Sunday, September 25, 2011

The Banksters Destroy States: First Greece and Ireland, Second Spain, Third the US

Naomi Klein described how ruthless capitalists used the shock doctrine as a strategy for pillaging, first in Latin America in the 70s and 80s and subsequently in the Middle East. The shock doctrine entails use of severe austerity in government spending on education and social welfare and the privatization of state assets, combined with unregulated and predatory capitalism.

Max Keiser and Stacy Herbert are together the source for the most interesting and detailed interviews on how the shock doctrine is being applied in western industrialized nations. Here is an example interview with activist David DeGraw of Amped Status

Washington's Blog uses the illustration of the debt crisis to demonstrate how the shock doctrine has been applied in the US

David DeGraw also describes the deliberate destruction of the US middle class through the shock doctrine

Today The New York Times describes the effects of the shock doctrine, which is currently being employed in Greece

"While banks and European leaders hold abstract talks in foreign capitals about the impact of a potential Greek default on the euro and the world economy, something frighteningly concrete is under way in Greece: the dismantling of a middle-class welfare state in real time — with nothing to replace it.

"Since 2010, the government has raised taxes and slashed pensions and state salaries across the board, in an effort to rein in the bloated public sector that today employs one in five Greeks. Last week, the government announced it would put 30,000 workers on reduced pay as a precursor to possible termination and would cut pensions again for nearly half a million public-sector retirees..."

MAJIA HERE: The shock doctrine is namely a strategy for shifting wealth from the many, to the few. The shock doctrine is mainly a strategy for capitalists to pillage public assets.

The shock doctrine leaves entire populations impoverished.

Iceland rejected the shock doctrine and chose to default on the excessive debts that were ran up by the banksters. Michael Hudson helped advise them against socializing the banksters' losses.

When the banksters losses are socialized private citizens are left holding the debts acquired by the banksters.

Iceland's economy is growing today because the populace chose not to assume all of their banksters' losses.

Greece could also default and thereby re-structure losses that are now being forced upon the population. Max Keiser explains in the Keiser Report Trucks, Troikas, and Junta

US banks remain in poor shape because they will not write down losses that resulted from fraud and corruption.

Consequently, lending in the US to individuals and small businesses remains limited.

US citizens could demand that banking and finance be reformed to serve the people rather than being a parasitic force capable of destroying lives.

California is currently considering a public bank option. A public bank that offers low-interest loans to its citizens and that serves the people, rather than the monied elite, is one concrete strategy for resisting the shock doctrine in the US

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