells that form life in a mother’s womb.

Growth and evolution emerge from chaos.

Another way of thinking about chaos is the process of positive disintegration – originally used in psychology by Kazimierz Dąbrowski, who viewed tension and anxiety as a necessary part of any personal growth process. This term has also been used by Joanna Macy to describe how living systems evolve; when continued feedback tells a system that it has become dysfunctional, the system responds by changing.

In other words, when old ways of doing things are no longer adaptive or effective, we are catapulted into a disintegration process, or chaos, so that new ways of doing things can emerge that are positive for a sustainable life.

Chaos is a necessary part of the process any living system, individual, or community goes through to adapt, evolve, and remain sustainable in their environment.

For people, that environment may be our own personal body/mind, our families, our workplace, our society, or our collective global community.

From the chaos, or disintegration, comes the grand potential for something wholly new to arise – something that surpasses the old way of being and has become a more inclusive and integrated way of being.

I am reminded of Pema Chodron’s book When Things Fall Apart, dedicated to finding hope when we are suffering from change or loss; when we are in the midst of disintegration. Through her soothing words, she assists her readers to remain open and aware through the confusion and anxiety of chaos.

Pain and grief often inhabit the space of chaos. As familiar ways prove no longer useful, we are thrust into a space of unknowing and chaos before new ways can fully develop.

I reflect on the grief I have experienced in my own life, and on the grief in others that I have witnessed and supported. When loss and change erupt in our lives, we are left in the emotional wake to re-create who it is we are in our changed world.

We are left to find a new way to make meaning and to find adaptive strategies to live on and continue to thrive. It may mean letting go of certain roles or identities, or it may mean embracing new ones and honouring the process.

This doesn’t happen overnight. Before new ways emerge, we are left in confusion. We are left in anxiety. We are left in pain and grief.

In this chaotic space we may feel fearful, uncertain, and out of control. We may react and grasp for anything that might give us a sense of comfort or control, or allow us to numb out from feeling at all.

We see this on a personal scale as well as on a global scale – whether grasping for escape through another drink, Netflix series, or new pair of shoes, or whether grasping for control through declaring another war or engaging in oppressive acts against others.

Positive disintegration can only happen if we stay aware, open, and conscious to see the potential that lies within the chaos, and to then act to create new ways that are sustainable.

If we learn to navigate our own personal grief and chaos in conscious ways remaining calm, open, and trusting, then we gain the ability to navigate the grief and chaos in our world in the same way.

Remaining conscious and open is absolutely necessary because globally we are in the midst of a significant disintegration process, and we need to change how we live.

We know that the capitalist industrial growth complex that currently defines our global economics and social systems has become dysfunctional. We are witnessing extreme abuses of power, violence. and tactics of separation – all rooted in fear and grasping for control.

We are all experiencing the impacts of this global chaotic time – grief, anxiety, uncertainty. We are also witnessing efforts to make changes for a sustainable and equitable future.

Joanna Macy calls this time “The Great Turning.” In her book Coming Back to Life – Practices to Reconnect Our Lives, Our World she exemplifies many of the ways we are seeing the process of positive disintegration carry out in our world.

From direct action and legislative work to slow down the process of environmental and social destruction, to academics and grassroot groups working to educate about the impacts of our capitalist industrial system, to the cognitive revolutions and spiritual awakenings that deeply shift our consciousness toward a sustainable way of being on this Earth — we have the ability to stand strong in the winds of chaos, to choose openness and compassion, to hold fast to our vision of a vibrant and sustainable future, and to act in loving ways, now.

We are seeing new forms of sustainable practices emerge, witnessing the resurgence of ancestral ways of knowing, and experiencing shifts of consciousness.

There is no one person that will save our planet or human family. It takes the whole global community to respond, which means it takes each and every one of us to step forward in our own ways to shine our light and hold hope, trust, and compassion through this time of chaos.

Each one of us has a gift – has words to share, actions to motivate, art to show, or ways of being that exude love, trust and connection.

