Economics and Politics

"The new science [of economics] is used in an attempt to demonstrate that in the imaginary 'market economy,' invented as a response to Marx, the markets are self-regulating, tend to the production of equilibrium (that is optimal, moreover), and hence merit consideration as the expression of a trans-historical rationality."

Samir Amin, "The Center Will Not Hold: The Rise and Decline of Liberalism,"
January, 2012, Monthly Review

      As the price of liberty is eternal vigilance, we must work to understand the political-economic realities of our society. We can gain comprehension of political and economic factors if we assiduously study their essence.

Hobbes                    Many of the so-called "classical" economic and political writings, such as Hobbes' Leviathan or Adam Smith's Wealth of Nations, are so full of outmoded concepts and convoluted arguments that the modern-day student finds them almost unintelligible.

      Politics and economics are only dismal when presented in a way meant to obfuscate ideas and confuse readers.

              Adam Smith

      The cabal that seized economic and political power in the United States in the first decades of the twentieth century, doesn't want American citizens to understand the workings of the political and economic systems. They deliberately obfuscate and muddle any discussion of politics and economics, keeping workers ignorant of what scams they're perpetrating.

      At times, these tactics of bewilderment become apparent to the perceptive student of world events. In August of 2007, one of the cabal's head economic confabulators, Robert Samuelson, made it clear that the world financial structure was not meant to be understood. In an article entitled "Is the Global Economic Boom in Peril?" Samuelson made this interesting statement:

"Anyone claiming to understand today's world financial system is either delusional or dishonest."

      This is an interesting statement to make in the context of an article pretending to explain certain aspects of the world financial system. What he intended to convey was a warning that the common person could not hope to understand the non-Federal Reserve System, the Wall Street crap shoot, or their accompanying scams. It's not intended that the investor or the common citizen understand what he's doing, he's just supposed to put his money into the maw of the Big Money swindle and keep his mouth shut.

      Contrary to Samuelson and other capitalist confabulators, the world economic situation can be simply and aptly described as capitalists looting workers' money through bailouts, wars, nefarious IPOs (think Facebook), and general corruption (think 2008 and 2020 bailout of capitalist corporations), all of which lead to the destitution and death of millions of workers worldwide. Even a very young (13 year old) girl can understand a great deal of the essence of what's going on economically and politically by simplifying the details.

      In this essay, we'll examine the essence of economic and political ideas and practices, simplifying them so they become understandable.


      Economics is the description and analysis of the production, distribution, and consumption of:

  • Goods (fish, cooked meals, ships, fire-starting bow, etc.)

  • Services (carpentry, fishing, cooking, etc.).

          We usually think of economics in relation to a large culture such as the United States. But to simplify, we'll refer to a fictional economy, that of the ship-wrecked Robinson Crusoe and his friends, Friday and Sunday, who live on a desert island. Crusoe has skill in building boats, but he's not adept at fishing from the ocean shore.


             Friday is an expert spear fisherman, but lacks the skill to build large boats. Sunday, a female native, is skilled in cooking, which includes fire-starting. The three find that they can exchange goods and services to their mutual benefit, thus creating their own desert island economy.        

Desert Island Economy
Has these goods and services
which he wishes to exchange
Wants these goods and services
Building large boats
Fish and meals cooked
Large boats and meals cooked
Cooking (including fire-starting) skill
Large boats and fish

Crusoe and his two friends are now exchanging goods (boats, fish, cooked meals) and services (boat building, fishing, cooking), so the services becomes a means of barter and the goods become a means of exchange--money.

     Money is simply any object used in the exchange of goods and services. Over the centuries, many objects have been used as money: cattle, beads, gold, silver, paper currency, entries in financial records. A medium of exchange must be seen by all members of an economy as possessing value. For example, Crusoe finds some old currency on the wrecked ship, but it has no value to him or the other two.

   Goods and services are the products or activities of labor--the expenditure of physical or mental effort.

