Wednesday, March 12, 2014

Fundamental Corruption Within Capitalism - THE BANKS

The October 2013 “shutdown” of the US government, and the financial climax associated with the deadline for a possible “debt default” by the federal government, was profitable for Wall Street.  As Michael Chossudovsky reports, powerful corporate lobby groups acting directly or indirectly on behalf of Wall Street influenced the key actors in the US Congress involved in the shutdown debate. Major interests on Wall Street were not only in a position to influence Congress; they also had inside information regarding the government shutdown impasse. As a result, Chossudovsky writes, Wall Street was “slated to make billions of dollars in windfall profits in speculative activities which are “secure” assuming that they are in a position to exert their influence on relevant policy outcomes.”

The manipulation of markets is carried out on the orders of major bank executives including the CEOs of JP Morgan Chase, Deutsche Bank and BNP Paribas. The “too big to fail banks” are portrayed, in the words of JP Morgan Chase’s CEO Jamie Dimon’s, as the “victims” of the debt default crisis, when in fact they are the architects of economic chaos as well as the unspoken recipients of billions of dollars of stolen taxpayers’ money. “These corrupt mega banks,” Chossudovsky writes, “are responsible for creating the ‘gaping wound’ referred to by Deutsche Bank’s Anshu Jain in relation to the US public debt crisis.”
Four major Wall Street financial institutions account for more than 90 percent of the so-called derivative exposure: J.P. Morgan Chase, Citigroup, Bank America, and Goldman Sachs. These major banks exert a pervasive influence on the conduct of monetary policy, including the debate within the US Congress on the debt ceiling. They are also among the World’s largest speculators.

from here

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