New World Order University Forum

Michael Hudson has written a seminal analysis of the financial crisis, focusing on Iceland as the target for international predatory lending practices. There are two versions of this article, one at Global Research and one at Intellibriefs.

We strongly recommend that you read both versions. These articles summarize economic history and economic war in an essential way that provides the foundation for our proper response to the global economic crisis.

It should be obvious to everyone by now that both the Bush and Obama administration policies are designed to bail out the bankers. The United States Treasury has allocated $13 trillion in aid to banks, but the total amount of mortgage debt in the United States is only $11 trillion. The policy of bailing out the creditor rather than aiding the debtor is at the heart of the problem. It is now becoming obvious that the political and financial crime syndicate that controls Wall Street and Washington, D.C. is committed to maintaining rather than reforming the corrupt lending practices that got us into this mess.

Hudson was a Wall Street predatory lender who has now turned to the good and is revealing the unfair game the bankers play. Understanding how capitalism got transformed into global predatory banker capitalism is the essential foundation for orienting our attitudes toward what should be done.

In a nutshell, the game the bankers play is to calculate how much economic surplus a country is generating, then loan the country the amount of the surplus so that they can siphon off the increase in productivity as profit while miring the country in a debt that cannot be repaid.

“Financial lobbyists have spent billions of dollars spent on public-relations think tanks to achieve this ideological con job. They have endowed business schools and gained control of government agencies to promote their creditor-oriented point of view, headed by central banks to serve as the ideological wedge for today’s anti-democratic forces. This is the ideology that has pushed much of the Third World into poverty since the 1960s, as well as today’s tragically debt-ridden post-Soviet economies.”

“The financial austerity imposed by creditor-run regimes shortens life spans, reduces birth rates, and increases labor flight, suicide rates, disease, alcoholism and drug abuse. Just as war kills an economy’s males of fighting age (25-35), financial austerity drives them to emigrate to find work. This is why U.S. investor Warren Buffett has called collateralized debt obligations (CDOs), credit default swaps and similar debt-leveraging instruments ‘weapons of mass financial destruction.'”

“Those who try to defend themselves are branded as terrorists by their financial predators.”

The bankers rely on a sense of moral guilt on the part of the debtor, that the debt should be paid off, no matter what. This attitude condemns the debtor to work longer and harder to produce real goods and services and transfer that wealth to the bankers, so that the debtor pays back far more than the value of the loan.

The solution to the financial crisis is to cancel the bad debts the bankers issued. Hudson provides a historical perspective on why debt forgiveness is not only a good policy but an essential policy for economic survival.

Related reading:

How the Bush and Obama administrations broke the law by refusing to close insolvent banks, at Global Research.

The solution to the financial crisis is to liquidate the banks and fire the executives, at Global Research.

It’s time to dissolve all central banks, at Global Research.

Put finance capitalism back in its box at Global Research.

Enough financial insiders are now coming out with articles and books to achieve a consensus about how to fix this global financial system. Unfortunately, the result of the G20 meeting was to buy more time for the IMF to operate and for national bankers to continue their predatory practices. GlobalEurope Anticipation Bulletin provides a timeline for future decision-makers and analyzes the issues that separate the various national leaders.

It is essential that we understand clearly the problem with the predatory financial system and address it as the other camp, the global socialists, are basing their socialist takeover plans on an analysis of capitalism as an inherently flawed system that must be entirely replaced by socialist economics. This version of the New World Order condemns the world to a future standard of living and political enslavement equal to today’s Cuba or North Korea.

However, if GEAB is correct, we only have about a year before massive debt defaults plunge the world into Depression. Even if Depression were avoided, the crushing debt obligations grind down the productivity of the world’s economies to Third World status in just a few years.

Are we being too pessemistic? Possibly. Can present policies lead to economic recovery? Possibly. If the best-case scenario occurs, it still remains that globalist bankers control entire nations. If the system stays afloat, use these articles as personal warnings to avoid debt enslavement.

The tea party protests are a first warning sign that ordinary people understand the criminal nature of the bank bailouts. Can something come of them? This interview with Gerald Celente offers a vague hope that the tea party protests will blossom into a genuine movement for meaningful reform. We’ll have to see. For the moment, this is the cutting edge of hope. The Left hates the tea parties and the Obama administration fears them, not because of their numbers but because of what they could become: a clear-thinking movement to end the parasitical role of corrupt bankers and socialists.

Tags: global financial crisis, tea party protests

This entry was posted by Director on Monday, April 20th, 2009 at 3:23 pm and is filed under Global Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.