Class war by the rich against the rest is rapidly being transformed from a plot by super-rich bankers, oil & mining corporation CEOs, and war profiteers into official U.S. Government policy. Core components of this class war policy include use of the N.Y. Fed for private gain, promoting unemployment while lying about how bad it is, institutionalizing a policy of secret corporate bailouts, concealing the rate of inflation, institutionalizing austerity for the purpose of repressing political activism, banning any prosecution of corporate officials for financial fraud, and covering it all with “permanent war” against shadowy enemies.
Class war by the rich against the 99% is one thing: just the normal history of Western capitalism, a cynic might sniff. But class war officially supported by the ruling elites of both major parties as the legal foundation of American government is something else again, and that–the stern protests of Elizabeth Warren (who, after all, still calls herself a Democrat) notwithstanding–is exactly where the U.S. is moving. Institutionalization of a legal process of defrauding society to enrich the super-rich will not just lead to the collapse of the American way of life as we dream it to be (democratic, egalitarian at least in spirit, possessing a safety net for the needy, offering equality of opportunity, defended by a Constitutional wall of civil liberties). No, it is worse–institutionalization of class war by the rich legally identifies the whole 99% as a criminal class and defines the collapse of America.
The key stages in the process of institutionalizing the class war by the rich as official policy have, as a result of the Great Recession of 2007, begun emerging into the light of day:
Manipulate the monetary system as a wealth transfer scheme removing money from the population and transferring it into the hands of the major banks.
Transform the concept of taxpayer bailouts of both major corporations and super-rich individuals from a crisis-response tactic to standard policy, preferably to be implemented in secrecy.
Institutionalize extremely high levels of unemployment and keep the numbers secret.
Never, never even hint at bringing a corporate CEO to trial for financial fraud.
Consolidate the whole national financial fraud scheme with permanent war against unknown enemies portrayed as on the verge of destroying America.
That is essentially the class war program, and it is well under way. The destruction of Detroit illustrates the future the class warriors have in mind for the rest of America. Could all this just be a conspiracy theory without foundation, a series of mistakes by overwhelmed but basically decent and patriotic politicians? If so, these politicians could easily start demonstrating their decency and patriotism by admitting to the real levels of unemployment and inflation. Then, they (i.e., Obama) could publicly and loudly support Senator Warren’s calls for financial reform rather than carefully ignoring and marginalizing her. Next, the FBI could be unleashed to return to its traditional (and previously very successful) business line of prosecuting corporate financial criminals. These steps would provide clear evidence undermining the hypothesis that Washington has signed on in support of the class war by the super-rich.
The literature on this vast class war by the rich is expanding rapidly…
The War Against Reform. On the core effort to prevent any reform of the system, John Stauber offers a useful overview.
Unemployment. Government deception to conceal the level of real unemployment is critical in that it reveals not just the true nature of how bad the U.S. financial crisis already is but the degree to which politicians from the President on down are committed to sustaining the policy of transferring wealth out of American society. The unemployment problem cannot be solved until its existence is recognized; concealing its true level is key to preventing a solution. Against Austerity has concisely summarized the degree to which Washington is running a cover-up of the U.S. unemployment rate, estimated at roughly four times the rate that Washington publicly admits.
The Very Private N.Y. Fed. On the misuse of the N.Y.Fed for class war fraud, see Ellen Brown.
Federal Protection of Financial Criminals. U.S. District Court Judge Jed Rakoff analyzes the revolutionary new (post-2007) refusal of Washington to prosecute high-level financial criminals.