   The desert island economy also has means of production: Crusoe's axe which he rescued from the wrecked ship, Friday's hand-made spear, and Sunday's hand-made oven and fire-starting bow. A means of production is any object or process which is used to make goods or carry out services. The three members of this economy could own these means of production in one of several different ways:

  • Only certain persons owning the means of production: Capitalism

  • All of the individuals owning the means of production in common: Commonwealth

  • A combination--some means of production owned privately and some shared: Mixed

    When capitalism is the economic structure, only capitalists own the means of production and all others must work for capitalist employers for wages. Wages are regular payments, on an hourly, daily, weekly, or monthly basis, made by an employer to an employee, for skilled or unskilled labor. Skilled labor is that which requires education and/or training, such as medicine or auto repair.

An Expanding Economy

   As this desert island economy begins, it is fairly simple, so the three members feel that they own and use things in common. But their simple economy soon begins to expand.

  • Crusoe also finds lumber, rum, a saw, a gun with cartridges, and a telescope on the wrecked ship; he can build simple traps to catch rabbits and squirrels for meat

  • Friday can provide not only fish but fresh water which he carries in coconut shells from a nearby stream and he can make rope from rough leaf fibers

  • Sunday can make clothes and shoes from weaving fibers from certain island plants and she can smoke fish for storage

   After completing the boat, Crusoe is able to take Friday around the perimeter of the island and select the best fishing spots. Friday and Sunday tell Crusoe that there will be a rainy season where they will not be able to fish or trap or gather, so they begin to lay provisions in store. Sunday finds a good-sized cave where they can store all the food and other goods they need.

   Since Friday and Crusoe are usually busy fishing, trapping, or gathering, the three agree that Sunday will serve as the person in charge of organizing and maintaining the store of goods in the cave.

     Sunday has become a storekeeper and performs one of the services of a banker: keeping custody of the means of exchange (money).

  • A storekeeper is simply one who has charge of accumulating, organizing, and distributing goods; in complex economies, the distribution is carried out through exchange of money.

  • A banker is a person who is in charge of the custody, exchange, loan, or issue of money

   Sunday is now receiving some of the goods and services of Friday and Crusoe for performing the services of storekeeper and banker.

   As the population of the island increases, trade with other islands is established, which requires political structures to organize and control the inter-island commerce.


   Politics is the art or science of winning and holding control over a group or nation, either through influence or force. In our simple desert island society, direction and control of group actions could take place in one or more of these ways:

  • The three could simply let things take their course, electing to have no formal government, setting up a form of anarchy

  • Crusoe, Sunday, or Friday could assert that he or she was the ruler, thus establishing a monarchy--a form of rulership whereby a queen or king, empress or emperor holds absolute or limited power, usually inherited.

  • The three could agree that they would vote on all activities, thus creating a commonwealth, government by the people for the benefit of the people.

  • One of the three could take power by force, either psychological force or violence, thus establishing a dictatorship.

  • If one of the three came to have a larger share of the money and used wealth to take control of the desert island society, that would constitute a plutocracy.

A More Complex Society

   As the population of the desert island expands, the economic and political situation becomes more complex. When the population reaches a certain size, the inhabitants of the island decide to set up an executive group, individuals elected to direct and control activities on the island. They decide that they need a written statement of the policies which the government and the citizens will follow: a constitution and a body of laws. The islanders then elect representatives to create new laws and regulations as they are needed, setting up a legislature, and they elect individuals to administer the laws, establishing a judiciary.

     They choose to establish a police force to maintain law and order on the island and they set up a military force to protect their island from foreign invaders. They decide that each islander will pay to support the activities of these government agencies, establishing taxation.

Modern Society

     Our goal is to make political-economic terms and events understandable, so ordinary citizens can regain a grasp of what is going on around them. We've seen that most books on politics or economics do little more than obfuscate terms and befuddle the reader.

