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Wrecking the American Dream

By Stephen Lendman - Posted on 06 October 2010

Wrecking the American Dream - by Stephen Lendman

Long planned, the current economic storm erupted violently in late 2007. It wasn't by accident. It was engineered years back, so financial racketeers could profit from wrecking global economies and destroying their middle class, including America's.

On February 1, 2009, former high-level Wall Street and government insider, Catherine Austin Fitts, explained it an article headlined, "Financial Coup d'Etat," saying:

A global financial cabal "engineered a fraudulent housing and debt bubble; illegally shifted vast amounts of capital out of the US; and used 'privatization' as a form of piracy - a pretext to move government assets to private investors at below-market prices and then shift private liabilities back to government at no cost to the private liability holder....Clearly, there was a global financial coup d'etat underway," its magnitude overwhelming and incomprehensible to most people, as planned.

Many trillions of dollars have been stolen, shifted from public to elitist private hands - by far, the greatest ever wealth transfer in history, a global heist, sucking capital out of one country after another, including America. It's an ongoing "de-moderniz(ation)" process, transforming Western countries into third world ones - in real time, in plain sight, yet few people understand.

In stark terms, Fitts says it's more than just "a process designed to wipe out the middle class. This is genocide (by other means) - a much more subtle and lethal version than ever before perpetrated by the scoundrels of our history texts."

It's a government-business cabal for enormous profits through "legislation, contracts, regulation (or lack of it), financing, subsidies," and massive handouts to Wall Street favorites. Carefully rigged for powerful elitists, the public is so cleverly harmed that few understand what's happening - literally that their livelihoods, welfare and lives are being destroyed in real time. The America older generations knew no longer exists, the dream of millions wiped out, and it's also happening throughout Europe.

In his September 30 article titled, "The Neoliberal Experiment and Europe's anti-Austerity Strikes," Michael Hudson explained sinister plans "to drastically change the laws and structure of how European society will function for the next generation. If (successful, they'll) break up Europe, destroy the internal market, and render that continent a backwater. This is how serious the financial coup d'etat has become. And it is going to get much worse - quickly....The bankers are demanding that (governments) rebuild their loan reserves at labor's expense." It's also Obama's scheme, shifting greater wealth to the rich, impoverishing the rest.

Throughout the West, neoliberals are in control. "From Brussels to Latvia, (they) aim to shrink their economies to roll back wage levels by 30 percent or more - depression-style levels - (for) 'more surplus' pay in debt service," tribute to global bankers, turning Europe "into a banana republic." It's also planned for America.

"This requires dictatorship." Labor is targeted for destruction. "Europe (like America) is entering an era of totalitarian neoliberal rule." So-called "free markets" aren't possible without it. But wait - "This is economic suicide, taxing labor, not the rich, and at the same time "slash(ing) wages and pensions, cut(ting) back public spending and employment, and shrink(ing) the economy," turning Western societies into dystopian backwaters, a dark future unfolding in real time.

In his October 2 International Forecaster report, former insider and long-time financial expert Bob Chapman adds more about America, saying:

"There is no question that those who control our government from behind the scenes are bound and determined to take over the $6 trillion in private pension plans. Whether they'll be successful remains to be seen. The Department of Labor wants to force all IRAs and 401ks into the arms of a corporate fascist government, that knows (best what's) good for you." They want public investments exchanged for "a guaranteed, government annuity that is not worth the paper it is written on."

"Small amounts would go into" government retirement R-bonds, the larger portion earmarked for Wall Street - the usual suspects profiting, including Goldman Sachs, JPMorgan Chase, Citigroup, Bank of America, and other giants for even greater market control than already, and far more capital to manipulate for profit. Chapman calls it "monopoly control and subjugation of worldwide investments, a total hold on the control of all investments" to scam the public more than ever and head them deeper into poverty, exactly what Washington and Western governments propose.

On the pretext of reform, destroying Medicare and Social Security are also planned by privatizing them, earmarking them for Wall Street, the same way 401ks killed corporate pensions.

The House Republicans' "Pledge to America" aims to wreck them by promising to save them, including by "reviewing Social Security and other entitlement programs" - meaning, let Wall Street bandits, not Washington run them.

