“If we had been obliged to get permission from a board of directors, from banking interests, or from outside stockholders, for the expenditure of the millions that we have put into new buildings, new machinery, and new processes, it [the expansion program] couldn’t have been done. Things go smoothly when the actual owners are right in the factory, and are the most enthusiastic of all in having the best.”
~ Dodge Brothers Factory Manager
By Catherine Austin Fitts
This week Greece and Puerto Rico rang the bell.
Greece defaulted on their IMF payment, refusing to agree to another round of bailout terms and calling for a voter referendum on acceptance of the EU proposals. And, Puerto Rico’s governor stated that it cannot pay its municipal bond debts.
This is the sound of the real economy calling for an end to economies governed by financial speculation. This is the sound of the real economy calling for leadership which knows how to create and build things rather than bankers who originate and manage government credit in order to please oligarchs.
This is the sound of the real economy stating that we can no longer afford financial corruption:
- Such as this: Another Greek Tragedy
- And this: How Goldman Sachs Helped Greece to Mask Its True Debt
This is also the sound of the real economy announcing to each and every one of us that the re-balancing of the global economy (and new technology) is unleashing powerful economic forces. We must keep up with these changes. If not, others will come in and engineer change from the top down.
The truth, the facts, and a willingness to face reality: these developments are healthy for markets.
Now that decades of strip-mining the real economy via the financial system is delivering fewer rewards, it’s a great time to focus on how we are going to rebuild the real economy. Twenty trillion or more in offshore tax havens and in the pockets of oligarchs won’t get a decent return unless the real economy functions and supports growth.
We could go to war (and steal from one another) in order to generate positive returns while the overall economy shrinks in response to systemic lawlessness. But, this would simply delay the inevitable.
Yup. We are all going to have to change.
Here is the tough question: the people who governed during a period of heavy financial speculation – in which much of the “fat of the land” mysteriously disappeared – are not the type of people we need to reengineer government and business or to generate productivity in Western economies. Recent events have proven that their tactics are dated. They are not working.
In short, the financial tsunami that’s starting with Greece and Puerto Rico is on a collision course with the hubris of the “Bush-Clinton dynasty” now running for the US presidency and headed away from reality.
Real people – those who get things done – have an urgent need for investment which will fund mission-critical security and infrastructure. We certainly cannot afford racketeering global foundations, obscene financial speculators or banks and contractors who pad their bills and numbers.
Elite waste and adult fairy tales are now on the chopping block…along with everybody and everything.
This is an improvement.
Related Reading
How Tsipras and Varoufakis turned Greek tragedy into Twitter triumph