Magi Mike's Blog

Another WordPress blog about politics and religion

US Christian Party Robs the Poor to Save the Rich

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The Great Society of capitalism and scourge of socialism, the USA Republican government, has suddenly found itself nationalizing the commanding heights of the economy! It is handing out trillions of dollars to the backers of the Republican party, the USA treasury itself being backed by trillions of dollars from Communist China. Is the US elector likely to get a tad suspicious that they have been taken for a ride for decades? It is not a bit likely. McCain-Palin are still taken seriously by the US electorate, who seem immune to economic sense as well as common sense. Both McCain and Palin boast they believe in Genesis, an account of the creation of the world written in Syria almost 3000 years ago. With leaders like that, can anyone be surprised when the Republican administration demonstrates that it knows only how to bail out crooked billionaires?

Michael Hudson, Professor of Economics at the University of Missouri, Kansas City and author of Super-Imperialism: The Economic Strategy of American Empire and of The Myth of Aid, wrote online at Global Researcher that economic theory used to explain that profits and interest were a return for calculated risk. The new Republican economics is based on “computerized gambling on the direction of interest rates, foreign currencies and stock prices”. Except that no gambling is involved because, when gigantic losses on bad bets have to be paid, the Republican administration suddenly finds bottomless coffers of dollar as bailouts to the gamblers—many of them Republican campaign contributors!

On Friday, 19 September 2008, the White House promised an alleged $700 billion, in addition to the trillions of dollars—a doubling of America’s national debt—already committed on 7 September in the nationalization of Fanny Mae and Freddie Mac, “to support junk mortgages fraudulently issued beyond the ability of debtors to pay, and above the market price of the collateral pledged”. Yet Bush spoke as if the Martians had landed, not that his best pals had suddenly realized they had lost their mortgage repayments in the local Christian owned casino:

We must act now to protect our nation’s economic health from serious risk… There will be ample opportunity to debate the origins of this problem. Now is the time to solve it… In our nation’s history there have been moments that require us to come together across party lines to address major challenges. This is such a moment.

The Republicans do not want anyone, Republican or Democrat, to think about the origins of the problem before Congress has committed the bailout money. “There is no time to make the biggest bailout in election history an election issue”, not immediately before the presidential election. Secretary to the Treasury, Paulson, echoed more of the same half-witted propaganda, the very guff that the US electorate can be relied upon to soak up:

Our economic health requires that we work together for prompt, bipartisan action.

The Paulson-Bernanke plan will underwrite the banks selling off the homes of five million home mortgage debtors faced with default or foreclosure. The fraudsters in the finance corporations lose nothing, but the poor who were sold unrealistic mortgages will lose everything. The Federal Reserve will let the lending agencies refinance the junk mortgages by effectively writing off the difference between the mortgage and the collateral property. Then the gambling swings and roundabouts can continue for awhile, Republicans will get campaign gratitude money, and, with a bit of temporary electoral relief and gullibility, they might even win the Presidential race.

The Republicans are treating this handout of free public money like they treated the lead up to the Iraq war, with myths, lies and desperate urgency thrown in to panic a quick and ill-thought through decision, and the same people that warned the country about weapons of mass destruction are behind the operation. The solution has little relation to the underlying cause of the problem, what Warren Buffett called “weapons of mass financial destruction”.

Irresponsible, or fraudulent companies have paid out revenue to their financial managers, insiders, stockholders and political candidates on committees deciding the nation’s financial regulation, instead of putting it in reserves. Now, they are to be rewarded for their enterprise, either from the Freddies, Fannies and AIGs, or from their Federal Treasury—ok! From the Treasury!

Why should these gamblers be bailed out, if they had enough to lose without having to become public wards by going on welfare? Hedge fund trading was limited to the very rich, for investment banks and other institutional investors. But it became one of the easiest ways to make money, loaning funds at interest for people to pay out of their computer-driven cross-trades. And almost as fast as it was made, this revenue was paid out in commissions, salaries and annual bonuses.

The recipients of these speculative profits did not even have to pay normal income tax on it. Speculating with other people’s money should not even be legal, but at least speculative profits should be taxed at a higher rate than legitimate profits. These profits are tagged as “capital gains”, and the tax rate is therefore much more favourable. Voters will be told why it is in the public interest to bail out these gamblers.

Good rhetoric is needed to explain why the government should let them go into a casino and let them keep all their winnings while using public funds to make good on the losses of their counterparties.

Hudson says the US Treasury and Federal Reserve have changed American capitalism overnight and irreversibly—“if they can get away with it”. The class FDR called “banksters” have orchestrated a coup d’Etat. It is:

the largest and most inequitable transfer of wealth since the land giveaways to the railroad barons during the Civil War era.

So what do the Christian Right have to say about all this? Presumably nothing, because their God, made in their own image, is just as crooked as the campaign financiers of their God-sent party. Christians always beef about personal pecadillos they do not approve of, but they never have anything to say about serious crime. They must approve of that!


Written by mikemagee

24 September, 2008 at 7:57 pm

One Response

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  1. Appears to be a glitch on the blog box on patriarch 1.1.
    What about the indians? If anything shows the political power of religious beliefs it is that betrayal of a fellow human by religious men out to get theirs while the getting was good, justifying it by a set of ancient principles that the persian magicians established. Their magic is at work even today.


    4 November, 2008 at 4:48 am

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