There is a place for everyone – whether it is the frontlines of direct action and resistance, raising conscious and compassionate children, or actively healing your own wounds – these all contribute to the healing of our world.

Joanna Macy says, you cannot “fix” the world, but you can take part in its self-healing. Healing wounded relationships within you and between you is integral to the healing of our world.

Each one of us who chooses love over fear, feeling over numbing, and compassionate action over apathy, contributes to the emergence of a sustainable new way of being in our world.

I invite you to reflect on the ways you are responding in your own life to a global future of love and sustainability. What are the gifts you bring to this world? How are you actively living your gifts every day?

And I thank you for remaining open and compassionate amidst this time of chaos as grand potential.

Saturday Matinee: O Lucky Man!

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O Lucky Man! (1973) is anarchist director Lindsay Anderson’s epic follow-up to his film if…(1968). It’s at times a surreal and darkly humorous allegory for survival in capitalist society. Like if…, it stars Malcolm McDowell as Mick Travis but in a less rebellious mode selling coffee for a multinational corporation. Through hard experience (not unlike the trials of his character Alex in A Clockwork Orange), Mick learns the consequences of abandoning his principles and the true nature of the ruling class he aspires to join. Serving as the film’s “Greek chorus” are excellent songs from Alan Price interspersed through the film.

Is This China & USA’s “Thelma & Louise” Moment?

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By James Howard Kunstler

Source: Zero Hedge

Why would anybody suppose that the Peoples Bank of China might want to tell the truth about anything that was within their power to lie about? Especially the soundness of any loan portfolio vested unto the grasp of its tentacles? Of course, most of what China has done in speeding toward the wall of financial crack-up, it learned from watching US bankers slime their way into Too Big To Fail nirvana — most particularly the array of swindles, dodges, and frauds constructed in the half-light of shadow banking to hedge the sudden, catastrophic appearance of reality-based price discovery.

When so many loans end up networked as collateral in some kind of bet against previous bets against other previous bets, you can be sure that cascading contagion will follow. And so that is exactly what’s happening as China’s rocket ride into Modernity falls back to earth. Like most historical fiascos, it seemed like a good idea at the time: take a nation of about a billion people living in the equivalent of the Twelfth Century, introduce the magic of money printing, spend a gazillion of it on CAT and Kubota earth-moving machines, build the biggest cement industry the world has ever seen, purchase whole factory set-ups, and flood the rest of the world with stuff. Then the trouble starts when you try to defeat the business cycles associated with over-production and saturated markets.

Poor China and poor us. Escape velocity has failed. Which raises the question: escape from what, exactly? Answer: the implacable limits of life on earth. The metaphor for all this, of course, is the old journey-into-space idea, which still persists in the salesmanship of Elon Musk, the ragged remnants of NASA, and even the nightmares of Stephen Hawking. Get off this messed-up home planet and light out of the territories, say Mars. Of course, this is a vain and stupid idea, since we already have a planet engineered to perfection for all the life systems associated with the human project. We just can’t respect its limits.

So now, that dynamic duo, Nature and Reality, the actual owners of the planet, have showed up to read the riot act to the renters throwing a wild party. The fourth and perhaps ultimate financial crisis of the last twenty years begins to express itself in terms that only the raptors and vultures can see from on high. George Soros, Kyle Bass, and the other flocking shadow banking scavengers prepare to short the living shit out of the old Middle Kingdom. The immortal words of G.W. Bush ring in their ears: “This sucker is going down,” and they are sure to win big by betting on the obvious. Trouble is, this sucker could go down so much further than they imagined, that whatever fortunes they gain from its descent will be foiled by the destruction of the very economic system needed for them to enjoy their gains.

For instance, when banking systems go down, governments usually follow, and when governments go down, societies often unravel. It doesn’t take a great effort of imagination to see China’s one party politburo leadership machine lose the respect of its governed masses, and then its control of events, followed by a Great Struggle among the regions and factions to restore some kind of order. And when the smoke clears there will a whole lot of nearly worthless concrete and steel, and a vast loss of notional wealth, and China will be lucky to land back in some approximation of the Twelfth Century.

