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AUDIT OF THE FEDERAL RESERVE REVEALS $16 TRILLION IN SECRET BAILOUTS

AUDIT OF THE FEDERAL RESERVE REVEALS $16 TRILLION IN SECRET BAILOUTS

The first ever GAO (Government Accountability Office) audit of the Federal Reserve was carried out in the past few months due to the Ron Paul, Alan Grayson Amendment to the Dodd-Frank bill, which passed last year. Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator, led the charge for a Federal Reserve audit in the Senate, but watered down the original language of the house bill (HR1207), so that a complete audit would not be carried out. Ben Bernanke(pictured to the left), Alan Greenspan, and various other bankers vehemently opposed the audit and lied to Congress about the effects an audit would have on markets. Nevertheless, the results of the first audit in the Federal Reserve’s nearly 100 year history were posted on Senator Sander’s webpage earlier this morning.

What was revealed in the audit was startling: $16,000,000,000,000.00 had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland. From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the world’s banks, corporations, and governments. The Federal Reserve likes to refer to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest. Why the Federal Reserve had never been public about this or even informed the United States Congress about the $16 trillion dollar bailout is obvious — the American public would have been outraged to find out that the Federal Reserve bailed out foreign banks while Americans were struggling to find jobs.

To place $16 trillion into perspective, remember that GDP of the United States is only $14.12 trillion. The entire national debt of the United States government spanning its 200+ year history is “only” $14.5 trillion. The budget that is being debated so heavily in Congress and the Senate is “only” $3.5 trillion. Take all of the outrage and debate over the $1.5 trillion deficit into consideration, and swallow this Red pill: There was no debate about whether $16,000,000,000,000 would be given to failing banks and failing corporations around the world.

In late 2008, the TARP Bailout bill was passed and loans of $800 billion were given to failing banks and companies. That was a blatant lie considering the fact that Goldman Sachs alone received 814 billion dollars. As is turns out, the Federal Reserve donated $2.5 trillion to Citigroup, while Morgan Stanley received $2.04 trillion. The Royal Bank of Scotland and Deutsche Bank, a German bank, split about a trillion and numerous other banks received hefty chunks of the $16 trillion.

“This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else.” – Bernie Sanders (I-VT)

When you have conservative Republican stalwarts like Jim DeMint(R-SC) and Ron Paul(R-TX) as well as self identified Democratic socialists like Bernie Sanders all fighting against the Federal Reserve, you know that it is no longer an issue of Right versus Left. When you have every single member of the Republican Party in Congress and progressive Congressmen like Dennis Kucinich sponsoring a bill to audit the Federal Reserve, you realize that the Federal Reserve is an entity onto itself, which has no oversight and no accountability.

Americans should be swelled with anger and outrage at the abysmal state of affairs when an unelected group of bankers can create money out of thin air and give it out to megabanks and supercorporations like Halloween candy. If the Federal Reserve and the bankers who control it believe that they can continue to devalue the savings of Americans and continue to destroy the US economy, they will have to face the realization that their trillion dollar printing presses can be stopped with five dollars worth of bullets.

The list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows..

Citigroup: $2.5 trillion ($2,500,000,000,000)

Morgan Stanley: $2.04 trillion ($2,040,000,000,000)

Merrill Lynch: $1.949 trillion ($1,949,000,000,000)

Bank of America: $1.344 trillion ($1,344,000,000,000)

Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)

Bear Sterns: $853 billion ($853,000,000,000)

Goldman Sachs: $814 billion ($814,000,000,000)

Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)

JP Morgan Chase: $391 billion ($391,000,000,000)

Deutsche Bank (Germany): $354 billion ($354,000,000,000)

UBS (Switzerland): $287 billion ($287,000,000,000)

Credit Suisse (Switzerland): $262 billion ($262,000,000,000)

Lehman Brothers: $183 billion ($183,000,000,000)

Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)

