Skip to main content

Fed's artificial crises

The ascendance of finance in recent decades has oriented understanding of ‘the economy’ toward financial terms and policies. The Federal Reserve at the heart of ‘monetary’ policy in the U.S. is a public- private consortium run by bankers in the interests of Wall Street. The history of Fed policies in the modern era, from the end of WWII to the present, is of engineering periodic recessions to protect bank ‘assets’ from depreciation through inflation.”

When considered in historical context Mr. Volcker’s actions were at the vanguard of the corporate-capitalist coup that goes far in explaining present circumstance.”

That Fed Chair Volcker was appointed by Democrat President Jimmy Carter in the midst of broad moves to ‘de-regulate’ the U.S. economy and the wholesale abandonment of the Keynesian policies that had guided the U.S. since the Great Depression is more than an accident of history. The epic that followed, finance capitalism, is still under way and it represents a series of manufactured crises in support of a financial plutocracy."

"Mr. Volcker was a former banker and the confluence of circumstances that contributed to public acceptance of barely plausible explanations of the events of the 1970s, the roots-genesis of current circumstance, were contrived and sold with the goals of breaking organized labor and creating-recreating the system of economic expropriation through finance that preceded the Great Depression."

"The first ‘tool’ used was the sequential energy ‘crises’ that began with multi-national oil companies holding oil supplies offshore under the misdirection that an ‘Arab oil embargo’ was the cause of suddenly reduced energy supply. The Iranian Revolution later in the decade was a real but geopolitical, not economic, explanation of energy shortages. The OPEC ‘cartel’ members initially in favor of withholding oil from the U.S., Iran and Venezuela, were supporting U.S. geopolitical interests in the early-mid 1970s. (Oil prices have international consequence). The engineered energy ‘crises’ did cause a rise in ‘inflation,’ but the term is wholly misleading as economic explanation.”

By raising interest rates Mr. Volcker attracted international capital chasing high yields on U.S. assets and raised the value of the U.S. dollar. In conjunction with sequential energy ‘crises’ Mr. Volcker effectively killed the industrial economy by making U.S. goods more expensive overseas. The massive industrial unemployment that resulted took place at the precise time of pivot toward financialization of ‘the economy.’"

"The misdirection put forward then and now was that factories were closing because U.S. labor was too expensive and that U.S. factories were no longer ‘competitive.’ To be clear, the currency exchange rate determined the ‘price’ of U.S. labor relative to overseas labor and this is the ‘price’ that was dramatically raised by Mr. Volcker. Upon Ronald Reagan’s election the process of financializing the economy was moved further forward through Mr. Reagan’s appointment of ex-Merrill Lynch banker Don Regan as Secretary of the Treasury.”

The distinction between ‘natural’ and ‘unnatural’ unemployment is a dim hoax designed to convince workers who are being screwed that it is ‘nature’ doing the screwing when it is specific industrialists and financiers who are doing it and particular economists who are mystifying the process.”

And by putting forward discussion of ‘inflation’ framed as a relationship between ‘real’ prices and employment the mainstream has supported the banker economics of the Federal Reserve in regularly and needlessly increasing unemployment and it has directed attention away from the role of bank money, leverage and financial asset price inflation in the massive concentration of ‘wealth’ that has taken place since the 1970s.”

In other words, radical economic redistribution schemes are not only feasible, we’ve seen one of the greatest demonstrations of radical redistribution in human history over the last thirty or so years. Rarely in human history have so few ‘owned’ so much. And the Federal Reserve has been at the heart of that ‘success’ story.”

Full article and graphs:


Related:

... if more money were going to the market, then they would lose much of their value and we would lose profits because we are the ones who print money! That's why we invented inflation, to keep governments in fear and directing money back to us through the so-called Quantitative Easing Policies. [...] When money start to spread in the society 'above acceptable limits', we create financial crises to take them back. We dictate governments to take measures and apply austerity policies directing money back to us. We keep money valuable to everyone and secure our profits.”

Comments

Popular posts from this blog

Capitalism & Genocide - Yanis Varoufakis Speech at the Gaza Tribunal, 23rd October 2025, Istanbul

Yanis Varoufakis   On 23rd October, Yanis Varoufakis testified in front of the Jury of Conscience in the context of the Gaza Tribunal. His speech focused on the economic forces underpinning the genocide of the Palestinian people. In particular, he spoke on the manner in which capitalist dynamics have historically fuelled the white settler colonial project and, more recently, how the accumulation of a new form of capital - which he calls cloud capital - has accelerated, deepened and amplified the economic forces powering and propelling the machinery of genocide. 

Iranian Seyed M. Marandi: What REALLY happened in Iran & why U.S. wants to destroy the country

Li Jingjing 李菁菁   Track records of Western interventions tell us we need to be skeptical and cautious whenever some Western politicians and pundits claim they want to liberate people in another country and bring them democracy. Seyed Mohammad Marandi is a professor at the University of Tehran in Iran. In this episode, he told Li Jingjing what happened during the protests in Iran and how Western sanctions hurt the lives of ordinary Iranians.

Israel & CIA Behind Iran Protests To Get U.S. To Attack!

