Dan Majestic reports from New York: As the Dow Jones share index hit an all time high yesterday in New York, with all sorts of people wondering how it could happen in a country that is going through a fierce economic downturn, let me enlighten some of you on what is actually going on. The thing is, you see, that the US Federal Reserve, which is not a central bank proper but is actually a private enterprise run by a cabal of dodgy financiers, has been flooding the markets with newly printed dollars to the tune of tens of billions a month. It is done to supposedly keep the interest rates low but in reality it boils down to propping up the banks that continue to blow a fortune on gambling on the markets.
Free market it obviously ain’t. More of gangster economics with a socialist undertone to it. You know, subsidising failed enterprises with taxpayers’ money, in this case failed and corrupt banks.
This is a perverse system and it will eventually bring the economy down. It simply proves that the money men, who produce nothing and are basically acting as middle men, have lost their senses completely and are ripping everyone off without any consideration. Greed is still good for these creeps. Even though when the whole thing crashes they will be buried under the rubble along with the others.
Yes, the free market disappeared from the menu of the restaurant called World Economy a long time ago. The proper dishes have gone off it, one by one, replaced by dodgy junk food and all sorts of nasty smelling potions, with middlemen of all sorts – all those bankers, brokers, traders and speculators generally – calling the shots, pushing out the people who really matter in a proper free market environment – the producers. In fact, Karl Marx, who was as crazy as they came and was to proper economics what syphilis is to a loving relationship, introduced the name ‘capitalism’, arguing that the producers were the main culprits, subjecting their workers to ruthless exploitation, while the bankers were simply providing capital for these sharks who made life a misery for millions.
As a devout communist, Comrade Marx saw the world economy only through the prism of ‘class struggle’, portraying ‘capitalists’ as blood-sucking leeches and the workers as objects of horrific exploitation. He even went as far as concluding that the profit margin of any enterprise with hired manual labour was actually a result of the greed of the owners and constituted the unfairness of the whole system. The mad hairy creep, who, incidentally, lived on the money provided to him by his friend, Friedrich Engels, the son of a rich factory owner, especially disliked small company owners, the backbone of any proper free market, because for him they were the people who stood in the way of the proletarian revolution.
Anyway, as the financial markets started to play a dominant role in the 1920s, the free market began to disappear from the menu. All that army of middle men, who sold and bought paper assets unsupported by anything, be they shares or promissory notes or even government IOUs, created absolutely nothing while causing permanent turbulence, as it raised their profits. It all resulted in the Great Depression of the 1930s and a world economic crisis that triggered the Second World War and allowed the banks, the biggest speculators of them all, to write off huge amounts of money which they stole or gambled away. By that time ‘capitalism’ was one big joke, with large corporations destroying millions of small and medium businesses, having bought up whole governments.
After the last Big War the world economy developed for a while simply because of the post-war reconstruction period that usually introduces some sort of order into the system. But that did not last all that long. In the 1960s the middle men came back with a vengeance, gambling on the markets and inventing new ways of making money out of nothing. Speculators concluded endless dodgy deals or manipulated commodity prices, hitting millions of consumers and small and medium companies. Meanwhile banks were making it harder for producers to get loans and credits, by introducing near criminal conditions and snatching and tearing up companies apart if they got into trouble.
The biggest damage done to the world economy was the stupid idea that consumer credit could be used as an engine for economic growth, even when it was perfectly clear that at some point the bubble would simply burst. That was the reason for most of the crises in the 1980s and 1990s and, of course, the crash of 2008. The free market by then was gone and forgotten completely, with speculators and unscrupulous lenders calling all the shots, with the bulk of the capital avoiding the real economy and gambled away on dodgy deals on the markets. Countries with slave labour like China and India were chosen as the main producers of cheap goods, destroying millions of enterprises around the world.
Effectively, by 2008 the economic system known as ‘capitalism’ was dead. It was a system of vast monopolies controlling the production and getting all the help from the politicians. The bankers strangled millions of consumers and small and medium businesses with their loan-sharking ways while being propped up by central banks that used taxpayers’ money to keep the rotten system alive. This was as close to state run socialism as it gets. Free market it wasn’t.
So, what’s to be done now, you may wonder. Well, if the current banking system is not dismantled and the monopoly of big corporations is not broken up the whole bloody system will simply crash and a new big war would erupt. Yes, it is a gloomy prediction but that’s how things stand. You can’t allow a small group of people to run a quasi ‘free market’ for so long. Something has got to give.