Bankers and Politicians a threat to society

Democracy and Capitalism share a common trait that is turning them into a problem and a threat to society. And the common thread is their short term focus which itself is a function of the prevailing world-view and the systems, laws and institutions that represent it.

This short term perspective allows both politicians, banks and other corporations to profit in the short term by “legally” stealing from the future. The losers are the general public.

If you wonder why Governments around the world have been bailing out banks rather than bailing out tax payers the relationship between Goldman Sachs and the Greek government is a good case study.

In 2001 Goldman is purported to have made a $300m profit on a deal it structured for the the Greek Government that allowed it to legally side step European Union rules on debt and deficit ratios. And as late as November 2009 a team from Goldman apparently arrived in Athens with another similar deal.

The New York Times has a good story with more details titled – Wall Street Helped to Mask Debts Shaking Europe

Gikas A. Hardouvelis, an economist and former government official who helped write a recent report on Greece’s accounting policies encapsulates this succinctly – “Politicians want to pass the ball forward, and if a banker can show them a way to pass a problem to the future, they will fall for it”

Where does this leave the average citizen? Neo-classical economists are in denial of the fact that economic growth is dependant of new debt rising faster than GDP. They are even in denial of the role that credit plays in economic growth.

With the general public and business at debt saturation levels the reality of the bankruptcy of the the capitalist model and many states has been hidden temporarily by governments who have taken up the role of providing the new debt required for economic growth. This is simply putting of the day of reckoning and setting us up for an even harder landing.

And you probably don’t have to guess to hard to work out that their accomplices that are facilitating this – and making big bonuses for doing it – are none other than the banks.

It is no wonder that the Tea baggers in the USA are a growing movement. I expect that similar movements will gain is strength across the world as the economic situation inevitably declines. The public is losing trust in its politicians – democracy is under threat.

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1 Comment

Filed under Economics, Politics, Sustainability

One response to “Bankers and Politicians a threat to society

  1. Sabretruthtiger

    I agree. We have to be careful not to go down the anti-capitalist pseudo-libertarian communist path that Michael Moore did. He cast capitalism as the bad guy, which it isn’t, the bankers implementing the communist world government are the bad guys. He also vilified Goldman Sachs, Greenspan and Paulsen quite rightly, but carefully sidestepped the whole Federal Reserve issue and the Bankers behind it, the Rothchilds and Rockefellas et al. Michael Moore is a fraud and a left wing gatekeeper for the New World Order, similar to Noam Chomsky who refuses to admit 911 is an inside job, which it is scientifically proven to be.

    Regulated banking industry and small Government are the way to go. The Federal Reserve’s complete stranglehold on the country via fractional reserve banking and economic manipulation, must be ended.
    The same goes for the bank of england where it all started. The Rothchilds and other wealthy banking families have caused every major conflict in the past 150 years, they bankrolled both sides of both world wars, artificially caused the great depression and the credit crisis, they almost certainly orchestrated 911.

    The cabal of offshore bankers behind the federal reserve and world bank are the enemy, and possibly the British Royals (unsure). Regulate the banks, enforce the US constitution in all western countries, have small governments and arrest the evil men that have created so much hell on Earth.

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