The System, Like the Berlin Wall, Must Come Down
August 12th, 2007Nice essay on the Soviet style free market.
Via: Unknown News:
One hugely interesting aspect of this week’s mortgage and debt shenanigans is the role of the Federal Reserve as “Protector of the Realm” when “The System” freezes up and begins to implode upon itself.
Normally the Fed diligently attends to its primary functions of 1) controlling inflation and b) maintaining unemployment (read those both ways, chortle).
But they also have a Crisis Mode in which they print money and then loan it at below market interest rates to wealthy corporations such as banks and brokerages. Not only that, but they are authorized to buy “things” with their newly printed money: gold, stock index futures, US Treasury notes and bills, anything.
If The Powers That Be decide that TEOTWAWKI (The End Of The World As We Know It) is at hand, the Federal Reserve will gladly spend all of the public treasury and all of the next ten generations of citizens’ money, if that is what it takes today to stop the Dow Jones average from falling an extra hundred points, or to stop J.P. Morgan from being forced to reduce its dividend by one percent.
It’s standard operating procedure in our “free market” system. When corporate profits and asset prices are rising, the wealthy get wealthier and Larry Kudlow reiterates for the 10 gazillionth time on CNBC that “It is always morning in America.” But when corporate profits and asset prices actually start falling the government — through its authorized agent, the Fed — immediately socializes the losses.
Got that? “Free market” profits are owned by Private Citizens, while “free market” losses are owned the public.
When everything is going great the citizen billionaires hold parties with ice statues of Michaelangelo’s “David” pissing Stoli, and when everything turns to shit then all of a sudden they morph into communists demanding that the Fed “inject liquidity” into the vital state owned tractor factories so that GOP’s Five Year plan quota can be met.
A very cogent view of the “system” and how the unconnected, unwashed masses are fed into the meat grinder when it pleases our masters. Has it ever changed?