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Third world Victory armed resistance to bankruptsUS Empire

Ozee | 08.10.2008 10:30 | Analysis | Anti-militarism | Globalisation

The Paulson plan is desperate second bailout attempt by the US imperialists to get their economy functioning again as"normal" .It is a brilliant victory for the Third world peoples fighting protracted guerilla type wars to assert their rights to national independence .US militarism,its wars financed by deficit spending,has bought the imperialist economic system already running on credit to the point of economic meltdown.The UK partner in crime has a bank bailout too.But US imperialism plans to use this Crisis as oportunity to plunder the worlds weakend finance institution.


This desperate seconfd bail out attempt by the US imperialists to get their economy functioning.
again as"normal"is a brilliant victory for the Third world peoples fighting
protracted guerilla type wars to assert their rights to national independence .
US militarism,its wars financed by deficit spending,has bought the imperialist
economic system already running on credit to the point of economic meltdown.

Behind the economic difficulties is the US economy need to finance its trade
and government debt and the need to prop up the dollar by foreign supplied
credit. There is now a near complete lack of confidence in the ability of the US economy and its bankrupt banks todeliver up profits and dividends to capital invested in their economy.

Above all it was the endless trillion dollar cost of militarism and wars for
Preserving its empire that have been been the final straw dragging the US economy to the edge of the current meltdown.The US has been ground down and the cost of the wars deficits appear endless.

.Yet in economic crisis It needs to increase its deficit spending at home by trillions.Can it afford to socialise the losses of its banks and pay for its wars too?
Credit has its limits and the bill have mounted up.Privatizing the war by cost plus contracts to mercenary companies fighting alongside the official war machine,has led to cost over runs,making the cost of the wars even more expensive,even if these contracts are often hidden and separated out of the official defense department budget.

More realistic estimates of the war costs including future care for war veterans
,military pensions ,are at more than $3 trillions and as this has been financed
by deficits the costs will be mostly passed along to future taxpayers.

These aggressive criminal US led wars were made to try and maintain the supply
of cheap oil through its Arab puppets in Saudi, Kuwait and Iraq and to keep them
under the dollar hegemony.

Once puppet allies like Saddam ,but later patriot defender of his country had to
be discarded once Saddam changed from selling oil in dollars to pricing Iraqi oil in Euros threatening the dollar hehemony itself. Proposed oil pipelines through Afghanistan ,Pakistan and on to India were a another central aim of the US oil companies and the oilman Bush.

A war to reassert US military dominance was launched under ideological cover of
fighting "terrorism" after doubtful "attacks "by Arab terrorists like 9/11and the
anthrax murders occurred in the US .A "crusade" was launched to 'defend" 'US
"freedoms" even using "sexed Up" evidence cooked up by its lackey UK partner.

Despite cover ups more and more evidence emerges that these attacks,like the
claimed weapons of mass destruction in Iraq and Saddams connection to Al Qaeda ,were simply intelligence and US undercover forces "cook ups "backed later by claims on faked al Qaeda /bin laden tapes that get posted on the internet.

As for the"Bin Laden"tapes,Bin Ladens Son,says they are fakes.

No real evidence exists that these attacks were actually carried out by
independent Arab forces that were unconnected like Bin Laden to the CIA and The
finances of the Royal Saudis puritanical Wahabi fanatic security services and
the Pakistani security service.

The peoples of Afghanistan and Iraq fought back organizing themselves under the
organizing concept of self defensive "jihad"to mobilize their peoples giving
their armed response to The US announcing a invading "crusaders "war. This gave it a religious appearance of a war between civilization.

But its essence for people fighting back is anti -imperialism by Muslim peoples.In in their own cultural/religious tradition they have named these wars against imperialism for independence 'jihad". United fronts to unite all against imperialist wars and invasions can call themselves a defensive " jihad" if it fits the need .Even if reactionary class elements try and asset their own religiuos leadership, that will be sorted out by the resisting people in the course of struggle.

