"The Road to Debt Peonage" - explains why we likely won't see

[jtuck004]

any large investment in job creation (unless something moves the administration off this track such as a heady plunge much nearer a Depression) and why the Federal Reserve is funneling money into re-inflating the shadow banks that brought us The Great Wall Street Recession (thank you for those words, Senator Sanders).

It's a little long, but well worth reading if you want to understand why the tragedies that unemployment brings will be battled by making the wealthy even wealthier. These 9 pages should make crystal clear why it makes sense for our Republican Federal Reserve Chair, a trickle-down apologist (see the article), to carve out $15 trillion in loan guarantees and payments for investment banks for an industry that continues to pay out billions of dollars in bonuses to very wealthy people, while Congress argues about a $33 billion unemployment extension to help people feed their families.


It's all part of the plan, here...

[enough]

1. Thanks for pointing us to Prof. Hudson's writing. He's been uncannily accurate in

predicting the effects of these policies.

Here's an essay from October 18, 2008
Parsing Mr. Paulson’s Bailout Speech: The Unprecedented Giveaway of Financial Wealth

a short snip from a long article:

snip>

The main impact will be to reinforce the concentration of wealth in the hands of creditors (the wealthiest 10 percent of the population) rather than wiping out financial assets (and debts) through the bankruptcies that were occurring as a result of "market forces". Is it too much to say that we are seeing the end of economic democracy and the emergence of a financial oligarchy ­ a self-serving class whose actions threaten to polarize society and, in the process, stifle economic growth and lead to the very bankruptcy that the bailout was supposed to prevent?

snip>

[jtuck004]

2. I had never read as clear an explantion of Bernanke's

motivations and beliefs. I was really dumbfounded 1) that someone in this day and age could have such an interpretation of economics, and 2) that our party would countenance such views (oh, I know, #2 is dreaming).

But he is wrong, and this is going to make income inequality much, much worse - while at the same time allowing a lot of people to continue in misery. This is really bad for us.

Can the powers that be not see that his philosophies helps our opponenets?

I was watching Obama and Bernanke in a windows on CNBC a few weeks ago. While that was going on they were reporting the drop in consumer confidence, and the market was going down. At the same time Obama was explaining how consumer confidence was strengthening, and how he and Bernanke were of the same mind on the fiscal crisis.

I remember thinking - oh crap! - but after reading this article at least I know why...

thanks