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News Link • Corruption

The Rot Within: A Culture of Financial Fraud and the Anger of the Honest

• OfTwoMinds.com/blog
 
4. The last significant windfall available to advanced global Capitalism was the financialization of the global economy. In the U.S., we see this clearly in the financial share of corporate profits; from a pittance in the "real growth" decades of the 1950s and 60s, finance-derived profits came to dominate Corporate America's profits. 5. This financialization effected a net transfer of public and private income streams and wealth from the citizenry and State to the coffers of the financial Elites. As actual productivity and wealth-creation declined, so did wages and incomes when priced in purchasing power. To offset that decline, people, companies and governments replaced income with debt: they borrowed to fill the gap between their desires/commitments/spending and their net income. The financial Elites were happy to supply the debt and capture the income streams of servicing that debt. By securitizing those debts and writing derivatives against them, the Elites created a stupendously profitable windfall to exploit. The Central State and its central bank were happy to comply, as they are in partnership with the Elites which enrich and empower them. 6. The net result of this expansion of credit is asset bubbles. When the asset bubbles pop, the debts remain, impoverishing the over-indebted holders of the busted assets. 7. Unfortunately for the Financial Elites, this destruction of assets and debt feeds runaway feedback loops which threaten the entire foundation of their wealth and control. 8. The strategy of both the Financial Elites and the Central State (its willing partner in exploitation of the citizenry) is to conjure up simulacra to replace the truth, which is now fatally dangerous to the status quo, which is now completely dependent on maintaining a culture of financial untruths. The order of the day is thus necessarily propaganda, bogus balance sheets, toothless facsimiles of "reform" presented as "real reform," and endless frauds, embezzlements, lies, misrepresentations, omissions, etc., all of which have come to full flower in the credit-housing bubble/mortgage-forclosure debacle.

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