World
Elena Pustovoitova
October 26, 2011
© Photo: Public domain

The masters of Wall-Street now can see from their windows the people, who realize that they are those who will have to pay the price for “capitalism”. According to the recent report by Comptroller of the Currency Administrator of National Banks, if two years ago five banks held 80 % of the US secondary market, now only four banks own 95.9% of it. These four banks are:  JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp. and Goldman Sachs Group Inc.

Secondary market plays the main role in the destruction of the global economy because it operates not with the real money but with their electronic (digital) fiction. According to “The Economist”, the price of the global derivatives (derivative of securities) amounts to more than $ 600 trillion while the real price of the global production (GDP) is not more than $65 trillion. That means that of bank speculations with derivatives crash there won’t be enough money in the world to save the global financial system.

Probably, not every protester at the Wall-Street understands sophisticated mechanisms the banks use to rob the countries and their people.  But the fact that they have been occupying Wall-Street for more than two weeks, clearly shows that insatiate appetites of banks for profits   have triggered unprecedented for prosperous America social protests against unemployment, corruption, excessive corporate power and expensive education. Everything started with the students, who on September 17 appeared with the slogan in the business center of New York in Manhattan. By now also Portland, Philadelphia, Miami have been “occupied”. Canadians are preparing the “occupation” of Ottawa, Toronto, Vancouver, Calgary and Montreal. Today America is protesting against capitalism.

And not only America: thousands of citizens in dozens of big cities all over the world have gone into the streets, supporting “Occupy Wall-Street” campaign in New York, turning the campaign into “an international day of solidarity against greed and corruption of 1% of the richest people”… In Rome, up to 200, 000 people have taken part in such protests. The traffic in the center of the city was paralyzed. The radical elements seized the occasion and the demonstration grew into clashes between police and groups of aggressive young people dressed in black. The protesters were throwing bottles, stones and smoke bombs into the policemen and burnt several cars on their way. The policemen responded with tear gas and water cannons.

In London, about thousands of people tried to “seize” the stock exchange but after several attempts to break the cordon and to attract others’ attention to the demonstration the people marched further along the city. There were mainly young people among the protesters. Many of them were holding leftist slogans calling for the end of reduction of state expenditure and the resignation of the government of David Cameron.

Similar protest campaigns against the power of super-rich people have been held in Germany and France, Spain and other countries. Even Western journalists, who usually do not look for cause-and-effect relations, all as one say that the protesters went into the streets to express their discontent with the state of economy and the governments’ policy. Even the US has more than enough reasons for it: the unemployment rate does not go below 9%, among Afro-American young people it exceeds 46%, while Obama’s promises to resolve this problem have not been kept.

It is remarkable that people are protesting against “the growing power of the ruling class”, uncontrolled influence of corporations in politics, against banks, which filled up their purses before and during the crisis making poor people poorer and rich people richer.  Taking the rap for someone else is always clearer to people than professional speculations of economists about a difficult nature of the financial crisis.

What evokes smile is that speculative trader George Soros, who is very sensitive to any changes in political situation, has upheld the protesters. He profoundly noted that the money of taxpayers is used not to maintain the society but to maintain the financial elite: banks, companies and corporations, which known only one way to “stabilize the economy”: on receiving billions from governments they give loans to citizens collecting their interests. They also give loans to companies, which have to sack people in order to minimize costs and to keep profits.

American experts note that the financial shocks of the last three years have exposed the contradictions of the capitalistic model. The stake on big corporations, protection of their interests against the interests of small and medium business, ignoring social processes in the society have led to mass protest campaigns in the US and those countries, which are trying to develop following the US model.    

But no one can stop the financiers, who are so obsessed with speculations that the governments (including Russia) have to save them at the expense of tax payers. Bankers won’t share profits they made for the account of the governments in exchange for the threat of bankruptcy. In fact the situation we are observing now corresponds with the classic revolutionary situation (according to Karl Marx).   

In Russia this situation is not so dramatic but not because our people lack the “rudiments of democracy”, but because the market of derivatives in Russia is much smaller than the Western one and the economic tools of robbing the population are poorly developed. But it will come with the time. In Eastern Europe, which kept many principle of the social policy from their socialistic past the protests of population do not spoil the general picture of well-doing.  In Scandinavian countries, where the interests of citizens are traditionally the priority for the governments the situation is quiet.  It is only at first sight the unrest in Greece, where the authorities are drastically cutting social programs, differ from the campaign in New York.   
 
Greek people were the first to feel the price of rescuing the Western financial system, paying for bankers’ greediness with their pensions, scholarships, salary supplements. Italians come next. After that the risk-zone will cover Great Britain, where social revolts have become a regular thing in recent years. Than it will take France and Germany, for which account the euro is now being rescued. It is clear that bankers-swindlers are not sitting idly. They have a powerful system of political influence on society in their hands. Orders have been given, wheels are rotating, politicians and political parties have begun to work off the donations on their election campaigns and not only on them.  Washington has already found a “whipping boy” an entrepreneur and a potential presidential candidate from the Republican Party Mitt Romney. In Europe socialists are hoping to strengthen their positions. But “Occupy Wall Street” campaign is not destined to shake the basis of the American society at least because this society won’t knock out bricks from the basement it is standing on.