A longtime GOP priority, congressional Republicans, Reps. Paul Ryan, Kevin McCarthy, and Eric Cantor explained it in their book, titled "Young Guns: A New Generation of Conservative Leaders," proposing privatizing Social Security and replacing Medicare with a voucher system that amounts to the same thing. If enacted, of course, it will leave workers and seniors high and dry by providing Wall Street racketeers with a new opportunity for pillage.

Democrats have the same plan, to be unveiled in the lame duck session on the pretext of deficit reduction and fiscal austerity, ideas Obama endorses. On February 18, he signed an Executive Order, establishing a "bipartisan National Commission on Fiscal Responsibility and Reform" (a deficit reduction commission) to slash social spending, focusing heavily on Medicare and Social Security.

Stacked with neoliberal ideologues, Congress will get its recommendations during the lame duck session, and according to observers, then enact legislation before the 112th body's first session in January. On the pretext of saving the economy, bipartisan chicanery plans to wreck it, leaving millions high and dry on their own.

Fiscal responsibility means class warfare, the agenda Professor Carroll Quigley explained in his 1966 book, titled "Tragedy and Hope," saying:

"(T)he powers of financial capitalism (have a) far-reaching aim, nothing less than to create a world system of financial control in private hands to dominate the political system of each country and the (entire world economy). This system (would) be controlled in a feudalist fashion by (global, privately run central banks), acting in concert" secretly.

With bipartisan support, their plan is virtually complete. It will be advanced in the lame duck session, then further by the 112th Congress until all social programs end and finance capital has full control.

America's Economic Landscape

On September 19, the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER), "determined that a trough in business activity occurred in the US economy in June 2009. The trough marks the end of the recession that began in December 2007."

Stacked with corporate economists (practicing what Michael Hudson calls "junk economics"), the types featured on business channels and in mainstream publications, the NBER is a Wall Street tool.

Non-member David Rosenberg has another view, saying "it is very difficult (getting) excited about (today's) economic landscape."

Unemployment is dangerously high. It'll worsen, not improve, and there's "absolutely no recovery in bank lending - especially to households." In fact, consumer loans and real estate credit keep dropping, hardly a sign of recovery, besides disturbing consumer sentiment levels, a deep housing depression, and any number of other indicators showing a hugely troubled economy. It's why independent observers like Hudson and Chapman expect worse to come, a tsunami of economic pain, hitting ordinary people hardest.

In 2008/09, the Fed's near zero interest rate policy and quantitative easy money (QE1) failed. Sustainable economic growth, job creation, revived consumer spending, and normalized housing haven't happened. No matter. Though already underway, on September 21, the Federal Open Market Committee (FOMC) announced QE2, saying:

"Measures of underlying inflation are currently at levels somewhat below those the Committee judges most consistent, over the long run, (and are) likely to remain subdued for some time...."

"The Committee will continue to monitor the economic outlook and financial developments and is prepared (read has already begun providing) additional accommodation (as) needed to support the economic recovery...."

In other words, money creation and asset buying will continue even though nearly two years of doing it failed. Key indicators show deep economic weakness. Gold is at record highs, and bond markets are signaling a depressed economic climate.

According to investment analyst Claus Vogt, the economic picture is "bleak....With the housing market in shambles, bank lending contracting, and consumers tapped out, there is no base for a sustainable recovery."

"Will QE2 help? QE1's failure showed even "the mighty Fed was not strong enough to" reverse the trend. "I can't see a single reason" to think this time is different. "If anything, I expect the Fed's efforts to prove even more ineffective this time around" because QE2 is its only remaining tool. QE1's failure proved it ineffective.

Moreover, Bernanke knows it, having argued (with former Fed vice chairman Alan Blinder) against this type multiplier in 1988. In addition, bank reserves aren't being loaned. They're being stockpiling or held at the Fed for above-market rates. As a result, QE2 ad infinitum won't work without lending, what's not happening, nor will it under Bernanke's scheme to prevent it. Further, under the fractional reserve system, banks don't need credit to make loans. They do it by creating money out of thin air every time they issue one.

Thus, expect stagnation and more slowdown ahead, exacerbating existing problems, especially with bipartisan support for fiscal austerity at a time massive stimulus is needed. In addition, the Fed needs to put its money where our mouths are instead of handing it over to Wall Street.