BNP Paribas (France): $175 billion ($175,000,000,000)

and many many more including banks in Belgium of all places

View the 266-page GAO audit of the Federal Reserve(July 21st, 2011): http://www.scribd.com/doc/60553686/GAO-Fed-Investigation

Source: http://www.gao.gov/products/GAO-11-696

FULL PDF on GAO server: http://www.gao.gov/new.items/d11696.pdf

Senator Sander’s Article: http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3

http://www.unelected.org/audit-of-the-federal-reserve-reveals-16-trillion-in-secret-bailouts

July 21, 2011

Semantic Propaganda Feeds Stupidity: : Lies are being fed to the Public by America’s Two-party Plutocracy

By Joel S. Hirschhorn

Semantic Propaganda Feeds Stupidity: Lies are being fed to the Public by America’s Two-party Plutocracy

We would already have had a much needed American revolution in response to the tyranny of the money-fed two-party plutocracy that is destroying the middle class except for one big problem: so much of the American population is just plain stupid. Too stupid to behave like angry Greeks and rise up in the streets to rebel against the dysfunctional government.

In the never ending fight of Republicans and their cancerous (make that stupid) Tea Party members to gain even more control of the US political system, economy and culture they have fixed on another semantic weapon. The latest attack on intelligence is the constant use of the term job creators in place of words like the rich or wealthy. Not just plain Republicans in Congress are doing this, but especially the large crop of Republican presidential candidates.

This bit of cleverness surely was deemed necessary because much of the nation was beginning to appreciate the class warfare going on. Rising economic inequality, unemployment set in concrete, and merging of the middle class into the poverty stricken lower class were all becoming clearer.

Keep this in mind: As Zuckerman pointed out, the US “experienced the loss of over 7 million jobs, wiping out every job gained since the year 2000. From the moment the Obama administration came into office, there have been no net increases in full-time jobs, only in part-time jobs. This is contrary to all previous recessions. Employers are not recalling the workers they laid off from full-time employment.” Business sectors have discovered that they can maximize profits with smaller US work forces; they export jobs and their capital investments. And they benefit from all kinds of tax loopholes protected by Republicans so that they pay very little if any US taxes.

A terrific new new article by Jeff Reeves makes the case that unemployment will actually rise to over 10 percent, because of anticipated layoffs in the financial, technology, and aerospace and defense sectors. The data are compelling. All this despite high profits.

Apple is sitting on an amazing $76 BILLION in cash. Other than understanding that people are paying too much for their products, just imagine if they invested a big fraction of that on moving manufacturing of its products from foreign countries to the US. An enormous number of good jobs could be created here.

What were Republicans to do, especially as they used the current crisis surrounding the need to raise the national debt limit to seek huge cuts in federal spending affecting ordinary Americans and prevent higher taxes for the greedy rich and corporate forces?

What better way than to falsely claim and constantly presume that those that should be paying higher taxes are exactly the ones who create jobs and that they would not do so if hit by higher taxes. In truth, this is a bold lie. The richest Americans have been paying the lowest taxes in many decades and corporate profits have been enormous, and this reality has clearly had absolutely no positive impact on the unemployment and underemployment plaguing at least 30 million Americans and their family members.

Go back to the post-World War II era when the richest Americans paid very high taxes and you discover that jobs and fairly distributed wealth were created in abundance.

Neither wealth nor jobs trickle down from the Upper Class. Proper government policies are required to prevent criminally large fractions of the nation’s wealth going to the most greedy and selfish elites. Those NOT rich that support Republicans are very stupid; they have been brainwashed by the steady stream of Republican lies and propaganda that are used to serve the rich and corporate interests sustaining Republicans with much money. The return on their investment has proven more than adequate to justify their endless input of money to Republicans.

We probably will soon see President Obama cave in and giver Republicans much of what they want. There will be major cuts in federal programs that will place millions of Americans in even more precarious economic uncertainty and pain. And there will probably be far too little increases in taxes on the rich and corporations. Medicare, Medicaid and Social Security may all be cut in ways that harm many people.

