Thu Dec 6, 2012, 04:31 PM
limpyhobbler (8,244 posts)
For Wall Street, every disaster is an opportunity to make debt slaves of the victims
Sandy, the Storm from Hell – Unless You’re a Banker
When the bankers take over a nation and its economy they don’t build factories, and they don’t make investments in people or infrastructure. What finance capitalists do, when given the power, is put everyone in debt.via http://www.blackagendareport.com/content/sandy-storm-hell-%E2%80%93-unless-you%E2%80%99re-banker
For Wall Street, every disaster is an opportunity to make debt slaves of the victims – if the victims have enough resources to pay back the banks. If those struck by natural calamity are too poor to become assets on the bankers’ books, they’re pretty much on their own – even when a public agency is in charge of disaster relief.
A new report by a group called Strike Debt, described as an offshoot of the Occupy Wall Street movement, says federal disaster aid in the wake of Hurricane Sandy is largely built around ensnaring storm victims in debt. Titled “Shouldering the Costs,” the study concludes that the burden of recovery from disasters is being shifted to the individual. “Federal aid programs,” says the report, “require victims to first apply for loans before qualifying to apply” for aid from FEMA, the Federal Emergency Management Agency. And before the feds will even consider making Small Business Administration loans in a disaster, they require that the victims first go to a commercial bank, where the interest rates are much higher.
To the average citizen, this seems illogical. Why place a hurricane-struck small businessperson in deeper financial trouble by forcing her to take on even more debt? What kind of disaster relief is that? Very good logic, if the intention is the serve the banks. The unwritten rule of government under capitalism is never to compete with private business – even in disasters. Therefore, the first job of government is to withhold low interest federal loans from victims with good credit, in order to protect corporations’ chances to profit from the disaster. Only if the private banks reject you will the Small Business Administration offer “direct loans” at lower rates.
0 replies, 596 views