Robinson Crusoe       Robinson Crusoe's simplified desert island society contained all of the features of a more complex society:

  • A government: composed of the executive, legislative, and judicial branches

  • Taxation: required payments of citizens to support their government

  • Police and military forces: to maintain domestic order and provide protection from foreign invasion

  • Economy: a system in which goods and services are exchanged

  • Goods and services: products or acts of labor

  • Labor: the expenditure of physical or mental effort

  • Money: any agreed means of exchange--including salt, cattle, pigs, goats, tobacco, gold, iron, paper currency, metal coins, and bank debt

  • Storekeeping: the accumulating, organizing, and distributing of supplies

  • Banking: the custody, exchange, loan, or issue of money

  • Capitalism: each individual owning his own means of production

  • Commonwealth: all of the individuals owning the means of production in common
The Invention of the Technology of Banking

     As we saw, Sunday, our desert island lady, performed only the first of the services of banking: keeping custody of the money or means of exchange: fish, game, fibers, rope, tools, etc. Let's take a look at how "full-service" banking was invented and by whom.

Ancient Temple      In 604 B.C.E, the Babylonian dictator Nebuchadnezzar decreed that gold would be the medium of exchange in his empire. The Babylonian temples contained strong rooms where people brought their gold and other precious items for safekeeping by the temple priests. The customers were given small clay tablets as receipts for their valuables.

Babylonian Priest      The priest-bankers demanded that the people pay twenty percent interest for guarding their valuables--not a bad racket. Some Swiss banks today charge interest for securing deposits. But most modern banks pay depositors interest on the money they keep in their accounts.

      The Babylonian priests, never letting the grass grow under their feet, discovered that most of the people depositing valuables for safekeeping seldom came to reclaim their gold and other precious items. Instead, the people began using the clay receipt tablets as a means of exchange--money.

      Now, thought the priests, the people believe that the clay tablets are backed by gold and other valuables, yet the deposits are seldom if ever claimed. We can issue ten times as many clay tablets as are backed by gold and grow rich. The priest-bankers issued clay tablets unredeemable by gold, loaned out the clay tablets at interest and were soon living the life of luxury.

     The crafty Babylonian priests had invented all the features of modern full-service banking:

  • Custody of money: gold and other precious objects in safekeeping in the temple vaults

  • The issuing of currency (something in circulation as a means of exchange): clay tablets

  • The charging of interest: money charged by banks for securing a depositor's money or money charged for a loan

  • The loaning of money: loaning of clay tablets at interest

  • The issue of fiat money: money not convertible into a commodity (such as gold or silver) of equivalent value: un-secured clay tablets

   But let's not forget two other important stratagems old Nebuchadnezzar invented which have lasted through the centuries:

  • The technology of war

  • State fiscal policy

The Invention of the Technology of War

     Nebu and his fellow-dictators discovered that war was the best way to gain and maintain control over a nation's people and the most profitable way to make money.

      War as a technology is highly efficient, because it totally uses up most of the goods (munitions, armaments) and services (men and women in military forces) it involves. With many technologies, for example, the manufacture of goods, machinery and tools are not completely used up, they merely depreciate over time. War materiel is destroyed, requiring a constant re-supply, necessitating a "military industrial complex" to furnish the objects and personnel involved.

     The technology of war became a major part in a ruler's arsenal. So in 1514 when Machiavelli formulated his advice to rulers in his book The Prince, one of his axioms was: "A [ruler] ought to have no other aim or thought, nor select anything else for his study, than war and its rules and discipline. . ."

The Invention of State Fiscal Policy

      Beginning with old Nebu (perhaps even before) the ruler or rulers of a state decreed what the official policy would be as to money and finances. In most centuries and in most countries, this has meant that only the rulers of a state are allowed to issue money and everyone in that state--and economically related states--must use the money created.

     The power to issue currency and coins and to set a nation's fiscal policy resides either in a monarch, the elected officials of a state, or a private group of financiers. In 1666, the profligate King Charles II and a corrupt Parliament sold the British fiscal powers to the East India Company ( a group of financiers). The East India Company established the policy that goods could only be purchased by the colonies, including America, by goods of exchange (tobacco, timber, fish, furs, rum) or coins.

     As the American colonies moved out of barter into a more complex economy, they had a dire need for currency, "bills of exchange." The colonists had very little in the way of coins, since most of their exports were traded for goods, not coins. So with the encouragement of men such as Benjamin Franklin, the colonies began to issue their own currencies to facilitate domestic and foreign trade.