It must be interesting for China to watch the horrifying disintegration of America’s political party structure currently on view, with the mad bull called Trump rampaging across the land and the designated inevitable Mz It’s-My-Turn hijacking her collective for the greater glory of Goldman Sachs. The last time China got the vapors politically — the so-called Cultural Revolution of the 1960s — the country went batshit crazy. Surely some of the ruling party remembers that with requisite terror.

Or maybe this is China and the USA’s Thelma and Louise moment. Pedal to the metal, they drive into the abyss of history holding hands. Remember, audiences loved that!

Meet the Indigenous Eco-feminists of the Amazon

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In Ecuador, indigenous Kichwa women are resisting corporate interests that threaten their land.

By Lindsey Weedston

Source: Yes! Magazine

For episode two of A Woman’s Place, Kassidy Brown and Allison Rapson traveled to Ecuador and ventured deep into the Amazon rainforest. There, issues of indigenous rights and the rights of women intersect in many ways. Corporate exploitation of indigenous land directly affects women who rely on natural resources for important aspects of their culture and daily lives.

This is one reason why Brown and Rapson sought out Nina Gualinga, a member of the Ecuadorian Kichwa tribe, internationally known for her indigenous rights activism. “In every episode we tried to address a different angle of feminism and a different way that it could be expressed,” Rapson said. For Brown and Rapson, Gualinga represented the power of eco-feminism, which combines environmentalism with feminist theory.

“We were struck by lots of things, but really it was just understanding her relationship to Mother Earth,” Rapson explained. “It’s a very personal relationship, and fighting for the planet, for them, is like fighting for a really powerful woman who needs their protection.”

The episode explains how, after oil companies began exploiting their land for fossil fuels, the Kichwa people protested, sued the government, and convinced the Inter-American Court of Human Rights to force oil companies out of Kichwa territory. But even though Kichwa women stood up to Big Oil and won, they still have to be vigilant. For Gualinga, and other Ecuadorian women interviewed for this episode, the capitalist system that threatens their land is also a key element of the modern patriarchy.

“It’s the kind of capitalism where big oil is coming in with a very masculine approach,” said Brown. “With the worst form of masculinity—aggressive, not listening to the community leaders, and not hearing what the people want.”

“All people have both feminine and masculine attributes. It’s not that all men are bad and it’s not that all masculine expression is bad,” Rapson said. “It’s that we are living with the remnants of an outdated and antiquated system.”

Gualinga says another obstacle indigenous women face is the stereotype that their communities are “primitive.” So when she brought Brown and Rapson to her village of Sarayaku, Gualinga showed them how Kichwa people have mixed modern technology with ancient traditions. The village uses solar panels for electricity—and Rapson explained that they even have their own “tech center”—while things like traditional teas and beauty products are still made by hand.

“It’s incredible to walk around the forest with Nina. She would pull this flower and tell us about how this oil would clear up your skin,” said Brown. “Then she would pull another thing that I would never recognize out of the rest of the foliage and say ‘This is great for your hair, it will make it longer and stronger.’ They have what they need there.”

This is part of the reason protecting their land is so important to the Kichwa.“It’s kind of like someone coming into your town and saying ‘I’m going to destroy your grocery store and your bank and your beauty salon,’” explained Rapson. “‘I’m going to literally take every aspect of your life—everything involved in how you live every day-to-day moment—and I’m going to get rid of all of that.’” Because when Gualinga and her fellow tribe members talk about protecting their environment, it’s more than just land. It’s protecting their history, their traditions, and their culture.

 

Lindsey Weedston wrote this article for YES! Magazine. Lindsey is a Seattle-based feminist blogger with a creative writing degree that everyone told her would be useless. She spends her time writing about various human rights and social justice issues on her blog Not Sorry Feminism and dabbles in video game reviews and commentary. Find her on Twitter at @NotSorryFem.

Report: Flint lead filters provide inadequate protection for residents

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By Shannon Jones

Source: WSWS.org

Federal and state officials are warning Flint residents that the lead filters they are using may be inadequate to protect them from the effects of elevated levels of lead in the city’s drinking water.

