Surviving Capitalism (Not) : Fed bailing out the Euro

We’ve lived so long under the spell of hierarchy—from god-kings to feudal lords to party bosses—that only recently have we awakened to see not only that “regular” citizens have the capacity for self-governance, but that without their engagement our huge global crises cannot be addressed. The changes needed for human society simply to survive, let alone thrive, are so profound that the only way we will move toward them is if we ourselves, regular citizens, feel meaningful ownership of solutions through direct engagement. Our problems are too big, interrelated, and pervasive to yield to directives from on high.
—Frances Moore Lappé, excerpt from Time for Progressives to Grow Up

Thursday, December 1, 2011

Fed bailing out the Euro

Click here to access article from Russia Today.

Markets are rallying, traders are full of optimism and the Euro is up. The only loser is the dollar: the good old buck has weakened compared to other currencies. The reason? An announcement from the Fed, the European Central Bank, the Bank of Canada, the Bank of Japan, the Bank of England and Swiss National Bank reveals that they are going to provide troubled European banks with massive amounts of cash – cheaper and faster than ever before. Obviously, the lion’s share of assets will be provided by the US Federal Reserve.

For more details and a deeper analysis of the latest European bank bailout by the Fed, read this piece by Naomi Prins, formerly of Goldman Sachs, in which she states:

...we...know from the US bailouts in phase one of the global meltdown, that providing ‘liquidity' or ‘greasing the wheels of ‘ banks in times of ‘emergency’ does absolute nothing for the Main Street Economy. Not in the US. And not in Europe. It also doesn’t fix anything, it just funds bad trades with impunity.

Well, should we be surprised? The Empire's ruling class is there to serve the one percent, and that is what they are doing. The solution, broadly speaking, is to remove the one percent from power and create classless societies designed to serve the needs of everyone. Until that happens, we will continue to see the 99% serving the needs of the one percent (in this case, covering their bad bets), more extremes of wealth and poverty, more wars, and more environmental degradation.

Here, in a nutshell, is the way I understand this whole bailout phenomenon. The controlling center of capitalism are the financial elites in the US, Europe, and Japan under the leadership of US bankers. Their top controlling institution is the Federal Reserve which creates money backed largely by the power of the US and NATO military, and their Arab oil cronies . The financial elites have no problem creating money to bailout members of their class who made bad bets on mortgage securities and all kinds of derivative bets, but they have an almost obsessive fear of that money circulating among the general population. You see, if that money circulates widely, money cheapens, prices rise, inflation results and the value of the bonds that mostly elites buy are devalued.