The US claims that any resistance to their military occupations and attempts to
divide Iraq by ethnic cleansing into manageable zones for occupation or the
military rule they attempt to impose of the Northern druglords in Afghanistan
has come only from Muslim "militants",that any resistance is only from "Taliban"
and Al Qaeda crazy terrorists.

This is simply their war propaganda .

The dollar hegemony is central to globalist economics of Empire It means for example that countries like China were forced to reinvest their dollars , their share or cut from exploiting Chinese cheap labour in American dollar reserves ,treasury bills and the likeUS property market government sponsored and guaranteed mortgage backed entities like Freddie Mac and Fanny May.With the ongoing collapse of property values and growing foreclosures the US government was forced to nationalize these fast becoming bankrupt entities to ensure payment of the guaranteed dividends on their bonds.

But the necessary day to day credit supply -the Money markets -are in a state of freeze and much doubt remains that they can be made to function again anytime soon ,no matter how much money is pumped into the money makets by government. Ordinary investors are in a state of fear of to risk their own money in the capitalist noney markets.

The passage of the bailout bill ramroded through congress last week despite its
earlier rejection by congress reflecting the clearly public opinion and
opposition from the American people ,shows the state of 'democracy"in America is
at a low ebb as Wall St. brutally triumphed with its plan to socialize their
massive losses and impose them on the taxpayers and impose Paulson as a
dictatorial economic Tzar.

Paulson is attempting since last Friday to get the second part of its bailout of
the bankrupt imperialist superpower up and running as a plunder force.

But cracks are appearing
everywhere As world money markets remain frozen.None of the banks will loan to each other except at Usury rates . And in that situation especially many in the money markets who had lots of their dough or losses locked up in the Lehman bank. So none of the money market money trusts the banks want to play.

For a quick look at the state of play in the economic markets on the second of
this month see:The wall st. bust.

 http://www.prudentbear.com/index.php/commentary/creditbubblebulletin?
art_id=10125


The worlds money markets(credit supply) have been "seized up"for the past two
weeks only massive injections of new money by the imperialist worlds central
banks have allowed the flow of credit totick over in a limited way as the fed
tried to inject "liquidity" Hundreds of billions have been injected for little
effect.

So Private capital ,the hedge funds and mutual funds and the banks will not come
to the party and are trying to conserve whatever capital they can lay their
hands on and are too frightened to even loan capital to other banks .That most
suspect are all possibly infected by dud AAA US bonds -The so called toxic debts flogged
off by American financial institutions worldwide in recent years ,as
"collatorised debt " .CDO and the like financial tools that far from being based
on real assets were simply bundled debts often centered on the property markets
but in the end such debts as credit card and student loan debts.

This ongoing slower paced first bailout organized by the fed pawning or swapping
dud bonds for loans of treasury bonds in recent months has proved to be
ineffective in restoring confidence and capital to US financial institutions .

Banks and Insurance companies have crumbled ,the valuable parts of their assets especially their depositors accounts are
flicked over to the selected big boys while the fed sucked up responsibility for
the bad bits the dud bonds etc. for the taxpayer to pay out.

FIRST BAILOUT.

 http://blogs.cfr.org/setser/


says:
By my count, the Fed is now providing about $1.25 trillion in liquidity support
to the global financial system.

The Fed's latest balance sheet data shows: $80b of repos; $150b of term auction
credit, $410b in other loans, $30b in portfolio investment with "Maiden Lane"
(the Bear Stearns vehicle), $320b in "other assets," and $260b in securities
lent to dealers.
Frankly the TARP is now starting to look small relative to the Fed's balance
sheet."

After the seizure of Washington mutual and the disguised bail out of Lehman
Bros. Bank ,the shenanigans around the takeover of AIG another disguised bailout by the Fed ,
there was a complete loss
of confidence in all US financial institutions . As shown by the collapse of the
money markets by a rush to redeem the money of investors in that market .
A massive "bank run "was occurring with this complete lack of confidence .