Lies are constantly being fed to the public. Will you be smart enough to see them for what they are? The more you face this ugly, disturbing reality, the more embarrassed you will be about the US political system and, hopefully, the more inclined you will be to stop voting for any Republicans or Democrats and participating in our delusional democracy.

Contact Joel S. Hirschhorn through delusionaldemocracy.com.

Joel S. Hirschhorn is a frequent contributor to Global Research.  Global Research Articles by Joel S. Hirschhorn

Copyright © Joel S. Hirschhorn, Global Research, 2011

Why Causing Homelessness is a War Crime

By Jon Bourn
Editor Jericho Rendezvous Blog

According to a Twelve Year Study by Wanda Gray “The face of homelessness has drastically changed and alarmingly increased.” If you search this topic you will find the corporate state at work attempting to paint pictures that downplay the severity of this dilemma. In Sarasota Florida, they have actually removed the seats from Selby Five Points Park to prevent all people from using them (see here). Even though this is completely ignorant, it reveals the attitude of the corporate state which is the cause of the banking scandal of bailing out corporate buddies at the expense of the American public.

This details a significant change in the overall consensus that is derived from the security state manifested out of the bogus ‘war on terror’ and combined with the idea that economics is no longer an integral part of ecological sustainability. In fact, this new ‘war on people,’ and anyone who does not abide by the intrusion, is considered politically incorrect from both political parties. Just over the last two months the following articles reveal how bad the situation has become, and covering it up will become much more difficult.

Homelessness — A Twelve Year Study by Wanda Gray

Houston’s homeless population jumps 25 percent in one year and services struggle to keep up

Survey: Longmont’s homeless population up by 35 percent

New survey reveals age and the number of new homeless is rising in SF

Hawaii’s homeless rate is third worst in the nation.

Oregon Homeless Population Increases Again

Brevard schools see surge in homeless, at-risk students

Jobless rate increases ranks of Memphis homeless by 20 percent

Report Finds Homeless People on the Rise in San Mateo County

Homelessness on the rise, shelters say

Temecula Homeless Double in Two Years

646 homeless students in New Hanover County

As was stated above, this is an act of war on the middle class, and annihilation for anyone who is already suffering. It reminds us of a third world country where statistics already show that the U.S. has fallen in practically every category known to man.

The combination of false flag wars, Zionist security thinking, and the complete fabrication of economic stability, formulate a war game being played out before our very eyes. One that will likely leave the Earth barren if not stopped. By slipping funds into the hands of the U.S. and foreign banks, it is an obvious failure that can only be supported by the false security ploy which in turn depends on the Zionist idea that you are chosen to defend this false religious flag.

You know how it works, the question to ask yourself is ‘what should I do?’ Spreading the word alone will not suffice, or giving in to the enemy as was recently experienced in Texas, you may have to think like a Zionist to defeat them. We must understand how the phenomena is manifested and detail its implementation methods. This methodological activity clearly reveals what is happening, and how big-city mayors up to governors, quietly play their role almost seemingly oblivious implying their denial and rub that prevails.

All this leaves an empty hole that is in the story, but no one seems to be able to understand. It was an inside job. Trying to cover it up by removing the evidence will only make it worse. It is like releasing the beast. Let’s find a cure before it is too late.

According to many who research the past, this has been going on for a long time.

Naomi Klein – The Shock Doctrine: The Rise of Disaster Capitalism

In conclusion, it may even exist as a type of verbal overshadowing that must be continually propagated over the air waves to be sustained and held together by the implicit comparisons created on 09/11/2001. It operates completely in the dark, moving into areas left both from environmental and economical destruction buying up schools and businesses, increasing its power and control. All that it does destroys what has long been created that truly verbalizes our world.

The Dice Are Stacked Against Humanity

By Noam Chomsky

The Dice Are Stacked Against Humanity

I’ll begin with an interesting debate that took place some years ago between Carl Sagan, the well-known astrophysicist, and Ernst Mayr, the grand old man of American biology. They were debating the possibility of finding intelligent life elsewhere in the universe. And Sagan, speaking from the point of view of an astrophysicist, pointed out that there are innumerable planets just like ours. There is no reason they shouldn’t have developed intelligent life. Mayr, from the point of view of a biologist, argued that it’s very unlikely that we’ll find any. And his reason was, he said, we have exactly one example: Earth. So let’s take a look at Earth.

