Friday, September 19, 2008

Financial Regime Change

'Train-wreck' doesn't even begin to describe what is starting to happen to the U.S. with the current financial crisis, an onrushing depression, and the failure of George W. Bush's war policy as he is faced down by Iran and the Russian bear. But in an even broader sense, the West, as a civilization, after a century of world war and the systemic failure of global finance capitalism, may have reached its limits. Those with a vested interest in the status quo dismiss any suggestion that something is wrong. So is a catastrophic meltdown coming? If so, probably a majority of the people in the world are thinking: 'what goes around, comes around'.

The financiers behind it all have also used the diabolically clever practice of creating money out of thin air to put the natives everywhere into debt and, when that has proven insufficient, of doing the same to their own populations. All this is rationalized by various brands of racism, cultural superiority, social Darwinism, historical determinism, 'dominion of the elect', 'God's chosen people' or, simply, 'might makes right'. So, today Americans owe their own bankers almost $70 trillion; at most recent count. With the government takeover of Fannie Mae and Freddie Mac; they owe holders of bad housing loans, including the governments of China, Korea, and Japan, another few trillion. America, indeed the entire West, has been found out; perhaps even checkmated on the world stage.

The Bush/Cheney wars in Afghanistan and Iraq, in pursuit of barely disguisd financial goals, have blackened America's name forever. Iran has called their bluff. In Israel the gap between rich and poor is increasing as much as in the U.S. In the 1990s, the European bankers used U.S. and NATO forces to dismember Yugoslavia so George Soros and the Rothschilds could gobble up Balkan resources. But that strategy is failing in the Caucasus, where the Russians fought back against Mikheil Saakashvili, the New York-trained attorney the CIA got elected as the president of Georgia. And now the people of Ukraine, the “Little Russians,” realizing what the West has in store for them, are rushing back into the Slavic fold and may be only a year or so away from reuniting with their “Great Russian” cousins across the border.

What is telling, is to watch the Western 'financier' press fume about Russian prime minister Vladimir Putin and his authoritarian manner. Political interpretations aside, Vladimir Putin is the foremost figure on the world stage today. He will remain so after George W. Bush leaves the White House disgraced. Putin has declared that the world will not be governed in a “unipolar” manner; i.e. by the U.S. military as the police force for the global financiers. Putin is heir to an epochal movement, which began to take back Russia from within during the 1970's . Today, Putin is cleaning out the remaining oligarchs and gangsters; the same men that were championed by global financiers when they were looting Russian state assets.

This does not mean Russia has to remain an enemy to the West. In fact the world would be much better off, and much safer, if they joined with Russia as allies in keeping the peace. But to do that the US system would have to change, because finance capitalism is far too unstable to coexist with other nations as equals. It must either grow or die, because it always needs new victims to pay the interest on its usury practices and to finance its speculative balloons. Fundamentally flawed, it can no longer rely on the kind of institutional bailouts being engineered by Secretary of the Treasury Henry Paulson; where the only remaining stopgap is borrowing from public funds and adding to the US national debt.

Once economic growth stops, as has now happened; and all the bubbles to restart it have blown up, as has also happened, the end really is nigh. Especially if the host is bankrupt. What is coming at the US today isn't just another economic downturn. If people like McCain adviser Donald Luskin doubt it, maybe, instead of writing campaign propaganda, they should ask the fired CEOs of Fannie Mae and Freddie Mac, the stockholders in now bankrupt Lehman Brothers and the millions who are losing their homes. Presidential candidates Barack Obama and John McCain are calling for 'change'. Well, if you were standing on a beach with a 100-foot tsunami roaring in your direction, you would call for change too.