Rule By The Rich
election of Republican Scott Brown to the U.S.
Senate by Democratic voters in Massachusetts sends
President Obama a message. Voters perceive that Obama`s
administration has morphed into a Bush-Cheney
government. Obama has reneged on every promise he made,
from ending wars, to closing Gitmo, to providing health
care for Americans, to curtailing the domestic police
state, to putting the interests of dispossessed
Americans ahead of the interests of the rich banksters
who robbed Americans of their homes and pensions.
But what can Obama do other then spout more rhetoric?
The Democrats were destroyed as an independent party by
jobs offshoring and so-called free trade agreements such
as NAFTA. The effect of
has been to destroy the industrial and manufacturing
unions, thus leaving the Democrats without a power base
and source of funding.
Obama and the Democrats cannot be an opposition party,
because Democrats are as dependent as Republicans on
corporate interest groups for campaign funding.
The Democrats have to support war and the police state
if they want funding from the military/security complex.
They have to make the health care bill into a subsidy
for private insurance if they want funding from the
insurance companies. They have to abandon the American
people for the rich banksters if they want funding from
the financial lobby.
Now that the five Republicans on the Supreme Court have
overturned decades of U.S. law and given corporations
the ability to buy every American election, Democrats
and Republicans can be nothing but pawns for a
Most Americans are hard pressed, but the corporations
have only begun to milk them.
Wars are too profitable for the armaments industry to
ever end. High unemployment is now a permanent state in
the U.S., thus coercing job seekers into military
The security industry profits from the police state and
regards civil liberties as a hindrance to profits. By
announcing that he intends to continue the Bush policy
of indefinite detention, a violation of the Constitution
and U.S. legal procedures, Obama has granted the
Democratic Party`s consent to the Republicans`
destruction of habeas corpus, the main bastion of
Jobs offshoring is too profitable for U.S. corporations
for Obama to be able to save American jobs and restart
the broken economy.
Americans are being squeezed out of health care not only
by the loss of job benefits, but also by corporate
takeover of medical practice from physicians. Today
medical doctors are
wage slaves of corporate health providers that
leverage doctors by turning them into supervisors of
physician assistants, lower-paid people without medical
degrees who perform the services that doctors once
provided. As neither doctor nor physician assistant has
any independence, there is no one to represent the
patient`s care against the profits of the corporation.
Even environmental concerns are being used to create
"cap and trade"
rights to buy and sell the ability to pollute. Wall
Street is licking its lips over a new source of
leveraged derivative instruments.
The American public cannot even get reliable information
about their plight as the
"MainStream Media" has been concentrated into a few corporate hands
that do not permit independent reporting. The media is
as dependent on corporate money as are politicians.
How can President Obama restart an economy that has been
moved offshore? Millions of manufacturing jobs are gone,
as are millions of jobs for college graduates, such as
software engineering, Information Technology–indeed,
any intellectual skill the product of which can be
conveyed via the Internet. Even those intellectual skill
jobs that do remain in the U.S. are filled increasingly
foreigners brought in on work visas.
The wipeout of blue collar and middle class job growth
has stopped the growth of American incomes except, of
course, those of the super rich. For a decade American
consumers substituted increased personal indebtedness
for income growth. In order to maintain and to increase
their consumption, Americans consumed their assets, such
as their home equity. Americans reached their maximum
debt load just as the
real estate bubble burst and just as the banksters
highly-leveraged, toxic financial instruments brought
down the stock market and the values of Americans`
The enormous damage done to the U.S. economy by jobs
offshoring, work visas, and financial deregulation
cannot be offset by government stimulus plans, which
expand the debt burdens that are crushing Americans. The
federal government`s massive budget deficits and the
Federal Reserve`s easy monetary policy are setting the
stage for an inflationary depression to follow a
The Federal Reserve chairman says not to worry about
inflation, because the Fed can take the money back out
of the economy. But can the Fed take the money out
without contracting the economy?
The Federal Reserve says not to worry about financing
the federal budget deficit. Banksters are buying the
Treasury bonds with the proceeds from their sales of
their toxic derivatives to the Fed.
So what is happening to the Federal Reserve`s balance
sheet? And when will the Fed have no recourse but to
print new money in order to finance the federal deficit?
How long can the dollar retain its reserve currency role
in such circumstances, and how does the U.S. pay for its
imports when this role is lost?
Don`t look to Washington for answers to these questions.
Paul Craig Roberts [email
him] was Assistant
Secretary of the Treasury during President Reagan`s
first term. He was Associate Editor of the Wall
Street Journal. He has held numerous academic
appointments, including the William E. Simon Chair,
Center for Strategic and International Studies,
Georgetown University, and Senior Research Fellow,
Hoover Institution, Stanford University. He was awarded
the Legion of Honor by French President Francois
Mitterrand. He is the author of
Supply-Side Revolution : An Insider`s Account of
Policymaking in Washington;
and the Soviet Economy and
Meltdown: Inside the Soviet Economy,
and is the co-author
with Lawrence M. Stratton of
The Tyranny of Good Intentions : How Prosecutors and
Bureaucrats Are Trampling the Constitution in the Name
of Justice. Click
here for Peter
Brimelow`s Forbes Magazine interview with Roberts
about the epidemic of prosecutorial misconduct.