And what he basically argued is that intelligence is a kind of lethal mutation. And he had a good argument. He pointed out that if you take a look at biological success, which is essentially measured by how many of us are there, the organisms that do quite well are those that mutate very quickly, like bacteria, or those that are stuck in a fixed ecological niche, like beetles. They do fine. And they may survive the environmental crisis. But as you go up the scale of what we call intelligence, they are less and less successful. By the time you get to mammals, there are very few of them as compared with, say, insects. By the time you get to humans, the origin of humans may be 100,000 years ago, there is a very small group. We are kind of misled now because there are a lot of humans around, but that’s a matter of a few thousand years, which is meaningless from an evolutionary point of view. His argument was, you’re just not going to find intelligent life elsewhere, and you probably won’t find it here for very long either because it’s just a lethal mutation. He also added, a little bit ominously, that the average life span of a species, of the billions that have existed, is about 100,000 years, which is roughly the length of time that modern humans have existed.

With the environmental crisis, we’re now in a situation where we can decide whether Mayr was right or not. If nothing significant is done about it, and pretty quickly, then he will have been correct: human intelligence is indeed a lethal mutation. Maybe some humans will survive, but it will be scattered and nothing like a decent existence, and we’ll take a lot of the rest of the living world along with us.

Read more

The Corporate State Wins Again

By Chris Hedges

The Corporate State Wins Again

When did our democracy die? When did it irrevocably transform itself into a lifeless farce and absurd political theater? When did the press, labor, universities and the Democratic Party—which once made piecemeal and incremental reform possible—wither and atrophy? When did reform through electoral politics become a form of magical thinking? When did the dead hand of the corporate state become unassailable?

The body politic was mortally wounded during the long, slow strangulation of ideas and priorities during the Red Scare and the Cold War. Its bastard child, the war on terror, inherited the iconography and language of permanent war and fear. The battle against internal and external enemies became the excuse to funnel trillions in taxpayer funds and government resources to the war industry, curtail civil liberties and abandon social welfare. Skeptics, critics and dissenters were ridiculed and ignored. The FBI, Homeland Security and the CIA enforced ideological conformity. Debate over the expansion of empire became taboo. Secrecy, the anointing of specialized elites to run our affairs and the steady intrusion of the state into the private lives of citizens conditioned us to totalitarian practices. Sheldon Wolin points out in “Democracy Incorporated” that this configuration of corporate power, which he calls “inverted totalitarianism,” is not like “Mein Kampf” or “The Communist Manifesto,” the result of a premeditated plot. It grew, Wolin writes, from “a set of effects produced by actions or practices undertaken in ignorance of their lasting consequences.”

Corporate capitalism—because it was trumpeted throughout the Cold War as a bulwark against communism—expanded with fewer and fewer government regulations and legal impediments. Capitalism was seen as an unalloyed good. It was not required to be socially responsible. Any impediment to its growth, whether in the form of trust-busting, union activity or regulation, was condemned as a step toward socialism and capitulation. Every corporation is a despotic fiefdom, a mini-dictatorship. And by the end Wal-Mart, Exxon Mobil and Goldman Sachs had grafted their totalitarian structures onto the state.

The Cold War also bequeathed to us the species of the neoliberal. The neoliberal enthusiastically embraces “national security” as the highest good.  The neoliberal—composed of the gullible and cynical careerists—parrots back the mantra of endless war and corporate capitalism as an inevitable form of human progress. Globalization, the neoliberal assures us, is the route to a worldwide utopia. Empire and war are vehicles for lofty human values. Greg Mortenson, the disgraced author of “Three Cups of Tea,” tapped into this formula. The deaths of hundreds of thousands of innocents in Iraq or Afghanistan are ignored or dismissed as the cost of progress. We are bringing democracy to Iraq, liberating and educating the women of Afghanistan, defying the evil clerics in Iran, ridding the world of terrorists and protecting Israel. Those who oppose us do not have legitimate grievances. They need to be educated. It is a fantasy. But to name our own evil is to be banished.

