Greece fell to the control of the bankers today as on of their own, former European Central Bank VP Lucas Papademos has become the new “unity” PM replacing the former PM that had suggested letting the people vote on the austerity measures. “We’ll have none of that” sniffed the bankers, the ECB bankers make ours look like a bunch of saints. Iceland gave them the bums rush after bankers destroyed their economy and so far Iceland is doing just fine. The bankers can’t let that contagion spread.
Italy is next in line for take over as they are expected to appoint an economist to replace PM Berlusconi. Mario Monti is known as a technocrat who favors tough austerity measures and that would of course play directly into the hands of the banksters. As austerity is applied, the economy shrinks, making it more and more difficult to repay the massive debt. This causes deflation which makes the debt impossible to repay.
It doesn’t seem to occur to anybody that debt is just paper. For governments the debt represents borrowing money from rich people who haven’t been paying taxes. Government shouldn’t need to borrow money, that’s what taxes are for. For the middleclass, debt represents a replacement for substandard wages (also so the middle class can pay the cost of services that should be free such as education). The middleclass shouldn’t need to borrow from rich people either, they should be paid on the basis of how productive the economy is. Rich people shouldn’t have enough money to do that kind of lending and in fact they don’t really, they’ve simply been stealing the money and loaning it out at a steep vig in order to steal more.
Under Reaganomics the economy would collapse if consumers weren’t given money to spend through debt as their wages don’t create sufficient demand in the economy for the supply being produced. Sure spending by the rich is making up an ever growing share of the retail sector, but it just isn’t enough. But if you think that will be the undoing of the rich, you are wrong, feudalism isn’t just a medieval concept. The days of the Antebellum South were great times for the one percent even as the majority of the population were slaves, and most everybody else was dirt poor.
In short the one percent know what they are doing as they begin setting up their feudal states. We can’t sit back hoping the “natural order” will work in our favor. A significant middleclass has never been the natural order of things throughout history. A fabulously wealthy one percent (or less) has been the norm with everybody else in poverty. The rich see this as their birthright and the way things “should be” as god ordained it. Fight back now, we won’t get a second chance at this. www.prairie2.com