Instead counterproductive policies are planned, Rosenberg saying, "It does not leave us with a very warm and fuzzy feeling." In other commentaries, he's expressed alarm, believing economic conditions describe depression, a conclusion he's repeated several times.

A Final Comment

On September 28, the US Census Bureau provided more evidence of economic trouble, reporting America's highest ever income gap. In 2009, median household income fell nearly 3% from $51,726 to $50,221, the second consecutive annual drop.

Moreover, among all developed nations, America has the highest income disparity, and it's showing up in record numbers needing Medicaid, food stamps, and emergency food help. In addition, higher levels of poverty, homelessness and other worrying signs show economic weakness, not strength.

Yet, with growing human depravation, bipartisan indifference cares only about serving wealth and privilege. Expect that attitude to harden post-election, leaving growing millions on their own, out of luck, and if new legislation passes as expected, eventually without Social Security and Medicare, once Wall Street bandits gets their hands on them.

On September 18, Obama explained it when he told the Congressional Black Caucus, "You didn't elect me to do what was popular. You elected me to do what was right," his hidden message meaning populism will be sacrificed for privilege. As a result, expect lots tougher times ahead because political leaders plan it - wrecking the American dream for business at the public's expense unless enough outrage erupts to stop it.

Stephen Lendman lives in Chicago and can be reached at Also visit his blog site at and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.

Re. the transformation of "Western countries into third world ones", I've read from some [respectable] economic analysts over the past year or so who said that the U.S. will or most probably will be a third-world economy sometime between 2015 and 2020. But maybe those who said 2020 would bring their estimate closer to today, and maybe both would or do. I haven't read from these people for many months, so maybe they've advanced, as in closer to now, their estimates.

Re. the situation in China, I'm not certain that this is apart or separate from the global crisis Stephen Lendman's article is about. It's about Chinese workers, very, very many of them, fighting (peacefully) for higher wages, reasonable compensation for their labor. So maybe this crisis is apart from the crises in western countries, but maybe not.

But the U.S. needs massive demonstrations like the ones seen in the following video report. We see some massive waves of demonstrators, which include many strikers.

"VIDEO: China Labour Strikes Gain Momentum
Despite ban, workers seeking more rights step up strikes across the country" (3:31)

by Steve Chao,, Oct. 1, 2010

Labour union movements seeking better wages and working conditions have stepped up strikes and protests across China at an unprecedented rate. It has been described as nothing short of a revolution.

So far in this year, there had been at least 73 major co-ordinated strikes throughout the country. But the rights groups operate in secret to avoid police who often crush strikes through arrests and brutality.

The government says its main concern is that if it gives workers the right to form assemblies, they may turn against authorities.

Al Jazeera was given rare access to a network of workers on strike in the southern Chinese city of Guangzhou.

Steve Chao reports from Guangzhou.

Michael Hudson's article that Stephen Lendman quoted from is the following piece that can also be found at other Web sites.

"The Neoliberal Experiment and Europe's anti-Austerity Strikes:
Governments must Lower Wages or Suffer Financial Blackmail"

by Michael Hudson, Sept. 30, 2010

People definitely should read that article. It isn't long at all, but it'll rock ya, really [hard]. What's going on in Europe is rather truly mind-blowing. And it's surely bad enough to cause a rise of violent or destructive protesters, I believe.

Demonstration in Brussels:

Michael Hudson wrote, "Spain has received most of the attention, thanks to its ten-million strong turnout (reportedly half the entire labor force). (snip) The problem is Europe-wide and indeed centered in the European Union capital in Brussels. This is why the major protests were staged there. ...".

"DEMO in Brussels Against The AUSTERITY POLICIES (Inc POLICE VIOLENCE)" (9:08)

posted by AssafKintzer, Oct. 2, 2010

29 September 2010: Tens of thousands of people have taken to the streets of the Belgian capital ahead of a march on EU institutions. It is the biggest demonstration Brussels has seen since 2001 when trade unions organised a rally for more social protection policies across the bloc. It follows yesterday's wildcat strike by air traffic controllers which caused the cancellations of all flights in and out of Brussels.

"Euro-demonstration 29 September 2010 : No to austerity -- Priority for jobs and growth!