We continue to talk about personalities—Ronald Reagan, Bill Clinton, George W. Bush and Barack Obama—although the heads of state or elected officials in Congress have become largely irrelevant. Lobbyists write the bills. Lobbyists get them passed. Lobbyists make sure you get the money to be elected. And lobbyists employ you when you get out of office. Those who hold actual power are the tiny elite who manage the corporations. Jacob S. Hacker and Paul Pierson, in their book “Winner-Take-All Politics,” point out that the share of national income of the top 0.1 percent of Americans since 1974 has grown from 2.7 to 12.3 percent. One in six American workers may be without a job. Some 40 million Americans may live in poverty, with tens of millions more living in a category called “near poverty.” Six million people may be forced from their homes because of foreclosures and bank repossessions. But while the masses suffer, Goldman Sachs, one of the financial firms most responsible for the evaporation of $17 trillion in wages, savings and wealth of small investors and shareholders, is giddily handing out $17.5 billion in compensation to its managers, including $12.6 million to its CEO, Lloyd Blankfein.

The massive redistribution of wealth, as Hacker and Pierson write, happened because lawmakers and public officials were, in essence, hired to permit it to happen. It was not a conspiracy. The process was transparent. It did not require the formation of a new political party or movement. It was the result of inertia by our political and intellectual class, which in the face of expanding corporate power found it personally profitable to facilitate it or look the other way. The armies of lobbyists, who write the legislation, bankroll political campaigns and disseminate propaganda, have been able to short-circuit the electorate. Hacker and Pierson pinpoint the administration of Jimmy Carter as the start of our descent, but I think it began long before with Woodrow Wilson, the ideology of permanent war and the capacity by public relations to manufacture consent. Empires die over such long stretches of time that the exact moment when terminal decline becomes irreversible is probably impossible to document. That we are at the end, however, is beyond dispute.

The rhetoric of the Democratic Party and the neoliberals sustains the illusion of participatory democracy. The Democrats and their liberal apologists offer minor palliatives and a feel-your-pain language to mask the cruelty and goals of the corporate state. The reconfiguration of American society into a form of neofeudalism will be cemented into place whether it is delivered by Democrats, who are pushing us there at 60 miles an hour, or Republicans, who are barreling toward it at 100 miles an hour. Wolin writes, “By fostering an illusion among the powerless classes” that it can make their interests a priority, the Democratic Party “pacifies and thereby defines the style of an opposition party in an inverted totalitarian system.” The Democrats are always able to offer up a least-worst alternative while, in fact, doing little or nothing to thwart the march toward corporate collectivism.

The systems of information, owned or dominated by corporations, keep the public entranced with celebrity meltdowns, gossip, trivia and entertainment. There are no national news or intellectual forums for genuine political discussion and debate. The talking heads on Fox or MSNBC or CNN spin and riff on the same inane statements by Sarah Palin or Donald Trump. They give us lavish updates on the foibles of a Mel Gibson or Charlie Sheen. And they provide venues for the powerful to speak directly to the masses. It is burlesque.

It is not that the public does not want a good health care system, programs that provide employment, quality public education or an end to Wall Street’s looting of the U.S. Treasury. Most polls suggest Americans do. But it has become impossible for most citizens to find out what is happening in the centers of power. Television news celebrities dutifully present two opposing sides to every issue, although each side is usually lying. The viewer can believe whatever he or she wants to believe. Nothing is actually elucidated or explained. The sound bites by Republicans or Democrats are accepted at face value. And once the television lights are turned off, the politicians go back to the business of serving business.

