The State and the Banksters Reply

by Peter Bjorn Perls

As an old libertarian and anarchist, news like this is not a surprise to
me anymore, and neither should it be for others of like persuasion, but
for those not accustomed to cynicism against the Establishment, a lot of
reminders of the corruption in the circles of power continually needs to
be shown, as the latest, quote:

“Bernanke, speaking in London, said in his prepared remarks that the
nearly $800 billion plan being discussed by the incoming Obama
administration and the newly elected Congress “could provide a
significant boost to economic activity.” He did not comment on or
endorse any specifics of the nearly $800 billion.

But Bernanke cautioned that the plan is “unlikely to promote a lasting
recovery unless they are accompanied by strong measures to further
stabilize and strengthen the financial system.”

link:http://money.cnn.com/2009/01/13/news/economy/bernanke_speech/index.htm?postversion=2009011308

Same ‘ol Bernanke (same as the rest of the crowd of Keynesians) – weak
on the specifics on how to spend the gargantuan handouts that they take
for granted is needed to right the economy (likewise a vaguely defined
concept). But I digress; the point of the matter here is that the US
federal handouts to the financial institutions are now so blatantly
obvious that only the blind (usually from political persuasion; I’d add)
fail to see it. The politicians already pumped sums that are
astronomical to any working man and local community, and now we are told
it’s not enough? (Will we hear that again when the next round of
bailouts come, too?)

A few bullet points to illustrate how the state works for the friends of
those in power and not those it allegedly serves – the public;

* Citigroup’s stock was busy running into the group two months back, but
recieved a big bag of cash from the feds, not only making the bankers
happy because they could stay in business for a while, but also a
Alwaleed bin Talal of Saudi royalty happened to buy up a large wad of
stock shortly before the cash infusion announcement, thus making himself
an even billion dollars in the process.

link:http://current.com/items/89559833/saudi_prince_profits_from_us_taxpayer_bailout_of_citigroup.htm

* The Feds propped up the banks to keep people borrowing and spending,
but Henry Paulson had to realize that the money that went to the banks
did not go to lending; it was spent on the banks buying each other out,
quote:

“Treasury Secretary Henry Paulson has said the money was aimed at
rebuilding banks’ reserves so that they would resume more normal lending
practices. But reports then surfaced that bankers might instead use the
money to buy other banks. Indeed, the government approved PNC Financial
Services Group Inc. to receive $7.7 billion in return for company stock
and, at the same time, PNC said it was acquiring National City Corp. for
$5.58 billion.”

(source: Yahoo News, article since deleted)

Then there is the case of the dying US automobile industry that went to
Capitol Hill with tears on their cheeks to beg for handouts for
themselves; after 3 decades of ever worsening business management and
ever worsening general quality of its produce; they had to go back home
two times, but as they say, three’s a charm, and they finally got their
double-digit-billion-bailout in the form of a loan. (Any bets on if it
will ever be paid back?)

Story of note why the “Big Three” bailout is foolish anyhow:

link:http://www.kuro5hin.org/story/2008/11/18/93514/227

And now the latest from Bernanke, as quoted above, saying in effect that
the already-huge bailouts for banks and industry are not enough. Now, a
few comments.

First, I’m not saying that banking is a non-productive endavour, as some
other establishment critics and typically reds would have it. But it is
obvious that the federal-corporate banking symbiosis today serves the
interests of politicians and businessmen more than that of the public
and the regular customers of the banks.

Second, the banks and financial institutions are being bailed out
because they are already a privileged class; the ability to create
credit from thin air (which is what the banks do; that is part of their
business) is not something anybody can do. Only politically
rubber-stamped institutions can do that, and thus it is a very valuable
enterprise, which again means that there is a struggle to get such a
privilege. Those who pay, however, is the public, specifically the
working public, and in more than one way. (Can you survive as a “normal
citizen” in society today without a bank account? Can you be on a
company payroll without having an account at a bank?)

Third, it is a quite human, and I might add, social thing, to help your
friends and relatives, but when this cooperation takes place in the
halls of power (which is the entire point of what I’m writing here; of
course it does!), it’s happening at your expense. The pillars of a
corrupt establishment is being kept in place with your money.

(On the other hand, if you can somehow remain free of taxes, and thus
not contribute to this exploitative machinery, my hat is off to you!)

After the happenings of 2008, who can honestly say that they do not see
the nepotism of the back-and-forth exchanges between state and big
business, and how this does nothing good for themselves, their friends
and families?

Those that don’t see it, are blind. Those who see, but make excuses for
it, are naive. But those who do see it, and do excuse for it, have a
duty to start working to end this state of affairs. Yes, it may not be
possible to do much, but at least stop participating in the lie; that is
the first step.

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