Paulson had to pull a rabbit out of the hat to calm the money markets as"The
sucker was going down"fast.

Militarist spending and a credit crisis have their real world cost
For some Americans, the pain is already acute: jobs disappeared at a faster clip
in September. For many others, day-to-day finances are fine for now, but the
financial outlook is uncertain: 401(k)retirement fund accounts are dwindling, loans are hard to
get and house prices continue to fall.

It can only get worse for the ordinary
people as long as they allow the crazy globalized economy to bail out the rich and
militaristic spending for wars continues The national debt expands but the
credit supply is drying up and foreign creditors present their
is growing fast as finance institutions and construction workers are laid
off. Many will of course default on their house payments adding to the crisis.

I am sure the Taliban And the Iraqis are laughing, believing that the final
victory already belongs to the people as US imperialism spent itself broke with its military adventurism

All the major institutions in the world are trying to deleverage. but they're trying
to deleverage at the same time.
Well, if huge institutions are trying to
deleverage, you need someone in the world that's willing to leverage up.
And
there's no one that can leverage up except the United States government its remaining main strengh the dollar hegonomy based on a printed fiat dollar monopoly.

SECOND,LAST DITCH BAILOUT

Money market collapse.How could US imperialism and its economic system be saved?

A desperate criminal plan was concocted on the fly for a huge gift from the
taxpayers to the big banks by Paulson and wall st. friends to restore some
confidence in the US banks ,the money and share markets .That is one side of the Paulson plan. The other side of the plan In fact is an attempt to reset ,or make a new start for US imperialism by getting US Finance capital first back on its feet in a collapsing seized up world economy,by re-capitalizing the US banks to plunder the weak while they are still on their knees and dozey with shock.

The fact is The US was entering free fall meltdown nearly two weeks ago .
Capitalism cannot function in its day to day operations without a short term supply of credit.If capitalists are too frightened to loan capital the system freezes up. That is what happened and the economic system was entering meltdown .

For a blow by blow ,hour by hour description of why Paulson launched his desperate save the economic system plan.
On what really happened that day. See:

 http://revolutionradio.org/2008/10/02/36-hours-of-alarm-and-action-as-credit-crisis-spiraled/


"The market was 500 trades away from Armageddon on Thursday, traders inside two
large custodial banks tell The Post.

Had the Treasury and Fed not quickly stepped into the fray that morning with a
quick $105 billion injection of liquidity, the Dow could have collapsed to the
8,300-level - a 22 percent decline! - while the clang of the opening bell was
still echoing around the cavernous exchange floor."

Or,Read this one!


 http://www.nypost.com/seven/09212008/business/almost_armageddon_130110.htm


Paulson deciding the jig was up for the economic system and so set out to rebuild the superpower.

He launched his corporate state Bazooka plan ,for the state to soak up dud bonds and to
recapitalize the US banks in a play for re-organization time before a complete
collapse.

Rather than seeing the US hit the canvass alongside the other imperialists and
staying down with them,Paulson and his banker friends decided they would attempt
to be the last man standing the only banks with capital and having the chance
for a big buy up when the blood started to flow on the bourse streets worldwide.

Paulson was declaring"Game over. But I will press the reset button now for a new
start in another ballgame. One
where we own strong banks playing and yours are week duds. Winner take all.

So, if we add to the 1 .25 trillion already loaned out by the fed as counted above by B. Setser above to add liquidity (an amount that has since increased by at least US 300 billion)we have a total of more than two trillion dollars out of an economy that has a GDP of about 1/12 trillions we are dealing with a sum of loans greater proportionally than the huge anti-communist Marshal plan designed to achieve US dollar and political hegemony after WW2 in Europe .Henry Lieu says:

"The US offered for European relief up to $20 billion ($200 billion in 2008 dollars, or 10% of its GDP which would come to $1.4 trillion in 2008).."
This current Marshal Plan the Paulson plan has similar aims .