We live in a fragmented society. We are ignorant of what is being done to us. We are diverted by the absurd and political theater. We are afraid of terrorism, of losing our job and of carrying out acts of dissent. We are politically demobilized and paralyzed. We do not question the state religion of patriotic virtue, the war on terror or the military and security state. We are herded like sheep through airports by Homeland Security and, once we get through the metal detectors and body scanners, spontaneously applaud our men and women in uniform. As we become more insecure and afraid, we become more anxious. We are driven by fiercer and fiercer competition. We yearn for stability and protection. This is the genius of all systems of totalitarianism. The citizen’s highest hope finally becomes to be secure and left alone.

Human history, rather than a chronicle of freedom and democracy, is characterized by ruthless domination. Our elites have done what all elites do. They have found sophisticated mechanisms to thwart popular aspirations, disenfranchise the working and increasingly the middle class, keep us passive and make us serve their interests. The brief democratic opening in our society in the early 20th century, made possible by radical movements, unions and a vigorous press, has again been shut tight. We were mesmerized by political charades, cheap consumerism and virtual hallucinations as we were ruthlessly stripped of power.

The game is over. We lost. The corporate state will continue its inexorable advance until two-thirds of the nation is locked into a desperate, permanent underclass. Most Americans will struggle to make a living while the Blankfeins and our political elites wallow in the decadence and greed of the Forbidden City and Versailles. These elites do not have a vision. They know only one word—more.  They will continue to exploit the nation, the global economy and the ecosystem. And they will use their money to hide in gated compounds when it all implodes. Do not expect them to take care of us when it starts to unravel. We will have to take care of ourselves. We will have to create small, monastic communities where we can sustain and feed ourselves. It will be up to us to keep alive the intellectual, moral and culture values the corporate state has attempted to snuff out. It is either that or become drones and serfs in a global, corporate dystopia. It is not much of a choice. But at least we still have one.

Yang over Yin? Multi-dimensional Thinking

By Jon Bourn

Memory forms character, it cannot be made into stigma.

As with the void of politics which holds character in place as the illusion of prominence only to stigmatize a meditative media as propaganda. Instead of learning from these characters, they are used to prevent awakening to them and the horrible results they have offered the working people. Middle class begins when you realize these illusions. Those who adapt their belief to them, travel into the void as far as they conceive now reigning in their stigma in monetary form.

In the book, “In Search of the Miraculous,” P. D. Ouspensky writes about G. I. Gurdjieff who explains how stigma and our instincts are understood. His example was to drop change out of his pocket as he walked while you walked behind him, and of a particular group, at least one would immediately pick it up to alert Gurdjieff that he has dropped something. In essence, this shows how what he referred to as Astrology has embedded our neurons.

In relation to Astrology, the stigmas of a political party are formed on this basis where memory consumes stigma at the behest of acceptable behavior promulgated as a fury to be held high. The mirror is plain to see for those who see through it, for what is considered elite in today’s standards is visibly involved, such as revolt occurring in Wisconsin and the Koch Industries who have a fascist influence which can be best described as monetary dominance. “If we cannot keep our power in place, then others must be punished by our power.”

What is strongly in power on the right is also working to allude on the left as when the Vanity Fair is promulgated on the Jon Stewart show downplaying truth for all to see. It seems that the implication of gambling is being painted on the working people as cover.

Character does not belong but as an art. Main-streamy media propagates art as stigma to hide character. It is greedy extremists and psychopaths that help to create the chaos that has resulted. It is the overwhelming urge for character where none truly exists. Glenn Beck is a perfect example. Character encompasses a macro-ethos of all our learnings stemming out of the cataclysms on earth which are hidden from us with overlaying blackboard stigmas.

This monstrous ideology of control is now stigmatized beyond anything reasonable for society to exist, and to implement unity in a perceived commerce. It’s basic functions do not operate and we are left with the pony show. It is only referred to as Noam Chomsky places the context in a cold code word stability when it is the ideology of gods painted in the sky perpetuating pathocracy and pathological disorder.

