Nexus - 1603 - New Times Magazine-pages

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As creditors, they will oblige the government to slash expenditures and run up the public debt through the issuing of Treasury bills and government bonds. This public debt crisis is all the more serious because the US federal government does not control monetary policy. All public debt operations go through the Federal Reserve, which is in charge of monetary policy, acting on behalf of private financial interests. The govern- ment as such has no authority over money creation. This means that public debt operations essentially serve the interests of the banks. As creditors, they will oblige the government to slash Concluding Remarks expenditures and run up the public debt through the Financial manipulation is an integral part of the New issuing of Treasury bills and government bonds. World Order. It constitutes a powerful means to accu- This public debt crisis is all the more serious mulate wealth. Under the present political arrange- because the US federal government does not control ment, those responsible for monetary policy are quite monetary policy. deliberately serving the interests of the financiers to All public debt operations go through the Federal _ the detriment of working people, leading to economic Reserve, which is in charge of monetary policy, acting dislocation, unemployment and mass poverty. on behalf of private financial interests. The govern- This article has focused on how financial manipula- ment as such has no authority over money creation. — tion has served to shatter the structure of US public This means that public debt operations essentially | expenditure. More generally, this restructuring of glob- serve the interests of the banks. al financial markets and institutions (alongside the pil- lage of national economies) has enabled the accumu- Continuity from Bush to Obama lation of vast amounts of private wealth, a large por- The Obama stimulus program constitutes a continu- tion of which has been amassed as a result of strictly ation of the Bush administration's speculative transactions. bank bail-out packages. This critical drain of billions of dol- The proposed policy solution to the ars of household savings and state crisis becomes the cause, ultimately ax revenues paralyses the functions resulting in further real economy of government spending and spurs the bankruptcies and a corresponding Under the accumulation of a public debt which ll f the standard of livi f sae | fi d th h sages me sentes oOEresent political | Sy 2.00 Pe nan , Poth the Bush and Obama bank arrangement, ed ee deal » » ail-outs are intended to come to the . What we are dealing with is the rescue of troubled financial institu- those responsible raudulent transfer and confiscation of one, sure the payment of "inter- for monetary Herons ravings and pension funds: ank" debt operations. 9g Q an e fraudulent appropriation o In practice, large amounts of money policy are quite ax revenues to finance the bank bail- fem, fom the banks to the hedge fgg CeuDerately Serving ag toon cs low the money tal , . , WwW y funds, to offshore banking havens the interests of of electronic transfers with a view ot ore meda fg the financiers to MM .