     The importance of American domestic currencies is not often emphasized in American history books and we are not made aware that one of the major reasons for the revolt of the American colonists against the British is that the English Parliament in 1751 and 1763 made it illegal for the American colonies to issue currency. Had Americans accepted this British mandate, domestic trade would have ground to a halt and the colonists reduced to barter, a very inefficient method of exchange.

     After the United States was established, a national bank was chartered in 1791: the Bank of the United States. Only about twenty percent of the national bank was actually owned by the government, the rest by foreign investors. It soon became clear that the Bank was being operated for the benefit of foreign investors, so the Bank's 20 year charter was not renewed by Congress in 1811.

President Andrew Jackson       A second national bank was given a federal charter in 1816, but like the first one, it too was largely controlled by foreign investors through such front men as John Jacob Astor, Stephen Girard, and David Parish, a New York agent for the Vienna branch of the Rothschild money interest. This second national bank was controlled by Nicholas Biddle who administered it according to the aims of its foreign owners and contrary to the welfare of Americans.

      In 1836, President Andrew Jackson vetoed the bill which would have renewed the national bank's charter which expired that year. In his veto message, President Jackson said:

"The bold efforts the present bank has made to control the government, the distress it has wantonly caused, are but premonitions of the fate which awaits the American people should they be deluded into a perpetuation of this institution or the establishment of another like it."

     Americans were well rid of the foreign-dominated second national bank. But they were left in the vulnerable position of having no national bank to further their interests. The foreign financiers, especially such moneyed groups as the Rothschilds, saw their opportunity and soon sent their agents to America to begin setting up state banks. The Rothschild's primary agent in America was August Belmont, who established a large bank in New York City, but also a large number of state banks in the south. The Rotshchilds and other European financiers loaned money to state banks at high rates of interest and controlled loan decisions.

Mississippi      Many of these state banks, were also supported by state bonds. The state of Mississippi, for example, sold $5 million in bonds with which to subscribe a third of the $15 million capital of the Union Bank. The promoters of the Union Bank made ill-advised loans and within a short time the bank failed. The state officials in Mississippi realized that the foreign financiers had hoped to reap windfall profits and had been largely responsible for the failure of the Union Bank, so these officials refused to repay the money owed the foreign vultures.

     The European financiers bought up "repudiated" southern state bonds and then began to use their financial power to have the United States federal government compel the southern states to pay off the disputed claims. The Rothschilds and the other foreign financier groups also thought they might be able to use their money power to force the U.S. federal government to assume the debts of the southern state banks as federal obligations. At its inception, the newly-formed United States had assumed the debts of the colonies; so the foreign vultures thought they might be able to force the federal government to pay off the southern states' debts. The issue of "states' rights" versus a "strong central authority" became a national crisis point and the American civil war was the result.

     When reviewing the technology of war above, we saw that this is a very profitable stratagem for rulers. The Rothschilds and other European financiers had exacerbated the discord and hostility between the North and the South in America. Knowing full well that war was their best means of reaping huge profits, these vultures did everything in their power to instigate an American civil war. They worked both sides of the street, as usual.

Confederacy       The Union commissioned Jay Cooke to act as selling agent for its bond issues and Cooke arranged with August Belmont, the New York agent of the Rothschilds, to sell Union bonds in Europe. In 1861 the Confederacy sent James M. Mason to England and John Slidell to France to borrow money. Slidell was a nephew of Belmont's wife. In Paris, John Slidell entered into negotiations with the Erlanger company, confidential representatives of the Rothschilds. Slidell's daughter married Erlanger's son. Even though most investors in confederate bonds lost their shirt, the Erlangers reaped huge profits.

     The American Civil War cost the Union about $3.2 billion and the Confederacy close to $2 billion, all money loaned on interest. August Belmont, the Democratic National Chairman, sabotaged the Democratic presidential candidate, Horatio Seymour, through derogatory statements made in his New York World newspaper, assuring the election of the Republican candidate, General Ulysses S. Grant.