Upon realizing the relation to social mathematics, we may see both the disease, and the cure, while knowing of its nature. The truth is that we are all in the same sinking ship as David DeGraw writes in relation to the instituted divide and conquer strategy in place and the extremists effects that pervade official culture.

To avoid the final delusion of ideology, we must see its power for what it truly is. It is comparable to condition a priori to environment and the mythos generation, to make the stigma amber as a doctrine. No condition can exist without memory, the vast character of history that represents the wave of time from cataclysm to the next. A medicine man sees condition as environment, not a priori to form character, but to see where change truly exists.

Just as Gilad Atzmon reveals the naked condition by calling a spade a spade, monetary force alludes the essence of the religious Faust where reaction dwells upon the painted bunting.

It is up to us to see the dropping of change for what it is. A character where none exists. The essence of the psychopaths. The gods of war.

A Recipe For Fascism

November 8, 2010 1 comment

Chimera

© unknown

By Chris Hedges

A Recipe For Fascism

American politics, as the midterm elections demonstrated, have descended into the irrational. On one side stands a corrupt liberal class, bereft of ideas and unable to respond coherently to the collapse of the global economy, the dismantling of our manufacturing sector and the deadly assault on the ecosystem. On the other side stands a mass of increasingly bitter people whose alienation, desperation and rage fuel emotionally driven and incoherent political agendas. It is a recipe for fascism.

More than half of those identified in a poll by the Republican-leaning Rasmussen Reports as “mainstream Americans” now view the tea party favorably. The other half, still grounded in a reality-based world, is passive and apathetic. The liberal class wastes its energy imploring Barack Obama and the Democrats to promote sane measures including job creation programs, regulation as well as criminal proceedings against the financial industry, and an end to our permanent war economy. Those who view the tea party favorably want to tear the governmental edifice down, with the odd exception of the military and the security state, accelerating our plunge into a nation of masters and serfs. The corporate state, unchallenged, continues to turn everything, including human beings and the natural world, into commodities to exploit until exhaustion or collapse.

All sides of the political equation are lackeys for Wall Street. They sanction, through continued deregulation, massive corporate profits and the obscene compensation and bonuses for corporate managers. Most of that money—hundreds of billions of dollars—is funneled upward from the U.S. Treasury. The Sarah Palins and the Glenn Becks use hatred as a mobilizing passion to get the masses, fearful and angry, to call for their own enslavement as well as to deny uncomfortable truths, including global warming. Our dispossessed working class and beleaguered middle class are vulnerable to this manipulation because they can no longer bear the chaos and uncertainty that come with impoverishment, hopelessness and loss of control. They have retreated into a world of illusion, one peddled by right-wing demagogues, which offers a reassuring emotional consistency. This consistency appears to protect them from the turmoil in which they have been forced to live. The propaganda of a Palin or a Beck may insult common sense, but, for a growing number of Americans, common sense has lost its validity.

The liberal class, which remains rooted in a world of fact, rationalizes placating corporate power as the only practical response. It understands the systems of corporate power. It knows the limitations and parameters. And it works within them. The result, however, is the same. The entire spectrum of the political landscape collaborates in the strangulation of our disenfranchised working class, the eroding of state power, the criminal activity of the financial class and the paralysis of our political process.

Commerce cannot be the sole guide of human behavior. This utopian fantasy, embraced by the tea party as well as the liberal elite, defies 3,000 years of economic history. It is a chimera. This ideology has been used to justify the disempowerment of the working class, destroy our manufacturing capacity, and ruthlessly gut social programs that once protected and educated the working and middle class. It has obliterated the traditional liberal notion that societies should be configured around the common good. All social and cultural values are now sacrificed before the altar of the marketplace.

The failure to question the utopian assumptions of globalization has left us in an intellectual vacuum. Regulations, which we have dismantled, were the bulwarks that prevented unobstructed brutality and pillaging by the powerful and protected democracy. It was a heavily regulated economy, as well as labor unions and robust liberal institutions, which made the American working class the envy of the industrialized world. And it was the loss of those unions, along with a failure to protect our manufacturing, which transformed this working class into a permanent underclass clinging to part-time or poorly paid jobs without protection or benefits.