 

The views of individual contributors do not necessarily represent those of the Strategic Culture Foundation.
US-Europe: signs of class struggle

The masters of Wall-Street now can see from their windows the people, who realize that they are those who will have to pay the price for “capitalism”. According to the recent report by Comptroller of the Currency Administrator of National Banks, if two years ago five banks held 80 % of the US secondary market, now only four banks own 95.9% of it. These four banks are:  JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp. and Goldman Sachs Group Inc.

Secondary market plays the main role in the destruction of the global economy because it operates not with the real money but with their electronic (digital) fiction. According to “The Economist”, the price of the global derivatives (derivative of securities) amounts to more than $ 600 trillion while the real price of the global production (GDP) is not more than $65 trillion. That means that of bank speculations with derivatives crash there won’t be enough money in the world to save the global financial system.

Probably, not every protester at the Wall-Street understands sophisticated mechanisms the banks use to rob the countries and their people.  But the fact that they have been occupying Wall-Street for more than two weeks, clearly shows that insatiate appetites of banks for profits   have triggered unprecedented for prosperous America social protests against unemployment, corruption, excessive corporate power and expensive education. Everything started with the students, who on September 17 appeared with the slogan in the business center of New York in Manhattan. By now also Portland, Philadelphia, Miami have been “occupied”. Canadians are preparing the “occupation” of Ottawa, Toronto, Vancouver, Calgary and Montreal. Today America is protesting against capitalism.

And not only America: thousands of citizens in dozens of big cities all over the world have gone into the streets, supporting “Occupy Wall-Street” campaign in New York, turning the campaign into “an international day of solidarity against greed and corruption of 1% of the richest people”… In Rome, up to 200, 000 people have taken part in such protests. The traffic in the center of the city was paralyzed. The radical elements seized the occasion and the demonstration grew into clashes between police and groups of aggressive young people dressed in black. The protesters were throwing bottles, stones and smoke bombs into the policemen and burnt several cars on their way. The policemen responded with tear gas and water cannons.

In London, about thousands of people tried to “seize” the stock exchange but after several attempts to break the cordon and to attract others’ attention to the demonstration the people marched further along the city. There were mainly young people among the protesters. Many of them were holding leftist slogans calling for the end of reduction of state expenditure and the resignation of the government of David Cameron.

Similar protest campaigns against the power of super-rich people have been held in Germany and France, Spain and other countries. Even Western journalists, who usually do not look for cause-and-effect relations, all as one say that the protesters went into the streets to express their discontent with the state of economy and the governments’ policy. Even the US has more than enough reasons for it: the unemployment rate does not go below 9%, among Afro-American young people it exceeds 46%, while Obama’s promises to resolve this problem have not been kept.

It is remarkable that people are protesting against “the growing power of the ruling class”, uncontrolled influence of corporations in politics, against banks, which filled up their purses before and during the crisis making poor people poorer and rich people richer.  Taking the rap for someone else is always clearer to people than professional speculations of economists about a difficult nature of the financial crisis.

What evokes smile is that speculative trader George Soros, who is very sensitive to any changes in political situation, has upheld the protesters. He profoundly noted that the money of taxpayers is used not to maintain the society but to maintain the financial elite: banks, companies and corporations, which known only one way to “stabilize the economy”: on receiving billions from governments they give loans to citizens collecting their interests. They also give loans to companies, which have to sack people in order to minimize costs and to keep profits.

American experts note that the financial shocks of the last three years have exposed the contradictions of the capitalistic model. The stake on big corporations, protection of their interests against the interests of small and medium business, ignoring social processes in the society have led to mass protest campaigns in the US and those countries, which are trying to develop following the US model.    

But no one can stop the financiers, who are so obsessed with speculations that the governments (including Russia) have to save them at the expense of tax payers. Bankers won’t share profits they made for the account of the governments in exchange for the threat of bankruptcy. In fact the situation we are observing now corresponds with the classic revolutionary situation (according to Karl Marx).   

In Russia this situation is not so dramatic but not because our people lack the “rudiments of democracy”, but because the market of derivatives in Russia is much smaller than the Western one and the economic tools of robbing the population are poorly developed. But it will come with the time. In Eastern Europe, which kept many principle of the social policy from their socialistic past the protests of population do not spoil the general picture of well-doing.  In Scandinavian countries, where the interests of citizens are traditionally the priority for the governments the situation is quiet.  It is only at first sight the unrest in Greece, where the authorities are drastically cutting social programs, differ from the campaign in New York.   
 
Greek people were the first to feel the price of rescuing the Western financial system, paying for bankers’ greediness with their pensions, scholarships, salary supplements. Italians come next. After that the risk-zone will cover Great Britain, where social revolts have become a regular thing in recent years. Than it will take France and Germany, for which account the euro is now being rescued. It is clear that bankers-swindlers are not sitting idly. They have a powerful system of political influence on society in their hands. Orders have been given, wheels are rotating, politicians and political parties have begun to work off the donations on their election campaigns and not only on them.  Washington has already found a “whipping boy” an entrepreneur and a potential presidential candidate from the Republican Party Mitt Romney. In Europe socialists are hoping to strengthen their positions. But “Occupy Wall Street” campaign is not destined to shake the basis of the American society at least because this society won’t knock out bricks from the basement it is standing on.