The warning came Friday after random samples collected from 26 residences since the final week of December came back with lead levels higher than the filters are designed to handle. The highest reading among the 26 homes was 4,000 parts per billion (ppb). The filters are not rated to handle lead levels above 150 ppb. The tests covered 3,900 homes.

After more than two years of lies and cover-up by federal, state and local officials, Flint residents are in a restive mood. Megan Kreger, a member of the local activist group Water You Fighting For, told the WSWS, “I didn’t believe it [about the lead filters] from the beginning. It has only finally hit the press.

“There has been fraud and negligence at all levels. It is a humanitarian disaster. We should not be living without clean water when we are only one hour away from one of the largest bodies of fresh water in the world.”

She rejected claims that Flint water is now safe for bathing. “My boyfriend took a shower before the Rachel Maddow town hall [over the weekend] and got the worst rash he has ever gotten. It almost looked like chicken pox.”

The US Environmental Protection Agency (EPA) recommends action be taken when lead levels exceed 15 ppb, though there is no safe level of lead exposure. Mark Durno of the EPA said the affected residents have now been contacted. The state had previously insisted that drinking filtered water was safe.

In the wake of the findings, Michigan Governor Rick Snyder urged all Flint residents to have their water tested as soon as possible. Dr. Eden Well, chief medical executive of the state’s Department of Health and Human Services (DHHS), advised children under six and pregnant women to drink only bottled water.

In an effort at damage control, Snyder sent a letter to state employees Friday, stating “what happened in Flint can never be allowed to happen again anywhere in our state.” The governor has tried to deflect all blame for the crisis to the Michigan Department of Environmental Quality (DEQ) and lower-ranking officials.

The DEQ said Monday that it has undertaken a five-part strategy to determine whether Flint water is safe to drink. The DEQ said it is working on a plan to make sure that residents with high lead-blood levels get their water tested.

Another issue of concern to Flint residents is that filters only have a limited life span, after which they are no longer effective. This is particularly true if the faucet where the filter is installed is the only source of water in the home.

Further, many Flint homes have older faucets that will not accommodate the water filters provided by the state. Over the weekend some 300 plumber volunteers installed new faucets free of charge in some 1,100 Flint homes, still a fraction of the city’s residences.

Federal officials said they were not sure why recent samples came back showing elevated levels of lead. Despite the findings, the EPA did not call on residents to stop using the lead filters. More testing is being planned.

The report on lead filters comes as state officials on Friday informed residents at more than 250 addresses living in areas of Genesee County outside of Flint that their water may also be tainted.

Dana, an auto parts worker who lives just outside of Flint, said she had just learned that her water may be dangerous to drink. “This is crazy. I live in the county and they just posted a whole bunch of addresses that might be affected. It appears it is impacting more than just the city of Flint. They had us misled. They told us it was fine. I was making coffee with the tap water every morning.

“It is an outrage. It is getting worse and worse. Everyone in the government is to blame. We as citizens do not know what is going on.”

Soon after the switch by the city of Flint in 2014 from its traditional water source, the Detroit water system, to the polluted Flint River, residents began to complain of foul-tasting, discolored water coming out of their taps. Nevertheless, citizens were repeatedly told the water was safe.

It later emerged that the highly corrosive water from the Flint River was leaching lead from the city’s antiquated piping, poisoning the city’s 100,000 residents. Even after the switch back to the Detroit water system in October, lead levels remain dangerously high due to the damage already done to the city’s water pipes.

Ten deaths from the deadly Legionnaires’ virus have also been traced to Flint water.

In another development, the US Department of Agriculture rejected a request by Snyder to extend the Women, Infants and Children (WIC) program to Flint residents up to the age of 10. A department spokesperson said federal law limited the program to children under age five. The program provides grants to states for supplemental foods, health referrals and nutrition information to pregnant and postpartum women with infant children.