      The so-called Credit Strengthening Act of March 18, 1869 was passed immediately upon the assembling of the new Congress elected in the 1868 election. It was the first act passed by that body and signed by the new President Grant. The passage of that Act was equivalent to the payment to the Rothschilds and their banker satellites in America and abroad of at least $275 million over and above the amount they otherwise would have received in the form of interest and principal for the bonds they owned or controlled.

     At least since the American presidential election of 1868, the financiers who rule this country have made sure that they have hand-picked presidential candidates in both the Democratic and Republican parties. Whichever party wins, they have their puppet in power.

"The structure of financial controls created by the tycoons of 'Big Banking' and "Big Business' in the period 1880-1993 was of extraordinary complexity, one business fief being built on another, both being allied with semi-independent associates, the whole rearing upward into two pinnacles of economic and financial power, of which one, centered in New York, was headed by J. P. Morgan and Company, and the other in Ohio, was headed by the Rockefeller family. When these two cooperated, as they generally did, they could influence the economic life of the country to a large degree and could almost control its political life, at least on the Federal level."

Carroll Quigley, Tragedy and Hope

The Invention of the Permanent State of War

     As we've seen, the rulers of the United States have found war to be their biggest profit-making scheme. Thus the windfall profits for the Rothschilds and their satellites in the Civil War. As the Rothschilds were joined by the Morgans and the Rockefellers in exploiting America in the early years of the 20th century, they decided to create a private enterprise which would possess the power to set national fiscal policy and issue money. In 1913, the Federal Reserve System was created. Having set up this private national bank, the American rulers proceeded to start the next profit-making war in 1914: World War I.

Hitler with his political and financial backers      After the end of World War I, there was a short period of rebuilding war-torn Europe. Beginning in the 1930s, American and European financiers backed Hitler and World War II was the result. Europe was again devastated and, this time, so was Japan and other parts of Asia. So began the rebuilding of Europe and Asia, with money from the international financiers loaned at interest.

     Also, immediately after World War II, the rulers came up with a new invention: a permanent state of war called the Cold War. A steady supply of armaments and personnel was now required as America competed with the Soviet Union in an "arms race."

     It was decreed that America's new enemy was the Soviet Union and its satraps: East Germany, Poland, Czechoslovakia, Hungary, Romania, Albania, and Bulgaria. The U.S. had its NATO allies, but its real client-states were its Asian satellites: Japan, South Korea, Thailand, South Vietnam, Laos, Cambodia, the Philippines, and Taiwan.

     The United States rulers turned the country into an imperialist military state, supporting foreign dictators in national struggles for independence:

  • Indochina against the French
  • Malaya against the British
  • Indonesia against the Dutch
  • Philippine guerillas against American puppet Ferdinand Marcos
  • South Korea against American puppet dictator Syngman Rhee
    • 1960: Koreans overthrew Rhee - Americans put in Park Chung-hee, first of 3 army generals who would rule from 1961 to 1993
    • Americans tolerated a coup d'etat by General Chun Doo-hwan in 1979 and covertly supported his orders that led to the killing of several hundred, may several thousand, Korean civilians at Kwangju in 1980 (probably far more people than the Chinese Communists killed in and around Tiananmen Square in 1989)
  • Chiang Kai-shek and his son Chiang Ching-kuo in Taiwan
  • Ngo Dinh Diem (assassinated on American orders), General Nguyen Khanh, General Nguyen Cao Ky, And General Mguyen Van Thieu in Vietnam
  • General Lon Nol in Cambodia
  • Marshals Pibul Songgram, Sarit Thanarat, Praphas Charusathien, and Thanom Kittikachorn in Thailand (where they were essentially caretakers for the huge American air bases at Udorn, Takli, Korat, and Ubon)
  • General Suharto in Indonesia (brought to power with the help of the CIA and overthrown with the help of the Pentagon's Defense Intelligence Agency)
  • 1981: U.S. launched Vietnam-style operations in Central America, supporting insurgency against a Sandinista government in Nicaragua sympathetic to Castro's Cuba; U.S. supported cocaine trade of Nicaraguan counter revolutionaries, the "Contras"

     Now this "permanent state of war" scam has been extended by the Bush I, Clinton, Bush II, Obama, and Trump administrations in their creation and extension of the Gulf War, the invasion of Panama, the Afghanistan war, and the war against Iraq. Trump is mandating increased expenditure on the military and has decreed a permanent state of war against Iran and other countries Trump doesn't like.