What a lurk for the banks and Paulson personally, it had all been .Flooding the
world with dud US AAA bonds
Trillions had been sucked in to the US banks.

First they set themselves to make a bundle in fees and commissions ,then they
bundled up the mortgages as bonds with guaranteed incomes fictionally valued as multiple of price /earnings ratios of the supposed future income payments from the mortgages.So multiple years of payments were collected in in advance by the banks as payments for the AAA bonds .

But more importantly the mortgages were moved off the banks books Under
fractional reserve banking system this meant they were free to create more debt to finance even more mortgages,creating even more bonds to sell .

Paulson had been at the very criminal heart of this scam working out new varieties of these pyramid scam bonds. He was so good at it that he collected a half a trillion dollar payoff when he left Goldman Sach bank to become Treasury secretary for Bush.

As always in time of economic crisis, that corporate state plan to socialize the
bulk of the losses in one sweep met some resistance by the free market
theoreticians of capitalism in congress and academia .
But also as is usual in times of crisis,the ideologues were swept to one side as the practical pragmatists won out to enforce the real dictatorship of the imperialist
capitalist class interests in supporting bailout stage 2 The Paulson plan.

"We gotta do something to save our skins." The bankers wailed. "Hey they want us to pay the dividends we guaranteed and that is not right!
We are broke if that happens .
Who rules this country anyway?
Since when bankers give refunds!"
Please swap these dud bonds for real money.

"Sure we already got paid for the bonds once ,but the game of double our money
and nothing for the people is the rules of the game we want to play now ."
If we do not pay these dividends the whole economic system would collapse . -create some fear- Look even the money markets have seized up. Capital is on strike"

This second bailout with a price tag starting at more than 800 billion US
dollars ( roughly a trillion dollars
Australian and equal to the Australian GDP)was pushed through congress by
Bush/Spaulding and wall st. interests by creating a climate of fear. -That unless
this particular Paulson plan was passed immediately -the whole economic system
And the world as we know it would collapse into a new great recession or even a
great depression .

The politicians and the ruling class owned Media toed the class line to induce
the fear .
The plan went down with the public like a lead balloon congressmen and women at
first
held back and refused to vote for such and obvious rip-off but were ordered to
re-vote
and a combination of pork and class solidarity achieved the desired by capital
result .

With the second leg of the bailout providing some fresh capital for some
selected banks ,including old merchant banks now converted to full deposit taking savings banks.
That meant they moved into the debt creating business as fractional reserve banks able to create
debt in multiples of deposited money. The field has been cleared for these big
monopoly banks for the plunder of the shareholders old capital and of those holding
bonds issued by the banks to be taken over .

Ghengis Khan Bush and his selected imperialist recapitalized banks are now an
armed with printed bailout dollarsA Plundering Herd, with bankers war plans.
Remember these are finance capitalists proffessional speculators in Usury.Expect no mercy.

The recapitalized US banks will plunder financial institutions throughout the
world that are now weakened by holding Dud near worthless US bonds.
Once taken over those dud bonds on the victim banks books ,can simply be pawned by the new Anglo/American bank owners on the Paulson friends list ,flicked over to the fed and the US taxpayers as Dud bonds for even more cash .aladin economics new bonds for old .

This is a co-operative plan by a partnership mainly between US
and some mainly English banks -The Anglo/US imperialist Bloc of finance capital .They plan to rebuild the broke superpower as the dominant imperialism.
England is no longer the workshop of the world or a 'nation of shopkeepers"

Under globalism,like the US,it has exported most of its manufacturing industry in order to exploit cheap third world labour It is now a country with an economy that has been likened to a giant hedge fund,perhaps 20% of its workers are employed in financial sector institutions of speculation.Another unproductive parasite
imperialist shopping mall economy!

This kind of Anglo/US collusion can be seen by the imperialist blocs in the past during two world wars,there is always a tight connection between US and English
capital. There is always collusion and contention between the different
imperialist blocs. Contention is the main thing when the chips are down .

