William Greider on Bill Moyers Journal

http://www.pbs.org/moyers/journal/03272009/watch2.html

WILLIAM GREIDER: Unfortunately, Secretary Geithner, has a record- which we know about. When he was President of the New York Federal Reserve Bank. And he was at the table, in many of the bailout transactions. First Bear Stearns then A.I.G. and others. And this is, again, not my opinion, but people on Wall Street talk about it all the time. He got spun around again and again by the big Wall Street players. The bailout of Bear Stearns was really about protecting J.P. Morgan Chase.

The story was told backwards in the press, basically, because it's a story the government told that J.P. Morgan came in to buy Bear Stearns at the behest of the government. But in fact, if Bear Stearns had gone down, J.P. Morgan Chase was vulnerable itself to a wave of derivative crashing crisis. When they bailed out A.I.G., the chief executive of Goldman Sachs was in the room. Why was he in the room? Well, because he had big exposure to- through derivatives, to A.I.G. So, when they pump money into A.I.G., it sends the same dollars out and buys back these derivative contracts at par value, not even discounted, to the banks and others who hold them. Goldman Sachs gets $12 billion out of that transaction. This is another scandal waiting to surface. And I trust good, smart reporters are already on the case. And following the dollars that moved around among the leading financial institutions in ways that politicians could not have not known about it. It defies reason to think that Washington didn't know this was happening.

...

WILLIAM GREIDER: [edit: on Obama] I think he's... And I've been very enthusiastic about his opening as President. He did the stimulus package and a number of other things that's fulfilling his promise. On this, he does seem absolutely committed to restoration of the old order. There's no other way to say it. And this- these things Secretary Geithner is saying this week and others have been putting out, all confirm that.

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WILLIAM GREIDER: ...And secondly, and this will sound extreme to some people, but I came to it reluctantly. I fear what they're doing, not intentionally, but in their design is setting the crown for a corporate state.

BILL MOYERS: A corporate state?

WILLIAM GREIDER: A corporate state. And by that I mean a rather small but very powerful circle of financial institutions the old Wall Street banks, famous names. But also some industrial corporations that bought banks. Or General Electric, which is already half of big financial capital, GE Capital. And that circle will be our new Wall Street club. Too big to fail. Yes, watched closely by the Federal Reserve and others in government, but also protected by them. And that's a really insidious departure. To admit that and put it into law. And then think of all those thousands of smaller banks. How are they going to perform against these behemoths that have an inside track to the government spigot? And for just ordinary enterprise in general? Before you even get to the citizens. How are citizens supposed to feel about that? And I-- my point is, in this situation, with if the leading banks and corporations are sort of at the trough, ahead of everybody else in Washington, they will have the means to monopolize democracy. And I mean that literally. Some of my friends would say, hey, that already happened.

BILL MOYERS: Yeah, the corporate state is here.

WILLIAM GREIDER: The corporate state is here. And I'd say, let's not argue over that. The fact is, if the Congress goes down the road I see them going down, they will institutionalize the corporate state in a way that will be severely damaging to any possibility of restoring democracy. And I want people to grab their pitch forks, yes, and be unruly. Get in the streets. Be as noisy and as nonviolently provocative as you can be. And stop the politicians from going down that road. And let me add a lot of politicians need that to be able to stand up. Our President needs that to be able to stand up.

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There may be reasons to forgive the current administration for what it is now doing, but it is absolutely propping up the status quo - no more and no less. At the same time it is further empowering certain players in what is almost surely a step toward corporatist fascism. There are indeed many signs of this having happened already.

Fait accompli.

It is so disheartening to see the new president as more of the same bad news we've been getting for decades: that he's an elitist swine. That the new boss is the same as the old boss.

Pitchforks, indeed...

The Usury Crisis: Two Must See News Segments

Usury (noun) The practice of lending money and charging the borrower interest, especially at an exorbitant or illegally high rate.

Yes, we used to have laws against those kinds of practices. To understand the enormous political shifts taking place you really need to get back to a roots word like usury. It's really just another way of saying that someone was conned by a financial transaction the complexity of which was too much for them to fully grasp.

In truth, and I've said it before, the whole monetary system is a con of exactly that kind - a con that is too complex for most people to fully understand. This failure to understand the financial landscape also means that people are equally unable to meaningfully manage their own positions in relation to their surroundings. They just don't get it and our financial institutions don't want them to understand it too well anyway.

No one's going to bail you out of a financial crisis. Hell, they are trying to make a proper bankruptcy damned near impossible for an individual. But if you are a corporation or another kind of favored business, then no problem - you might not only get your bankruptcy but even a bail out that makes a bankruptcy unnecessary.

Welcome to the financial crisis of 2008!

Is your name Freddie Mac or Fannie Mae? Then we don't care how much you screwed up, we have taxpayer money for you. Do you find the cushion comfortable enough? We got taxpayer monies on tap! You keep risking it and we'll keep bailing you out...

This makes people in Japan, China, England and all over Europe very happy.

And Obama will not save you. He's too busy contemplating the "moral hazard" represented by the people that accepted the loans instead of scrutinizing the overweening greed on the part of the lenders that made the loans in the first place. Obama is willing to bail out the corporations but not you lowly individuals - nope, not gonna happen. You see, those corporations and financial institutions pay him to cover their asses but you aren't worth shit to Obama.

Bill Moyers Journal: Mortgage Mess, William Greider, Justice and the American Dream
http://www.pbs.org/moyers/journal/07182008/watch.html

Democracy Now: Naomi Klein Reexamines “The Shock Doctrine”
http://www.democracynow.org/2008/7/15/with_crises_in_fuel_food_housing