  Since 1913, when the unconstistutional Federal Reserve System (FRS) was created, and since 2007 in an even more insane manner, this non-"federal" agency has been simply giving fiat money (which the FRS creates out of thin air) to selected capitalist corporations which it wants to support. Sooner or later, this super-inflationary insanity will lead to a complete collapse of the U.S. and world economy.

The New York Fed, Owned by Multinational Banks, Is Nationalizing Capital Markets

By Pam Martens and Russ Martens: April 9, 2020 ~ John Williams, President of the Federal Reserve Bank of New York

For the first time in the history of the Federal Reserve, it has signed on to a plan with Congress to nationalize the unmanageable debts of global banks and other multinational corporations and put the U.S. taxpayer on the hook for the losses. Conducting the bulk of these programs will be the Federal Reserve Bank of New York, known as the New York Fed, which is a private institution owned by (wait for it) multinational banks.

Because the New York Fed is owned by multinational banks and is allowed to create trillions of dollars out of thin air to conduct bailouts of global banks and multinational corporations since it created this precedent in 2008, it is effectively functioning as a multinational central bank with the Federal Reserve in Washington, D.C. and Fed Chairman Jerome Powell little more than titular props for what;s really going on.

According to the language in the recent stimulus bill (CARES Act) passed by Congress and signed into law by President Trump, together with an interview Fed Chairman Jerome Powell gave to the Today show on March 26, the nationalization of bad debts will work like this: the U.S. Treasury will hand $454 billion of taxpayers; money to the Federal Reserve. The Fed will, in turn, hand the bulk of this money to the New York Fed. The New York Fed will then create Special Purpose Vehicles (SPVs) using the $454 billion as loss absorbing capital (equity) to leverage its purchases of bad debts to $4.54 trillion. Ostensibly, if debt markets keep sinking and the New York Fed needs to buy up more bad debts from the global banks and multinational corporations, Congress and the U.S. Treasury will put the U.S. into ever deeper debt to oblige our multinational overlords. (Before the last financial crisis, U.S. national debt stood at $11 trillion. It has more than doubled in a dozen years to the current $24 trillion. Much of that growth resulted from fiscal stimulus measures to shore up the U.S. economy that multinational banks on Wall Street destroyed in 2008.)

So far, the Fed has newly announced it will be engaging in outright purchases of corporate bonds in both the primary and secondary markets, exchange traded funds, asset-backed commercial paper along with its ongoing purchases of Treasury securities and agency mortgage-backed securities. It is also making trillions of dollars in revolving loans to multinational trading houses against collateral that includes stocks. (Former Fed Chair Janet Yellen was on CNBC recently advocating for the Fed to consider outright purchases of stocks and junk bonds, effectively nationalizing those markets as well.)

Powell explained the newly hatched plan as follows on the Today show:

"In certain circumstances like the present, we do have the ability to essentially use our emergency lending authorities and the only limit on that will be how much backstop we get from the Treasury Department. We;re required to get full security for our loans so that we don;t lose money. So the Treasury puts up money as we estimate what the losses might be…Effectively $1 of loss absorption of backstop from Treasury is enough to support $10 of loans."

Some writers have suggested that this amounts to the U.S. Treasury taking over the Fed. But according to the text of the stimulus bill, the Treasury is simply the provider of the taxpayer cash to the Fed. And as we can see by the contracts now being drawn up by the New York Fed to hire Wall Street firms to manage these programs, the contracts are being signed solely by the New York Fed and the Wall Street firms. (See Icahn Called BlackRock "An Extremely Dangerous Company"; the Fed Has Chosen It to Manage Its Corporate Bond Bailout Programs.)