Health professionals say proper nutrition is important in mitigating the long-term effects of lead poisoning in children. Children are especially vulnerable to lead, since their developing brains and nervous systems are more sensitive to toxins. The city has a child poverty rate of nearly 67 percent, 10 percentage points higher than Detroit.

According to the Michigan DHHS, 130,095 people in Genesee County, where Flint is located, are using food stamp assistance now, compared with 87,847 in 2005.

The report on continued high levels of lead in Flint’s water supply comes as Michigan’s Attorney General Bill Schuette says the state may not provide legal counsel for seven DEQ employees who are the subject of a class action lawsuit by Flint residents. Schuette has asked a federal judge to decide the matter of representation.

The lawsuit alleges the state endangered Flint residents by switching the city’s water source to the Flint River. In addition to the DEQ employees, the lawsuit also names Snyder, the state of Michigan, the city of Flint, two former emergency managers, the former Flint mayor and three city employees.

It has been filed on behalf of 10 plaintiffs, but seeks class action status for all Flint residents. It seeks compensatory and punitive damages, the creation of a medical monitoring fund and the appointment of a monitor to oversee Flint water.

The suit does not name federal officials, however the Obama administration’s EPA is deeply implicated in the cover-up of the lead poisoning danger. As early as April 2015, the highest-level EPA official in Michigan was aware that Flint water was not being treated for corrosion control, but said nothing. This, despite the fact that water professionals understand that such treatment is necessary if highly corrosive water like that from the Flint River is being used for drinking because of the danger of lead leaching from old piping.

Snyder has claimed he did not become aware of problems with Flint’s drinking water until October 1, 2015.

The West Is Reduced To Looting Itself

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By Paul Craig Roberts

Source: PaulCraigRoberts.org

I, Michael Hudson, John Perkins, and a few others have reported the multi-pronged looting of peoples by Western economic institutions, principally the big New York Banks with the aid of the International Monetary Fund (IMF).

Third World countries were and are looted by being inticed into development plans for electrification or some such purpose. The gullible and trusting governments are told that they can make their countries rich by taking out foreign loans to implement a Western-presented development plan, with the result being sufficient tax revenues from economic development to service the foreign loan.

Seldom, if ever, does this happen. What happens is that the plan results in the country becoming indebted to the limit and beyond of its foreign currency earnings. When the country is unable to service the development loan, the creditors send the IMF to tell the indebted government that the IMF will protect the government’s credit rating by lending it the money to pay its bank creditors. However, the conditions are that the government take necessary austerity measures so that the government can repay the IMF. These measures are to curtail public services and the government sector, reduce public pensions, and sell national resources to foreigners. The money saved by reduced social benefits and raised by selling off the country’s assets to foreigners serves to repay the IMF.

This is the way the West has historically looted Third World countries. If a country’s president is reluctant to enter into such a deal, he is simply paid bribes, as the Greek governments were, to go along with the looting of the country the president pretends to represent.

When this method of looting became exhausted, the West bought up agricultural lands and pushed a policy on Third World countries of abandoning food self-sufficiency and producing one or two crops for export earnings. This policy makes Third World populations dependent on food imports from the West. Typically the export earnings are drained off by corrupt governments or by foreign purchasers who pay little while the foreigners selling food charge much. Thus, self-sufficiency is transformed into indebtedness.

With the entire Third World now exploited to the limits possible, the West has turned to looting its own. Ireland has been looted, and the looting of Greece and Portugal is so severe that it has forced large numbers of young women into prostitution. But this doesn’t bother the Western conscience.

Previously, when a sovereign country found itself with more debt than could be serviced, creditors had to write down the debt to an amount that the country could service. In the 21st century, as I relate in my book, The Failure of Laissez Faire Capitalism, this traditional rule was abandoned.

The new rule is that the people of a country, even a country whose top offiials accepted bribes in order to indebt the country to foreigners, must have their pensions, employment, and social services slashed and valuable national resources such as municipal water systems, ports, the national lottery, and protected national lands, such as the protected Greek islands, sold to foreigners, who have the freedom to raise water prices, deny the Greek government the revenues from the national lottery, and sell the protected national heritage of Greece to real estate developers.

