The Aristocracy of our Monied Corporations

| November 16, 2011 | Reply

“I hope we shall . . . crush in [its] birth the aristocracy of our monied corporations.”
Thomas Jefferson

Much has been written about the causes and the effects of the financial crisis of 2008. The right blames easy home loan credit they claim was mandated by federal laws and Democratic legislators. The left blames corporate greed run amok after the GW Bush administration gave up regulation of the financial sector to the “free market.” It is important to know who the players were that brought us to a world-wide economic crisis in 2008 and another which is working itself out in Europe right now as a result of the sovereign debt crisis in the Southern tier of European Union countries of Greece, Italy, Spain, and Portugal. The Irish financial crisis was as a result of an exploded housing bubble much as unfolded in the US. It is important to note there are neither “easy home loan credit… mandated by federal laws” or “Democratic legislators” in Ireland.

At the core of the crises is a group of US based banks and financial services corporations, chief among which are Goldman Sachs. Bank of America, JP Morgan Chase and Citigroup, along with Goldman Sachs, are still making massive investments in risky derivatives such as credit default swops and credit default options and currently hold over 95% of such contracts in that market.

But, Goldman Sachs has had at the nexus of all the actors its players and yet another has just been appointed as the new head of the European Bank, Mario Draghi. Mr. Draghi’s immediate past position was with the Bank of Italy and just before that Mr. Draghi was with Goldman Sachs. It was during Mr. Draghi’s tenure at Goldman that the firm came under heavy fire for mis-stating Greece’s debts so as to ease its entry into the EU.

Italy’s likely new appointed PM, Mario Monti, is also a Goldman Sachs alumnus and will have to leave as the Euro Chair of the Trilateral Commission if he enters government service.

Lucas Papademos, the newly appointed PM of Greece, is a technocrat and that’s thought to help Greece and the EU but, resigned (as required) as a member of the Trilateral Commission upon his government appointment. Mr. Papademos served as a member of the Trilateral Commission along with the CEOs of Goldman Sachs, JP Morgan Chase and folks from AIG and other major Wall Street players that brought us the 2008 meltdown and now have brought the entire EU sovereign debt crisis to a boil.

The very scary reality is that the next economy to falter after the Southern tier is France. France holds the highest amount of any nation of the sovereign debt of the South. Soon, France may lose its AAA credit rating which it has held to even though its debt to GDP ration of 83% is higher than the about 62% of the US. France will next have to enact “austerity measures” such as those already imposed in much of the EU and which have caused riots in Greece.

What this all means to us poor average Americans is that while we work hard, pay our taxes, save for our retirements and kids’ college, forces beyond our ken and control are at work around the Western world to make sure that the interests of our monied corporations are those which are served and that our votes, our elections and our very dreams for ourselves and our children just don’t matter any more. And see here and here.

There was a war while we slept last night, we lost. Goldman Sachs and its ilk won by removing all our wealth to them, by removing elected officials to be replaced by their former employees and by taking over our dreams and replacing them with their own.

“As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed.”
Abraham Lincoln

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Category: Corporatocracy, Politics

About the Author ()

imothy E. Hogan is a trial attorney, a husband, a father of two awesome children and a practicing Roman Catholic in St. Louis, Missouri. Mr. Hogan has done legal and political work in Jefferson City, Missouri for partisan and non-partisan social change, environmental and consumer protection groups. Mr. Hogan has also worked for consumer advocate Ralph Nader in Washington, DC and the members of the trial bar in the State of New York. Mr. Hogan’s current interests involve remaining a full time solo practitioner pioneer on the frontiers of justice in America, a good husband and a good father to his awesome children.

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