This is exactly what happened during the last financial crisis: the New York Fed was put in charge of the bailout programs and then farmed them out to multinational banks like Goldman Sachs and JPMorgan Chase--who are among the largest shareowner owners of the New York Fed. In fact, JPMorgan Chase, while Dimon was sitting on the Board of the New York Fed, signed a highly lucrative contract to serve as custodian for the New York Fed's purchases of agency mortgage-backed securities, which currently total $1.45 trillion. That contract has now been in effect for more than 11 years as the Fed promised to unwind that program, but never did, and is now doubling down on it.

During the more than 11 years that the New York Fed has allowed JPMorgan Chase to hold $1.45 trillion of Fed assets, it has pleaded guilty to three criminal felony charges and is currently under another criminal probe by the U.S. Department of Justice for turning its precious metals desk into a racketeering enterprise. One of JPMorgan Chase;s primary regulators is (wait for it) the New York Fed. One of the former bank examiners for the New York Fed, Carmen Segarra, was pressured by the "relationship managers" at the New York Fed to change her review of Goldman Sachs. The pressure was so intense that she went to the Spy Store, bought a tiny microphone, and taped the internal conversations. When she wouldn't change her review, she was fired.

Let's remember where all of these bad debts came from on which the U.S. taxpayer is now going to eat the losses. These multinational corporations and multinational banks issued debt in order to buy back trillions of dollars of their own shares to inflate their profits so that their CEOs and other top executives could claim great stock performance and get paid 200 to 400 times what their average workers were getting paid. According to the Economic Policy Institute, CEO compensation has grown 940 percent since 1978 while the typical worker;s compensation has risen by just 12 percent during that span of time. Jamie Dimon has become a billionaire as a result of stock options at his bank.

Today's unprecedented nationalization of capital markets is the end result of the moral hazard Congress created by allowing the New York Fed, owned by multinational banks, to oversee the bulk of $29 trillion that the New York Fed created out of thin air during the last financial crisis and used to bail out its own shareholder banks and foreign global banks that were interconnected via derivative contracts that were blowing up.

The definition of a multinational bank is one that physically operates in more than one country. An international bank, on the other hand, is one that engages in cross-border transactions but does not set up operations in more than their home country.

Four of the largest shareowners of the New York Fed are the following multinational banks: JPMorgan Chase, Citigroup, Goldman Sachs, and Morgan Stanley.

JPMorgan Chase describes itself as "a leading global financial services firm with assets of $2.4 trillion and operations worldwide . . . we operate in more than 60 countries with more than 240,000 employees worldwide."

Citigroup says: "In a word, Citi is global. Our more than 200,000 employees operate in a network of 1,000 cities and 160 countries and jurisdictions worldwide."

Goldman Sachs brags that it "maintains offices in all major financial centers around the world."

Morgan Stanley calls itself a "true global citizen, with offices and employees around the world." How did the underpaid, overworked, and now jobless American workers become the lender of last resort to global billionaire bankers?

The Federal Reserve Board of Governors hoped that the details of its negligence in turning over its infinite money creation to the New York Fed during the last financial crisis would never see the light of day. It battled media lawsuits to get the details of the sums loaned out and to whom for more than two years. When it lost at both the District Court and Appellate Court in New York, a group called the Clearing House Association, which included JPMorgan Chase and Citigroup, attempted to get the U.S. Supreme Court to overturn the public's right to know about the Fed's secret money spigot. The Supreme Court did not take the case and the scandalous details were revealed as a result of that as well as the Dodd-Frank financial reform legislation of 2010 mandating the release of the details of some of the programs by December 2010.

Foreign central banks got $10 trillion of the $29 trillion in loans. The following chart shows where the other $19.5 trillion in cumulative loans went.

Largest Recipients of Federal Reserve Bailout Funds, 2007 to 2011

      The difficulty is that this boondoggle of giving Wall Street billions for their crimes against the working class will not in the least solve the problem of the total collapse of capitalism.

      What ultimately must happen is that a commonwealth economic-political system--for the benefit of all citizens--must displace fascist capitalism. The current one-party dictatorship ruled by the cabal must be replaced by a commonwealth polity.