What has happened to Greece and Portugal is underway in Spain and Italy. The peoples are powerless because their governments do not represent them. Not only are their governments receiving bribes, the members of the governments are brainwashed that their countries must be in the European Union. Otherwise, they are bypassed by history. The oppressed and suffering peoples themselves are brainwashed in the same way. For example, in Greece the government elected to prevent the looting of Greece was powerless, because the Greek people are brainwashed that no matter the cost to them, they must be in the EU.

The combination of propaganda, financial power, stupidity and bribes means that there is no hope for European peoples.

The same is true in the United States, Canada, Australia, and the UK. In the US tens of millions of US citizens have quietly accepted the absence of any interest income on their savings for seven years. Instead of raising questions and protesting, Americans have accepted without thought the propaganda that their existence depends upon the success of a handful of artificially created mega-banks that are “too big to fail.” Millions of Americans are convinced that it is better for them to draw down their savings than for a corrupt bank to fail.

To keep Western peoples confused about the real threat that they face, the people are told that there are terrorists behind every tree, every passport, under every bed, and that all will be killed unless the government’s overarching power is unquestioned. So far this has worked perfectly, with one false flag after another reinforcing the faked terror attacks that serve to prevent any awareness that this a hoax for accumulating all income and wealth in a few hands.

Not content with their supremacy over “democratic peoples,” the One Percent has come forward with the Trans-Atlanta and Trans-Pacific partnerships. Allegedly these are “free trade deals” that will benefit everyone. In truth, these are carefully hidden, secret, deals that give private businesses control over the laws of sovereign governments.

For example, it has come to light that under the Trans-Atlantic partnership the National Health Service in the UK could be ruled in the private tribunals set up under the partnership as an impediment to private medical insurance and sued for damages by private firms and even forced into abolishment.

The corrupt UK government under Washington’s vassal David Cameron has blocked access to legal documents that show the impact of the Trans-Atlantic partnership on Britain’s National Health Service. http://www.globalresearch.ca/cameron-desperate-to-stop-scandal-as-secret-plans-to-sell-the-national-health-service-are-discovered/5504306

For any citizen of any Western country who is so stupid or brainwashed as not to have caught on, the entire thrust of “their” government’s policy is to turn every aspect of their lives over to grasping private interests.

In the UK the postal service was sold at a nominal price to politically connected private interests. In the US the Republicans, and perhaps the Democrats, intend to privatize Medicare and Social Security, just as they have privatized many aspects of the military and the prison system. Public functions are targets for private profit-making.

One of the reasons for the escalation in the cost of the US military budget is its privatization. The privatization of the US prison system has resulted in huge numbers of innocent people being sent to prison, where they are forced to work for Apple Computer, IT services, clothing companies that manufacture for the US military, and a large number of other private businesses. The prison laborers are paid as low as 69 cents per hour, below the Chinese wage.

This is America today. Corrupt police. Corrupt prosecutors. Corrupt judges. But maximum profits for US Capitalism from prison labor. Free market economists glorified private prisons, alleging that they would be more efficient. And indeed they are efficient in providing the profits of slave labor for capitalists.

Here is a news report on UK Prime Minister Cameron denying information about the effect of the Trans-Atlantic partnership on Britains’ National Health.
http://www.theguardian.com/business/2016/jan/26/anger-government-blocks-ttip-legal-documents-nhs-health-service

The UK Guardian, which often has to prostitute itself in order to maintain a bit of independence, describes the anger that the British people feel toward the government’s secrecy about an issue so fundamental to the well being of the British people. Yet, the British continue to vote for political parties that have betrayed the British people.

All over Europe, the corrupt Washington-contolled governments have distracted people from their sellout by “their” governments by focusing their attention on immigrants, whose presence is a consequence of the European governments representing Washington’s interests and not the interest of their own peoples.

Somthing dire has happened to the intelligence and awareness of Western peoples who seem no longer capable of comprehending the machinations of “their” governments.

Accountable government in the West is history. Nothing but failure and collapse awaits Western civilization.