The “inevitability” of globalization has permitted huge pockets of the country to be abandoned economically. It has left tens of millions of Americans in economic ruin. Private charity is now supposed to feed and house the newly minted poor, a job that once, the old liberal class argued, belonged to the government. As John Ralston Saul in “The Collapse of Globalization” points out, “the role of charity should be to fill the cracks of society, the imaginative edges, to go where the public good hasn’t yet focused or can’t. Dealing with poverty is the basic responsibility of the state.” But the state no longer has the interest or the resources to protect us. And the next target slated for elimination is Social Security.

That human society has an ethical foundation that must be maintained by citizens and the state is an anathema to utopian ideologues of all shades. They always demand that we sacrifice human beings for a distant goal. The propagandists of globalization—from Lawrence Summers to Francis Fukuyama to Thomas Friedman—do for globalization and the free market what Vladimir Lenin and Leon Trotsky did for Marxism. They sell us a dream. These elite interpreters of globalism are the vanguard, the elect, the prophets, who alone grasp a great absolute truth and have the right to impose this truth on a captive people no matter what the cost. Human suffering is dismissed as the price to be paid for the coming paradise. The response of these propagandists to the death rattles around them is to continue to speak in globalization’s empty rhetoric and use state resources to service a dead system. They lack the vision to offer any alternative. They can function only as systems managers. They will hollow out the state to sustain a casino capitalism that is doomed to fail. And what they offer as a solution is as irrational as the visions of a Christian America harbored by many within the tea party.

We are ruled by huge corporate monopolies that replicate the political and economic power, on a vastly expanded scale, of the old trading companies of the 17th and 18th centuries. Wal-Mart’s gross annual revenues of $250 billion are greater than those of most small nation-states. The political theater funded by the corporate state is composed of hypocritical and impotent liberals, the traditional moneyed elite, and a disenfranchised and angry underclass that is being encouraged to lash out at the bankrupt liberal institutions and the government that once protected them. The tea party rabble, to placate their anger, will also be encouraged by their puppet masters to attack helpless minorities, from immigrants to Muslims to homosexuals. All these political courtiers, however, serve the interests of the corporate state and the utopian ideology of globalism. Our social and political ethic can be summed up in the mantra let the market decide. Greed is good.

The old left—the Wobblies, the Congress of Industrial Workers (CIO), the Socialist and Communist parties, the fiercely independent publications such as Appeal to Reason and The Masses—would have known what to do with the rage of our dispossessed. It used anger at injustice, corporate greed and state repression to mobilize Americans to terrify the power elite on the eve of World War I. This was the time when socialism was not a dirty word in America but a promise embraced by millions who hoped to create a world where everyone would have a chance. The steady destruction of the movements of the left was carefully orchestrated. They fell victim to a mixture of sophisticated forms of government and corporate propaganda, especially during the witch hunts for communists, and overt repression. Their disappearance means we lack the vocabulary of class warfare and the militant organizations, including an independent press, with which to fight back.

We believe, like the Spaniards in the 16th century who pillaged Latin America for gold and silver, that money, usually the product of making and trading goods, is real. The Spanish empire, once the money ran out and it no longer produced anything worth buying, went up in smoke. Today’s use in the United States of some $12 trillion in government funds to refinance our class of speculators is a similar form of self-deception. Money markets are still treated, despite the collapse of the global economy, as a legitimate source of trade and wealth creation. The destructive power of financial bubbles, as well as the danger of an unchecked elite, was discovered in ancient Athens and detailed more than a century ago in Emile Zola’s novel “Money.” But we seem determined to find out this self-destructive force for ourselves. And when the second collapse comes, as come it must, we will revisit wrenching economic and political tragedies forgotten in the mists of history.

Chris Hedges, who writes a weekly column for Truthdig, is the author of “Death of the Liberal Class.”

Related:

George Orwell, “Politics and the English Language,” 1946

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