(snip) It will be made up of a Euro-demonstration in Brussels and trade union actions in the various European countries. The Euro-demonstration in Brussels will be composed of fifty Trade Unions member organisations representing 30 countries. (snip)"

It's very sad to see law enforcement acting brutally like seen in some of this video. LE is paid with taxpayer dollars, not by the rich and oligarchy! We don't see a lot of police brutality, but what's shown is very brutal beating of innocent people; with billy clubs, and very savagely. That's [not] acceptable! Non-violently arresting protesters who are peaceful is understandable today, but real LE brutality isn't and never should be either understandable or acceptable.

Plato on democracy and oligarchy:

Most of Michael Hudson's article provides readers powerfully bad news blows for such a short piece, but he also briefly cites Plato, saying that this present and rotten economic situation in Europe "requires dictatorship, and the European Central Bank (ECB) has assumed this power from elected government. It is "independent" of political control - celebrated as the "hallmark of democracy" by today's new financial oligarchy. But as Plato's dialogues explained it, what is oligarchy but the political stage following democracy. ...".

Note that; "political [stage]". Political, plus stage. Don't forget it, because it's what most politics is, [stage]; stage acting. These people weren't meant for politics or government offices; they were meant for hollywood, disney, et cetera. I learned in 1984-85, with some privately taught philosophy courses for a very small group (nine pre-theology students) I was part of that there's an ancient philosopher and maybe it was Plato, or Socrates, or another ancient one, but the person had stated and/or written that "politics is full of hypocrisy".

It might not be found in any language on the Web except for when I wrote about this, but what the ancient philosopher said was clearly based on real observation; because politics has [usually] been and, today, definitely is very full of bullshit.

That philosopher was [right]. And we have sick "democracies". Americans will hopefully make good choices during the elections next month.

"The Money Masters" (3:35:19)

They believably do make economies boom and bust, and profit every time. They'll do it to us every time. They are in top and tight [control].

We do not have democracy. We have oligarchy, aristocracy, et cetera. We're in such a situation that even if next month's elections provide good results, I'm far from sure that this could make much difference anyway. Right now, I'm not really confident or hopeful.

Prove me wrong and I'll then rejoice.

Stephen Lendman's article is definitely depressing, but also very important. I just wish that the depressing effect would be less; much less.

Catherine Fitts:

Anyway, he referred to a piece by Catherine Fitts, but I did a Web search and didn't find any recent match, but did find earlier matches from 2009 and possibly 2008.

"Catherine Austin Fitts on VERITAS: Financial Coup d'Etat", Part 1 of 5 (13:06)

VeritasShow, Aug 3, 2010

"Catherine Austin Fitts: Financial Coup d’etat"

Sept. 29, 2009

That page is for video clips, several.

"Catherine Austin Fitts on the bailout and US economy - very good!!", Part 1 of 6 (10:39)

IWantDemocracyNow, Sept. 29, 2009

I think the latter is one of the clips in the page at Dandelion Salad, but the latter might lack a clip or two, or got the total another way.

There's also an article and maybe this is at her Web site or blog.

"Financial Coup d’Etat"

Feb. 2, 2009


In the fall of 2001 I attended a private investment conference in London to give a paper, The Myth of the Rule of Law or How the Money Works: The Destruction of Hamilton Securities Group.

The presentation documented my experience with a Washington-Wall Street partnership that had:

* Engineered a fraudulent housing and debt bubble;

* Illegally shifted vast amounts of capital out of the U.S.;

* Used “privitization” as a form of piracy - a pretext to move government assets to private investors at below-market prices and then shift private liabilities back to government at no cost to the private liability holder.

Other presenters at the conference included distinguished reporters covering privatization in Eastern Europe and Russia. As the portraits of British ancestors stared down upon us, we listened to story after story of global privatization throughout the 1990s in the Americas, Europe, and Asia.

Slowly, as the pieces fit together, we shared a horrifying epiphany: the banks, corporations and investors acting in each global region were the exact same players. They were a relatively small group that reappeared again and again in Russia, Eastern Europe, and Asia accompanied by the same well-known accounting firms and law firms.

Clearly, there was a global financial coup d’etat underway.


Clearly it is. A lot of people might not still realize this, but if we read from real economic experts, honest ones, then we clearly have what they say that we have for economic reality or realities.

We're "fried".


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