And the chips are down now . The future of the rebuilt
superpower and the dollar hegemony is at stake .

Shock and awe fear followed by a preemptive strike by recapitalized
mostly Anglo/US capital is the plan. Weak small countries and third world banks
will be lapped up for breakfast,but the main target the big plum is the looting
of European capital through the takeover of the bulk of its weakened financial
institutions Especially the weak Eastern European banks Spain and Italy are on
the" to do"next list.

Many of the East European countries have borrowed money in the stronger euro
and US currencies. Some of their banks are weighed down even by a minimal exposure to holding dud US bonds .

Many will beg for "rescue" by the now recapitalized big US banks.

As these European banks do not have a central European bank apart from the Euro-zone currency area bank. The new mainly eastern European part of the union are the weak links that will quickly crack up under the pressure of the ongoing credit freeze up and business downturn

who will lend to these weakened European banks?
They face an Icelandic future.

 http://ukhousebubble.blogspot.com/2008/10/it-is-game-over-in-iceland.html


Their last defense can be to assert a national sovereignty to defend their own
economies as runs on the banksand money markets begin to accelerate.

The process of division in Europe , can be seen already, by the Irish and Greek
governments offering a full national insurance for depositors in their nations
banks . The UK was furious Now even the German government has promised to
Guarantee all bank deposits as yet another German bank hits the skids .Hypo bank needs tens of billions just to stay afloat this year and more next year
 http://www.bloomberg.com/apps/news?pid=20601087&sid=a4TJRQOdaCV0&refer=home

No government can afford such national bailouts of all the banks depositors in a
crisis ,as it would need to promise its tax incomes for tens of years to pay up
its guarantees. See::
Dismal maths of the economic crisis and bailout Guaranteeing banks etc.
 http://www.atimes.com/atimes/Global_Economy/JJ04Dj01.html


"Simple math helps to debunk the mumbo-jumbo carelessly thrown around by central banks and the media with respect to the present financial crisis. The exercise proves among other things that the US Treasury will certainly buy assets above fair value, while European efforts to save their banking systems are doomed."

It may be the imperialist US and its recapitalized banks may be hoping it gets worse first so it will be easier for them later!

Are European banks ready for rescue yet?

Now who has banks with dollars to buy up dollar debts,like any old dud US property bonds ?


Of course what is required is to rid the world of this unstable system of
capitalism and its imperialism, but any revolution cannot be led by the unexploited for surplus value labor aristocracies, who as bribed beneficiaries of imperialist/ globalism are its most rabid racist supporters.

What percentage In the UK are employed in its parasite finance industry?

Militarism provides the US "workers" with many subsidised well paying jobs Exploitation of third world labour provides them with cheap commodities . They feel they have a material interest in supporting Imperialism and are brainwashed "patriots " eager to rushto the defense of exploitation by empire.

It is the exploited people of the third world on whom we must place our hopes
for defeating imperialism it would be nice if agressive impeialist wars could be defeated by peacefull non violence ,ut peoples war is the only known effective fight back method against armed enslavers.

The people of the third world have nothing to lose except the chains imposed by Globalism.Some are already fighting back including Muslims.

And US imperialism is weak and running out of the ability to fight its wars by
deficit spending as it has to devote its capital to propping up its own economy.
Its deficit this year to pay for the interest alonefor its trillions of dollar bailout will be huge next year.

There is a danger of more wars as diversion from The US economic problems ,but
militarily,it is already defeated in Iraq and Afghanistan.

Any army needs supply and supply costs money.Hows it going Uncle Sam?

This victory is a matter for intense satisfaction and pride for the majority of people in this world ,Including the majority of the Industrial proletariat, who now live and are exploited in the third world for a couple of bucks a day.

And that,an EXPLOITED working class is the only class that has a material interest in leading any struggle for ending capitalism and its imperialism.




Ozee