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[cross-posted from Where Is Cassandra?]

What about them Russian spies living under "Deep Cover" in the U.S.?  Here with their anti-capitalist propaganda?

One of the spies was quoted in the first paragraph of the Wall Street Journal article on her treacherous ideology:

"The essence of capitalism is exploitation and permanent expansion to ensure profit growth and the power of mega-corporations...," Ms. Pelaez, a native of Peru, wrote in a 2007 column for El Diario La Prensa, a Spanish-language daily.

As we learned over the last 3 years (and counting), capitalism is the bestest!  Particularly the form as practiced and exported in America, predatory capitalism, where a few monolithic financial firms (Citigroup, Morgan Stanley, Bank of America, JP Morgan Chase, Wells Fargo and Goldman Sachs) make extremely risky bets in <span style="font-weight:bold;">DEEP COVER</span> with no ability to pay if the bets go bad.  

Some (Goldman Sachs, et al) of them even insure against the lousy bets and shake down the insurer (AIG) with aggressive collateral calls unmatched by any other AIG counterparty.  Sometimes it even deliberately structures the bet in a lousy fashion and insures against default.  Why not?  It only has to put down a minuscule amount to hit big.The government bailed out(and will continue to bail out: see Financial Reform Bill) these "Too Big To Fail" banks (what is that, a <span style="font-weight:bold;">get out of jail free card</span>?), asking nothing in return and offering the taxpayers the fiction that the banks will unfreeze credit and lend money to small companies and individuals again.  But they don't.

Trillions pour from government coffers to these bank vaults and the execs skim both ways.  They can't lose!  And some financial firms have too much money:

Use it or lose it. That is the choice faced by some buyout firms sitting on piles of capital they have raised but not invested. The firms are unlikely to give it up without a fight.

A fund-raising arms race last decade was followed by a sharp slowdown in investments, leading levels of dry powder to surge. Such undeployed capital stood at a record $280 billion among U.S.-focused buyout firms at the end of 2009, according to research firm Preqin.

Once the oligarchs get theirs, the propaganda begins.  

Teachers are overpaid and absent.  Public employees are ripping us off.  Why should they get pensions and not us?  The top 1% stands back in amusement and watch the rest of us fight for the crumbs on the bottom.  

During a time of record-high long-term unemployment and little hope for the future, the talk turns to deficit fears.  Gotta cut the debt.  Raise taxes and cut spending.  So taxes are raised, regressively.  On cigarettes and booze, never those making $1+ million.  Do you think a millionaire gives a damn if the cost of his cigarettes goes up $3 a pack?  He's lighting his Cubans with $100 bills.

Another way to look at it: Black & Platinum lottery cards for the poor and newly poor.  Black & Platinum credit cards for the rich.

And people are dying:

FORT LAUDERDALE, Fla. — The weak economy is crippling the government program that provides life-sustaining antiretroviral drugs to people with H.I.V. or AIDS who cannot afford them. Nearly 1,800 have been relegated to rapidly expanding waiting lists that less than three years ago had dwindled to zero.

So I ask you again, who or what is destroying the social contract?  Are we a government by the people and for the people?

Originally posted to mariesamuels on Fri Jul 02, 2010 at 02:18 PM PDT.

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Comment Preferences

  •  good job. (2+ / 0-)
    Recommended by:
    chipoliwog, nippersdad

    the drug funding cost cut could be a death sentence for some.

  •  Greed, (2+ / 0-)
    Recommended by:
    nippersdad, Loozerio

    in two words, is "not good".

    Is it sane to continue to expand the financial divide between the rich and poor, to stretch thin the ever-dwindling middle class, when the US population is the most-armed on the planet?

    When the poor are starving and have to hunt for food, watch where you walk, Daddy Warbucks. Don't get in the way of the game.

    It seems no one learns from history, ie- the French Revolution.

    "Loyalty to petrified opinion never yet broke a chain or freed a human soul." Twain

    by Gentle Giant on Fri Jul 02, 2010 at 02:46:14 PM PDT

  •  Excellent Diary (2+ / 0-)
    Recommended by:
    nippersdad, DRo

    People are dying. The selfish rich are destroying   our country. This should be on top of Rec list!

    He who has overcome his fears will truly be free

    by angry hopeful liberal on Fri Jul 02, 2010 at 02:50:20 PM PDT

  •  Capitalism is not (1+ / 0-)
    Recommended by:
    Friend of the court

    a bad system. In fact, it's a very good system. That being said, the financial meltdown was not an example of capitalism. Those banks that made the bad bets, the insurance companies that back those self same bets, should all be out of buisness right now. It's called ORM or operational risk management. The short definition is you weigh the risks against the potential gain and go from there. For those entities, there was no risk involved. A simple analogy would be the speed limit on most highways. Why do most people obey the speed limit? They don't want to pay the fine if they get caught. The risk outweighs the benefit. If most people knew that they would get in no trouble whatsoever, do you think they would be driving 65? For capitalism to work, you have to let it work. If they fail, they fail. Somebody will be right there to take their place.