The Jimmy Dore Show    As protests in Iran have heated up, western media has actively exaggerated and selectively framed the violence by using casualty figures from U.S.- and Israel-funded NGOs — all in order to build public support for another regime-change war. Former CIA officer John Kiriakou and guest Scott Ritter claim protests were infiltrated by foreign intelligence networks and that Israel and the U.S. are using “human rights” narratives similarly to the way they were used in Iraq and Syria.   Dore and Ritter contend that Iran’s government responded to armed unrest rather than peaceful protest, while mainstream outlets ignore attacks on police and public infrastructure. They warn that propaganda, sanctions, and media coordination are laying the groundwork for a wider U.S.–Israel conflict with Iran. 

Iran’s Missiles will DESTROY US Bases & Israel if Trump Attacks

Danny Haiphong   Iran is ready for war, and its hypersonic ballistic missile system could destroy Israel & US military presence forever says Scott Ritter who joined the show to break down the consequences of Trump's march to war with Iran. The former UN Weapons Inspector does a deep dive into Iran's readiness and why it should terrify Trump & Israel together. 

US & Israel support protests in Iran: Trump calls for regime change

Geopolitical Economy Report   The US government is openly backing the protests in Iran. An Israeli media outlet admitted foreign powers are arming Iranian rioters with weapons to try to overthrow the government. Ben Norton explains the geopolitical context and why the USA has sought regime change ever since the 1979 Iranian Revolution.   

Ο βασικός λόγος που ο Τραμπ διστάζει να χτυπήσει το Ιράν

"Μικρά και ασήμαντα" από τον Πίκο Απίκο Ο βασικός λόγος που δεν έγινε η επίθεση στο Ιράν, είναι το γεγονός ότι πρόσφατα, το Ιράν αποχώρησε από το δορυφορικό σύστημα GPS που είναι Αμερικανικό και εντάχθηκε στο Κινεζικό BeiDou. Που σημαίνει ότι οι Αμερικανοί δεν έχουν τη δυνατότητα να σαμποτάρουν τους Ιρανικούς πυραύλους.  Έτσι εξηγείται και το μεγάλο ποσοστό ευστοχίας των Ιρανικών πυραύλων στην τελευταία σύγκρουση με το Ισραήλ, μέσα στο Ισραηλινό έδαφος. Αλλά και το γεγονός ότι πριν λίγες μέρες, οι ίδιοι οι Ισραηλινοί ζήτησαν τη διαμεσολάβηση της Ρωσίας, προκειμένου να αποκλιμακωθεί η ένταση με το Ιράν, αφού Ισραηλινές εφημερίδες και αξιωματούχοι είχαν παραδεχθεί ανοιχτά την παρουσία πρακτόρων της Μοσάντ σε Ιρανικό έδαφος και τον κομβικό τους ρόλο στις πρόσφατες εξεγέρσεις. Οι Αμερικανοί επομένως γνωρίζουν ότι αυτή τη στιγμή οι Ιρανοί έχουν τη δυνατότητα να χτυπήσουν Αμερικανικές βάσεις (όπως απείλησαν ότι θα κάνουν αν ο Τραμπ κάνει πράξη τις απειλές του), χωρίς να μπορούν να ...

Iran's Next Strike OBLITERATES US Navy & Israel, War Has BEGUN

Danny Haiphong   Prof. Mohammad Marandi joins the show to react to Iran's vow to strike a devastating blow to the heart of Tel Aviv and US Navy as imminent US war approaches. Trump has moved military assets to the region and now Iran has responded by moving its missiles and drones in strike position. Watch until the end for an in-depth analysis of a war that's already begun, and is about to change everything with one fatal move by the US empire.

Billionaires are social distancing in super yachts as tens of millions lose jobs

Everyday, it becomes clearer: the COVID-19 pandemic is hitting poor, working, and marginalized communities the hardest. Millions of workers – especially low-wage retail, food service, hospitality, and care workers – have faced the terrible choice daily between going to work and risking their health, or staying home and risking their paychecks. Many other workers don’t even have that choice, with around 30 million people in the US filing for unemployment in the past six weeks. But billionaires don’t face these same problems. As tens of millions have lost their jobs over the past two months, billionaire wealth soared by a whopping $282 billion between March 18 and April 10, according to a new study from the Institute for Policy Studies.  And while finding enough space to wait out the pandemic is something many struggle with, billionaires have been escaping to their second (or third, or fourth) homes to ride it out in luxury – all while they position themselves to ...

Exposed: USA plans to use this country to hurt China & help Israel

Geopolitical Economy Report   In Cold War Two, the USA is pressuring countries to cut ties with China and recognize Taiwan separatists. Donald Trump blatantly meddled in Honduras' 2025 election and backed a political coup to put in power right-wing oligarch Nasry "Tito" Asfura, who strongly supports Taiwan and Israel. Ben Norton discusses US imperialism in Latin America.  

A response to misinformation on Nicaragua: it was a coup, not a ‘massacre’

There is so much misinformation in mainstream corporate media about recent events in Nicaragua that it is a pity that Mary Ellsberg’s article for Pulse has added to it with a seemingly leftish critique. Ellsberg claims that recent articles, including from this website, often “ paint a picture of the crisis in Nicaragua that is dangerously misleading. ” Unfortunately, her own article does just that. It looks at the situation entirely from the perspective of those opposing Daniel Ortega’s government while whitewashing their malevolent behavior and downplaying the levels of US support they have relied on. Her piece is an incomplete depiction of what is happening on the ground, ignoring many salient facts that have come to light and which have been outdated by recent events. The following is a brief response to Ellsberg’s main points from someone who lives in Nicaragua and has observed the situation directly and intimately: https://grayzoneproject.com/2018/08/15/a-res...