    •  people drive up and down I 5 like a bat (0+ / 0-)

      out of hell.  in the valley, a big truck would get in your trunk, if you went 65.

    •  Nice fantasy capitalism you've got there going... (0+ / 0-)

      Just like the fantasy Marxism of the Soviets.

      Let's face reality here, folks. When a mega-organization is formed -- it knows it can write the laws. Whatever legal form it takes, that's reality.

      Capitalism tends to form mega-corps -- it's a low risk place to put your funds precisely because of that reality.

      There will never and never has been a capitalism that doesn't work that way -- just as there has never and will never be a Marxist state that isn't controlled by a technocratic elite primarily interested in privileging themselves.

      Throw away your "theories" and "philosophies" -- let's get down to brass tacks. Mega-corps in reality will always try to eat up the world. Democracies must stop them from forming, if you want democracy to work at all.

      And no, that doesn't simply meant extending their liabilities. We have to actively eliminate "too big to fail" organizations -- break up cartels, fund small businesses, disadvantage large businesses in any way we can.

      In reality, everyone but you and a couple of other folks over 84 years of age drive below 65. That's reality, short of a totalitarian system of speed control. Most of us know that over the course of a driving lifetime, our total bills in tickets will be infinitesimal compared to the time and aggravation we will save.

      Your metaphor is apt, precisely because it sucks so bad.

      •  So let me see if I have this correctly (0+ / 0-)

        there never were anything as sole proprieterships, what you would call mom and pop stores? mega corporatios were there at the constitutional convention making sure their interests were well represented? And the Soviet Union were technocrats? That of course explains the massive popularity of their automobiles. I think you meant autocrat. i do agree with your point on mega corps trying to devour the world, which is why I said they should have been allowed to develop food poisoning and died. Wouldn't that have "actively eliminated" them? As for the driving, well I guess I just follow the law. I'm assuming by your reply, you don't?

    •  2 things... (1+ / 0-)
      Recommended by:
      Loozerio

      People observe traffic laws because they understand the consequences of not observing them can lead to death or serious injury. There is also the concept that some people observe laws because they have an innate sense of right and wrong or it was taught to them at an early age.  

      Second, Market Capitalism is a methodology for organizing the flow of capital and markets but what we have now in the world is crony capitalism which is a gross distortion of market capitalism.  There is no true competition, there is not "free flow" of capital to meet demands, there is not the opportunity for labor to compete fairly and freely for economic activity, and the worse aspect of this nasty brand of capitalism is that the risks exposed in these markets are externalized and foisted on to the public.  

      The diarists is very correct in his assessment of the deleterious effects of this form of capitalism and if we as the sovereign people of this nation don't do something quickly to arrest this trend, our vitality as a nation will be depleted and we will be nothing more than a feudal society mirroring the worse excesses of medieval Europe.  

      --Mr. President, you have to earn my vote every day. Not take it for granted. --

      by chipoliwog on Fri Jul 02, 2010 at 05:47:43 PM PDT

      [ Parent ]

      •  two words, chipoliwog, (0+ / 0-)

        ANTI TRUST  Many, but not all, free market enthusiasts talk out of both sides of their mouths. Out of one side, they cite free market principles in order to bash reasonable regulation. Regulation, they say(blahblahblah), stifles competition(blahblahblah). Out of the other side, they whisper to their henchmen to do whatever it takes to destroy competition. It is one thing to compete and succeed with smart and legal business management. It is another to manipulate markets, fix prices and capture regulatory agencies, among many other misdeeds. Anti-trust legislation is still on the books(Sherman/Clayton), but does not exist in that it is never used. The only way to break out of this corporation imposed financial gridlock is to recapitalize the regional banks so they can stimulate the growth of small business.

        •  But crony capitalism ... (1+ / 0-)
          Recommended by:
          Loozerio

          has broken this system because they have effectively bought up the political system, extended a bizarre notion that corporations have rights equivalent (nay superior) to living persons and have effectively through the corrosive control of their money (as speech) over the political process forestalled any possibility of accountability.

          With recent Supreme Court rulings cementing these ideas in place, there will never be another anti-trust action by this government or will a corrupt politician be prosecuted for betraying the public trust.  Even the very idea that a politician should deal "honestly" has been destroyed by this court.  

          --Mr. President, you have to earn my vote every day. Not take it for granted. --

          by chipoliwog on Fri Jul 02, 2010 at 08:07:23 PM PDT

          [ Parent ]

  •  Whoever the State calls 'enemy' (4+ / 0-)
    Legally, it's just that simple.

    No state exists for its own sake, but was created and is defended to advance the interests of a particular group of people. In the case of the United States, that group of people is the owners and executives of a handful of especially wealthy corporations. Therefore, the United States calls 'enemy' any entity whose interests are contrary to the interests of those corporations, including (if necessary) its own people and the environment on which all life depends, but which the owners and executives - suffering as they seem to from a god complex - believe they exist independently of.

  •  Predatory capitalism (0+ / 0-)

    described well.

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